• Highest Cash Receipts to date: $7.4m in Q2 (up 85% QoQ), $11.4m YTD (up 20% PcP)
• Net Cash from Operations $3.1m
• Global Individual Agencies (customers) 89 (up 31% YTD)

xReality Group Limited (ASX:XRG) is pleased to provide the Quarterly Activities Report and Appendix 4C for the quarter ending 31st December 2025, together with an Operational Update. Key highlights include highest cash receipts to date of $7.4m in Q2 (up 85% QoQ) and $11.4m YTD (up 20% PcP), net cash from operations of $3.1m, and growth in global individual agencies (customers) to 89 (up 31% YTD). The company's Operator XR division saw continued strong performance, with total contract value of $7.8m (up 23% QoQ) and annual recurring revenue of $6.2m (up 28% YTD). The sales pipeline increased to $63m (up 107% YTD), and the company fulfilled a major order from the Texas Department of Public Safety. To support growth, xReality expanded its leadership team and secured a new headquarters facility to double production capacity. The Entertainment division also performed well, with strong sales in the lead up to Christmas, though a mechanical issue at one facility will impact Q3. The company continues to invest in future product development, including advanced AI integration, larger fixed facility products, counter drone simulations, and cloud-based offerings.

Annual Recurring Revenue for the Operator XR division was $6.2m as at FY26H1, up 28% year-to-date.

The company continues to see strong business momentum across both its Operator XR and Entertainment divisions, with a growing sales pipeline and new customer wins. It is investing in future product development to drive further growth.