Gatekeeper Systems (GSI) Q3 2026 earnings summary

Executive summary

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

• Gross profit rose to CAD 6.7M for Q3 and CAD 13.8M for nine months, up 82% and 51% year-over-year.

• Operating income reached CAD 2.08M for Q3 and CAD 720K for nine months, reversing prior year losses.

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

• Strong performance and backlog driven by growth in the K-12/school bus segment, new software offerings, and expanding transit contracts.

Financial highlights

• Gross margin improved to 53% for Q3 and 48% for nine months, compared to 49% and 44% last year.

• Adjusted EBITDA for Q3 and nine months was CAD 2.36M and CAD 1.53M, both up year-over-year.

• Cash at Q3 end was CAD 7.2M, down from CAD 14.8M at year-end; total liabilities fell to CAD 4M from CAD 12.4M.

• Working capital increased to CAD 37.5M, with inventory rising to CAD 17.4M from CAD 5.2M year-over-year.

• No borrowed money debt; $6M credit facility and $7.5M letter of credit facility undrawn.

Outlook and guidance

• Significant sales funnel with CAD 300M in potential contracts across announced, spec'd, and bids in progress.

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

• No plans to raise additional capital; balance sheet and liquidity are strong.

• K-12 market expected to continue driving healthy margins and recurring revenue growth.

• Transit project timelines (e.g., LIRR, Alstom) have shifted, with revenue expected in future quarters.