Xtract One (XTRA) AI Stock Analysis

• Market Cap: C$88.46M
• Dividend Yield: N/A
• Average Volume (3M): 84.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 99.88%
• EPS Growth: 28.72%
• Country: CA
• Employees: 69
• Sector: Technology
• Sector Strength: 57
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 218,426,990
• 10 Day Avg. Volume: 72,548
• 30 Day Avg. Volume: 84,060
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.00
• Price Target Upside: 150.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Xtract One's stock score is driven by strong revenue growth and a positive earnings call despite ongoing profitability and cash flow challenges. The technical indicators suggest a bearish trend, and the valuation highlights concerns with negative earnings. Overall, while there are promising aspects, significant financial hurdles remain.

Positive Factors

Channel Partnerships

The company is seeing momentum from its channel partners, which are beginning to deliver meaningful revenue opportunities.

Financial Performance

The company announced better than expected financial results, surpassing revenue expectations.

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 Estimates

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.

Risks

Risks include dilution risk should the company raise additional capital, industry competition, and technology and execution risks.

Xtract One Business Overview & Revenue Model

Company Description

Xtract 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 Money

Xtract One makes money primarily through the sale and licensing of its proprietary security technologies and solutions. The company's revenue model includes direct sales of hardware and software products, subscription fees for ongoing access to its cloud-based security management platforms, and service fees for system maintenance and support. Additionally, Xtract One may form strategic partnerships with other technology providers and security firms to expand its market reach and enhance its product offerings. These partnerships can lead to joint ventures or revenue-sharing agreements that further contribute to the company's earnings.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.44, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.51 is Neutral, neither overbought nor oversold. The STOCH value of 28.03 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDA	75 Outperform	C$3.26B	40.53	7.09%	―	33.74%	61.09%
Sector *	59 Neutral	$10.74B	10.21	-6.69%	3.04%	7.44%	-10.92%
NFI	56 Neutral	C$1.41B	―	-0.38%	―	18.07%	98.61%
XTRA	50 Neutral	C$88.46M	―	-107.94%	―	99.88%	28.72%
DYA	40 Underperform	C$73.68M	―	2492.91%	―	258.52%	-4.87%

Xtract One Corporate Events

Xtract One Achieves Record Backlog and Strong Growth in Q2 Fiscal 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.

Xtract One Technologies to Announce Q2 Fiscal 2025 Results

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.

Xtract One Technologies Enhances Hospital Security in Manitoba

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.

Xtract One Expands Security Solutions Reach with Velasea Partnership

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.