Gatekeeper Reports $6M Revenue in Fiscal Q1 2026

Rhea-AI Summary

Gatekeeper (OTC: GKPRF) reported fiscal Q1 2026 results for the quarter ended November 30, 2025, highlighting major contract wins and a financing.

Revenue was $5.9M (vs. $7.3M prior year). The company announced ~$46.3M in new contracts including a $27M Long Island Rail Road award, a $9.3M school bus contract, OEM work with Alstom, and raised $13.5M in a bought‑deal financing. Working capital was $35M with cash of $18M.

Positive

• Announced $46.3M in new contracts including a $27M LIRR transit award
• Raised $13.5M in a bought‑deal financing to fund large contracts
• Gross margin improved to 45% versus 43% year‑ago
• Working capital of $35M with $18M cash and undrawn credit facilities

Negative

• Revenue declined to $5.9M from $7.3M (≈19% decrease)
• Operating loss of $1.57M for the quarter
• Operating expenses rose to $4.3M from $3.1M (≈37% increase)
• Total comprehensive loss of $0.78M versus prior period income

Abbotsford, British Columbia--(Newsfile Corp. - January 29, 2026) - Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) ("Gatekeeper" or the "Company") a video and data solutions provider for public transportation and smart cities, reports its financial results for the first fiscal quarter ended November 30, 2025 (the "Quarter"), and announces corresponding conference call details.

Fiscal Q1 2026 and Recent Business Highlights:

• $46.3 million in new business contracts announced during the Quarter and subsequent to the Quarter end including: $27 million transit video contract with New York MTA's Long Island Rail Road, $9.3 million school bus video contract with a student transportation provider, OEM contract with Alstom for transit video, and $0.8 million video contract with L&T Technology Services for Etihad Rail project in the Middle East.
• Revenue for the Quarter was $5.9 million compared to $7.3 million in the prior year comparable period.
• Gross profit for the Quarter was $2.7 million compared to $3.2 million in the prior year comparable period. Gross margin as a percentage of revenue was 45% compared to 43% in the prior year comparable period.
• Operating expenses for the Quarter were $4.3 million compared to $3.1 million in the prior year comparable period.
• Total comprehensive loss for the Quarter was $0.8 million compared to income of $0.6 million in the prior year comparable period.
• Completed a bought-deal financing generating aggregate gross proceeds of $13.5 million.
• Appointed security industry executive, Hamish Dobson, to board of directors.
• At November 30, 2025, the Company had working capital of $35 million, including cash of $18 million. The Company also has a $6 million Credit Facility plus a $7.5 million Letter of Credit Facility with TD Bank, both of which were undrawn at November 30, 2025.

Management Commentary

Doug Dyment, President and CEO of Gatekeeper, commented, "During fiscal Q1 2026 we announced our largest-ever contract wins in both transit and school bus segments and raised $13.5 million in the Company's largest-ever financing.

In the transit segment, we announced a $27 million contract for New York MTA's Long Island Rail Road, and we've commenced work on that project. We became an OEM transit video and data solutions provider to Alstom, a global leader in rail transport systems, and announced an Alstom contract to equip new SEPTA streetcars with video. Our business reach has now expanded globally with the announcement of a video contract with L&T Technology Services for Etihad Rail in the Middle East. During the Quarter and subsequent to the Quarter end, we announced approximately $35 million in new contracts in the transit segment.

In the school bus segment, we announced a $9.3 million contract in California with a student transportation provider, which is a business relationship that is also contributing additional growth in our OEM school bus factory installation business model. Our business in California has shown solid growth and we count over 350 school districts as our customers there, many of whom have completed full-fleet installations. School districts are embracing our video management subscription offering for video analysis and storage, and most of our recent contract wins now include this recurring revenue component. During the Quarter and subsequent to the Quarter end, we announced approximately $11 million in new contracts in the school bus segment.

The Company also raised $13.5 million in a bought deal financing during the Quarter, allowing the Company to strengthen its overall financial position to execute large contracts."

Conference Call

Gatekeeper management will hold a conference call on January 30, 2026, at 8:45 a.m. ET to review its financial and operating results and provide a corporate update. Shareholders may join the conference call by either dialing (+1) 800-717-1738, or joining through the weblink http://momentum.adobeconnect.com/gatekeeper-shareholder/.

Selected Financial Information

		For the three months ended
		November 30, 2025			November 30, 2024
Revenue	$	5,905,306		$	7,283,636
Cost of Sales	$	3,220,196		$	4,127,641
Gross Profit	$	2,685,110		$	3,155,995
Gross Margin Percentage		45%			43%
Expenses	$	4,255,342		$	3,123,410
Operating Income (Loss)	$	(1,570,232	)	$	32,585
Comprehensive Income (Loss) for the period	$	(782,941	)	$	576,093
Earnings (Loss) per share -
Basic	$	(0.01	)	$	0.01
Diluted	$	(0.01	)	$	0.01
		November 30, 2025			August 31, 2025
Total Assets	$	42,037,278		$	38,516,834
Total Liabilities	$	4,198,127		$	12,419,113
Total Shareholders' Equity	$	37,839,151		$	26,097,721

 

Full details of the financial reports and operating results for the first fiscal quarter ended November 30, 2025, are described in the Company's consolidated financial statements with accompanying notes and related Management's Discussion and Analysis, available on SEDAR+ at www.sedarplus.ca.

About Gatekeeper Systems Inc.

Gatekeeper is a leading provider of video and data solutions for a safer transportation environment for children, passengers, and drivers on public transportation fleets. Gatekeeper has provided solutions to more than 60 transit agencies and 3,500 school districts throughout North America and has installed more than 65,000 Mobile Data Collectors for customers which record video and data daily from over 200,000 onboard devices. The Company's hosted software applications facilitate AI-assisted video analytics for incident management and storage. The Company's Platform-as-a-Service (PaaS) business model is centered around the Mobile Data Collectors, which are the cornerstone of its data company transformation. 
www.gatekeeper-systems.com

Contact Information:

Douglas Dyment
President & CEO
ddyment@gatekeeper-systems.com
(604) 864-6187

Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis for the period ended November 30, 2025. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/282092

FAQ

What did Gatekeeper (GKPRF) report for revenue in fiscal Q1 2026?

Gatekeeper reported $5.9 million in revenue for fiscal Q1 2026, down from $7.3 million year‑ago. According to the company, lower quarter revenue contrasted with several large contract awards announced during and after the quarter.

How large were Gatekeeper's announced contract wins in Q1 2026 and what do they include?

Gatekeeper announced approximately $46.3 million in new contracts including a $27M LIRR transit contract and a $9.3M California school bus contract. According to the company, wins also include OEM work with Alstom and a Middle East rail project.

What financing did Gatekeeper (GKPRF) complete in Q1 2026 and why does it matter?

Gatekeeper completed a $13.5 million bought‑deal financing in the quarter to strengthen liquidity. According to the company, proceeds improve capacity to execute large transit and school bus contracts and support global expansion.

What were Gatekeeper's profitability and expense trends in fiscal Q1 2026?

Gatekeeper recorded an operating loss of $1.57 million and total comprehensive loss of $0.78M. According to the company, higher operating expenses of $4.3M drove the quarter's negative operating result despite improved gross margin.

How strong is Gatekeeper's balance sheet after Q1 2026 results (GKPRF)?

At November 30, 2025, Gatekeeper reported working capital of $35 million and cash of $18 million, plus undrawn $6M credit and $7.5M letter of credit facilities. According to the company, liquidity supports contract execution.

What is the expected impact of Gatekeeper's new OEM and transit partnerships on revenue streams?

New OEM status with Alstom and transit contracts are expected to expand recurring and project revenue streams with global customers. According to the company, recent wins also increase recurring video management subscription potential in school districts.