This will be my first look and review of Xtract One in what appears to be some heavy interest out of the Wolf Den discord.
Xtract One Technologies is a Toronto-based company that develops and commercializes AI-powered weapons detection and threat detection gateway solutions. They also trade on the big boy TSX exchange and currently trade at just under a $150M market cap.
They released their Q3 just over two weeks ago to some fanfare (at least for a short spell), which sent the stock up as much as 58% during the week, but has since given back 22% from their June 11th post financials run. Longer term holders are likely satisfied with their investment as XTRA is up 64% over the past year. On the other hand, if you purchased shares at their 52 week high back in October, you’re down 40%. Welcome to microcaps.
The growth story is impressive with $24M of revenue on a TTM basis after doing just $4.1M in their 2023 fiscal year. The rest of their fundamentals are much less impressive however. They are still an operational cash burning organization with $6.4M of burn (TTM), and trade at over 6.5x P/S and are still heavily unprofitable on the net income and EBITDA lines.
So, in the words of Total, “What the Dealio” with Xtract One?
As with all initial coverage stocks, this deep dive will be available to paid subscribers with a free release scheduled for July 6th.