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Xtract One (TSE:XTRA)
TSX:XTRA
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Xtract One
(TSX:XTRA)
49Neutral
Positive Factors
Channel Partnerships
The company is seeing momentum from its channel partners, which are beginning to deliver meaningful revenue opportunities.
New Bookings
The total contract value of new bookings signed in the quarter was a record C$13.5M, compared to just C$5.1M in the year-ago period.
Negative Factors
Revenue Estimate
The company has adjusted its FY25 revenue estimate downwards, resulting in a reduced price target from C$1.50 to C$1.00.
Revenue Growth
Revenue growth was lower than expected due to a lighter pace of new bookings and timing issues.
Xtract One (XTRA) vs. S&P 500 (SPY)
Market Cap
C$91.74M
Dividend YieldN/A
Average Volume (3M)96.51K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth99.88%
EPS Growth28.72%
CountryCA
Employees69
SectorTechnology
Sector Strength43
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.05
Shares Outstanding218,426,990
10 Day Avg. Volume83,939
30 Day Avg. Volume96,513
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.28
Price to Cash Flow (P/CF)-93.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.00Price Target Upside138.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Xtract One Business Overview & Revenue Model
Company DescriptionXtract One Technologies Inc. engages in the research, development, and commercialization of threat detection solutions worldwide. It operates through Patriot and Xtract segments. The Patriot segment develops and commercializes a platform of artificial intelligence (AI) powered threat detection technologies. The Xtract segment develops and commercializes AI solutions. The company's products include PATSCAN VRS Video Recognition Software that combines digital cameras and artificial intelligence to automate the detection of visible weapon threats, fights, and health and safety issues; and PATSCAN Multi-Sensor Gateway, an autonomous detection system that detects threats on individuals carrying concealed guns, knives, or related threat objects into secured private or public spaces, and can be installed at schools, stadiums, concert halls, shopping centers, and other entryways into private, public, or secured buildings. It also develops PATSCAN Cognitive Microwave Radar (CMR), a system to detect concealed guns and knives utilizing microwave radar technology coupled with custom machine learning/AI software. The company was formerly known as Patriot One Technologies Inc. and changed its name to Xtract One Technologies Inc. in December 2022. Xtract One Technologies Inc. was founded in 2016 and is headquartered in Toronto, Canada.
How the Company Makes MoneyXtract One generates revenue primarily through the sale and licensing of its proprietary security technology solutions. The company offers its AI-driven platforms to various sectors, including sports venues, entertainment facilities, transit hubs, and other high-traffic environments. Revenue streams include direct sales of hardware and software, subscription fees for ongoing software support and updates, and service contracts for maintenance and system integration. Additionally, Xtract One may engage in strategic partnerships with organizations seeking to incorporate advanced security measures in their operations, further expanding its market reach and revenue potential.
Xtract One Financial Statement Overview
Summary
Xtract One shows revenue growth but faces profitability challenges with negative EBIT and net income margins. The strong equity position is overshadowed by rising debt and negative cash flows, indicating financial instability despite potential.Income Statement
Xtract One has shown a consistent increase in revenue over the years, with a notable growth from 2023 to TTM 2025. However, the company continues to operate at a loss, with negative EBIT and net income margins indicating challenges in profitability. The gross profit margin remains relatively healthy, but the inability to convert this into net profits is a concern.42
Neutral
Balance Sheet
The company maintains a strong equity position relative to its total assets, indicating a solid capital structure. However, the debt-to-equity ratio has increased, pointing to a rising reliance on debt. The ROE is negative due to ongoing losses, suggesting that despite the equity strength, profitability remains a significant issue.55
Neutral
Cash Flow
Xtract One's cash flow situation is challenging, with negative operating and free cash flows indicating that the company is consuming more cash than it's generating. The free cash flow to net income ratio is unfavorable due to persistent losses. The company relies heavily on financing activities to cover its cash shortfall.35
Negative
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 17.36M | 16.36M | 4.11M | 3.62M | 1.08M | 2.07M |
| Gross Profit | |||||
| 10.77M | 10.26M | 2.38M | 3.34M | 1.05M | 1.88M |
| EBIT | |||||
| -10.56M | -11.35M | -16.50M | -39.92M | 12.78M | 23.39M |
| EBITDA | |||||
| -7.92M | -8.96M | -14.24M | -13.04M | -11.45M | -20.62M |
| Net Income Common Stockholders | |||||
| -10.33M | -11.06M | -16.34M | -39.72M | -16.56M | -25.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.02K | 8.63M | 8.33M | 6.28M | 9.65M | 26.43M |
| Total Assets | |||||
| 309.18K | 24.94M | 19.00M | 18.06M | 49.40M | 66.01M |
| Total Debt | |||||
| 0.00 | 380.93K | 356.84K | 677.28K | 985.92K | 1.01M |
| Net Debt | |||||
| -5.02K | -8.25M | -7.97M | -5.60M | -8.67M | -21.39M |
| Total Liabilities | |||||
| 121.62K | 10.97M | 4.26M | 3.51M | 2.56M | 3.79M |
| Stockholders Equity | |||||
| 187.56K | 13.97M | 14.74M | 14.55M | 46.84M | 62.22M |
| Cash Flow | Free Cash Flow | ||||
| -7.16M | -8.57M | -13.57M | -9.37M | -12.26M | -18.70M |
| Operating Cash Flow | |||||
| -6.31M | -8.14M | -13.54M | -9.27M | -11.69M | -17.57M |
| Investing Cash Flow | |||||
| -1.27M | -429.75K | 364.46K | -95.76K | -544.96K | -10.96M |
| Financing Cash Flow | |||||
| 8.84M | 8.87M | 15.22M | 5.99M | -514.96K | 301.40K |
Xtract One Technical Analysis
Negative
0.42
Price Trends
0.47
Negative
0.53
Negative
0.60
Negative
Market Momentum
-0.01
Negative
45.53
Neutral
42.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTRA, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.47, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XTRA.
Xtract One Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$3.36B | 40.19 | 7.09% | ― | 33.74% | 61.09% | |
57 Neutral | $20.89B | 10.40 | -13.99% | 2.52% | 4.47% | -23.34% | |
50 Neutral | C$1.41B | ― | -0.38% | ― | 18.07% | 98.61% | |
49 Neutral | C$91.74M | ― | -107.94% | ― | 99.88% | 28.72% | |
28 Underperform | C$83.10M | ― | 2492.91% | ― | 19.47% | -9.09% |
* Technology Sector Average
Performance Comparison
TSE:XTRA
Xtract One
0.42
-0.27
-39.13%
TSE:DYA
dynaCERT
0.18
0.02
12.50%
TSE:NFI
NFI Group Inc
11.71
-0.80
-6.39%
TSE:PAT
Trench Solutions
0.58
-0.47
-44.76%
TSE:MDA
MDA Ltd
26.49
11.88
81.31%
Xtract One Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 0.00% | Next Earnings Date: Jun 5, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive outlook with record-breaking bookings, improved gross margins, and a diverse customer base driving future growth. While the revenue was slightly impacted by deployment timing, the company expressed confidence in overcoming potential tariff challenges and achieving profitability.Highlights
Record-Breaking Bookings
Reported bookings of $13.5 million in Q2, surpassing the prior record of $9.6 million and representing 250% growth year-over-year.
Increased Gross Margins
Gross margins reached 70% in Q2, improved from 61% last year, due to a scalable operational model and effective pricing strategies.
Diverse Customer Base and Market Expansion
Significant growth in healthcare sector, representing 30% of Q2 bookings, and expansion into international markets driven by legislative changes.
Strong Backlog and Pipeline
Contractual backlog increased to $37.2 million, up from $26.9 million in Q1, with a qualified pipeline of $100 million, including $40 million in late stages.
Successful Channel Partner Program
Channel partners accounted for about 50% of total systems deployed and nearly half of revenue recognized, enhancing growth potential.
Positive Financial Outlook
Operating cash usage reduced significantly, with a focus on achieving profitability and cash flow breakeven.
Lowlights
Revenue Impacted by Deployment Timing
Q2 revenue was affected by phased deployment schedules, resulting in a revenue of $3.4 million versus expectations based on backlog.
Potential Tariff Concerns
Uncertain impacts of tariffs on pricing and supply chain dynamics, with ongoing monitoring required to assess potential scenarios.
Company Guidance
During the Xtract One Technologies Fiscal 2025 Second Quarter Earnings Conference Call, the company reported several key financial metrics and achievements. They announced record bookings of $13.5 million for the quarter, a 250% increase year-over-year, and a total bookings backlog of $37 million, up from $22 million the previous year. Revenue for the quarter was $3.4 million, compared to $2.9 million in the same period of fiscal 2024. Their gross margins improved to 70% from 61% the previous year. The company's customer base is diversifying, with education and healthcare markets becoming significant contributors to revenue. Additionally, channel partners accounted for approximately 50% of total systems deployed, highlighting the successful expansion of their partner program. The company is optimistic about future growth, with a qualified pipeline of opportunities valued at approximately $100 million, including $40 million in late-stage development.Xtract One Corporate Events
Business Operations and StrategyFinancial Disclosures
Xtract One Achieves Record Backlog and Strong Growth in Q2 Fiscal 2025
Positive
Mar 12, 2025
Xtract One Technologies reported strong fiscal second quarter results, with a record total backlog of $37.2 million and a gross margin of 70%. The company achieved its highest-ever quarterly bookings of $13.5 million, reflecting significant revenue growth and strategic market diversification. Despite deployment timing challenges, Xtract One is optimistic about its outlook for the remainder of fiscal 2025, driven by new contract wins and growing interest in its Gateway solution.
Financial Disclosures
Xtract One Technologies to Announce Q2 Fiscal 2025 Results
Neutral
Feb 24, 2025
Xtract One Technologies announced it will release its fiscal 2025 second quarter results on March 12, 2025, followed by a webcast and conference call on March 13, 2025. The event will feature an overview of the financial results and management’s business outlook, providing stakeholders with insights into the company’s performance and strategic direction.
Product-Related AnnouncementsBusiness Operations and Strategy
Xtract One Technologies Enhances Hospital Security in Manitoba
Positive
Feb 7, 2025
Xtract One Technologies announced that its Xtract One Gateway has been selected to enhance security at key hospital locations in Manitoba, Canada. This implementation aims to improve safety and optimize operational efficiency in healthcare environments by providing seamless weapons detection. This selection underscores the growing demand for advanced security solutions in the healthcare sector, which faces the dual challenge of maintaining high security while ensuring patient and caregiver comfort.
Product-Related AnnouncementsBusiness Operations and Strategy
Xtract One Expands Security Solutions Reach with Velasea Partnership
Positive
Feb 4, 2025
Xtract One Technologies has partnered with Velasea to expand the reach of its advanced security detection systems, SmartGateway and One Gateway, through Velasea’s extensive network of integrators. This collaboration aims to address the growing need for modern security solutions by offering flexible, tailored security options that enhance safety and operational efficiency across a wide range of venues globally. By integrating Xtract One’s AI-powered solutions, venues such as schools and arenas can improve weapon screening processes, reduce entry lines, and provide a secure environment for attendees.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.