Xtract One (XTRA) AI Stock Analysis

• Market Cap: C$131.76M
• Dividend Yield: N/A
• Average Volume (3M): 404.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): C$26.84M

• Rating: 48 Neutral
• Price Target: C$0.52 ▼(-6.36% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by heavy ongoing losses and sustained cash burn, despite low leverage. Technicals also remain weak with price below key moving averages and negative MACD. Offsetting these is a more constructive earnings-call outlook driven by rapid revenue growth, sizable backlog/pipeline, and improved liquidity from recent financing, though near-term margin and booking variability remain key risks.

Positive Factors

Revenue Momentum & Backlog

Sustained +70% YoY revenue growth together with a near‑record $48.8M backlog and a ~$105M qualified pipeline provide multi‑quarter revenue visibility and conversion optionality. This depth of demand supports scaling production and predictable near‑term top‑line expansion as installs convert.

High Unit Margins

SmartGateway's mid‑to‑high‑60% gross margins demonstrate strong unit economics; management's plan for One Gateway to reach similar levels implies meaningful margin upside as ramp costs normalize. Durable high product margins underpin long‑term profitability once scale is achieved.

Improved Liquidity

The ~$11.5M financing and $15.7M cash balance materially extend runway to fund inventory, production ramps and installations. This reduces near‑term refinancing risk and gives management time to execute margin recovery and backlog conversion without immediate capital stress.

Negative Factors

Persistent Cash Burn

Negative operating and free cash flow on a trailing basis indicate the business consumes cash to run and scale. Unless operational cash generation improves, the company will remain dependent on external financing to fund growth and inventory, raising dilution and execution risk over coming quarters.

Deep Ongoing Losses

Severely negative margins and returns show the company remains far from breakeven and is destroying shareholder capital. Prolonged losses limit ability to self‑fund growth, pressure equity cushions, and mean profitability improvements must be sustained to restore financial health.

Margin Pressure & Booking Lumpiness

Gross margin compression driven by One Gateway start‑up costs and lower YoY bookings create near‑term profitability and cash‑flow volatility. Lumpiness in bookings and backlog timing makes revenue conversion uncertain quarter‑to‑quarter, complicating planning and stressing working capital during ramp.

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 growth is positive and gross margin is healthy (~61%), but profitability is still deeply negative (TTM net margin ~-81%) and cash burn remains significant (TTM FCF about -$6.2M). The balance sheet is helped by low leverage (debt-to-equity ~0.10), but weak returns (TTM ROE roughly -127%) and ongoing cash outflows keep the financial profile high-risk.

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	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	14.82M	13.85M	16.36M	4.11M	3.62M	1.08M
Gross Profit	9.03M	7.55M	10.26M	2.38M	3.34M	1.05M
EBITDA	-9.27M	-9.54M	-8.96M	-14.24M	-13.04M	-11.45M
Net Income	-11.94M	-11.88M	-11.06M	-16.34M	-39.72M	-16.56M
Balance Sheet
Total Assets	23.70M	23.41M	24.94M	19.00M	18.06M	49.40M
Cash, Cash Equivalents and Short-Term Investments	9.14M	8.22M	8.63M	8.33M	6.28M	9.65M
Total Debt	1.06M	1.13M	380.93K	356.84K	677.28K	985.92K
Total Liabilities	13.36M	12.73M	10.97M	4.26M	3.51M	2.56M
Stockholders Equity	10.34M	10.69M	13.97M	14.74M	14.55M	46.84M
Cash Flow
Free Cash Flow	-6.22M	-6.73M	-8.57M	-13.57M	-9.37M	-12.26M
Operating Cash Flow	-5.75M	-6.54M	-8.14M	-13.54M	-9.27M	-11.69M
Investing Cash Flow	-305.77K	-756.71K	-429.75K	364.46K	-95.76K	-544.96K
Financing Cash Flow	9.02M	6.90M	8.87M	15.22M	5.99M	-514.96K

Xtract One Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.55
• 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 0.55 is above the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.60, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 42.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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%
URL	60 Neutral	C$165.29M	52.17	24.43%	―	20.62%	21.78%
SYZ	60 Neutral	C$86.50M	-45.82	-8.89%	0.71%	-4.89%	-143.94%
WNDR	51 Neutral	C$213.02M	-5.44	-31.23%	―	13.16%	-1375.61%
XTRA	48 Neutral	C$131.76M	-17.87	-108.12%	―	-12.14%	4.41%
IMP	46 Neutral	C$99.24M	-21.23	-14.10%	―	48.18%	-401.19%
ONE	45 Neutral	C$48.74M	-111.14	-144.12%	―	-10.57%	-117.50%

Xtract One Corporate Events

Xtract One Boosts Revenue 70% as Weapon Detection Deployments Accelerate

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 for its Gateway product. The company posted a comprehensive loss of $2.4 million as operating expenses rose, but strengthened its balance sheet with an $11.5 million equity offering, ended the quarter with $15.7 million in cash, and highlighted a growing installation pipeline and a key SmartGateway win at the British Museum as it accelerates production and targets improved performance and a path toward profitability.

Total contract value of new bookings reached $8.7 million in the quarter, while contractual backlog stood at $13.9 million, excluding a sizable $34.9 million of agreements pending installation that underpin future revenue visibility. Management emphasized that demand for its weapon detection systems is rising, with approximately $5 million of Gateway systems delivered and another $15 million scheduled for installation, positioning Xtract One to leverage its reinforced capital base and manufacturing capacity to expand deployments and pursue higher returns for shareholders.

The most recent analyst rating on (TSE:XTRA) stock is a Hold with a C$0.55 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Xtract One Wins British Museum Deal for AI Security Screening

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 visitors annually, chose the system to enhance protection while maintaining seamless, high-throughput entry that respects the site’s architectural and operational demands.

Testing showed SmartGateway delivered significantly better detection and up to triple the processing speed of previous methods, with throughput of about 750 people per 15 minutes per lane. Its portable, modular design allows security teams to adjust perimeters based on threat level and visitor volume, highlighting a broader shift among major cultural institutions toward technology-enabled screening that boosts security and visitor experience simultaneously.

Museum leadership said the system will help minimize queues and improve searches in line with regulations ahead of planned new visitor welcome pavilions. Xtract One executives emphasized that the deployment underscores SmartGateway’s flexibility and performance in complex, high-profile environments, reinforcing the company’s positioning as a leading provider of advanced, visitor-friendly security solutions for crowded public venues.

The most recent analyst rating on (TSE:XTRA) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

Xtract One Sets Date for Fiscal Q2 2026 Results and Investor Call

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 including education, healthcare, sports and entertainment venues, and industrial sites, where it aims to integrate advanced security with minimal disruption to people’s movement.

The company announced it will release its fiscal 2026 second quarter results after markets close on March 4, 2026, followed by a webcast and conference call on March 5 hosted by CEO Peter Evans and CFO Karen Hersh. Management plans to review financial performance for the quarter ended January 31, 2026 and provide an outlook for the business, giving investors and other stakeholders fresh insight into Xtract One’s operational progress and strategic direction in the security technology market.

The most recent analyst rating on (TSE:XTRA) stock is a Hold with a C$0.54 price target. To see the full list of analyst forecasts on Xtract One stock, see the TSE:XTRA Stock Forecast page.

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.