Gatekeeper Systems ($GSI.V) FINS Review
Q3 2025
I have not been very kind to Gatekeeper Systems in recent reviews, with successive downgrades as low as 2.75 for their Q2. I’ve used images of burnt out school buses, school buses with flat tires and even a dumpster fire to describe their performance over the past six to nine months.
Deserved? Absolutely. In their previous three fiscal years starting in 2022, they delivered net income of $1.9M, $2.8M and $2M, but on a TTM basis have delivered a net loss of $2.3M their last two quarters had revenue declines of 26% and 40% and underperforming gross margin in their last four sets of financials. So yes, they’ve shit the bed of late.
They have certainly not looked like the same organization as when I chose them as a 2024 Wolf Pick. At the time of that selection the stock traded at 43.5 cents. After their most recent financials the stock tumbled as low as 39 cents.
Then the news flow began, with a fast and furious series of announcements of new contracts over about a 30 day period.
Then, the big one. LIRR (Long Island Rail Road) “leaked” on June 27th worth $23M USD and sent the stock soaring by 3.5x to $1.30 where it closed yesterday and as high as $1.52.
Of course, as luck would have it, I gave up and sold them long ago for a modest gain.
Now it is interesting that the company itself hasn’t officially released a news release confirming the LIRR deal, over a full month later. I don’t necessarily read anything into this as LIRR released the results of their bidding process as part of their public disclosure naming Gatekeeper as the successful bid. So what’s the hold up?
In the interim, the company successfully used that run up in share price to raise a whopping $11.5M at $1.20 in a public offering that took only nine days to close (oversubscribed btw). Some raises are better than others and you would have to rate this as a better one given that it was done without a warrant and done at a time of strength. That offering also came just a short time after they increased their short term credit facility from $2M to $7.5M.
What may be most interesting about the two newest news releases is the company did so while sporting one of the best looking balance sheets on the Venture. This leaves them sitting on a massive pile of cash moving forward.
So with the release of their Q3 financials after the close yesterday, how do they look now?