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Xtract One (TSE:XTRA)
TSX:XTRA
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Xtract One (XTRA) AI Stock Analysis

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TSE:XTRA

Xtract One

(TSX:XTRA)

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Neutral 47 (OpenAI - 5.2)
Rating:47Neutral
Price Target:
C$0.57
▲(9.81% Upside)
Action:Reiterated
Date:07/10/26
The score is primarily constrained by weak fundamentals—significant operating losses and continued negative free cash flow despite strong revenue growth and solid gross margins. Technicals are neutral with a modestly positive MACD and mid-range RSI/Stoch, offering limited near-term conviction. Valuation is also a headwind because negative earnings (negative P/E) reduce comparability and offer limited earnings-based support.
Positive Factors
Strong Revenue Growth
Strong revenue expansion indicates growing adoption of Xtract One's screening solutions. Sustained deployment growth across venues and security-sensitive facilities could support a larger installed base and future recurring service revenue.
Negative Factors
Large Operating Losses
The company remains far from break-even despite rapid growth, leaving results highly dependent on continued execution and expansion. Persistently negative margins could constrain investment capacity and delay the realization of operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Strong revenue expansion indicates growing adoption of Xtract One's screening solutions. Sustained deployment growth across venues and security-sensitive facilities could support a larger installed base and future recurring service revenue.
Read all positive factors

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

Xtract One Business Overview & Revenue Model

Company Description
Xtract One Technologies Inc. is a global innovator specializing in the research, development, and commercialization of advanced threat detection solutions, operating through its Patriot and Xtract divisions. The Patriot division focuses on develop...
How the Company Makes Money
Xtract One makes money primarily by selling its security screening solutions and associated services. Key revenue streams include: (1) product/system revenue from deploying its screening technology (e.g., detection/screening units and related comp...

Xtract One Earnings Call Summary

Earnings Call Date:Mar 04, 2026
(Q2-2026)
|
Next Earnings Date:Oct 15, 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
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
Revenue growth is strong (+39.5% TTM) with healthy gross margin (~55%) and low leverage (debt-to-equity ~0.05). However, financial performance is held back by still-large operating losses (EBIT margin ~-38%), negative net margin (~-37.6%), and ongoing cash burn (TTM operating cash flow and free cash flow both ~-6.4M).
Income Statement
38
Negative
Balance Sheet
64
Positive
Cash Flow
29
Negative
BreakdownTTMJul 2025Jul 2024Jul 2023Jul 2022Jul 2021
Income Statement
Total Revenue24.00M13.85M16.36M4.11M3.62M1.08M
Gross Profit13.22M7.55M10.26M2.38M3.34M1.05M
EBITDA-6.65M-9.54M-8.96M-14.24M-13.04M-11.45M
Net Income-9.02M-11.88M-11.06M-16.34M-39.72M-16.56M
Balance Sheet
Total Assets33.96M23.41M24.94M19.00M18.06M49.40M
Cash, Cash Equivalents and Short-Term Investments15.60M8.22M8.63M8.33M6.28M9.65M
Total Debt919.53K1.13M380.93K356.84K677.28K985.92K
Total Liabilities14.81M12.73M10.97M4.26M3.51M2.56M
Stockholders Equity19.15M10.69M13.97M14.74M14.55M46.84M
Cash Flow
Free Cash Flow-6.38M-6.73M-8.57M-13.57M-9.37M-12.26M
Operating Cash Flow-6.38M-6.54M-8.14M-13.54M-9.27M-11.69M
Investing Cash Flow162.09K-756.71K-429.75K364.46K-95.76K-544.96K
Financing Cash Flow19.97M6.90M8.87M15.22M5.99M-514.96K

Xtract One Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.52
Price Trends
50DMA
0.56
Negative
100DMA
0.53
Positive
200DMA
0.55
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.72
Neutral
STOCH
88.89
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 0.52 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.56, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
C$130.57M224.228.75%13.07%-16.88%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
47
Neutral
C$134.84M-14.63-60.80%48.65%25.20%
47
Neutral
C$68.72M-8.27-29.25%1.36%-6.63%-207.84%
45
Neutral
C$72.31M-4.91-43.54%-66.56%-940.17%
41
Neutral
C$48.06M-28.95-59.54%301.63%-164.91%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:XTRA
Xtract One
0.54
-0.04
-6.90%
TSE:URL
NameSilo Technologies Corp
1.44
<0.01
0.35%
TSE:IMP
Intermap Technology
0.98
-2.20
-69.18%
TSE:ONE
01 Communique Laboratory Inc.
0.44
0.02
4.76%
TSE:SYZ
Sylogist
2.95
-4.57
-60.75%
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: Jul 10, 2026