Xtract One Technologies Inc. (TSX: XTRA) Q3 2025 Earnings Call | 6/5/2025

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Xtract One Technologies Inc. (TSX: XTRA) reported Q3 2025 results on June 5, 2025, with revenue of $3.5 million—a 25.5% year-over-year decline, missing analyst expectations due to delayed deployments and longer sales cycles as the company pivots to larger, more complex customer contracts. Gross margin remained robust at 57%, only slightly down from 58% a year ago, but the company posted a comprehensive loss of $3.3 million, up from $2.7 million last year. EPS came in at –$0.02, below the –$0.01 forecast, contributing to a 19.6% drop in the stock price after the announcement. Despite the revenue and earnings miss, Xtract One’s contractual backlog reached a record $15.4 million, with an additional $21.1 million in pending installations, reflecting strong underlying demand for its AI-driven threat detection solutions. New bookings totaled $4.6 million for the quarter, with 30% in subscription contracts, and the company highlighted notable customer wins, including the Colorado Rockies and a major international entertainment company. A key focus is the upcoming launch of the Xtract One Gateway security platform, now certified in Canada and the U.S., with shipments to begin in July. The Gateway platform has already secured $6.7 million in pre-launch orders across five customers in education, healthcare, and manufacturing sectors. Management expects revenue acceleration in Q4 2025 and reiterated its target for cash flow breakeven and potentially record backlog by year-end. CEO Peter Evans stated, “We’re on the precipice of a step function change in our overall size [and] market position,” emphasizing strategic investments and a robust pipeline despite near-term headwinds. Outlook: Q4 2025: Revenue expected to accelerate as Gateway shipments commence FY2025: Targeting cash flow breakeven and record backlog Continued focus on larger deals, product innovation, and market expansion About Inside Ticker: For more expert analysis and real-time updates on Xtract One Technologies Inc. (TSX: XTRA) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #XtractOne #XTRA #EarningsCall #Q32025 #SecurityTech #AI #Backlog #Gateway #StockMarket #Investing #InsideTicker