The Glimpse Group Reports Q2 Fiscal Year 2026 Financial Results

Rhea-AI Summary

The Glimpse Group (NASDAQ:VRAR) reported Q2 FY2026 results for the quarter ended December 31, 2025 and announced a strategic realignment to unlock shareholder value.

Key points: Q2 revenue ~$1.30M (down 59% YoY), gross margin ~61%, adjusted EBITDA loss $0.89M, cash ~$3.34M. The company is pursuing a Brightline Interactive spinout/IPO and plans a ticker change to GGRP.

Positive

• Announced targeted strategic realignment focused on unlocking shareholder value in 2026
• Pursuing a potential Brightline Interactive (BLI) spinout/IPO with confidential S-1 filed in January 2026
• Maintains a clean capital structure with no debt and no convertible debt or preferred equity

Negative

• Q2 FY26 revenue declined ~59% year-over-year to approximately $1.30 million
• Adjusted EBITDA swung to a loss of in Q2 FY26 from a $0.28M gain in Q2 FY25
• Cash balance of approximately $3.34M may limit runway absent additional financing or monetization events

Key Figures

Q2 FY ’26 revenue: $1.30 million Q2 FY ’25 revenue: $3.17 million Q2 FY ’26 gross margin: 61% +5 more

8 metrics

Q2 FY ’26 revenue $1.30 million Quarter ended December 31, 2025; down 59% YoY and 7% QoQ

Q2 FY ’25 revenue $3.17 million Prior-year quarter comparison for Q2 FY ’26

Q2 FY ’26 gross margin 61% Versus 64% in Q2 FY ’25; expected 60–70% range

Adjusted EBITDA Q2 FY ’26 -$0.89 million Compared to $0.28 million gain in Q2 FY ’25

Cash and equivalents $3.34 million Balance as of December 31, 2025

Accounts receivable $0.56 million Balance as of December 31, 2025

Capital structure No debt or preferred equity Company states no debt, convertible debt, preferred equity, or contingent liabilities

ATM usage $0 drawn Company reports no funds drawn on its ATM

Market Reality Check

Price: $0.7720 Vol: Volume 118,812 is 8% abov...

normal vol

$0.7720 Last Close

Volume Volume 118,812 is 8% above the 20-day average of 109,863. normal

Technical Shares trade below the 200-day MA at $1.31, reflecting a longer-term downtrend.

Peers on Argus

VRAR is up 4.32% while peers show mixed moves: CSAI +24.82%, DVLT +5.04%, MOGO +...

1 Up

VRAR is up 4.32% while peers show mixed moves: CSAI +24.82%, DVLT +5.04%, MOGO +3.88%, INTZ -2.27%, MSAI -3.02%, indicating stock-specific factors around this earnings release.

Previous Earnings Reports

5 past events · Latest: Nov 13 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 13	Quarterly earnings	Negative	-6.5%	Q1 FY26 revenue down 43% YoY and larger adjusted EBITDA loss.
Sep 30	Annual results	Positive	-9.4%	FY25 revenue up 20% with near break-even operating cash flow and no debt.
Jul 15	Prelim quarterly	Positive	-10.5%	Preliminary Q4 FY25 showed 100% organic revenue growth and positive EBITDA.
May 15	Quarterly earnings	Positive	+19.0%	Q3 FY25 revenue guidance and strong cash position with no debt.
Feb 13	Quarterly earnings	Positive	+3.4%	Q2 FY25 revenue up 52% YoY with first positive adjusted EBITDA.

Pattern Detected

Earnings releases have produced mixed reactions, with both strong rallies and notable selloffs, often diverging from the underlying fundamental trends.

Recent Company History

Over the past year, Glimpse’s earnings and financial updates have highlighted a transition from strong growth and positive adjusted EBITDA in FY2025 to revenue declines in FY2026 driven by Department of War timing, government budget delays, and divestitures. Prior releases reported high gross margins, no debt, and meaningful Department of War and SpatialCore contracts, alongside plans to spin off Brightline Interactive to unlock value. Today’s Q2 FY ’26 results, with sharply lower revenue and a return to adjusted EBITDA losses, extend that narrative of volatility during a strategic realignment.

Historical Comparison

-0.8% avg move · Across recent earnings-related releases, VRAR’s average move was -0.8%, while today’s +4.32% reactio...

earnings

-0.8%

Average Historical Move earnings

Across recent earnings-related releases, VRAR’s average move was -0.8%, while today’s +4.32% reaction to weaker Q2 FY ’26 results stands as a notable upside outlier.

Earnings updates show a progression from strong FY2025 growth and positive adjusted EBITDA, supported by government and SpatialCore contracts, to FY2026 quarters marked by revenue declines, margin pressure, and renewed adjusted EBITDA losses during the Brightline Interactive spinout process.

Regulatory & Risk Context

Active S-3 Shelf · $100,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-21

$100,000,000 registered capacity

An effective S-3 shelf filed on 2025-11-21 allows Glimpse to offer up to $100,000,000 in various securities, including an at-the-market component. The company also has an ATM facility disclosed in recent filings, with no shares sold to date under the ATM programs.

Market Pulse Summary

This announcement combines a steep Q2 FY ’26 revenue decline to $1.30 million and an adjusted EBITDA...

Analysis

This announcement combines a steep Q2 FY ’26 revenue decline to $1.30 million and an adjusted EBITDA loss of -$0.89 million with a broader strategic realignment that includes a potential Brightline Interactive IPO, a platform focus beyond immersive tech, and a planned ticker change to GGRP. Historically, earnings-related news has produced mixed stock reactions. Investors may watch upcoming quarters for revenue stabilization, margin trends within the 60–70% target range, and concrete milestones on the BLI transaction and platform initiatives.

Key Terms

adjusted EBITDA, non-GAAP financial measure, GAAP, stock-based compensation

4 terms

adjusted EBITDA financial

"Adjusted EBITDA loss for Q1 FY '26 was -$0.89 million compared to $0.28 million gain..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial measure financial

"A non-GAAP financial measure is a numerical measure of a company's performance..."

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

GAAP financial

"presented in accordance with accounting principles generally accepted in the United States of America, or GAAP."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

stock-based compensation financial

"Adjusted EBITDA is determined by taking net loss and adding interest, taxes, depreciation, amortization and stock-based compensation expenses."

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

AI-generated analysis. Not financial advice.

Formally Initiated A Strategic Realignment Process To Accelerate Value Creation

NEW YORK, NY / ACCESS Newswire / February 17, 2026 / The Glimpse Group, Inc. ("Glimpse") (NASDAQ:VRAR), a diversified Immersive Technology platform company providing enterprise-focused Immersive Technology, Spatial Computing and Artificial Intelligence ("AI") driven software and services, announced financial results for its second quarter fiscal year 2026, ended December 31, 2025 ("Q2 FY '26").

Business Commentary by President & CEO Lyron Bentovim

Strategic Update:

• As discussed previously, Glimpse's Board of Directors has approved a formal process of exploring and pursuing various strategic alternatives, all aimed at unlocking and maximizing Glimpse shareholder value in calendar year 2026. These primarily revolve around three focus areas:

  • Spin off IPO/Divestiture of Brightline Interactive ("BLI")

  • Optimization of our Immersive businesses

  • Leveraging our platform, assets and know-how to create sustained shareholder value outside of the Immersive segment

Brightline Interactive ("BLI") Spinout/IPO:

• We are actively in the process of potentially IPOing BLI as its own independent, Nasdaq listed company - a PURE PLAY, standalone, well capitalized provider of Physical AI, Spatial Computing, Cloud-based, Operational Simulation Middleware to the Department of War ("DoW") and Big Data enterprises.

• In early January 2026, we filed a BLI confidential S1 registration statement with the SEC and are currently in process.

• Our goal is to complete the potential BLI IPO in the first half of CY '26 and we believe that we are on track to achieve that. However, there is no guarantee that the IPO will materialize as it is subject to finalizing the SEC and Nasdaq review and approval processes, market conditions and investor interest.

• In parallel to the BLI IPO path, we are also actively exploring alternative paths to capitalize BLI and put it in a position to maximize its potential.

Immersive Technologies:

• The Immersive tech industry at large is facing significant headwinds. While our Immersive companies are doing well and are operating at cash breakeven levels, it is unclear if, and when, significant scale will be achieved. It remains a long term play.

• While we continue to focus on the Immersive growth opportunities, specifically in the Education/Healthcare/Corporate segments, we don't believe that there is sufficient growth potential in the short-to-medium turn to drive significant shareholder value.

Glimpse Platform Leverage:

• We believe that there are considerable opportunities to leverage Glimpse's public company infrastructure to create value-add, platform, opportunities outside and unrelated to the Immersive tech industry.

• We have begun the process of actively exploring and analyzing these opportunities, with the intent of executing on our plans in the coming year.

As part of our strategic realignment and focus on a wider platform play, we are in the process of changing our ticker to "GGRP" (replacing VRAR). We expect the new ticker to go into effect towards the end of February 2026.

Financial Summary:

• Q2 FY '26 revenue of approximately $1.30 million, reflecting a 59% decrease compared to Q2 FY '25 (ending December 31, 2024) revenue of approximately $3.17 million; and down by approximately 7% compared to Q1, FY '26 revenues of approximately $1.40 million. The decrease reflects timing of DoW contracts and U.S. Government budget delays, and the divestiture of non-core entities.

• Gross Margin for Q2 FY '26 was approximately 61%, compared to approximately 64% for Q2 FY '25. We expect our Gross Margins to remain in the 60-70% range.

• Adjusted EBITDA loss for Q1 FY '26 was -$0.89 million compared to $0.28 million gain for Q2 FY '25, reflecting the decline in revenue this quarter.

• The Company's cash and equivalent position as of December 31, 2025 was approximately $3.34 million, with an additional $0.56 million in accounts receivable.

• We continue to maintain a clean capital structure with no debt, no convertible debt, no preferred equity and no contingent liabilities. The Company has not drawn down any funds on its ATM.

• For the full details of our financial results, please refer to our 10Q filed on 2/17/26.

Note about Non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.

In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest, taxes, depreciation, amortization and stock-based compensation expenses. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company's internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.

About The Glimpse Group, Inc.

The Glimpse Group (NASDAQ: VRAR) is a diversified Immersive technology platform company, providing enterprise-focused Immersive Technology, Spatial Computing and AI driven software & services. Glimpse's unique business model builds scale and a robust ecosystem, while simultaneously providing investors an opportunity to invest directly into this emerging industry via a diversified platform. For more information on The Glimpse Group, please visit www.theglimpsegroup.com

Safe Harbor Statement

This press release is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the "Securities Act"), and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act and other applicable securities laws. This press release may contain certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements, if provided, are based on information available to the Company as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business. Forward-looking statements, if provided, include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "view," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. All forecasts, if provided, are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, any forecasts, if provided, are entirely on management's best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

Company Contact:

Maydan Rothblum
CFO & COO
The Glimpse Group, Inc.
(917) 292-2685
maydan@theglimpsegroup.com

THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

		As of December 31, 2025				As of June 30, 2025
		(Unaudited)				(Audited)
ASSETS
Cash and cash equivalents		$	3,342,713			$	6,832,725
Accounts receivable			561,888				840,551
Deferred costs			561,563				48,971
Notes receivable			105,000				160,600
Prepaid expenses and other current assets			334,492				289,810
Total current assets			4,905,656				8,172,657
Equipment and leasehold improvements, net			48,605				54,898
Right-of-use assets, net			196,510				122,094
Intangible assets, net			-				60,717
Goodwill			10,857,600				10,857,600
Other assets			11,100				11,100
Total assets		$	16,019,471			$	19,279,066
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable		$	86,575			$	228,371
Accrued liabilities			238,583				446,896
Deferred revenue			242,977				52,576
Lease liabilities, current portion			151,602				127,046
Contingent consideration for acquisition			-				1,483,583
Total current liabilities			719,737				2,338,472
Long term liabilities
Lease liabilities, net of current portion			48,967				4,704
Total liabilities			768,704				2,343,176
Commitments and contingencies			-
Stockholders' Equity
Preferred Stock, par value $0.001 per share, 20 million shares authorized; 0 shares issued and outstanding			-				-
Common Stock, par value $0.001 per share, 300 million shares authorized; 21,076,506 and 21,055,506 issued and outstanding, respectively			21,077				21,056
Additional paid-in capital			83,080,512				82,506,758
Accumulated deficit			(67,850,822	)			(65,591,924	)
Total stockholders' equity			15,250,767				16,935,890
Total liabilities and stockholders' equity		$	16,019,471			$	19,279,066

THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

		2025				2024				2025				2024
		For the Three Months Ended								For the Six Months Ended
		December 31,								December 31,
		2025				2024				2025				2024
Revenue
Software services		$	1,175,269			$	3,129,108			$	2,423,202			$	5,358,365
Software license/software as a service			103,947				39,826				251,731				248,938
Royalty income			20,481				-				23,417				-
Total revenue			1,299,697				3,168,934				2,698,350				5,607,303
Cost of goods sold			510,231				1,144,007				901,112				1,659,310
Gross profit			789,466				2,024,927				1,797,238				3,947,993
Operating expenses:
Research and development expenses			894,387				659,699				1,867,787				1,780,222
General and administrative expenses			843,821				845,381				1,823,055				1,782,660
Sales and marketing expenses			303,946				384,223				628,035				1,123,098
Amortization of acquisition intangible assets			9,069				100,536				60,717				226,077
Change in fair value of acquisition contingent consideration			-				28,161				16,417				61,480
Total operating expenses			2,051,223				2,018,000				4,396,011				4,973,537
Income (loss) from operations before other income			(1,261,757	)			6,927				(2,598,773	)			(1,025,544	)
Other income:
Gain on sale of business			-				-				240,000				-
Interest income			36,168				18,945				99,875				37,224
Net income (loss)		$	(1,225,589	)		$	25,872			$	(2,258,898	)		$	(988,320	)
Basic net income (loss) per share		$	(0.06	)		$	0.00			$	(0.11	)		$	(0.05	)
Diluted net income (loss) per share		$	(0.06	)		$	0.00			$	(0.11	)		$	(0.05	)
Weighted-average common shares used to compute basic net income (loss) per share			21,075,935				18,361,274				21,070,457				18,262,745
Weighted-average common shares used to compute diluted net income (loss) per share			21,075,935				24,521,976				21,070,457				18,262,745

THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

		For the Six Months Ended December 31,
		2025				2024
Cash flows from operating activities:
Net loss		$	(2,258,898	)		$	(988,320	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation			83,199				272,615
Common stock and stock option based compensation for employees and board of directors			573,775				407,231
Net gain on divestiture of subsidiaries			-				(1,397,066	)
Reserve on note received in connection with divestiture of subsidiaries			-				1,500,000
Gain on office lease termination			-				(34,660	)
Acquisition contingent consideration fair value adjustment			16,417				61,480
Adjustment to operating lease right-of-use assets and liabilities			(5,597	)			(41,787	)
Changes in operating assets and liabilities:
Accounts receivable			278,663				(668,847	)
Deferred costs			(512,592	)			(52,003	)
Loans receivable			-				(40,900	)
Prepaid expenses and other current assets			(44,682	)			99,757
Other assets			-				5,349
Accounts payable			(141,796	)			114,108
Accrued liabilities			(208,313	)			295,521
Deferred revenue			190,401				214,369
Net cash used in operating activities			(2,029,423	)			(253,153	)
Cash flow from investing activities:
Purchase of leasehold improvements and equipment			(16,189	)			(26,406	)
Payment of contingent consideration for acquisition			(1,500,000	)			-
Cash used in investing activities			(1,516,189	)			(26,406	)
Cash flows provided by financing activities:
Notes receivable repayments (issuance)			55,600				(84,000	)
Proceeds from securities purchase agreement, net			-				6,785,552
Proceeds from exercise of warrants			-				175,000
Net cash provided by financing activities			55,600				6,876,552
Net change in cash and cash equivalents			(3,490,012	)			6,596,993
Cash and cash equivalents, beginning of period			6,832,725				1,848,295
Cash and cash equivalents, end of period		$	3,342,713			$	8,445,288

The following table presents a reconciliation of Net income (loss) to Adjusted EBITDA income (loss) for the three and six months ended December 31, 2025 and 2024:

		For the Three Months Ended								For the Six Months Ended
		December 31,								December 31,
		2025				2024				2025				2024
		(in millions)								(in millions)
Net income (loss)		$	(1.23	)		$	0.02			$	(2.26	)		$	(0.98	)
Depreciation and amortization			0.02				0.12				0.08				0.27
EBITDA income (loss)			(1.21	)			0.14				(2.18	)			(0.71	)
Stock based compensation expenses			0.32				0.04				0.57				0.41
(Gain) loss on sale of business/subsidiary/lease termination			-				0.07				(0.24	)			0.07
Non cash change in fair value of acquisition contingent consideration			-				0.03				0.02				0.06
Adjusted EBITDA income (loss)		$	(0.89	)		$	0.28			$	(1.83	)		$	(0.17	)

SOURCE: The Glimpse Group, Inc.

View the original press release on ACCESS Newswire

FAQ

What were The Glimpse Group's Q2 FY2026 results for revenue and margins (VRAR)?

Q2 FY2026 revenue was approximately $1.30 million, with gross margin near 61%. According to the company, revenue fell 59% year-over-year, driven by DoW contract timing, government budget delays and divestitures.

What did The Glimpse Group announce about Brightline Interactive (BLI) and an IPO (VRAR)?

The company filed a confidential S-1 for BLI and is pursuing a potential IPO in H1 2026. According to the company, the BLI spinout aims to position BLI as an independent Nasdaq-listed pure-play.

Why is The Glimpse Group changing its ticker from VRAR to GGRP and when will it take effect?

The ticker change to GGRP reflects a platform-focused realignment and is expected to take effect toward the end of February 2026. According to the company, the change aligns with broader strategic plans.

How did adjusted EBITDA and cash position look for The Glimpse Group in Q2 FY2026 (VRAR)?

Adjusted EBITDA was a loss of about $0.89 million; cash and equivalents were approximately $3.34 million. According to the company, the loss reflects the quarter's revenue decline and timing effects.

What risks did The Glimpse Group cite affecting near-term revenue growth (VRAR)?

The company cited DoW contract timing, U.S. government budget delays, divestiture of non-core entities, and immersive tech industry headwinds. According to the company, these factors constrained short-to-medium-term growth prospects.