• FY25 total income up 36% to $14m, driven by Operator XR revenue growth
• Deferred revenue rose 61% to $7.4m, securing future revenue
• EBITDA improved $0.9m to $0.6m, cash reserves increased by $1.4m to $2.8m

xReality Group Ltd Chairman John Diddams welcomed shareholders to the company's 2025 Annual General Meeting, highlighting the strong financial performance in FY25. Total income increased 36% to $14m, driven by a 610% surge in Operator XR revenue to $5.1m. Deferred revenue rose 61% to $7.4m, securing future revenue in FY26 and FY27. EBITDA improved $0.9m to $0.6m, and cash reserves increased by $1.4m to $2.8m, providing sufficient cashflow to meet forecast working capital requirements. The company made material progress in strengthening its balance sheet, refinancing maturing debt and converting $4.6m of additional debt into equity at a 39% premium. A $2m placement was also undertaken, attracting new institutional investors. Operator XR continued to gain traction, with TCV reaching $11.3m (up 176%), ARR growing 114% to $4.7m, and the customer base expanding to 67 worldwide. The company invested $3.8m in Operator XR enhancements, integrating cloud capabilities and advanced AI to drive efficiency, scalability, and higher margins. While the entertainment wind tunnel assets continued to perform well, the Board has resolved to wind down the FREAK business. Looking ahead, the directors believe XRG is positioned for outsized growth in FY26, with a strong Operator XR pipeline, rapidly developing product roadmap, and the outputs from the US DoD project.

For FY26, the company expects to deliver on a $5.71m Texas State contract and a $2.1m grant, confirming a strong start to the year. The directors are highly encouraged by the validation of Operator XR technology, sales outlook, and significant tailwinds for global defence and law enforcement expenditure.

Building on FY25's achievements, the directors believe XRG is positioned for outsized growth across all key metrics in FY26. The investment in onboarding global distributors will further support sales with global tier 1 customers and whole of government opportunities. The company is also progressing new products with a focus on larger scenarios in fixed facilities and counter UAS, which integrate with Operator XR and increase the value of the product set to existing and new customers.