Xtract One Technologies wins price target raise at Ventum

Ventum Capital Markets analyst Amr Ezzat on Sept. 22 raised his price target on Xtract One Technologies (Xtract One Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:XTRA) to $1.15 from $1.00, reiterating a “Buy” rating following a new customer win in the U.S. education market.

“We continue to view Xtract as one of the most compelling asymmetric setups in Canadian small cap tech today,” he said.

Xtract One announced that Manor Independent School District in Texas will deploy its Gateway weapon detection systems across all 15 campuses. Seven systems are already live at four high schools, with a further 11 to follow in a phased rollout.

Ezzat called the deal strategically meaningful because it validates Gateway’s ability to distinguish weapons from everyday items after competitive testing and shows how traction in entertainment venues can expand into adjacent markets like education.

“The announcement reinforces the accelerating traction in K–12, a vertical Xtract One only began penetrating in late 2024,” he said. “Manor ISD serves as a tangible proof point of that dynamic, reinforcing our view that education is transitioning from a peripheral use case into a core pillar of Xtract One’s long-term growth profile.”

Founded in 2016 and based in Toronto, Xtract One, formerly Patriot One Technologies, develops AI-powered threat detection systems used in stadiums, schools, casinos, offices, and healthcare facilities across North America and abroad.

Ezzat noted that Xtract One has quickly built a pipeline in U.S. schools, with deployments now spanning Delaware, Florida, Georgia, Maryland, Mississippi, New Jersey, Pennsylvania, Virginia and Texas. He said Gateway is benefiting from heightened national attention on school safety, with the system being tested or showcased at new schools nearly every week.

While he trimmed his Q4/F25 revenue forecast to $2.9-million from $4.8-million, citing some deferred orders and broader macro hesitation, he raised his fiscal 2027 estimate to $43.5-million from $39.0-million to reflect stronger order momentum.

“We believe the upcoming Q4 print will be less about revenue and more about pipeline,” he added, saying bookings and backlog will be the critical measures to watch.

Mr. Ezzat projects an Adjusted EBITDA loss of $8.4-million on $13.4-million of revenue for fiscal 2025, improving to Adjusted EBITDA of $1.7-million on $29.8-million in revenue for fiscal 2026.

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