Xtract One (XTRA) AI Stock Analysis

• Market Cap: C$154.13M
• Dividend Yield: N/A
• Average Volume (3M): 404.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -12.14%
• EPS Growth: 4.41%
• Country: CA
• Employees: 69
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 248,598,080
• 10 Day Avg. Volume: 353,185
• 30 Day Avg. Volume: 404,824
• PEG Ratio: 6.87
• Price to Book (P/B): 7.03
• Price to Sales (P/S): 5.42
• P/FCF Ratio: -11.16
• 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: 69.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$0.62 ▲(4.41% 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

Healthy gross margins

Sustained gross margins near 60% indicate the core product delivers attractive unit economics, supporting scalable revenue as sales expand. High gross margin provides room to invest in R&D and sales while absorbing scale-up costs, improving the path to long-term profitability.

Strong backlog and pipeline

A record $53M backlog and a sales pipeline north of $100M give multi-quarter revenue visibility and convertibility. This sustained demand profile reduces top-line uncertainty and supports predictable recurring revenue from installations and subscriptions over the medium term.

Low leverage and fresh capital

Modest debt levels limit balance-sheet risk, and the recent $11.5M public offering materially extends runway for scale-up. Together these factors reduce near-term refinancing pressure and give management flexibility to address production bottlenecks and invest in go-to-market execution.

Negative Factors

Negative operating cash flow

Persistent negative operating and free cash flow signals ongoing cash burn that will require continued financing or margin improvement. Over several quarters this can dilute shareholders, constrain reinvestment, and force prioritization away from long-term initiatives if cash generation isn't achieved.

Deep negative profitability and returns

Very wide operating losses and severely negative ROE show the business is not yet converting revenue into sustainable profits. Without durable margin recovery or cost discipline, equity value can erode and management may face pressure to materially change strategy to reach break-even.

Execution constraints on delivery

Manufacturing capacity limits and customer installation frictions risk delaying revenue recognition and raising deployment costs. Persistent execution gaps can extend payback periods on sales, impede ability to convert backlog, and weaken customer trust in long-term enterprise contracts.

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 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 Financial Statement Overview

Summary

Revenue is growing (+6.99% TTM) and gross margin is solid (~61%), but profitability is still deeply negative (TTM net margin ~-81%, EBIT margin ~-79%). Cash burn remains heavy with negative operating cash flow (~-$5.7M) and free cash flow (~-$6.2M), despite low leverage (debt-to-equity ~0.10).

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing strongly (+6.99%), and gross margin is healthy (~61%), suggesting the core product can generate solid unit economics. However, profitability remains deeply negative (TTM net margin about -81% and EBIT margin about -79%), indicating operating costs are still far above the current revenue base. While results have improved materially versus earlier years with extreme losses, the company is still far from breakeven.

Balance Sheet

Leverage is low with modest debt (debt-to-equity ~0.10 in TTM), which reduces near-term balance sheet risk. Total equity remains positive (~$10.3M TTM), providing some cushion. The key weakness is continued heavy losses driving very weak returns on equity (TTM ROE roughly -127%), which can pressure equity over time if profitability does not improve.

Cash Flow

Cash generation remains a major concern: TTM operating cash flow is negative (~-$5.7M) and free cash flow is also negative (~-$6.2M), meaning the business is still consuming cash to operate and invest. Free cash flow also declined in TTM (about -16.7% growth), pointing to continued funding needs. A modest positive is that free cash flow is broadly in line with net losses (free cash flow to net income ~1.08), suggesting losses are not being materially understated by non-cash accounting, but the cash burn is still significant.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.85M	16.36M	4.11M	3.62M	1.08M
Gross Profit	7.55M	10.26M	2.38M	3.34M	1.05M
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 Assets	23.41M	24.94M	19.00M	18.06M	49.40M
Cash, Cash Equivalents and Short-Term Investments	8.22M	8.63M	8.33M	6.28M	9.65M
Total Debt	1.13M	380.93K	356.84K	677.28K	985.92K
Total Liabilities	12.73M	10.97M	4.26M	3.51M	2.56M
Stockholders Equity	10.69M	13.97M	14.74M	14.55M	46.84M
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	-429.75K	364.46K	-95.76K	-544.96K
Financing Cash Flow	6.90M	8.87M	15.22M	5.99M	-514.96K

Xtract One Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 0.59 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.65, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYZ	61 Neutral	C$121.81M	-34.32	-8.89%	0.71%	-4.89%	-143.94%
URL	55 Neutral	C$152.10M	139.84	24.43%	―	20.62%	21.78%
ONE	53 Neutral	C$70.40M	-54.95	-144.12%	―	-10.57%	-117.50%
XTRA	52 Neutral	C$154.13M	-11.73	-108.12%	―	-12.14%	4.41%
WNDR	51 Neutral	C$199.53M	-5.74	-31.23%	―	13.16%	-1375.61%
IMP	46 Neutral	C$115.59M	-38.48	-14.10%	―	48.18%	-401.19%

Xtract One Corporate Events

Xtract One Secures Contract to Enhance Security in Midwest Healthcare Clinics

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.

Xtract One Technologies Reports Strong Q1 Results and Promising Outlook for 2026

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.

Xtract One Expands Security Solutions with Nova Scotia Health Partnership

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.

Xtract One to Release Fiscal 2026 Q1 Results and Host Conference Call

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.

Xtract One Technologies Announces Shareholder Meeting Results

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.

Xtract One Secures $11.5M in Public Offering

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.

Xtract One Secures $10 Million in Bought Deal Offering

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.