Gatekeeper Systems Inc. has officially commenced its largest contract to date, a US$19.55 million Federal Railroad Administration video surveillance and data solution deployment on New York’s Long Island Rail Road. Work began in January 2026 at multiple LIRR maintenance facilities, with initial installations focusing on car sheds and test tracks. Management forecasts revenue recognition of US$3.8 million in the fiscal year ending August 31, 2026—allocated as US$0.2 million in Q2, US$0.9 million in Q3 and US$2.7 million in Q4—followed by US$12.3 million in fiscal 2027 (US$5.8 million in H1, US$6.5 million in H2) and US$3.4 million in fiscal 2028 (US$3.3 million in H1, US$0.1 million in H2). These projections are based on current delivery schedules and are subject to adjustment upon auditor review or shifts in project timelines.

Gatekeeper estimates gross margins on the LIRR Project at approximately 35–40%, reflecting economies of scale in hardware production and its AI-driven analytics software subscriptions. Capital and labor costs are front-loaded in the first two quarters, with production ramp-ups at the company’s British Columbia facility. However, management cautions that any delays in equipment shipment, Federal Railroad Administration approvals or on-site installations could push back revenue recognition and affect cash flow timing. The company’s balance sheet shows a working capital surplus of C$8.4 million as of November 30, 2025, providing liquidity to absorb potential scheduling variances.

Gatekeeper has secured a US$534,000 contract (approximately C$741,000) with a Florida school district to equip nearly 100 buses with its video capture systems and Mobile Data Collectors, plus a five-year prepaid subscription to its cloud-based AI-analytics platform. Installations are slated to begin in March 2026, with upfront payment received in Q3 of fiscal 2026. The recurring-revenue nature of the subscription component is expected to boost the company’s annualized recurring revenue by US$150,000 beginning in fiscal 2027, reinforcing Gatekeeper’s PaaS model and supporting sustainable revenue growth.

With over 65,000 Mobile Data Collectors deployed across 60 transit agencies and 3,500 school districts, Gatekeeper is positioned to leverage its scale for further municipal and rail-operator contracts. The LIRR rollout enhances its reputation with large transit authorities, potentially unlocking follow-on opportunities estimated at US$50–75 million over three years. Investors should monitor actual project milestones and auditor-verified revenue recognition, as well as the company’s ability to convert one-off hardware sales into long-term platform subscriptions, which remain critical drivers of valuation in the video-analytics sector.