The wind is at the back of Xtract One Technologies, this analyst says

Ventum Capital Markets analyst Rob Goff says regulatory momentum and commercial demand continue to support Xtract One’s (Xtract One Technologies Stock Quote, Chart, News, Analysts, Financials TSX:XTRA) growth outlook.

In a Sept. 11 update, Goff maintained his “Buy” rating and $1.15 target on Xtract One.

Goff said recent meetings reinforced his bullish view, with a $45-million backlog and qualified sales pipeline of about $120-million, up from roughly $87-million a year earlier.

Toronto-headquartered Xtract One provides security-screening technology for venues including arenas, schools, hospitals, casinos, airports and manufacturing facilities.

Goff said U.S. and U.K. regulatory changes could drive adoption. A recent TSA mandate requires major U.S. airports to adopt physical screening for employees, while California will require enhanced screening at high-traffic public hospital entrances by March 2027.

In the U.K., Martyn’s Law will require qualifying venues with at least 800 patrons to adopt enhanced security measures. Goff said Xtract’s British Museum win is a marquee endorsement and expects more U.K. customer announcements over the next three to six months.

Commercial demand is also building, with customers now accounting for about 11% of new bookings. Goff said theft prevention can produce payback in weeks, while arena deployments can improve operating efficiency and patron spending.

Large enterprises are becoming a bigger part of the pipeline, supporting a land-and-expand model after proof-of-concept deployments.

Goff said Xtract One Gateway has exceeded expectations, representing about 50% of bookings, helped by demand for unobtrusive screening and theft detection.

“We could see five-year revenues and gross profits exceed our baseline forecasts,” Goff said.

The analyst expects Xtract One to generate negative Adjusted EBITDA of $3-million on revenue of $30-million in fiscal 2026, improving to Adjusted EBITDA of $1-million on revenue of $41-million in fiscal 2027.

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