• Another strong quarter for cash receipts and new sales of Operator XR in the US
• Increase in Annual Recurring Revenue (ARR) and Total Contract Value (TCV)
• Balance Sheet Restructure complete with 48% debt reduction

xReality Group Limited (ASX:XRG) has reported a strong Q3 FY25, with cash receipts of $3.4m ($13.0m YTD) driven by continued growth in its Operator XR enterprise software and entertainment businesses. Operator XR saw $1.5m in sales for the quarter ($6.3m YTD), while the entertainment division generated $1.9m ($6.6m YTD). The company's Annual Recurring Revenue (ARR) increased 17% quarter-on-quarter to $4.2m, and Total Contract Value (TCV) grew 24% to $9.2m YTD, up 124% on FY24. The company also completed a balance sheet restructure, reducing total debt by 48% through the conversion of $4.6m of subordinate debt and a new $6m senior debt facility. Additionally, xReality established an AI advisory board and entered a strategic research collaboration with the Advanced Law Enforcement Rapid Response Training (ALERRT) Centre to optimize Operator XR's technology platform. The outlook remains positive, with 280 qualified and active sales opportunities and a $29.3m total sales pipeline.

The company expects continued growth in its Operator XR enterprise software business, with Annual Recurring Revenue (ARR) of $4.2m as of Q3 FY25 and a Total Contract Value (TCV) of $9.2m YTD, up 124% on FY24.

The outlook remains positive, with 280 qualified and active sales opportunities and a $29.3m total sales pipeline. The company is also focused on accelerating AI implementation and securing its competitive edge in military and law enforcement training through its newly established AI advisory board and strategic research collaboration.