Xtract One has price target chopped at Eight Capital

Following the company’s first quarter results, Eight Capital analyst Adhir Kadve has cut his price target on Xtract One Technologies (Xtract One Technologies Stock Quote, Chart, News, Analysts, Financials TSX:XTRA).

On December 5, XTRA reported its Q1, 2025 results. The company lost $2.7-million on revenue of $3.6-million.

“As expected, first quarter revenue, while up year-over-year, was a little lighter in new bookings than recent periods reflecting order timing, as we focused on bringing Xtract One Gateway to market and actively engaged in business development initiatives to build our pipeline for the remainder of fiscal 2025,” CEO Peter Evans said. “We continue to win customers outside of our core sports and live entertainment markets, welcoming new clients in the Education, Healthcare, and Manufacturing sectors, which made up 67% of the total contract value of new bookings this quarter. Demand remains strong as evidenced by our growing sales pipeline, and we’ve been pleased with the initial response of our newly announced Xtract One Gateway, particularly in high-traffic facilities like schools, convention centers, and commercial properties where we offer a highly differentiated solution. We expect to see revenue accelerate as the year progresses and continue to make progress on our path to profitability.”

The analyst summarized the quarter.

“Xtract reported a top line miss with $3.6mm in revenue versus consensus/Eight expectations of $5.5mm/$5.9mm,” he noted. “The miss was largely due to deal slippage in the quarter, where certain contracts were pushed out due to various customer specific factors. Further, bookings were lower both q/q and y/y due to the timing of signings and a tough y/y comp (last year’s bookings include the largest deal in history). The results largely reflect Xtract’s growing scale. Deals today that slip into subsequent quarters, can cause revenue volatility quarter-to-quarter, exacerbated by the fact that the company is chasing larger and more meaningful contracts. Management emphasized that retention rates, the pipeline and broader demand remained healthy across its four key verticals.”

In a research update to clients December 9, Kadve maintained his “Buy” rating on XTRA but cut his price target on the stock from $1.30 to $1.15.

The analyst thinks the company will post an Adjusted EBITDA loss of $4.1-million on revenue of $22.9-million in fiscal 2025. He expects those numbers will improve to Adjusted EBITDA of positive $1.1-million on a topline of $39.9-million in fiscal 2026.