• Cash receipts of $5.6m, up 62% on prior corresponding period
• Positive net operating cashflow of $1.3m, up $1.64m on prior corresponding period
• Annual Recurring Revenue increased to $7.0m, up 67% on prior corresponding period

xReality Group Limited (ASX:XRG) has reported a strong Quarterly Activities Report for the quarter ending 31st March 2026. Key highlights include cash receipts of $5.6m, up 62% on the prior corresponding period, and positive net operating cashflow of $1.3m, up $1.64m on the prior corresponding period. The company's Operator XR business continued to scale, with total customers grown to 104 worldwide (95 in the USA) and Annual Recurring Revenue increased to $7.0m, up 67% on the prior corresponding period. Total Contract Value for FY26 YTD is $10.2m. The company also secured its first Mixed Reality (MR) product sale with the United States Department of Defense, expanding its market opportunity. In the Entertainment sector, the iFLY indoor skydiving facilities performed consistently, while the company continues to progress the exit of its FREAK Entertainment VR businesses. The company invested in resourcing the Operator XR global expansion, with approximately 11 new positions filled, predominantly in engineering roles, and established a new satellite office in Melbourne. The company also repaid $575k of its Causeway Financial debt facility during the quarter, reducing the total facility balance to $4.7m.

The company reported Annual Recurring Revenue (ARR) for Operator XR of $7.0m at the end of the quarter, up 13% quarter-on-quarter and up ~45% year-to-date.