Xtract One (TSE:XTRA)
TSX:XTRA
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Xtract One
(TSX:XTRA)
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Rating:49Neutral
Price Target:
C$0.44
▲(0.68% Upside)
Action:Reiterated
Date:03/06/26
The score is held back primarily by persistent losses and ongoing cash burn, along with weak technical trend signals. These are partially offset by a constructive earnings-call outlook featuring strong recent revenue growth, sizable backlog/pipeline, and improved liquidity from recent financing, while valuation remains challenged due to negative earnings and no dividend support.
Positive Factors
Large backlog & pipeline
A near‑record $48.8M backlog and a $105M qualified pipeline provide multi‑quarter revenue visibility. This depth and conversion potential supports durable top‑line scaling, installation-led revenue recognition, and a runway for recurring software/support revenue as deployments complete.
Negative Factors
Material negative cash flow
Sustained negative operating and free cash flow of roughly -$9.7M TTM signals ongoing cash burn that will require additional financing or rapid margin/revenue improvement. Persistent cash consumption strains runway, risks dilution, and limits long‑term investment optionality if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Large backlog & pipeline
A near‑record $48.8M backlog and a $105M qualified pipeline provide multi‑quarter revenue visibility. This depth and conversion potential supports durable top‑line scaling, installation-led revenue recognition, and a runway for recurring software/support revenue as deployments complete.
Read all positive factors
Xtract One (XTRA) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$124.85M
Dividend YieldN/A
Average Volume (3M)404.82K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-0.90%
EPS Growth-3.31%
CountryCA
Employees69
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.04
Shares Outstanding249,704,990
10 Day Avg. Volume353,185
30 Day Avg. Volume404,824
Financial Highlights & Ratios
PEG Ratio6.87
Price to Book (P/B)7.03
Price to Sales (P/S)5.42
P/FCF Ratio-11.16
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 Upside127.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.03
Revenue Forecast (FY)C$28.16M
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 artifi...
How the Company Makes Money
Xtract One primarily makes money by selling and/or leasing its weapons-detection screening systems and associated software used for venue entry screening. Revenue is generated from (1) product and solution deployments (hardware and system implemen...
Xtract One Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive growth narrative: strong revenue momentum (+70% YoY), a larger qualified pipeline (~$105M) and near‑record backlog (~$48.8M), notable international traction (e.g., British Museum), and a strengthened cash position from an $11.5M financing. Key challenges include compressed gross margins from the Xtract One Gateway ramp (Q2 estimated as a trough), higher operating cash usage to build inventory, a YoY decline in new bookings, and some backlog timing variability. Management expects margins for the Xtract One Gateway to improve toward SmartGateway levels over coming quarters and reiterated confidence in record fiscal 2026 revenue, making the outlook positive despite near‑term margin and cash‑flow headwinds.Positive Updates
Strong Revenue Growth
Total revenue of approximately $5.8M in Q2 FY2026, up 70% year-over-year from $3.4M and up 26% quarter-over-quarter from Q1, with management commenting Q2 may represent a trough in gross margin and expecting continued revenue acceleration through fiscal 2026.
Negative Updates
Booking Decline Year‑Over‑Year
New bookings in Q2 were $8.7M versus $13.5M in the prior year quarter, a decline of approximately 35.6%, driven in part by timing and some deals slipping and one large pending deal removed from backlog.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of approximately $5.8M in Q2 FY2026, up 70% year-over-year from $3.4M and up 26% quarter-over-quarter from Q1, with management commenting Q2 may represent a trough in gross margin and expecting continued revenue acceleration through fiscal 2026.
Read all positive updates
Company Guidance
Management guided to a strong fiscal 2026, calling for record revenue as Q2 revenue was ~$5.8M (up 70% YoY and +26% QoQ) and backlog stood at $48.8M ( $13.9M contractual + $34.9M signed pending installation), with ~83% of pending value tied to upfront deals and most expected to deploy within 12 months; Q2 bookings were $8.7M (73% upfront) vs $13.5M a year ago, the company has ~150 Xtract One Gateway orders (~$21M) with ~1/3 delivered, a USD $105M qualified pipeline split roughly evenly between SmartGateway and Xtract One Gateway, and $15.7M cash on hand after an $11.5M bought‑deal. Management said production and supplier throughput are ramping with no major manufacturing bottleneck, expects continued revenue acceleration in H2, and sees margins improving as One Gateway start‑up costs normalize (Q2 gross margin 54% vs 70% LY; SmartGateway mid‑to‑high‑60s; Xtract One Gateway low‑50s today, targeting the 60s over coming quarters), while operating costs remain controlled (S&M $1.8M, R&D $1.6M, G&A ≈$2.0M) and Q2 operating cash use was $4.2M (≈$1.4M ex working capital).Xtract One Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.21M | 13.85M | 16.36M | 4.11M | 3.62M | 1.08M |
| Gross Profit | 9.36M | 7.55M | 10.26M | 2.38M | 3.34M | 1.05M |
| EBITDA | -9.45M | -9.54M | -8.96M | -14.24M | -13.04M | -11.45M |
| Net Income | -11.85M | -11.88M | -11.06M | -16.34M | -39.72M | -16.56M |
Balance Sheet | ||||||
| Total Assets | 31.92M | 23.41M | 24.94M | 19.00M | 18.06M | 49.40M |
| Cash, Cash Equivalents and Short-Term Investments | 15.72M | 8.22M | 8.63M | 8.33M | 6.28M | 9.65M |
| Total Debt | 979.15K | 1.13M | 380.93K | 356.84K | 677.28K | 985.92K |
| Total Liabilities | 12.77M | 12.73M | 10.97M | 4.26M | 3.51M | 2.56M |
| Stockholders Equity | 19.15M | 10.69M | 13.97M | 14.74M | 14.55M | 46.84M |
Cash Flow | ||||||
| Free Cash Flow | -9.80M | -6.73M | -8.57M | -13.57M | -9.37M | -12.26M |
| Operating Cash Flow | -9.72M | -6.54M | -8.14M | -13.54M | -9.27M | -11.69M |
| Investing Cash Flow | 87.65K | -756.71K | -429.75K | 364.46K | -95.76K | -544.96K |
| Financing Cash Flow | 19.98M | 6.90M | 8.87M | 15.22M | 5.99M | -514.96K |
Xtract One Technical Analysis
Neutral
0.44
Price Trends
0.46
Positive
0.53
Negative
0.59
Negative
Market Momentum
0.01
Negative
61.39
Neutral
85.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTRA, the sentiment is Neutral. The current price of 0.44 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.46, and below the 200-day MA of 0.59, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 85.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:XTRA.
Xtract One Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | C$140.67M | 145.28 | 24.61% | ― | 18.56% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | C$124.85M | -16.83 | -100.85% | ― | -0.90% | -3.31% | |
49 Neutral | C$123.31M | -6.81 | -42.66% | ― | -62.08% | -377.71% | |
48 Neutral | C$79.52M | -5.01 | -24.29% | 0.71% | -7.56% | -554.27% | |
47 Neutral | C$223.26M | -7.57 | -65.57% | ― | -33.13% | -88.96% | |
43 Neutral | C$43.31M | -26.60 | -77.16% | ― | 157.18% | -328.57% |
* Technology Sector Average
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Xtract One Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Xtract One Secures $70 Million Shelf Prospectus for Future Canadian Offerings
Positive
Apr 15, 2026
Xtract One Technologies has filed a final short form base shelf prospectus in all Canadian provinces and territories except Québec, allowing it to issue up to $70 million in various securities over a 25-month period. The move gives the securi...
Business Operations and StrategyProduct-Related Announcements
Xtract One Wins University of Michigan Health-West Deal for AI Security Screening
Positive
Mar 26, 2026
Xtract One Technologies, a provider of AI-driven security screening systems, has secured a deployment of its SmartGateway solution at the University of Michigan Health-West emergency department. The company’s technology focuses on unobtrusiv...
Business Operations and StrategyProduct-Related Announcements
Xtract One Wins Morgan County Schools Deal for AI Security Gateways
Positive
Mar 17, 2026
Xtract One Technologies has been selected by Alabama’s Morgan County Schools to deploy its Gateway weapons detection system across the district’s high school campuses as part of a broader security upgrade. The AI-driven solution allows...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Xtract One Boosts Revenue 70% as Weapon Detection Deployments Accelerate
Positive
Mar 4, 2026
Xtract One reported fiscal 2026 second-quarter revenue of $5.8 million, a 70% year-over-year increase driven by higher deployments of its weapon detection solutions, though gross margin fell to 54% due to initial production and deployment costs fo...
Business Operations and StrategyProduct-Related Announcements
Xtract One Wins British Museum Deal for AI Security Screening
Positive
Feb 26, 2026
Xtract One Technologies has been selected by the British Museum to deploy its SmartGateway AI-powered weapons detection system across all venue entrances, following extensive on-site testing. The British Museum, which receives around 6.5 million v...
Financial Disclosures
Xtract One Sets Date for Fiscal Q2 2026 Results and Investor Call
Neutral
Feb 17, 2026
Xtract One Technologies Inc., a Toronto-based provider of AI-powered threat detection and security solutions for high-traffic facilities, focuses on unobtrusive weapons detection and smooth patron access. Its systems are used across sectors includ...
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.