• Strong quarter for cash receipts and new sales of Operator XR in the US
• Net Operational Cashflow positive $1.3m ($3.1m YTD)
• Increase in TCV $2.2m (24% QoQ) to $11.3m YTD

xReality Group Limited (ASX:XRG) reported a strong quarter ending 30th June 2025, with cash receipts of $4.7m ($17.7m YTD) driven by Operator XR ($2.5m) and Entertainment ($2.2m) businesses. Net Operational Cashflow was positive $1.3m ($3.1m YTD). The company saw a 24% quarter-on-quarter increase in Total Contract Value to $11.3m YTD and a 24% increase in Annual Recurring Revenue to $4.7m. Operator XR continued to scale in the US with 12 new law enforcement customers, 3 new customers in Australia, and a contract renewal with the Australian Defence Force. The entertainment businesses also experienced a 14% increase in sales over the prior corresponding period. The company successfully raised $2m via a placement to institutional and sophisticated investors to support the commercial expansion of Operator XR. The company ended the quarter with a cash balance of $3.48m.

Operator XR Annual Recurring Revenue at the end of the quarter was $4.7m (up 24% in the quarter and 114% for the year). Total Contract Value FY25 YTD is now $11.3m (up 24% in the Quarter and 176% for the year).

The company has a strong pipeline of 316 qualified and active sales opportunities with a total sales pipeline of $30.4m. The US DOD project is now 50% complete and remains on track for 20-month completion, with $1.7m AUD in cash receipts received to date and $3.9m AUD in cash receipts to be received over the next 10 months. US sales momentum and global distribution sales are expected to increase over FY26.