All right. Hello everyone, and thank you all for joining us throughout the day here at the Lytham Partners Fall 2026 Investor Conference. Again, my name is Robert Blum, managing partner here at Lytham. Up next, Doug Dyment, Chief Executive Officer at Gatekeeper Systems, will be taking us through the company's slide presentation. Doug, thank you so much for your participation here in the conference. The floor is all yours.
All right, Robert, good to be with you and appreciate that introduction. I am going to start with just a brief introduction to Gatekeeper for some of your investors that may not know about Gatekeeper. Gatekeeper is really focused on protecting people in transit using end-to-end video and data solutions on these vehicles and trains and buses. We collect the data out at the edge and we push it back. We push that evidence back to our servers. Really what we are trying to accomplish here is we are trying to collect evidence that allows our customers to better manage their operations, whether there is a particular situation on a school bus where there might be bullying going on, or in the case of really a tragic incident that just happened a few days ago in Broward County, which has now been made public.
A school bus was exiting the yard and unfortunately ran over another bus driver and killed the individual. The 360 Surround Vision systems in and around these school buses that give our school bus drivers access to video or access to images in blind spots becomes very important. That is just a little bit of information on what we do and why we do it, and the same thing goes for these trains and transit buses. Those are, that is really our laser focus is in K to 12 and the transit industry. This next slide is actually going to talk a little bit about our 200,000 deployed devices that we have out there. You can see that the announced contracts are upwards of about CAD 77 million that we had announced in fiscal year 2026. 2026 fiscal year end comes, closed out August 31st.
Gatekeeper is really a, we are an end-to-end solutions provider, right? We have the cameras that are on the buses. We have what we call these MDCs, and you can see on the right side here, the total revenue is growing quite nicely over the last several years. Have a look at the Mobile Data Collectors for your investors here. The Mobile Data Collector represents one Mobile Data Collector per vehicle. You can see that since 2019- 2026, we are growing the number of vehicles that we are bringing in underneath our customer umbrella. Approximately 120 employees. At the moment, we have Gatekeeper Systems Canada, and we have Gatekeeper Systems USA.
Any of our revenue that is derived from the U.S., which by the way, is the majority of the revenue, so over 90% of our revenue comes from the U.S., that flows through our subsidiary, Gatekeeper Systems USA, Inc. Then any revenue that comes out of Canada or any other country goes through Gatekeeper Canada. There are reasons why this large market is growing. There are strong, robust, domestic school bus products. There is a shift to hosted solutions. This is where your investors really need to focus on Gatekeeper's vision. Our strategy is really to get as many of these Mobile Data Collectors and full end-to-end system solutions sold to our customers. Then what we do is we come in with our hosted service solution, which really allows our customers to review live video, view recorded video, and a few other special features.
We charge out typically just under $30 per bus per month. It does not necessarily represent a significant portion of our overall revenue at the moment. However, the growth trend to our hosted service solution is really growing quite quickly. We will talk a little bit about that as we get a little farther into the presentation here. Think about Gatekeeper. This overall system solution really acts as a boat anchor into our customer's eco operational system. We have on the left here, we have, you can see our hardware, which includes a whole multiple of cameras connected to the MDC, which is that yellow device there. It could be stop arm cameras, could be internal cameras, exterior cameras, 360 Surround Vision cameras for viewing blind spots, which by the way, has AI built in to be able to determine when pedestrians are getting closer to a bus.
Then we have our software solutions here, in the middle screen, which also include built-in AI and analytics for student and pedestrian protection, as I said. Then on the right side is really the hosted solution. So we go from a full system solution out at the edge on the vehicles or trains or buses to the software and license plate recognition to be able to determine if we need a license plate captured, our system can do that. We can pump it up into the cloud and match the license plate with a vehicle owner for, say, stop arm violations or lane violations in transit. Then, of course, we just recently launched, in the last couple of years, this hosted, this data center in Philadelphia, which I am going to talk a little bit about in a moment.
The safety, security, and enforcement solution systems that we have really include, like I said earlier, internal camera systems, Student Protector and stop arm camera systems, automated lane enforcement for transit. We also have a cloud-based application that allows us to manage the full citation process, from collecting the evidence out at the edge to issuing a citation. One of the things your investors may not know, Robert, is that there has been now over 30 states that have passed legislation that allow authorities, law enforcement, to use video from a system such as Gatekeeper to issue a citation when there is a stop arm violation. There are going to be approximately over 40 million of these stop arm violations that really put children's lives at risk when the school bus comes to a stop and the stop arm is engaged.
Both sides of traffic are supposed to stop, and it's a really dangerous situation. Video enforcement becomes a key tool that allow for providing a safer environment in and around the bus. Also, it can be a revenue generator for school districts and counties as well, of course, Gatekeeper. This slide really speaks to an area that investors really need to pay attention to. That is because if you look at the yellow graph here, you can see that the yellow represents the growth in Mobile Data Collectors in school bus, and the black represents transit. This is a beautiful business model, right? Because if you look at when we launched our data center in 2024, we only had 300 devices installed delivering recurring revenue. Those would be MDCs that have bought into our subscription model.
Now, look at 2024 or 2025, we go from 300- 4,000, and then 2026, we're already at 7,700. Gatekeeper, as you can see in the bullets to the left there, that's a 93% growth over the prior year when you look at the 7,700 Mobile Data Collectors that are delivering recurring revenue. The cool thing about what Gatekeeper's strategy is that we didn't partner with Microsoft at our data center or Amazon. We invested in our own hardware. The more Mobile Data Collectors that we can put on our data center, the more the margin scales. When we were about 3,500, our gross margin on the data center was about 53%. As we scale to 10,000, and you can see we're heading there now, we're pretty close to 10,000 at 7,700, the margin scales to 90%.
We feel like we can upload approximately 65,000 of these Mobile Data Collectors before we have to invest in new hardware. The new hardware investment in the data center is really determined if some of our larger customers needs their own server, just because they have so many vehicles, right? It's a real nice model, and it's a nice blended revenue mix between transit and school bus. I'm going to talk a little bit about this in a previous slide. Earlier, I talked a little bit about what the system looks like, and this slide speaks to cameras at the edge connected to the Mobile Data Collector, which is the yellow device in the middle.
You can see that we're having more and more of our customers migrating to our data center because they need access to live video, right, and recorded video without having to run out to the vehicle and pull the hard drive and bring it back to their desktop. Then you can see down at the bottom right here where we've got the software application that allows our customers to stream live video as well as see their buses on a map integrated with video and time and date and GPS. It's really a complete operational system that we're providing our customers. In the school bus market, we have about 3,500 customers. Some of the largest school districts in the country do business with us. The public transit industry is starting to grow. Some of the smaller agencies are starting to pick up business with us.
But probably more importantly, we've got Southeastern Pennsylvania Transportation Authority, TTC, and more recently, MTA, which was a $27 million contract that we announced as part of that $77 million contract bucket that I talked about earlier. So, those are some marquee customers that are really building the credibility of Gatekeeper's technology. I'll take a few seconds here to talk about three buckets. Bucket number 1 has about $77 million, as I said, in new contracts announced in 2027 fiscal. Then bucket number 2, this number is related to projects where Gatekeeper's product is specced, and we haven't announced them yet, and there's about $50 million in that bucket. Then bucket number 3 is really evolving because it's a bucket that has all of our transit projects, majority of our transit projects that we're currently working on.
And that bucket has grown just over the last few months significantly. It's now up to about $280 million in projects that we're working on. Now, they're on various stages, of course, but we got a lot going on in this business. And by the way, those buckets, certainly bucket number 3, does not include any of our K to 12 market. So a little bit of information about Gatekeeper's reoccurring revenue from our customers. You can see this repeat purchases. Gatekeeper is not a full SaaS model, but we have a lot of customers that repeat. In fact, 96% of our customers over the 4 of the last 5 years came back and reordered, increasing average revenue per customer is up 51%.
So, the SaaS model portion of our business is really derived from our subscription model on our data center, but you can see that we have a lot of repeat business. And, this is an important slide as well. If you look at 2010, the average revenue per school bus was about $1,500, and that $1,500 per system. That included, on average, 2 internal camera systems, no external camera systems, a Mobile Data Collector, and no hosted service. Fast-forward to today, we're looking at an average of 5 internal camera systems, 2 external camera systems, a bigger Mobile Data Collector, which adds more revenue, and hosted service. So we're starting to see the revenue climb up from, on average, anywhere from $4,000 to $8,000 per bus.
If you loaded up every one of our current safety and video systems on a school bus, the revenue per bus would be upwards of $15,000. So there's still some scalability and room to work through, to continue to sell more product to our customers. Recent contracts wins, I talked a little bit about SEPTA. They save about $22 million a year in fraudulent claims. So video is a really important piece of evidence for SEPTA. They're saving that because they have the evidence to support any false liability claims. That's important. Then look at MTA, a $27 million contract. Probably one of the most important contracts of our company's history. Reason is that it's MTA, it's New York, right? And, they're not easy to do business with, but we've cracked in there and we're in the process of getting ready to deliver.
Southeast Pennsylvania Transportation Authority, they have got about 27,000 video cameras on vehicles and in stations, 3,000 buses, trains, and Gatekeeper is their video partner. That is an important customer for us, and we have got boots on the street to help support that customer. We recently announced a five-year contract, three plus one plus one on the service side. It was well over CAD 10 million for that contract. The contracts in the transit side of things, even though the MDCs compared to the school bus market, they are not as robust as far as the number of units, but the revenue per train is really quite robust. Because revenue on each one of these trains can be upwards of CAD 30,000- CAD 40,000 a train. A lot of customers in school bus with average CAD 4,000- CAD 8,000 per revenue per bus.
When you look at the transit side of things, the revenue per train is a lot more, and the revenue per transit bus is significantly more than it is in school bus. It is a real nice mix of revenue and number of customers. Alstom, this is part of our strategy. Alstom, we were specced in the SEPTA project for new trains and Alstom is the provider of that contract. We announced a $7.5 million contract with Alstom. Obviously, our strategy with the OEMs is to get specced in some of these areas and then partner with the OEMs to push out our platform on a global basis as they drive their new train builds. This project was quite interesting. Automated Streetcar Enforcement System called ACES for the Toronto Transit Commission.
A lot of people will not know that Toronto is actually the number three largest transit agency in North America as far as number of passengers transported. Gatekeeper was selected to basically identify when vehicles are passing the trains, and they should not be. Then we collect that information using our AI backbone and we pump it up into the cloud. We can identify license plates and issue citations. Project is not issuing citations at the moment. We are hopeful that after the pilot project is completed, it was about a CAD 480,000 project, for I believe we are on four trains, that they roll it out to all of their streetcars. Our technology is not only used for the school bus application, but also for the streetcar applications, which is a similar application to school bus.
School bus or a streetcar comes to a stop, and passengers are getting on and off, and vehicles are supposed to stop on either side of that train. Just heading to the end of the presentation here, you can see that the school buses and the transit buses, our distribution strategy is really to have a combination of direct sales and OEM relationships on both ends of those markets, whether it is transit or whether it is school bus. If we can get our product spec, which we are quite successful at, then these OEMs will be putting us and are putting us on either school buses or trains or transit buses. That is all part of our strategy and go-to-market strategy in North America. There are some regulatory tailwinds that are pretty darn interesting.
Gatekeeper was involved with Transport Canada for their 3-year project, and they recently released new legislation that basically states that any new school bus after 2027 has to have a 360 Surround Vision system in it. It is going to affect about 65,000 school buses up to 2036. This is an estimate from Transport Canada that the revenue opportunity is about a CAD 200 million spend. Then you look at the FRA ruling, that we estimate that to be about a CAD 300 million opportunity for us. That is basically putting FRA is basically stating, "Hey, all these commuter rail have to have forward-facing camera, outward-facing camera, and inward-facing camera, as well as a Crash Hardened Memory Module." A good opportunity for us there, and we have already won deals in that area. They are supposed to be under compliance by 2027, October 2027.
That date is fast approaching, and we will see if there is any extensions there. But for the most part, that is a nice opportunity inside of that rail niche. This slide really speaks to current share price. If you have a look at the growth on the graph here, you can see that fiscal year 2025, our revenue is off a little bit from 2024, and that is really because of a large project that we landed in 2024 at SEPTA. But have a look at the new contracts that have been announced, right? Over CAD 60 million in transit, over CAD 17 million in school bus, for a total of CAD 77 million in 2026 fiscal. We only see that number growing. It is an exciting year for Gatekeeper to get our 2026 fiscal year results, to get those filed. 2026 was a robust year for us.
There is a multifaceted strategy to drive continued growth. There is land and expand, that is part of our strategy, going after new customers. The hosted service model that we have introduced is showing huge growth. Then we are integrating with these OEMs and different partners. We see a big opportunity in being able to integrate with companies like Genetec, which, by the way, Genetec, for some of your investors that may not know who they are, they are one of the largest security companies. They have enormous market reach into all these cities, and their video platform or their enterprise software, MTA wants us to integrate with them.
If you think about this from a command center standpoint, our customers would be able to use the Genetec application to stream live video from school buses, transit buses, and trains into their application, creating a single point of video evidence hub, if you will, for both fixed site and mobile. We see that as a big opportunity. Just closing off here. Management team, we have got myself, Kelsey Chin, CFO, Jeff Gruban, VP of sales for transit. Doug Fraser, the former product manager for Honeywell, is head of programs and products, and Val Higgins is our VP for school buses. Jason Harris is focused on our Student Protector programs, which are all of our stop arm camera systems. Then we have got a select group of experts, and Charlie Bruce, who comes out of the school bus market, and David Stumpo out of the transit market.
Hamish Dobson was former VP of Motorola, just joining the board here recently. In closing, I would encourage your investors to go to our website. I realize I went through these slides relatively quickly, but this presentation is on the website and happy to answer any questions to your investors about our programs.
All right. Fantastic. Doug, thank you so much for the presentation here. Thanks so much for your participation here in the conference in general and, of course, everybody here for watching. If you would like to schedule a meeting here at the conference or maybe in the weeks to come with Gatekeeper, shoot me an email. That is blum@lythampartners.com. Also, to learn more about Lytham, make sure you visit our website and make sure to follow us on LinkedIn and subscribe on YouTube to make sure you stay connected on future events and webcasts such as the presentation here from Doug. We hope you all enjoy the rest of the conference. Have a great day. Again, Doug, thanks so much for your participation.
All right. Thanks, Robert.