• XRG had its strongest half-year result to date, with Total Revenue exceeding $10.4m (up 41% on pcp) and NPAT of $0.7m
• Annual Recurring Revenue (ARR) from Operator XR has grown to $6.2m (up 72% on pcp)
• XRG cash receipts was $12.1m (up 36% on pcp) with Net Operational Cashflow $3.1m (up 133% on pcp)

XRG is a market leader in immersive Extended Reality (XR) solutions, offering both VR and AR experiences. The company's current portfolio includes advanced global defence and law enforcement XR training and simulation products, as well as entertainment businesses including VR entertainment and indoor skydiving facilities. XRG's core product, Operator XR, has seen significant growth, outpacing the legacy entertainment segment in revenue, cashflow and scalability.In H1 FY26, XRG delivered its strongest half-year result to date, with Total Revenue exceeding $10.4m (up 41% on pcp) and NPAT of $0.7m, an increase of $1.7m on pcp. Annual Recurring Revenue (ARR) from Operator XR has grown to $6.2m (up 72% on pcp), and XRG's cash receipts were $12.1m (up 36% on pcp) with Net Operational Cashflow of $3.1m (up 133% on pcp). EBITDA was $2.6m (up 190% on pcp) and unrecognised revenue has grown to $12.5m (up 69% on pcp).The company's strategic focus is on positioning Operator XR as the primary business unit, driving focused execution and streamlined operations to capture emerging market opportunities. XRG is also accelerating its geographic expansion, rapidly scaling across the United States and key global markets, and advancing its technology roadmap to include counter-drone solutions, larger fixed installations, AI-powered analytics, and mixed reality modules.The company's balance sheet continues to strengthen, with net assets increasing to ~$14.5m and improving liquidity supporting operational scale-up. Deferred (unearned) revenue increased significantly to ~$12.5m, demonstrating strong forward contracted revenue and improving earnings visibility. XRG is also exiting its legacy VR entertainment operations, simplifying its portfolio to improve operational focus, profitability, and capital efficiency.

XRG expects to continue its strong growth trajectory, with Operator XR contributing the majority of revenue and cash receipts. The company is targeting further expansion of its software-linked revenue base, supporting predictable cashflows and margin expansion. XRG also anticipates increasing global demand for its mission-critical training solutions, underpinning its long-term growth outlook.

XRG's strategic focus is on scaling its Operator XR business, which is expected to drive the company's growth. Key initiatives include expanding the Operator XR platform capabilities, such as integrating AI, cloud analytics, and next-generation training features, as well as accelerating global expansion, particularly in the United States, Europe, and Asia-Pacific markets. The company is also exploring strategic options for its legacy entertainment business to simplify its portfolio and improve operational focus.