Gatekeeper Systems (GSI) Q3 2025 earnings summary

Executive summary

• Achieved record fiscal Q3 2025 revenue of $7.5M, up 16% year-over-year, driven by new contracts and subscription growth.

• Nine-month revenue was $20.7M, down from $26.1M prior year due to a one-time $9M contract last year; regular business grew 21% year-over-year excluding that contract.

• Expanded customer base with new transit and school bus contracts, and significant increase in hosted service subscriptions.

Financial highlights

• Q3 2025 gross profit was $3.7M with a 49% gross margin, up from 42% in Q3 2024.

• Operating loss for Q3 2025 was $0.06M, improved from $0.45M loss in Q3 2024.

• Nine-month operating loss was $1.37M, compared to $3.42M operating profit in prior year.

• Total comprehensive loss for Q3 2025 was $0.44M; nine-month loss was $0.8M.

• Basic and diluted EPS for Q3 and nine months was $(0.01), compared to $0.03 in prior year nine months.

Outlook and guidance

• Management expects continued growth from investments in business and increased adoption of subscription services.

• Anticipates further subscription growth from recently announced contracts and ongoing market expansion.

• FRA mandate for transit agencies is expected to drive additional demand for compliant video solutions.