Jul. 7 at 5:07 AM
$XTRAF Canaccord's Amr Ezzat writes about Xtract “While Xtract One recently achieved its first quarter of positive EBITDA, profitability remains thin, and we believe the market is underestimating the operating leverage embedded in the model as deployments scale. While we have followed Xtract One from a distance over the years, we were never drawn in due to the company’s earlier, spending-heavy approach. A new management team took the reins in late 2020, focused on disciplined execution and long-term commercial viability. Today, we see a different story unfolding. This team has built a credible track record of cost control, strategic clarity, and consistent progress. We believe the market is still treating Xtract One as a cash-burning start-up, creating a disconnect between the company’s fundamentals and its valuation. In our view, this presents a compelling opportunity to invest ahead of a period of accelerating growth, expanding margins, and sustainable profitability,” said Mr. Ezzat.
