Is Xtract One Technologies still a buy?

Xtract One Technologies (Xtract One Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:XTRA) is gaining traction in the K–12 sector, Ventum Capital Markets analyst Amr Ezzat said in a July 17 note, maintaining his “Buy” rating and C$0.80 target. The company announced its SmartGateway system will be deployed at Mississippi’s Meridian Public School District, starting at the high school, with plans to expand to all 11 campuses.

Xtract One Technologies, formerly Patriot One Technologies, develops weapon and threat detection systems for venues like stadiums, schools, casinos, offices and healthcare facilities. Founded in 2016, the company is based in Toronto and operates in North America and internationally.

“While we don’t expect the Meridian contract to materially move near-term financials, it underscores Xtract’s progress in addressing real-world school security needs and reinforces our thesis that education is emerging as a credible adjacency beyond the stadium core,” Ezzat said. “The announcement follows a November 2024 security incident involving a shooting on the high school campus, reinforcing the district’s urgency around proactive threat detection and campus safety.

“We view the deal as strategically material and supportive of a growing reference flywheel in K–12.”

Most school security relies on metal detectors, bag checks, or X-rays, which can be slow and intrusive. Xtract One’s SmartGateway offers a faster option, spotting concealed weapons without stopping people. While One Gateway is usually better for handling backpacks, the district chose SmartGateway for its stronger edged weapon detection.

“In November 2024, Meridian High School experienced a gun-related incident in its parking lot and had also seen multiple knife-related incidents inside,” Ezzat said. “These events shaped the district’s priorities, opting for heightened detection capabilities with DHS-level performance to address both firearms and knives. This underscores the value of Xtract’s two-product portfolio, enabling solutions to be tailored to specific client needs rather than a one-size-fits-all approach.”

On June 19, Ezzat wrote that he expects Xtract One to report an Adjusted EBITDA loss of $6.9-million on $15.4-million in revenue for fiscal 2025. He forecasts improvement in fiscal 2026, with Adjusted EBITDA of $1.7-million on $29.8-million in revenue.

“With positive EBITDA around the corner, a bolstered balance sheet (Raise Clears Runway for Reacceleration), and momentum building across multiple verticals, we continue to view Xtract as one of the most compelling asymmetric setups in Canadian small cap tech today,” he said.

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