Gatekeeper Reports Record FQ3 2026 Results with $12.5M Revenue, 68% Growth, and $2.4M Adjusted EBITDA
Rhea-AI Summary
Gatekeeper Systems (OTC: GKPRF) reported record fiscal Q3 2026 results, with revenue rising 68% year-over-year to $12.5 million, its highest-ever quarterly revenue. Nine-month revenue grew 39% to $28.8 million. Q3 gross profit increased to $6.7 million with gross margin improving to 53%, while operating income reached $2.1 million versus a loss in the prior-year quarter.
Adjusted EBITDA for Q3 was $2.4 million and nine-month Adjusted EBITDA was $1.5 million, both up sharply from the prior year. The company highlighted approximately $73 million in new business contracts fiscal year-to-date, including major school bus and transit deals such as a $19 million SEPTA contract and a $27 million Long Island Rail Road project. Gatekeeper reported no borrowed money debt, working capital of $37.5 million, cash of $7.2 million and inventory of $17.4 million, alongside undrawn credit and letter-of-credit facilities totaling $13.5 million.
Positive
- Q3 revenue up 68% YoY to $12.5 million, record quarter
- Nine-month revenue up 39% YoY to $28.8 million
- Q3 gross margin improved to 53% from 49% year-over-year
- Q3 Adjusted EBITDA rose to $2.4 million from $0.2 million
- New contracts of approximately $73 million fiscal year-to-date
- Balance sheet with no borrowed money debt and $37.5 million working capital
Negative
- Q3 operating expenses increased 23% YoY to $4.6 million
- Nine-month operating expenses increased 24% YoY to $13.0 million
- Inventory increased to $17.4 million from $5.2 million year-over-year
News Explained
The release separates approximately 73 million Canadian dollars of announced contracts from 14 million recorded as revenue through May 31.
The July 21 release reports fiscal Q3 ended May 31 as completed and says project activity has advanced to both recorded revenue and commenced work.
Gatekeeper says approximately
It separately says the
News Market Reaction – GKPRF
In the Jul 22 session, GKPRF gained 16.84%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Abbotsford, British Columbia--(Newsfile Corp. - July 21, 2026) - Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) ("Gatekeeper" or the "Company") a leader in video and data solutions for school buses, public transit and smart cities, reports its financial results for the three and nine months ended May 31, 2026, and announces corresponding conference call details. Unless otherwise specified, all dollar amounts in this press release are denominated in Canadian dollars.
FISCAL Q3 2026 AND RECENT BUSINESS HIGHLIGHTS:
- Approximately
$73 million in new business contracts announced during the current fiscal year, of which$14 million has been recorded as revenue during the nine months ended May 31, 2026. - Revenue for the three-month period ended May 31, 2026 was the Company's highest-ever quarter revenue, increasing
68% to$12.5 million compared to$7.5 million in the prior year. - Revenue for the nine-month period ended May 31, 2026 increased
39% to$28.8 million compared to$20.7 million in the prior year. - Gross profit for the three and nine months was
$6.7 million and$13.8 million respectively compared to$3.7 million and$9.1 million in the prior year comparable periods, representing an increase in gross profit of82% and51% respectively. - Gross margin as a percentage of revenue for the three and nine months was
53% and48% respectively compared to49% and44% in the prior year comparable periods. - Operating expenses for the three and nine months were
$4.6 million and$13.0 million respectively compared to$3.7 million and$10.5 million in the prior year comparable periods, representing an increase in operating expenses of23% and24% respectively. - Adjusted EBITDA for the three and nine months was
$2.4 million and$1.5 million respectively compared to$0.2 million and$(0.7) million in the prior year comparable periods. - At May 31, 2026, the Company had no borrowed money debt and working capital of
$37.5 million , including cash of$7.2 million and inventory of$17.4 million . Inventory has increased to$17.4 million , from$5.2 million in the prior year comparable period, in correspondence with new business contracts announced during the current fiscal year. 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 May 31, 2026.
MANAGEMENT COMMENTARY
Doug Dyment, President and CEO of Gatekeeper, commented, "Fiscal Q3 2026 represents the strongest quarter in our operating history. To date during this fiscal year, we have announced approximately
The majority of the revenue growth this quarter was from the school bus segment, where we have been gaining solid traction with our new software offering for video analysis and storage. Several school districts are now turning to Gatekeeper for full-fleet video upgrades and monthly subscriptions to our data center. In fact, all the
In the transit segment, we recently announced a new comprehensive video services contract for SEPTA's 3,000 vehicles, for an initial three-year period and optionally up to five years, representing an aggregate value of
CONFERENCE CALL
Gatekeeper management will hold a conference call on July 22, 2026, at 8:45am 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/gatekeepershareholder/.
SELECTED FINANCIAL INFORMATION
| For the three months ended | For the nine months ended | |||||||||||
| May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |||||||||
| Revenue | $ | 12,541,042 | $ | 7,465,670 | $ | 28,824,753 | $ | 20,671,389 | ||||
| Cost of Sales | 5,873,693 | 3,793,648 | 15,057,726 | 11,546,294 | ||||||||
| Gross Profit | 6,667,349 | 3,672,022 | 13,767,027 | 9,125,095 | ||||||||
| Gross Margin | ||||||||||||
| Expenses | 4,583,574 | 3,732,189 | 13,046,529 | 10,491,677 | ||||||||
| Operating Income (Loss) | 2,083,775 | (60,167 | ) | 720,498 | (1,366,582 | ) | ||||||
| Total Comprehensive Income (Loss) for the period | $ | 1,432,332 | $ | (442,772 | ) | $ | 1,438,697 | $ | (801,415 | ) | ||
| Earning (Loss) per share - | ||||||||||||
| Basic | $ | 0.02 | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | ||
| Diluted | $ | 0.02 | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | ||
| May 31, 2026 | August 31, 2025 | |||||||||||
| Total Assets | $ | 44,362,739 | $ | 38,516,834 | ||||||||
| Total Liabilities | 4,020,548 | 12,419,113 | ||||||||||
| Total Shareholders' Equity | $ | 40,342,191 | $ | 26,097,721 | ||||||||
NON-IFRS MEASURES
This news release refers to certain specified financial measures and ratios, including non-IFRS financial measures and ratios such as "Adjusted EBITDA". These specified financial measures are not recognized measures under International Financial Reporting Standards ("IFRS") accounting standards as issued by the International Accounting Standards Board, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Rather, these specified financial measures ("non-IFRS financial measures") are provided as additional information to complement IFRS financial measures by providing further understanding of the Company's results of operations from management's perspective. The Company's definitions of non-IFRS financial measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting.
ADJUSTED EBITDA
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, Adjusted EBITDA is useful to securities analysts, investors and other interested parties in evaluating operating performance by presenting the results of the Company on a basis which excludes the impact of certain non-operational items which enables the primary readers of the press release to evaluate the results of the Company such that it was operating without certain non-cash and non-recurring items. Adjusted EBITDA is calculated as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense and non-recurring impact transactions, if any.
| For the three months ended May 31, 2026 | For the nine months ended May 31, 2026 | |||||
| Operating Income (Loss) | $ | 2,083,775 | $ | 720,498 | ||
| Depreciation & Amortization | 124,944 | 401,920 | ||||
| Interest Expense | 98,672 | 133,695 | ||||
| Share-based Compensation | 50,680 | 270,389 | ||||
| Adjusted EBITDA | $ | 2,358,071 | $ | 1,526,502 |
Full details of the financial reports and operating results for the fiscal quarter ended May 31, 2026, 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. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to, currency values and foreign exchange rate fluctuations between the Canadian dollar and U.S. dollar. 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 year ended May 31, 2026. 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/306005