Disseminated on behalf of: Xtract One Technologies Inc.
Peter Evans, CEO and Director of Xtract One Technologies Inc. (TSX: XTRA | OTCQX: XTRAF | FRA: 0PL), discusses the company’s AI-powered weapons detection system, which screens people as they walk through an entrance without the slow, invasive experience of the walkthrough metal detectors most travellers know from the airport. The Toronto-based company’s goal is to help security teams identify guns, knives, and bomb-making parts while everyday items pass through, and as concerns about public safety continue to rise across North America, Xtract One is positioning itself to capitalize on growing demand for technology-driven threat detection in schools, workplaces, and healthcare facilities.
AI weapons detection that screens without slowing people down
Unlike conventional walk-through metal detectors, Xtract One’s technology lets people pass through with a backpack, laptop, charger, or metal water bottle, often without knowing they are being screened. The system generally won’t alert on those items. According to Evans, “if you do have a gun, a knife, or bomb-making parts, it will flag those, identify the specific item, and tell security personnel this gentleman has a gun in his backpack.” This approach keeps entry frictionless while directing security staff to genuine threats, and Evans says it is driving a lot of interest in the business. The company’s newest platform, the Xtract One Gateway, was built to solve a problem specific to schools, where students routinely carry laptops. “Too much metal is always a problem, and a laptop oftentimes represents too much metal,” Evans explains. The company believes this approach sets a new standard for frictionless security screening.
School security market drives Xtract One Gateway adoption
With safety concerns reshaping how schools and other facilities manage entry, Xtract One is strategically positioned to capture emerging demand. Evans points to roughly 130,000 K-12 schools in the U.S. as a core opportunity for the Xtract One Gateway, which he says has seen fantastic market adoption. In its first full year of commercialization, the Gateway now contributes about 50% of the company’s bookings and, in the last fiscal year, about a third of its revenues, according to Evans. The company continues to see accelerated growth for the platform, particularly in schools. Xtract One is also building a recurring revenue model that grows alongside its installed base of customers. By focusing on screening that balances safety with a smooth patron experience, the company aims to give investors exposure to a growing, technology-driven security market supported by a scalable operating model.
Fiscal 2026 results show revenue doubling with disciplined spending
Recent milestones include fiscal 2026 results in which Xtract One more than doubled revenue to $28.8 million while growing operating expenses by about 13%. The company also built its bookings backlog, supported by additional contracts signed but not yet installed, and ended the year with about $17 million in cash after generating positive cash flow from operations in the fourth quarter. Evans says, “we’re fully funded to continue to grow at those kinds of aggressive rates without necessarily having to increase our OpEx spend significantly.” These results mark significant progress toward a leverageable operating model. Looking ahead to fiscal 2027, the company expects to convert its backlog into revenue as it grows its installed base and expands recurring revenue.
Xtract One positioned for scalable growth in AI security screening
As Xtract One continues to expand adoption of its AI-powered screening platforms, it stands at the intersection of rising security needs and demand for a frictionless patron experience. With a growing backlog, a funded balance sheet, and accelerating Gateway adoption in schools, the company is positioned to deliver scalable growth in the threat detection sector.
Transcript
Transcript lightly edited for clarity, with corrections in bracketed text
Jim Gordon: Hi, I’m Jim Gordon, and you’re watching Market One Minute. Joining us is Peter Evans, the CEO and Director of Xtract One Technologies. Peter, welcome back.
Peter Evans: Well, thank you, Jim. Thanks for having me today.
Jim Gordon: Peter, tell us about Xtract One and the problems that your technology solves.
Peter Evans: We always tell people we build an AI-based weapons detection system, but let’s put this in terms that everyone can understand. We’ve all gone to the airport, and we’ve all gone through walk-through metal detectors. They’re slow, they’re invasive. You have to take all the metal out of your pockets, and you forget about your belt buckle that always alerts.
We built a solution whereby the average person could just walk through transparently and frictionlessly, potentially without even knowing they’re being screened, with their backpack, laptop, charger, and metal water bottle, and it generally won’t alert on any of those things. But if you do have a gun, a knife, or bomb-making parts, it will flag those, identify the specific item, and tell security personnel this gentleman has a gun in his backpack. So, this is obviously driving a lot of interest in our business, particularly as the world becomes, unfortunately, more unsafe.
Jim Gordon: You’ve reported your fiscal 2026 fourth quarter and full-year results. What are the key numbers, and what does that say about where the business is today?
Peter Evans: Great question. We’re very pleased with our results. We essentially doubled our top line to about $28.8 million, growing about [108%] over the prior year. This was done while demonstrating the very leverageable operating model that we’ve put in place, where we only grew our OpEx about 13% or so over the year.
More importantly, we built our bookings backlog to almost $30 million, complemented by another $19 million of contracts signed but yet to be installed, which is a nice foreshadowing for the future as we convert those bookings to revenue over time. We also sit with about $17 million of cash in the bank, so we’re fully funded to continue to grow at those kinds of aggressive rates without necessarily having to increase our OpEx spend significantly. So overall, it’s a great trajectory for the business, and I look to the future to repeat similar results.
Jim Gordon: And Peter, what part of the business drove those results this year?
Peter Evans: A lot of the results have come from work that we’ve done to set a foundation for the [business over the past years.] Most importantly, it’s our first year where we’ve had full commercialization of our new Xtract One Gateway platform. This is a platform that was built to solve a complex problem, particularly for schools. Too much metal is always a problem, and a laptop oftentimes represents too much metal.
The Xtract One Gateway has had fantastic market adoption and now contributes about 50% of our bookings and, in the last fiscal year, about a third of our revenues. We continue to see accelerated growth for that platform, particularly in schools, where there are 130,000 K-12 schools in the U.S. right now.
Jim Gordon: And finally, Peter, looking ahead to fiscal 2027, what should investors be watching for?
Peter Evans: I’m really pleased about how we’ve set ourselves up for further success in future years. As I mentioned, we doubled our revenues while only increasing OpEx by about 13%. We see that trajectory generally continuing, as we’ve delivered a great bookings backlog, which we’ll convert to revenue as we continue to grow our installed base of customers. And we’ve set ourselves up with a nice model for recurring revenue that keeps on growing, accelerating more and more each quarter.
Jim Gordon: Peter Evans, CEO and Director of Xtract One Technologies. Thank you for joining us.
Peter Evans: Well, thank you very much, Jim, for having me today.
About Xtract One Technologies Inc.
Xtract One Technologies (TSX: XTRA | OTCQX: XTRAF | FSE: 0PL) is a leading technology-driven provider of threat detection and security solutions leveraging AI to deliver seamless and secure 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.
Learn more at xtractone.com.
