• Total Revenue exceeding $7.4m, up 32% on pcp
• Operator XR revenue up $1.8m, reaching 50 customers
• Board to focus on Operator XR as core business, streamline entertainment operations

xReality Group Limited (XRG) reported a strong half-year result for the period ending 31 December 2024, with Total Revenue exceeding $7.4 million, up 32% on the prior corresponding period (pcp). The company's Operator XR division, which provides mission planning and rehearsal systems for military and law enforcement agencies, saw revenue grow by $1.8 million to $2.1 million, with the division reaching the 50 customers milestone in February 2025. The Board and management have resolved to streamline the business to focus on the high-growth Operator XR division, while exploring options to maximize shareholder value from the legacy entertainment business. XRG's Entertainment sector remained stable, though a professional user account sale in November 2024 impacted recognized revenue. The company reported a loss after tax of $992,338, an improvement of 34% on the pcp. XRG ended the half-year with a cash balance of $1.7 million, up 24% from June 2024, and deferred revenue of $5.8 million. The company remains committed to strengthening customer service, supply chain resilience and expanding its sales teams to support the growth of Operator XR.

The company expects stable performance from its legacy business, driving growth through the Core Operator XR business, which has seen its Total Contract Value grow 80% year-over-year to $7.4 million and Annual Recurring Revenue reach $3.6 million.

XRG is well-positioned to capitalize on new opportunities in the Operator XR business, with positive operating cash flow and strong early momentum in the US market. The company has also appointed a globally recognized AI expert as Chief AI Advisor to lead innovation across its product suite, including Operator XR's immersive training simulations.