Xtract One Announces Fiscal 2026 Fourth Quarter and Full Year Results
Fourth-quarter operating cash flow turned positive, but annual bookings declined and gross margins narrowed.
Sentiment and the balance of points
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Rhea-AI Summary
Xtract One Technologies (XTRAF) reported fiscal 2026 revenue of C$28.8 million, more than double the prior year.
Revenue rose 108% for the year ended July 31, 2026, while net loss narrowed to C$6,988,811 from C$11,877,096. Gross margin fell to 58% from 66%, reflecting higher initial production and installation costs for Xtract One Gateway and its larger installation share. Annual new bookings declined to C$32.2 million from C$38.5 million.
Fourth-quarter revenue increased 144% to C$8.2 million, and operating cash flow turned positive at C$1.9 million. Year-end cash reached C$17.3 million, with no debt; annual share-capital issuance generated C$13,115,484. Contractual backlog increased 66% to C$25.6 million, with C$10.5 million expected to become revenue within twelve months. Separately, agreements pending installation fell to C$18.4 million from C$34.0 million as more installations were completed.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointFiscal 2026 revenue rose 108% to C$28.8 million from C$13.9 million.
- Moderate pointAnnual net loss narrowed to C$6,988,811 from C$11,877,096 in fiscal 2025.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Contractual backlog grew 66% to C$25.6 million; C$10.5 million is expected as revenue within twelve months.
- Moderate pointYear-end cash increased to C$17.3 million from C$8.2 million, with no debt.
- Moderate pointAnnual operating cash use improved to C$3.5 million from C$6.5 million.
- Moderate pointAnnual adjusted EBITDA, a non-IFRS earnings measure, improved to negative C$3.5 million from negative C$8.6 million.
- Moderate pointAnnual share-capital issuance generated C$13,115,484 in cash proceeds.
5 minor points
- Minor pointFourth-quarter revenue increased 144% to C$8.2 million from C$3.3 million a year earlier.
- Minor pointFourth-quarter operating cash flow reached positive C$1.9 million, versus C$1.0 million used a year earlier.
- Minor pointFourth-quarter adjusted EBITDA improved to negative C$0.7 million from negative C$2.7 million a year earlier.
- Minor pointFourth-quarter net loss narrowed to C$1.485 million from C$3.513 million a year earlier.
- Minor pointAnnual loss per share narrowed to C$0.03 from C$0.05 in fiscal 2025.
Negative
- Moderate pointAnnual new bookings declined to C$32.2 million from C$38.5 million in fiscal 2025.
- Moderate pointAnnual gross margin fell to 58% from 66%, reflecting Gateway production costs and installation mix.
- Moderate pointAnnual operating expenses increased 13% to C$24.0 million from C$21.1 million.
- Moderate pointShare-capital issuance diluted holders; annual weighted-average shares increased to 254,595,678 from 220,864,106.
- Minor pointFourth-quarter new bookings fell to C$6.0 million from the prior-year record of C$16.5 million.
3 minor points
- Minor pointFourth-quarter gross margin fell to 57% from 71% a year earlier, reflecting higher production and installation costs.
- Minor pointFourth-quarter operating expenses increased 6% to C$6.3 million from C$5.9 million a year earlier.
- Minor pointAgreements pending installation fell to C$18.4 million from C$34.0 million, reflecting more completed installations.
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Record annual revenue of
$28.8 million , up108% year over year - Net loss improved by
$4.9 million , or41% year over year - Adjusted EBITDA1 improved by
$5.1 million or59% year over year - Cash balance of
$17.3 million , with positive cash flow from operations in the fourth quarter - Contractual backlog up
66% to$25.6 million year over year
TORONTO, Oct. 21, 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 fourth quarter and annual results for the three months and year ended July 31, 2026. All information is in Canadian dollars unless otherwise indicated.
"Fiscal 2026 was the year Xtract One proved it could scale," said Peter Evans, Chief Executive Officer of Xtract One. "Revenue more than doubled to
With our contractual backlog growing by
Fiscal 2026 Financial Highlights
All comparisons below are to the year ended July 31, 2025, unless otherwise noted.
- Revenue of
$28.8 million as compared to$13.9 million , an increase of108% , driven by a record number of deployments of SmartGateway and the first full year of commercial deployment of Xtract One Gateway. - Gross margin of
58% as compared to66% , reflecting the higher initial production and installation costs of Xtract One Gateway in its first year of production and its larger share of installations. - Total contract value of new bookings1 of
$32.2 million as compared to$38.5 million , which included a record$16.5 million in the fourth quarter of fiscal 2025. - Contractual backlog of
$25.6 million as compared to$15.5 million , an increase of66% , of which$10.5 million is expected to be recognized as revenue within the next twelve months. This excludes an additional$18.4 million of agreements pending installation1 as compared to$34.0 million , with the decrease reflecting the higher number of installations completed during the year. - Operating expenses of
$24.0 million as compared to$21.1 million , an increase of13% against revenue growth of108% , primarily reflecting higher selling and marketing expenses. - Comprehensive loss of
$6.8 million as compared to$11.5 million . - Adjusted EBITDA1 of negative
$3.5 million as compared to negative$8.6 million , an improvement of$5.1 million or59% . - Cash used in operating activities of
$3.5 million as compared to$6.5 million . - The Company ended the year with cash and cash equivalents of
$17.3 million as compared to$8.2 million , and no debt.
Fourth Quarter Financial Highlights
All comparisons below are to the three months ended July 31, 2025, unless otherwise noted.
- Revenue of
$8.2 million as compared to$3.3 million , an increase of144% , driven by deployments of Xtract One Gateway and continued growth in revenue from the contractual backlog. - Gross margin of
57% as compared to71% in the prior-year period, reflecting a higher proportion of Xtract One Gateway installations driving higher production and installation costs in the quarter. - Total contract value of new bookings1 of
$6.0 million as compared to$16.5 million , a record quarter in fiscal 2025 that included the first set of orders for the new Xtract One Gateway. - Operating expenses of
$6.3 million as compared to$5.9 million , an increase of6% . - Comprehensive loss of
$1.1 million as compared to$3.5 million , an improvement of67% . - Adjusted EBITDA1 of negative
$0.7 million as compared to negative$2.7 million , an improvement of$2.0 million . - Cash generated from operating activities of
$1.9 million as compared to cash used of$1.0 million .
This press release should be read in conjunction with the Company's Audited Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards ("IFRS") and the Company's Management's Discussion and Analysis for the years ended July 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, October 22, 2026 at 10:00 am ET. 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
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: Mark Kuindersma, LodeRock Advisors, 519-501-0545, mark.kuindersma@loderockadvisors.com
1 Supplementary Financial Measures
The Company utilizes specific non-IFRS and 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. These 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', '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. Adjusted EBITDA is a non-IFRS financial measure and is net loss for the period, excluding interest and other income, and adding back depreciation, amortization, finance costs and share-based compensation.
The following table provides a reconciliation from net loss for the reporting periods to Adjusted EBITDA (in
| Quarter Ended | Year Ended | |||||||||||
| Jul 31, | Jul 31, | Jul 31, | Jul 31, | |||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Net loss for the period | $ | (1,485 | ) | $ | (3,513 | ) | $ | (6,989 | ) | $ | (11,877 | ) |
| Adjusted for: | ||||||||||||
| Interest and other income | $ | (130 | ) | $ | (10 | ) | $ | (281 | ) | $ | (180 | ) |
| Depreciation | 483 | 408 | 1,585 | 1,492 | ||||||||
| Amortization | 241 | 209 | 957 | 846 | ||||||||
| Finance costs | 9 | 11 | 38 | 45 | ||||||||
| Share based compensation | 220 | 192 | 1,177 | 1,051 | ||||||||
| Adjusted EBITDA | $ | (662 | ) | $ | (2,703 | ) | $ | (3,513 | ) | $ | (8,623 | ) |
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.
Consolidated Statements of Loss and Comprehensive Loss for the Years Ended July 31, 2026 and 2025
The following table is extracted from the Company's audited consolidated financial statements and presented in Canadian dollars to demonstrate the Statements of Loss and Comprehensive Loss for the years ended July 31, 2026 and 2025:
| 2026 | 2025 | ||||||||||
| Revenue | $ | 28,819,669 | $ | 13,853,553 | |||||||
| Cost of revenue | 12,123,750 | 4,774,300 | |||||||||
| Gross profit | $ | 16,695,919 | $ | 9,079,253 | |||||||
| Operating expenses | |||||||||||
| Selling and marketing | $ | 8,160,518 | $ | 6,208,637 | |||||||
| General and administration | 8,567,096 | 7,610,758 | |||||||||
| Research and development | 7,019,179 | 6,971,625 | |||||||||
| Loss on inventory write-down | 208,596 | 321,003 | |||||||||
| Loss on retirement of assets | 10,478 | 24,199 | |||||||||
| Total operating expenses | $ | 23,965,867 | $ | 21,136,222 | |||||||
| Loss from operations | (7,269,948 | ) | (12,056,969 | ) | |||||||
| Interest and other income | 281,137 | 179,873 | |||||||||
| Net loss for the year | $ | (6,988,811 | ) | $ | (11,877,096 | ) | |||||
| Other comprehensive income for the year | |||||||||||
| Currency translation differences for foreign operations | 236,737 | 353,618 | |||||||||
| Comprehensive loss for the year | $ | (6,752,074 | ) | $ | (11,523,478 | ) | |||||
| Weighted average number of shares | 254,595,678 | 220,864,106 | |||||||||
| Basic and diluted loss per share | $ | (0.03 | ) | $ | (0.05 | ) | |||||
Consolidated Statements of Financial Position as at July 31, 2026 and 2025
| July 31, 2026 | July 31, 2025 | ||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 17,288,920 | $ | 8,220,089 | |||||
| Receivables | 4,359,671 | 1,600,176 | |||||||
| Prepaid expenses and deposits | 2,799,605 | 2,328,455 | |||||||
| Current portion of deferred cost of revenue | 354,059 | 434,284 | |||||||
| Inventory | 4,308,652 | 2,829,437 | |||||||
| 29,110,907 | 15,412,441 | ||||||||
| Property and equipment | 3,004,996 | 2,351,765 | |||||||
| Intangible assets | 3,598,135 | 4,527,260 | |||||||
| Non-current portion of deferred cost of revenue | 335,913 | 167,850 | |||||||
| Right of use assets | 679,336 | 953,513 | |||||||
| Total assets | $ | 36,729,287 | $ | 23,412,829 | |||||
| Liabilities | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | $ | 4,466,816 | $ | 3,027,553 | |||||
| Current portion of deferred revenue | 7,366,017 | 6,142,469 | |||||||
| Current portion of lease liability | 285,383 | 252,104 | |||||||
| 12,118,216 | 9,422,126 | ||||||||
| Non-current liabilities | |||||||||
| Non-current portion of deferred revenue | 5,792,627 | 2,426,834 | |||||||
| Non-current portion of lease liability | 592,731 | 878,294 | |||||||
| $ | 18,503,574 | $ | 12,727,254 | ||||||
| Shareholders' equity | |||||||||
| Share capital | $ | 163,067,680 | $ | 150,239,300 | |||||
| Contributed surplus | 19,999,138 | 18,535,306 | |||||||
| Accumulated deficit | (165,431,460 | ) | (158,442,649 | ) | |||||
| Accumulated other comprehensive income | 590,355 | 353,618 | |||||||
| $ | 18,225,713 | 10,685,575 | |||||||
| Total liabilities and shareholders' equity | $ | 36,729,287 | $ | 23,412,829 | |||||
The following table is extracted from the Company's audited consolidated financial statements and presented in Canadian dollars to demonstrate the Company's financial position as at July 31, 2026 and 2025:
Consolidated Statements of Cash Flows for the Years Ended July 31, 2026 and 2025
The following table is extracted from the Company's audited consolidated financial statements and presented in Canadian dollars to demonstrate the Company's cash flows for the years ended July 31, 2026 and 2025:
| 2026 | 2025 | |||||||||||
| Cash flow used in operating activities | ||||||||||||
| Loss for the year | $ | (6,988,811 | ) | $ | (11,877,096 | ) | ||||||
| Adjustment for: | ||||||||||||
| Share-based compensation | 1,176,728 | 1,050,518 | ||||||||||
| Depreciation | 1,584,625 | 1,492,479 | ||||||||||
| Amortization | 956,987 | 846,175 | ||||||||||
| Finance cost | 38,353 | 45,181 | ||||||||||
| Loss on inventory | 208,596 | 321,003 | ||||||||||
| Loss on retirement of assets | 10,478 | 24,199 | ||||||||||
| (3,013,044 | ) | (8,097,541 | ) | |||||||||
| Changes in non-cash working capital | ||||||||||||
| Receivables | (2,684,911 | ) | 2,313,323 | |||||||||
| Prepaid expenses and deposits | (465,365 | ) | (1,374,687 | ) | ||||||||
| Inventory | (3,255,706 | ) | (674,107 | ) | ||||||||
| Deferred cost of revenue | (87,651 | ) | 265,837 | |||||||||
| Accounts payable and accrued liabilities | 1,432,348 | (977,276 | ) | |||||||||
| Deferred revenue | 4,539,829 | 2,003,964 | ||||||||||
| Cash used in operating activities | (3,534,500 | ) | (6,540,487 | ) | ||||||||
| Cash flow used in investing activities | ||||||||||||
| Purchase of property, plant and equipment | (392,679 | ) | (185,725 | ) | ||||||||
| Internally developed intangible assets | - | (729,730 | ) | |||||||||
| Acquisition of right of use asset | - | (4,518 | ) | |||||||||
| Proceeds from disposal of property, plant and equipment | - | 163,259 | ||||||||||
| Cash used in investing activities | (392,679 | ) | (756,714 | ) | ||||||||
| Cash flow generated from financing activities | ||||||||||||
| Proceeds on issue of share capital | 13,115,484 | 7,187,687 | ||||||||||
| Lease payments | (290,637 | ) | (285,350 | ) | ||||||||
| Cash generated from financing activities | 12,824,847 | 6,902,337 | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 171,163 | (13,568 | ) | |||||||||
| Net increase (decrease) in cash and cash equivalents for the year | $ | 9,068,831 | $ | (408,432 | ) | |||||||
| Cash and cash equivalents beginning of the year | 8,220,089 | 8,628,521 | ||||||||||
| Cash and cash equivalents end of the year | $ | 17,288,920 | $ | 8,220,089 | ||||||||
Source: Xtract One Technologies Inc.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did Xtract One's revenue and net loss change in fiscal 2026?
Xtract One's fiscal 2026 revenue increased 108% to C$28.8 million, while net loss narrowed to C$6,988,811. Revenue was C$13.9 million and net loss was C$11,877,096 in fiscal 2025. The reporting year ended July 31, 2026.
How much of Xtract One's fiscal 2026 backlog is expected to become revenue within twelve months?
C$10.5 million of Xtract One's C$25.6 million contractual backlog is expected to be recognized as revenue within the next twelve months. The backlog excludes an additional C$18.4 million of agreements pending installation.
What do Xtract One's new bookings and agreements pending installation measure?
New bookings measure the total value of new contracts signed and awarded, while agreements pending installation measure signed contracts not yet installed at customer sites. New bookings include contracts regardless of their outstanding performance obligations and are not the same as recognized revenue.