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Xtract One (TSE:XTRA)
TSX:XTRA

Xtract One (XTRA) AI Stock Analysis

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TSE:XTRA

Xtract One

(TSX:XTRA)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
C$0.71
▲(1.00% Upside)
The score is primarily constrained by weak financial performance: large ongoing losses and significant negative operating/free cash flow outweigh healthy gross margins and revenue growth. Technicals are mildly supportive with price above major moving averages and positive MACD, but short-term momentum looks stretched. The earnings call was a relative positive (record backlog, strong pipeline, and fresh capital), while valuation remains unattractive/indeterminate due to negative earnings and no dividend yield.
Positive Factors
Record Backlog Growth
A record backlog indicates strong future revenue potential and demand for Xtract One's products, suggesting sustained business growth and market confidence.
Expansion into Healthcare
Expanding into the healthcare sector with a major provider enhances market diversification and long-term revenue streams, reducing reliance on any single sector.
Strong Revenue Growth
Revenue growth reflects successful product adoption and market penetration, supporting the company's financial health and strategic objectives.
Negative Factors
Declining Gross Profit Margin
A declining gross profit margin indicates rising costs and potential pricing pressures, which could impact long-term profitability if not addressed.
Production Constraints
Production constraints may limit the ability to meet demand, potentially affecting revenue growth and customer satisfaction if not resolved.
Negative Profitability Margins
Sustained negative profitability margins highlight operational inefficiencies and financial instability, necessitating strategic improvements for long-term viability.

Xtract One (XTRA) vs. iShares MSCI Canada ETF (EWC)

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 through a multifaceted business model that includes the sale of its advanced detection systems, subscription services for ongoing software and system updates, and maintenance contracts. The company also partners with various venues and organizations to integrate its technology into their existing security frameworks, creating additional revenue opportunities through long-term contracts. Key revenue streams include initial hardware sales, recurring subscription fees for access to enhanced analytics and reporting features, and service agreements that ensure continuous support and system upgrades. These partnerships, along with increasing demand for safety and security solutions, contribute significantly to Xtract One's earnings.

Xtract One Earnings Call Summary

Earnings Call Date:Dec 03, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong revenue growth, record backlog, and successful fundraising, despite some challenges with gross margin and production constraints.
Q1-2026 Updates
Positive Updates
Record Backlog Growth
The company's backlog reached a new record of $53 million, showing strong demand for its products.
Revenue Increase
Total revenue for the first quarter was approximately $4.6 million, up from $3.6 million in the prior year period.
Strong Demand for Xtract One Gateway
Approximately 60% of Q1 bookings were for the Xtract One Gateway, indicating high demand and market traction.
Successful Public Offering
The company raised aggregate gross proceeds of approximately $11.5 million in a recent public offering.
Diverse Market Penetration
Expansion into education and healthcare sectors, with healthcare bookings increasing from 14% to 36% year-over-year.
Negative Updates
Decreased Gross Profit Margin
Gross profit margin decreased to 58% from 64% in the prior year period due to costs related to initial production and installation.
Installation Friction
Challenges in deployment and installation due to customer-side issues like construction delays and internal reorganizations.
Production Constraints
Current demand for the Xtract One Gateway is outstripping manufacturing capacity, requiring increased production capabilities.
Company Guidance
During Xtract One Technologies' Fiscal 2026 First Quarter Earnings Conference Call, the company provided an optimistic outlook for the year, highlighting several key metrics. Revenue for the first quarter reached $4.6 million, up from $3.6 million in the same period last year, driven by increasing demand for the Xtract One Gateway, particularly in the education sector, which accounted for approximately 51% of new bookings. The company reported a record backlog totaling $53.2 million, nearly doubling from the previous year, with $14.1 million in contractual backlog and $39.1 million in signed agreements pending installation. Despite a slight decline in gross profit margin to 58% from 64% the previous year, the company anticipates improvement as production ramps up. New bookings for the quarter were strong at $8.4 million, showing significant growth compared to $4.2 million in the prior year. The company remains confident in its path toward cash flow breakeven, supported by a robust sales pipeline exceeding $100 million and a strong cash position bolstered by a recent $11.5 million public offering.

Xtract One Financial Statement Overview

Summary
Xtract One faces significant financial challenges, with declining revenues, substantial losses, and negative profitability margins. While leverage is low, the negative return on equity and cash flow difficulties highlight operational inefficiencies. Strategic initiatives are needed to enhance revenue growth, cost management, and cash flow generation.
Income Statement
Xtract One's income statement reveals significant challenges. The company has experienced a decline in revenue growth, with a negative growth rate of -14.19% in the most recent year. Profitability metrics are concerning, with a negative net profit margin of -85.73% and EBIT margin of -85.73%, indicating substantial losses relative to revenue. The gross profit margin has also decreased from previous years, reflecting pressure on cost management. Overall, the income statement suggests financial instability and a need for strategic improvements.
Balance Sheet
The balance sheet shows a relatively low debt-to-equity ratio of 0.11, indicating conservative leverage. However, the return on equity is negative at -111.15%, highlighting inefficiencies in generating returns for shareholders. The equity ratio stands at 45.63%, suggesting a moderate level of equity financing. While the company maintains a stable capital structure, the negative ROE and declining equity levels suggest underlying financial challenges.
Cash Flow
Cash flow analysis indicates negative operating cash flow and free cash flow, with a free cash flow growth rate of -17.94%. The operating cash flow to net income ratio is -0.69, reflecting cash flow challenges relative to reported losses. The free cash flow to net income ratio is slightly positive at 1.03, indicating some alignment between cash flow and net income. Overall, cash flow management appears strained, necessitating improvements in operational efficiency.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.85M16.36M4.11M3.62M1.08M
Gross Profit7.55M10.26M2.38M3.34M1.05M
EBITDA-9.54M-8.96M-14.24M-13.04M-11.45M
Net Income-11.88M-11.06M-16.34M-39.72M-16.56M
Balance Sheet
Total Assets23.41M24.94M19.00M18.06M49.40M
Cash, Cash Equivalents and Short-Term Investments8.22M8.63M8.33M6.28M9.65M
Total Debt1.13M380.93K356.84K677.28K985.92K
Total Liabilities12.73M10.97M4.26M3.51M2.56M
Stockholders Equity10.69M13.97M14.74M14.55M46.84M
Cash Flow
Free Cash Flow-6.73M-8.57M-13.57M-9.37M-12.26M
Operating Cash Flow-6.54M-8.14M-13.54M-9.27M-11.69M
Investing Cash Flow-756.71K-429.75K364.46K-95.76K-544.96K
Financing Cash Flow6.90M8.87M15.22M5.99M-514.96K

Xtract One Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.70
Price Trends
50DMA
0.69
Negative
100DMA
0.66
Negative
200DMA
0.53
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
44.64
Neutral
STOCH
14.81
Positive
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 0.7 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.69, and above the 200-day MA of 0.53, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
C$131.39M-43.63-8.89%0.71%-4.89%-143.94%
55
Neutral
C$148.58M137.4024.43%20.62%21.78%
52
Neutral
C$159.10M-12.31-108.12%-12.14%4.41%
51
Neutral
C$202.72M-5.83-31.23%13.16%-1375.61%
46
Neutral
C$139.85M-46.56-14.10%48.18%-401.19%
41
Neutral
C$73.62M-78.16-144.12%-10.57%-117.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:XTRA
Xtract One
0.64
0.11
20.75%
TSE:URL
NameSilo Technologies Corp
1.69
1.15
212.96%
TSE:IMP
Intermap Technology
1.96
-0.32
-14.04%
TSE:ONE
01 Communique Laboratory Inc.
0.68
0.28
70.00%
TSE:SYZ
Sylogist
5.62
-2.94
-34.35%
TSE:WNDR
WonderFi Technologies Inc
0.31
0.04
17.31%

Xtract One Corporate Events

Business Operations and StrategyProduct-Related Announcements
Xtract One Secures Contract to Enhance Security in Midwest Healthcare Clinics
Positive
Dec 10, 2025

Xtract One Technologies has secured a contract with a major nationwide healthcare provider to implement its SmartGateway solution across clinics in the Midwest, starting with five locations in Minnesota. This deployment addresses heightened safety concerns in healthcare environments, offering a modern, non-invasive security technology that balances protection with a welcoming experience. The SmartGateway system, backed by the U.S. Department of Homeland Security’s SAFETY Act, uses advanced AI technology for discreet and efficient weapons detection, enhancing security without compromising the patient and staff experience.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Financial DisclosuresPrivate Placements and Financing
Xtract One Technologies Reports Strong Q1 Results and Promising Outlook for 2026
Positive
Dec 3, 2025

Xtract One Technologies reported its fiscal first quarter results for 2026, highlighting a revenue increase to $4.6 million from $3.6 million in the previous year, despite a decrease in gross margin from 64% to 58%. The company has a total backlog exceeding $53 million, indicating strong demand for its Xtract One Gateway product, which has led to new bookings worth $5.1 million from seven customers. The company successfully raised $11.5 million through a public offering, positioning itself for significant growth and improved margins in the latter half of fiscal 2026.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Xtract One Expands Security Solutions with Nova Scotia Health Partnership
Positive
Dec 3, 2025

Xtract One Technologies has been selected by Nova Scotia Health to deploy its SmartGateway systems across healthcare facilities in the province, aiming to enhance security and protect healthcare workers, patients, and visitors. This initiative addresses the increasing violence against healthcare workers and expands Xtract One’s presence in the Canadian healthcare sector, following successful deployments in other regions. The SmartGateway system, which uses AI-powered sensors for discreet and efficient weapons detection, was proven effective during a trial in Truro, Nova Scotia, and is expected to significantly bolster security measures and ensure safer environments in healthcare settings.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Financial Disclosures
Xtract One to Release Fiscal 2026 Q1 Results and Host Conference Call
Neutral
Nov 20, 2025

Xtract One Technologies announced the release of its fiscal 2026 first quarter results, scheduled for December 3, 2025, with a subsequent webcast and conference call on December 4, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and future outlook, reinforcing its position in the threat detection and security industry.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Business Operations and StrategyShareholder Meetings
Xtract One Technologies Announces Shareholder Meeting Results
Positive
Nov 12, 2025

Xtract One Technologies announced the results of its annual general and special meeting of shareholders, where all company nominees were elected as directors. The meeting also approved key resolutions, including setting the number of directors to five, appointing Davidson & Company LLP as auditors, and re-approving the company’s Omnibus Equity Incentive Plan. These decisions are expected to strengthen the company’s governance and operational framework, reinforcing its position in the security technology industry.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Private Placements and Financing
Xtract One Secures $11.5M in Public Offering
Positive
Nov 10, 2025

Xtract One Technologies has successfully closed an $11.5 million bought deal public offering, which included the full exercise of the over-allotment option. The proceeds from this offering are intended for working capital and general corporate purposes, potentially strengthening the company’s operational capabilities and market position in the threat detection industry.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Xtract One Secures $10 Million in Bought Deal Offering
Positive
Nov 3, 2025

Xtract One Technologies has announced a $10 million bought deal offering, partnering with a syndicate of underwriters led by Stifel Canada. This offering, consisting of 13,334,000 units at $0.75 per unit, aims to raise funds for working capital and general corporate purposes. The offering is expected to close on November 10, 2025, pending necessary approvals. This move is likely to strengthen Xtract One’s market position and operational capabilities, potentially benefiting stakeholders by enhancing the company’s financial stability and capacity to innovate in the security solutions industry.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Xtract One Technologies Sees Bright Future with Strong Backlog and Gateway Demand
Positive
Oct 23, 2025

Xtract One Technologies reported its fiscal 2025 results, highlighting a significant backlog of nearly $50 million and expectations for revenue acceleration in fiscal 2026. Despite a revenue shortfall due to timing and manufacturing challenges, the company experienced strong demand for its Xtract One Gateway, with total bookings of $13.1 million from nine new customers across various sectors. The company anticipates a bright future with the successful commercial deployment of its Gateway, aiming for fiscal 2026 to be its best year yet.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Xtract One Technologies to Announce Fiscal 2025 Results
Neutral
Oct 14, 2025

Xtract One Technologies announced it will release its fiscal 2025 annual and fourth-quarter results on October 23, 2025, with a webcast and conference call scheduled for the following day. The announcement highlights the company’s focus on leveraging AI for security solutions, positioning it as a market leader in providing seamless and secure access experiences, which may impact its operations and stakeholder engagement.

The most recent analyst rating on (TSE:XTRA) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jan 04, 2026