• Revenue of $10.4m, up 41% on prior corresponding period
• EBITDA of $2.6m, up 190% on prior corresponding period
• Operator XR now the core growth engine, contributing 63% of Group revenue

xReality Group Ltd (XRG) has reported its strongest half-year performance to date, with total revenue exceeding $10.4 million, representing 41% growth on the prior corresponding period, and EBITDA of $2.6 million, up 190%. This performance was driven by strong momentum in Operator XR, which continues to scale as the Group's primary growth engine. Operator XR revenue and grant funding contributed 63% of total revenue in 1H FY26, reflecting increasing adoption and growing demand for mission-critical immersive training solutions. Commercial momentum remained strong during the period, with the Operator XR customer base expanding to 89 global agencies, representing 31% year-to-date growth. New sales total contract value reached $7.8 million, supported by a qualified sales pipeline of $63 million, up 107% year-to-date. Annual Recurring Revenue increased to $6.2 million, reflecting continued expansion of multi-year agreements and increasing software-driven revenue streams. The OP-2 platform continues to drive adoption across defence and law enforcement customers, and the Company also expanded its product capability with the launch of Counter-UAS simulation technology. Global expansion initiatives continued to progress, including the first commercial sale into Japan. The Entertainment division delivered a stable contribution to Group revenue, while the Group continues to advance its strategic transition toward a focused Operator XR platform.

Operator XR revenue is expected to continue growing strongly, with the business contributing an increasing proportion of the Group's total revenue and profitability over the next 12 months.

XRG is executing a strategic realignment to position Operator XR as the Group's primary operating focus, including streamlining legacy entertainment operations, scaling global sales and distribution capability, and maximising long-term shareholder value. The Company is confident in its ability to continue driving growth and profitability through the Operator XR business.