Gatekeeper Systems (GSI) Q3 2026 earnings summary

Executive summary

• Revenue for Q3 and nine months ended May 31, 2026, rose 68% and 39% year-over-year to CAD 12.5M and CAD 28.8M, respectively.

• Announced approximately CAD 73M in new business contracts during the fiscal year, with CAD 14M recognized as revenue in the nine months.

• Strongest revenue backlog in company history, driven by growth in the K to 12/school bus segment and new software offerings.

• Operating income turned positive, reaching CAD 2.1M for Q3 and CAD 720K for nine months, compared to losses in prior periods.

• K to 12/school bus market delivered the majority of Q3 revenue, with robust margins and recurring revenue growth.

Financial highlights

• Q3 revenue: CAD 12.5M (up 68% YoY); nine months: CAD 28.8M (up 39% YoY).

• Gross profit: CAD 6.7M for Q3 (up 82% YoY); nine months: CAD 13.8M (up 51% YoY).

• Gross margin improved to 53% for Q3 and 48% for nine months, compared to 49% and 44% in prior-year periods.

• Adjusted EBITDA: CAD 2.4M for Q3; CAD 1.5M for nine months.

• Cash at Q3 end: CAD 7.2M; total liabilities: CAD 4M.

Outlook and guidance

• Significant backlog and pipeline with CAD 70M in announced contracts, CAD 47M (USD) spec'd but not announced, and CAD 110M in bids in progress.

• Management expects continued revenue growth, especially in school bus and transit segments, driven by large projects and multi-year agreements.

• No plans to raise additional capital; strong working capital and liquidity position.

• Margin expansion anticipated as recurring revenue from MDCs scales up.