Gatekeeper Systems (GSI) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was $7.28M, down from $9.82M in Q1 FY2024, with net income of $363K compared to $2.39M last year.

• Gross profit declined to $3.16M from $4.78M year-over-year, with operating profit dropping to $33K from $2.12M.

• Working capital increased to $17.27M as of Nov 30, 2024, up from $16.70M at Aug 31, 2024.

• Total comprehensive income for the quarter was $576K, down from $2.34M in the prior year.

Financial highlights

• Revenue decreased 26% year-over-year; cost of sales also declined but at a lower rate.

• Net income margin for the quarter was 5.0%, down from 24.3% in Q1 FY2024.

• Cash balance rose to $8.26M from $6.72M sequentially; no debt drawn on the $6M credit facility.

• Operating cash flow was $1.55M, a significant improvement from negative $820K last year.

• Basic EPS was $0.01, down from $0.02 year-over-year.

Outlook and guidance

• Management continues to prepare statements on a going concern basis, citing strong working capital and profitability.

• No explicit forward guidance provided, but management notes increasing profitability supports deferred tax asset recognition.