- Xtract One Technologies (TSX:XTRA) signed a new contract with a leading global performing arts company, tasking the patron screening disruptor to install its SmartGateway product to enhance venue security
- The initial near-term deployment under the contract will include dozens of venues in 2025
- Xtract One Technologies provides threat detection and security solutions leveraging artificial intelligence for high-throughput environments
- Xtract One stock is unchanged trading at C$0.35 as of 1:00 pm ET
Xtract One Technologies (TSX:XTRA) signed a new contract with a leading global performing arts company, tasking the patron screening disruptor to install its SmartGateway product to enhance venue security.
This content has been prepared as part of a partnership with Xtract One Technologies Inc., and is intended for informational purposes only.
The SmartGateway uses sensors equipped with artificial intelligence to scan patrons as they walk through the device, enhancing throughput by avoiding the removal of personal items. The device holds the U.S. Department of Homeland Security’s DHS SAFETY Act Designation as a Qualified Anti-Terrorism Technology.
The initial near-term deployment under the contract will include dozens of venues in 2025, followed by strategic expansions later in the year and into 2026. Xtract One onboarded the client after a one-show trial period, which management sees as a testament to the SmartGateway’s “enhanced weapons detection capabilities, streamlined entrance experience, flexibility and portability to address the dynamic and changing needs of a tour environment,” as per Thursday’s news release.
The client joins high-profile parentships with Oak View Group, Madison Square Garden Sports and Sphere Entertainment, The American Association of Professional Baseball, the MLB’s Colorado Rockies, the NBA’s Cleveland Cavaliers and the NHL’s New York Islanders, among others.
Xtract One’s technology, which can improve throughput by as much as 7x, while reducing OPEX by up to 80 per cent – according to slide 11 of the June 2025 investor presentation – has resulted in a three-year financial track record showing the company to be headed in the direction of shareholder value. Here’s a breakdown:
- Revenue grew from C$3.62 million in 2022 to C$16.36 million in 2024, followed by more than C$10.5 million collected through three quarters in 2025.
- Xtract One’s growing market share has been substantiated with decreasing unprofitability, improving from a C$39.72 million loss in 2022 to an C$11.06 million loss in 2024, with operations on track to continue the trend in 2025.
- The company’s contract backlog and signed agreements pending installation has grown in tow from C$11 million in April 2023 to C$36.5 million in April 2025 (slide 13), positioning it for what management is confident will be a strong finish to the fiscal year, as per the Q3 2025 news release, creating momentum to expand into numerous target markets (slide 9).
When we compare the patron screening player’s income statements – which are tilted up and to the right – to its stock price – which has given back 52.05 per cent year-over-year and 63.16 per cent since 2020 – it’s certainly worth a pause to ponder why the market has yet to recognize the company’s improving financials.
The likely factor, unprofitability, is an understandable deterrent, given that losses, though decreasing, remain sizable. On the contrary, the SmartGateway is differentiated from competing products and a growing number of institutional clients are validating this fact across uses-cases, both in North America and internationally, increasing Xtract One’s ability to pursue greater scale, pricing power and bottom-line profitability.
The dilemma, as with all investments, is one of conviction, but in this case the past three years of data are resoundingly clear: Should Xtract One continue on its current path, the stock will have nowhere to go but up.
Leadership insights
“In the world of live entertainment, brand experience is a key priority. These are immersive experiences where the first brand moment occurs at the entry to the venue. Well executed security changes the security guard to the first brand ambassador that a guest encounters, and their first brand experience,” Peter Evans, Xtract One Technologies’ chief executive officer, said in a statement. “We’re proud to be working with another major player in the entertainment field, delivering next-generation security solutions that meet the demands of large-scale complex events in a myriad of deployment applications. These deployments demonstrate an exciting opportunity to combine our technological expertise with their creative vision, ensuring safe, seamless experiences for all audience members throughout the world.”
About Xtract One Technologies
Xtract One Technologies provides threat detection and security solutions leveraging artificial intelligence for high-throughput environments, including schools, hospitals, arenas, stadiums, as well as manufacturing and distribution facilities.
Xtract One stock (TSX:XTRA) is unchanged trading at C$0.35 as of 1:00 pm ET.
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