Xtract One Announces Fiscal 2026 Second Quarter Results
MWN-AI** Summary
Xtract One Technologies Inc. (TSX: XTRA), a leading AI-driven security solutions provider, disclosed its fiscal Q2 2026 results for the three months ending January 31, 2026. The company reported revenue of CAD 5.8 million, a notable increase of 70% from CAD 3.4 million in the same quarter last year. However, gross margin decreased to 54% from 70% due to initial production costs associated with its Xtract One Gateway systems. Operating expenses rose to CAD 5.4 million, up from CAD 4.8 million year-over-year.
During the quarter, Xtract One secured total new bookings valued at CAD 8.7 million; this figure is lower than the CAD 13.5 million booked in the same period last year. The company’s total contract backlog at the end of the quarter stood at CAD 13.9 million, down from CAD 16.7 million a year ago. Despite these drops in backlog and bookings, CEO Peter Evans remains optimistic about the company’s growth trajectory. He emphasized that the company’s strong balance sheet, which included cash and equivalents of CAD 15.7 million following a public offering that raised CAD 11.5 million, positions Xtract One well for future expansion.
The report also highlighted the recent selection of Xtract One by the British Museum to enhance venue security with its SmartGateway solution. As demand for weapon detection systems grows and manufacturing partners ramp up production, the company is confident in its path towards profitability and plans for increased contract deployment.
Going forward, Xtract One aims to capitalize on its backlog and accelerate production, anticipating improved performance and returns for shareholders in the second half of fiscal 2026.
MWN-AI** Analysis
Xtract One Technologies Inc. (TSX: XTRA) recently announced its fiscal 2026 second quarter results, revealing a robust revenue growth of 70% year-over-year. While the revenue of $5.8 million is encouraging, investors should carefully analyze the implications of the declining gross margin, which fell from 70% to 54%. This suggests that the initial production and deployment costs for the Xtract One Gateway solutions may be weighing heavily on profitability.
Despite the comprehensive loss of $2.4 million, it is encouraging to see that the company ended the quarter with a strong cash position of $15.7 million, bolstered by a recent public offering that raised $11.5 million. This liquidity will be crucial for funding their growth initiatives and reducing operational losses as they scale their operations.
The total contract value of new bookings has decreased to $8.7 million compared to $13.5 million in the previous year, which raises some concerns regarding demand sustainability. However, the backlog of $13.9 million, along with an additional $34.9 million in contracts pending installation, indicates a future revenue stream that could enhance performance in the upcoming quarters. Investors should closely monitor the conversion of this backlog into revenue and the company's ability to manage operating expenses, which grew to $5.4 million during this quarter.
Furthermore, the recent selection by the British Museum is a significant win for Xtract One, demonstrating its solution's efficacy and reputation in high-security environments.
Moving forward, the company’s strategy to focus on enhancing new contract acquisitions and the deployment of their existing backlog places them in a favorable position for potential profitability. Given the current stock price dynamics and the company’s growth trajectory, Xtract One might present a viable investment opportunity, albeit more attractive to those with a tolerance for short-term volatility and risk associated with their operational challenges. Investors should watch for quarterly updates and their ability to execute on strategic objectives.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
TORONTO, March 04, 2026 (GLOBE NEWSWIRE) -- Xtract One Technologies Inc. (TSX: XTRA) (OTCQX: XTRAF) (FRA: 0PL) (“Xtract One” or the “Company”) a leading technology-driven threat detection and security solution that prioritizes the patron access experience by leveraging AI, today announced its fiscal second quarter results for the three months ended January 31, 2026. All information is in Canadian dollars unless otherwise indicated.
Recent Highlights
- Revenue of $5.8 million for the three months ended January 31, 2026 versus $3.4 million in the prior-year period.
- Gross margin of 54% for the fiscal 2026 second quarter versus 70% in the prior year period.
- Operating expenses of $5.4 million for the three months ended January 31, 2026 versus $4.8 million in the prior-year period.
- Total contract value of new bookings1 was $8.7 million for the three months ended January 31, 2026 as compared to $13.5 million for the same period last year.
- Contractual backlog was $13.9 million at the end of the second quarter of fiscal 2026 as compared to $16.7 million in the prior-year period, excluding an additional $34.9 million of agreements pending installation versus approximately $20.5 million at the end of the second quarter of fiscal 2025.
- Comprehensive loss was $2.4 million for the three month period ended January 31, 2026 as compared to $2.1 million for the same period in fiscal 2025.
- During the quarter, the Company successfully closed a public offering and raised aggregate gross proceeds of $11.5 million, including the full exercise of an over-allotment option. Each unit purchased consisted of one common share of the Company and one-half of a common share purchase warrant, exercisable into common shares until November 10, 2028, at an exercise price of $0.95.
- The Company ended the quarter with cash and equivalents of $15.7 million, to be used for general corporate purposes – including growth acceleration – in the quarters to come.
- Subsequent to the quarter, the Company announced its selection by the British Museum, a globally renowned cultural institution, to secure all venue entrances with its SmartGateway solution. The appointment follows extensive on-site testing and evaluation to ensure compliance with rigorous protection standards while preserving high-throughput visitor flow.
“With second quarter revenue in 2026 up 70% over the prior year quarter, we remain on track for a strong year of performance – including solid top line growth during the second half of fiscal 2026,” stated Peter Evans, Chief Executive Officer of Xtract One. “Our balance sheet is in great shape to support enhanced business development activities and, given our impressive order backlog, the Company is poised for higher operating results across the board as we execute a strategic plan focused on winning new contracts and deployment of our backlog, on the path to profitability. Demand for our unique weapon detection solutions continues to grow just as our manufacturing partner, as expected, takes the necessary steps to accelerate production and increase commercial deployments. Thus far, we’ve delivered nearly $5 million worth of Xtract One Gateway systems and have another $15 million to be installed. Given this track record – and a heightened activity level as we start the second half of fiscal 2026 – we are in excellent position to achieve improved performance and higher returns for our shareholders going forward.”
Financial Results for the Three Month Period Ended January 31, 2026
Consolidated revenue was $5.8 million for the three months ended January 31, 2026 as compared to $3.4 million for the same period last year, reflecting higher deployments of the Company’s weapon detection solutions. Gross profit was $3.1 million, or a gross profit margin of 54%, for the three months ended January 31, 2026 versus $2.4 million, or a gross profit margin of 70%, in the prior-year period, owing to the initial production and deployment costs of Xtract One Gateway.
Comprehensive loss was $2.4 million for the three month period ended January 31, 2026 as compared to $2.1 million for the same period in fiscal 2025, reflecting higher selling, marketing, and general and administrative expenses, along with foreign currency translation adjustments.
This press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s Management’s Discussion and Analysis for the three and six month periods ended January 31, 2026 and 2025, which can be found on the Company’s website and under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Conference Call Details
Xtract One will host a conference call to discuss its results tomorrow, March 5, 2026 at 10:00 am EST. Peter Evans, Xtract One CEO and Director, and Karen Hersh, CFO and Corporate Secretary, will provide an overview of the financial results along with management’s outlook for the business, followed by a question-and-answer period.
The webcast and presentation will be accessible on the company’s website. The webcast can be accessed here and the telephone number for the conference call is 844-481-3016 (412-317-1881 for international callers).
About Xtract One Technologies
Xtract One Technologies is a leading technology-driven threat detection and security solution leveraging AI to provide seamless and secure patron access control experiences. The Company makes unobtrusive weapons and threat detection systems that are designed to assist facility operators in prioritizing- and delivering improved “Walk-right-In” experiences while enhancing safety. Xtract One's innovative portfolio of AI-powered Gateway solutions excels at allowing facilities to discreetly screen and identify weapons and other threats at points of entry and exit without disrupting the flow of traffic. With solutions built to serve the unique market needs for schools, hospitals, arenas, stadiums, manufacturing, distribution, and other customers, Xtract One is recognized as a market leader delivering the highest security in combination with the best individual experience. For more information, visit www.xtractone.com or connect on Facebook, X, and LinkedIn.
About Threat Detection and Security Solutions
Xtract One solutions, when properly configured, deployed, and utilized, are designed to help enhance safety and reduce threats. Given the wide range of potential threats in today's world, no threat detection system is 100% effective. Xtract One solutions should be utilized as one element in a multilayered approach to physical security.
For further information, please contact:
Xtract One Inquiries: info@xtractone.com, http://www.xtractone.com
Media Contact: Kristen Aikey, JMG Public Relations, 212-206-1645, kristen@jmgpr.com
Investor Relations: Chris Witty, Darrow Associates, 646-438-9385, cwitty@darrowir.com
1 Supplementary Financial Measures:
The Company utilizes specific supplementary financial measures in this earnings release to allow for a better evaluation of the operating performance of the Company’s business and facilitates meaningful comparison of results in the current period with those in prior periods and future periods. Supplementary financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to measures presented by other companies. Supplementary financial measures presented in this earnings release include ‘Agreements pending installation’ and ‘Total contract value of new bookings.’ Agreements pending installation reflects total value of signed contracts awarded to the Company that has not been installed at the customer site. ‘Total contract value of new bookings’ is comprised of all new contracts signed and awarded to the Company, regardless of the performance obligations outstanding as of the end of the reporting period. Total contract value is the aggregate value of sales commitments from customers as at the end of the reporting period without consideration of the Company’s completion of the associated performance obligations outlined in each contract.
CAUTIONARY DISCLAIMER STATEMENT:
This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipates”, “expects”, “believes”, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include but are not limited to the risks detailed from time to time in the continuous disclosure filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.
No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.
Unaudited Interim Statements of Loss and Comprehensive Loss for the Three Months and Six Months Ended January 31, 2026 and 2025
The following table is extracted from the Company’s unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the Statements of Loss and Comprehensive loss for the three and six month periods ended January 31, 2026 and 2025:
| Three months ended January 31, | Six months ended January 31, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Revenue | $ | 5,796,295 | $ | 3,412,189 | $ | 10,392,246 | $ | 7,040,026 | |||||||||
| Cost of revenue | 2,667,181 | 1,008,420 | 4,592,901 | 2,321,850 | |||||||||||||
| Gross profit | $ | 3,129,114 | $ | 2,403,769 | $ | 5,799,345 | $ | 4,718,176 | |||||||||
| Operating expenses | |||||||||||||||||
| Selling and marketing | $ | 1,803,362 | $ | 1,224,575 | $ | 3,747,575 | $ | 2,887,734 | |||||||||
| General and administration | 1,993,777 | 1,648,688 | 3,981,383 | 3,512,880 | |||||||||||||
| Research and development | 1,636,854 | 1,640,018 | 3,325,968 | 3,439,629 | |||||||||||||
| Loss on inventory write-down | 562 | 281,429 | 84,141 | 281,429 | |||||||||||||
| Loss on retirement of assets | - | 21,675 | - | 21,675 | |||||||||||||
| Total operating expenses | $ | 5,434,555 | $ | 4,816,385 | $ | 11,139,067 | $ | 10,143,347 | |||||||||
| Loss from operations | (2,305,441 | ) | (2,412,616 | ) | (5,339,722 | ) | (5,425,171 | ) | |||||||||
| Interest and other income | 43,937 | 66,671 | 80,602 | 141,590 | |||||||||||||
| Net loss for the period | $ | (2,261,504 | ) | $ | (2,345,945 | ) | $ | (5,259,120 | ) | $ | (5,283,581 | ) | |||||
| Other comprehensive income (loss) for the period | |||||||||||||||||
| Currency translation differences for foreign operations | (120,204 | ) | 263,300 | (78,103 | ) | 546,119 | |||||||||||
| Comprehensive loss for the period | $ | (2,381,708 | ) | $ | (2,082,645 | ) | $ | (5,337,223 | ) | $ | (4,737,462 | ) | |||||
| Weighted average number of shares | 257,968,232 | 218,423,567 | 249,297,742 | 218,410,655 | |||||||||||||
| Basic and diluted loss per share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||||
Unaudited Interim Statements of Financial Position as of January 31, 2026 and July 31, 2025
The following table is extracted from the Company’s unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the Company’s financial position as of January 31, 2026 and July 31, 2025:
| January 31, 2026 | July 31, 2025 | ||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 15,721,093 | $ | 8,220,089 | |||||
| Receivables | 2,639,155 | 1,600,176 | |||||||
| Prepaid expenses and deposits | 2,505,042 | 2,328,455 | |||||||
| Current portion of deferred cost of revenue | 432,386 | 434,284 | |||||||
| Inventory | 3,938,823 | 2,829,437 | |||||||
| 25,236,499 | 15,412,441 | ||||||||
| Property and equipment | 1,848,656 | 2,351,765 | |||||||
| Intangible assets | 4,000,294 | 4,527,260 | |||||||
| Non-current portion of deferred cost of revenue | 21,737 | 167,850 | |||||||
| Right of use assets | 816,423 | 953,513 | |||||||
| Total assets | $ | 31,923,609 | $ | 23,412,829 | |||||
| Liabilities | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | $ | 2,659,618 | $ | 3,027,553 | |||||
| Current portion of deferred revenue | 7,004,214 | 6,142,469 | |||||||
| Current portion of lease liability | 243,004 | 252,104 | |||||||
| 9,906,836 | 9,422,126 | ||||||||
| Non-Current liabilities | |||||||||
| Non-current portion of deferred revenue | 2,125,704 | 2,426,834 | |||||||
| Non-current portion of lease liability | 736,151 | 878,294 | |||||||
| $ | 12,768,691 | $ | 12,727,254 | ||||||
| Shareholders' equity | |||||||||
| Share capital | $ | 162,846,069 | $ | 150,239,300 | |||||
| Contributed surplus | 19,735,103 | 18,535,306 | |||||||
| Accumulated deficit | (163,701,769 | ) | (158,442,649 | ) | |||||
| Accumulated other comprehensive income | 275,515 | 353,618 | |||||||
| $ | 19,154,918 | 10,685,575 | |||||||
| Total liabilities and shareholders' equity | $ | 31,923,609 | $ | 23,412,829 | |||||
Unaudited Interim Statements of Cash Flows for the Six Months Ended January 31, 2026 and 2025
The following table is extracted from the Company’s unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the Company’s cash flows for the six month periods ended January 31, 2026 and 2025:
| Six months ended January 31, | ||||||||||
| 2026 | 2025 | |||||||||
| Cash flow used in operating activities | ||||||||||
| Loss for the period | $ | (5,259,120 | ) | $ | (5,283,581 | ) | ||||
| Adjustment for: | ||||||||||
| Share-based compensation | 701,332 | 634,640 | ||||||||
| Depreciation | 728,340 | 725,154 | ||||||||
| Amortization | 479,063 | 422,454 | ||||||||
| Finance cost | 20,582 | 22,916 | ||||||||
| Loss on retirement of assets | - | 21,675 | ||||||||
| Loss on inventory | 84,141 | 281,429 | ||||||||
| (3,245,662 | ) | (3,175,313 | ) | |||||||
| Changes in non-cash working capital | ||||||||||
| Receivables | (1,148,388 | ) | 3,009,688 | |||||||
| Prepaid expenses and deposits | (220,054 | ) | (352,624 | ) | ||||||
| Inventory | (1,396,156 | ) | (1,329,105 | ) | ||||||
| Deferred cost of revenue | 146,163 | 183,702 | ||||||||
| Accounts payable and accrued liabilities | (339,666 | ) | (2,134,232 | ) | ||||||
| Deferred revenue | 822,624 | 1,597,727 | ||||||||
| Cash used in operating activities | (5,381,139 | ) | (2,200,157 | ) | ||||||
| Cash flow used in investing activities | ||||||||||
| Purchase of property, plant and equipment | - | (129,180 | ) | |||||||
| Internally developed intangible assets | - | (710,154 | ) | |||||||
| Acquisition of right of use asset | - | (5,028 | ) | |||||||
| Cash used in investing activities | - | (844,362 | ) | |||||||
| Cash flow generated from financing activities | ||||||||||
| Proceeds on issue of share capital | 13,105,234 | 16,970 | ||||||||
| Lease payments | (171,825 | ) | (162,129 | ) | ||||||
| Cash generated from (used in) financing activities | 12,933,409 | (145,159 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | (51,266 | ) | (10,397 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents for the period | $ | 7,501,004 | $ | (3,200,075 | ) | |||||
| Cash and cash equivalents beginning of the period | 8,220,089 | 8,628,521 | ||||||||
| Cash and cash equivalents end of the period | $ | 15,721,093 | $ | 5,428,446 | ||||||
FAQ**
How does Xtract One Technologies Inc. (XTRAF) plan to improve its gross margin, which has dropped from 70% to 54%, in the upcoming quarters to enhance profitability?
What specific strategies is Xtract One Technologies Inc. (XTRAF) implementing to address the decrease in total contract value of new bookings from $13.5 million to $8.7 million year-over-year?
Given Xtract One Technologies Inc. (XTRAF) has a comprehensive loss of $2.4 million, what measures are in place to reduce operating expenses moving forward to achieve better financial health?
With a cash and equivalents balance of $15.7 million, how does Xtract One Technologies Inc. (XTRAF) plan to allocate these funds to accelerate growth and contract deployment?
**MWN-AI FAQ is based on asking OpenAI questions about Xtract One Technologies Inc. (OTC: XTRAF).
NASDAQ: XTRAF
XTRAF Trading
-1.35% G/L:
$0.3646 Last:
5,069 Volume:
$0.3599 Open:
