Mr. Douglas Dyment reports

GATEKEEPER REPORTS $31.8M REVENUE IN FISCAL 2025

Gatekeeper Systems Inc. has released its audited financial results for the fourth quarter and fiscal year ended Aug. 31, 2025.

Fiscal 2025 and recent business highlights:

• Revenue for the fiscal year ended Aug. 31, 2025, was $31.8-million, compared with $37.8-million in the prior fiscal year. As previously discussed, the prior-year revenue included a large transit contract of $9-million in addition to the company's regular business (see news release dated Jan. 4, 2024). When excluding that large contract, the company's regular business grew approximately 10 per cent for the fiscal year ended Aug. 31, 2025;
• $43.8-million in new business contracts announced subsequent to Aug. 31, 2025, including: $27-million transit video contract with New York MTA's Long Island Rail Road; $9.3-million school bus video contract with a student transportation provider; OEM (original equipment manufacturer) contract with Alstom for transit video; and POC contract with L&T Technology Services for a freight rail project in the Middle East;
• Gross profit for the fiscal year was $13.1-million, compared with $17.2-million in the prior fiscal year. Gross margin as a percentage of revenue was 41 per cent, compared with 46 per cent in the prior year. Operating expenses for the fiscal year were $16.9-million, compared with $13.0-million in the prior fiscal year;
• Total comprehensive loss for the fiscal year was $3.0-million, compared with an income of $1.9-million in the prior fiscal year;
• Approximately 8,000 mobile data collectors (MDCs) installed for customers during the fiscal year, increasing MDC installations to approximately 65,000;
• Approximately 4,000 MDC subscriptions for video management and hosted services since the launch of the company's data centre in February, 2024;
• Completed two bought deal financings generating aggregate gross proceeds of $25-million, including $11.5-million in July, 2025, and $13.5-million in November, 2025;
• Appointed security industry executive, Hamish Dobson, to board of directors;
• At Aug. 31, 2025, the company had working capital of $23.6-million, including cash of $14.8-million, and subsequently completed a financing generating gross proceeds of $13.5-million. The company also has a $6-million credit facility plus a $7.5-million letter of credit facility with Toronto-Dominion Bank, both of which were undrawn at Aug. 31, 2025.

Fiscal Q4 2025 financial highlights:

• Revenue for the quarter ended Aug. 31, 2025, was $11.1-million, compared with $11.7-million in the prior year.
• Gross margin as a percentage of revenue for the quarter was 36 per cent, compared with 40 per cent in the prior year;
• Total comprehensive loss for the quarter was $2.2-million, compared with a loss of $1.2-million in the prior year.

Management commentary

Doug Dyment, president and chief executive officer of Gatekeeper, commented: "Two thousand twenty-five has been a transformational year for Gatekeeper. Earlier this year, against the backdrop of increasing regulatory mandates for video in public transit and school buses, we made a strategic decision to increase investment in the business to build the necessary foundation pillars to allow the company to pursue larger customers and larger contracts. We expanded the sales team and attended 66 industry trade shows this year. We increased sales focus on monthly recurring hosted services, which delivered 4,000 MDCs connected to the data centre at Aug. 31 and continues to grow. We invested in engineering, cybersecurity, legal and project management, which were paramount to our ability to win our largest-ever transit contract with the largest transit agency in North America and our largest-ever school bus contract with a leading student transportation provider.

"In the transit segment, we announced several new transit customers this year, including New York MTA's Long Island Rail Road, the Toronto Transit Commission, Alstom, a provincial transportation agency in Ontario and a transit agency in Oregon. We continued to expand business with our existing transit customers, including SEPTA, where we extended our services agreement into 2026. We are also now pursuing global growth opportunities and have announced a POC contract with L&T Technology Services for a freight rail project in the Middle East.

"In the school bus segment, we delivered several meaningful contract wins, including full-fleet installations with Live View Wireless subscriptions. School districts are embracing our data centre offering, which simplifies video analysis and storage requirements. We are also working closely with a student transportation provider, which significantly expands our reach. Through that relationship, we announced our largest-ever school bus video contract for a new school district customer in California. We also advanced our factory install program with several OEM bus manufacturers.

"Gatekeeper's business strategy has attracted significant interest from the investment community. This calendar year, Gatekeeper secured $25-million in two bought deal financings and expanded its TD Bank credit facilities to support larger projects."

Full details of the financial reports and operating results for the fourth quarter and fiscal year ended Aug. 31, 2025, are described in the company's audited consolidated financial statements with accompanying notes and related management's discussion and analysis, available on SEDAR+.

About Gatekeeper Systems Inc.

Gatekeeper is a leading provider of video and data solutions for a safer transportation environment for children, passengers and drivers on public transportation fleets. Gatekeeper has provided solutions to more than 60 transit agencies and 3,500 school districts throughout North America, and has installed more than 65,000 mobile data collectors for customers, which record video and data daily from over 200,000 onboard devices. The company's hosted software applications facilitate AI-assisted (artificial intelligence) video analytics for incident management and storage. The company's platform-as-a-service (PaaS) business model is centred around the mobile data collectors, which are the cornerstone of its data company transformation.

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