Gatekeeper Systems (GSI) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $5.9M, down from $9.9M in Q2 2024, which included a large one-time contract; regular business revenue grew 22% year-over-year when excluding this contract.

• Announced major contract wins, including with the Toronto Transit Commission and new Canadian transit agencies.

• Expanded support for Transport Canada's video mandate for school buses and secured over $5M in new contracts post-quarter.

• Management highlights increased investment in sales, engineering, and legal to drive future contract wins.

Financial highlights

• Gross profit for Q2 2025 was $2.3M, with a gross margin of 39%, compared to $5.1M and 52% in Q2 2024.

• Operating loss for Q2 2025 was $1.3M, versus operating profit of $1.7M in Q2 2024.

• Total comprehensive loss for Q2 2025 was $1.0M, compared to income of $1.6M in Q2 2024.

• Cash and cash equivalents stood at $8.5M, with working capital of $16.1M and no debt as of February 28, 2025.

• EPS for Q2 2025 was $(0.01) basic and diluted, compared to $0.02 in Q2 2024.

Outlook and guidance

• Management expects recent investments to yield meaningful contract wins in the near future.

• Focus remains on growing base business, expanding AI, video analytics, and evidence management offerings.

• Actively pursuing large transit contracts similar in size to prior year’s $9M deal.