The Glimpse Group Reports Q3 Fiscal Year 2025 Financial Results

Rhea-AI Summary

The Glimpse Group (NASDAQ: VRAR) reported its Q3 FY2025 financial results, with revenue of $1.4 million, marking a 25% decrease from Q3 FY2024. However, the company achieved its second consecutive quarter of positive cash flow, with net operating cash gain of $0.13 million. The company maintains a strong financial position with $7.0 million in cash and no debt.

For Q4 FY2025, Glimpse expects revenue of $3.2-3.8 million and profitability, driven by a major Department of Defense contract. The company projects FY2025 revenues of $10-11 million, representing a 15-25% increase from FY2024. Gross margins improved to 72% in Q3 FY2025, with future guidance of 65-75%. The company recently secured a new seven-figure Spatial Core deal and maintains a strong pipeline of government and DoD opportunities.

Insights

Financial Analyst

Glimpse Group shows mixed Q3 results but has improved cash flow position and strong Q4 outlook with new DoD contracts.

The Glimpse Group's Q3 FY25 results present a mixed financial picture with both challenges and promising developments. Q3 revenue decreased 25% year-over-year to $1.4 million, which management attributes to revenue recognition timing rather than fundamental business deterioration. This explanation is supported by their confident Q4 outlook projecting $3.2-3.8 million in revenue.

The most significant positive development is Glimpse achieving positive operating cash flow for the second consecutive quarter, generating $0.13 million compared to a $0.92 million loss in the same period last year. This dramatic improvement stems from reorganization efforts and cost reductions while maintaining high gross margins of 72%, up from 70% year-over-year.

The company's financial position remains solid with $7 million in cash, $0.65 million in accounts receivable, and importantly, no debt. This clean capital structure provides significant operational flexibility as they navigate a challenging but opportunity-rich environment.

Management's full-year revenue guidance of $10-11 million represents a projected 15-25% increase over FY24, suggesting accelerated growth in Q4. This growth appears to be driven primarily by their Spatial Core technology and a $4+ million Department of Defense contract expected to be delivered this month.

The company's gross margin guidance increase to 65-75% (up from previous expectations) indicates a favorable shift in revenue mix toward higher-margin software licenses and Spatial Core products. This improved margin profile, combined with positive cash flow, suggests the potential for sustainable profitability if revenue growth continues.

While current quarter results reflect some temporary headwinds, the confirmation of a new seven-figure Spatial Core deal and management's mention of a "deep pipeline" across business units provides credible evidence of strengthening demand. The company's concern about market valuation, expressed through consideration of their share buyback plan, suggests management confidence in their intrinsic value relative to current market pricing.

Reaffirm Revenues and Second Consecutive Quarter of Positive Cash Flow

NEW YORK, NY / ACCESS Newswire / May 15, 2025 / The Glimpse Group, Inc. ("Glimpse") (NASDAQ:VRAR)(FSE:9DR), a diversified Immersive Technology platform company providing enterprise-focused Virtual Reality ("VR"), Augmented Reality ("AR") and Spatial Computing software and services, provided financial results for its third quarter fiscal year 2025, ended March 31, 2025 ("Q3 FY '25").

Business Commentary by President & CEO Lyron Bentovim

Financial Summary:

• Q3 FY '25 revenue of approximately $1.4 million, a 25% decrease compared to Q3 FY '24 (ending March 31, 2024) revenue of approximately $1.9 million. This expected and previously discussed decrease was primarily driven by revenue recognition timing.

• Q4 FY '25 (ending June 30, 2025) revenue is expected to be in the $3.2-3.8 million range and profitable, as we deliver and recognize the final stage of the large Department of Defense ("DoD") entity's contract for Spatial Core.

• Last week, we received official confirmation for a new seven-figure Spatial Core deal, which we expect will be signed in the coming weeks. While the U.S. Government's Continuing Resolution and the lack of a Federal budget for 2025 has delayed the potential awarding of multiple Government and DoD opportunities, we continue to be well positioned for multiple opportunities and expect to confirm a few additional seven-figure Spatial Core opportunities in the coming months.

• Revenue for the nine months ended March 31, 2025 was approximately $7 million, essentially flat compared to the same nine month period last year, despite divesting and consolidating multiple subsidiary companies. For FY '25 (ending June 30, 2025), we expect revenues in the $10-11 million range, a 15-25% increase from FY '24.

• Gross Margin for Q3 FY '25 was approximately 72% compared to 70% for Q3 FY '24. We expect our going forward Gross Margin to be in the 65-75% range, an increase from our previous guidance due to a larger portion of revenue coming from Spatial Core and software license sales.

• Net Operating Cash provided from Operations in Q3 FY '25 was a positive cash gain of approximately $0.13 million, compared to a Net Operating Cash loss of approximately -$0.92 million for Q3 FY '24. This is our second consecutive positive quarter. Net Operating Cash loss from Operations in the nine month period FY '25 was approximately -$0.13 million, compared to approximately -$4.3 million for the same nine month period last year despite having a similar level of revenue for the period. This turnaround reflects our significant reorganization efforts, cost reductions and maintenance of high gross margins.

• The Company's cash and equivalent position as of March 31, 2025 was approximately $7.0 million, with an additional $0.65 million in accounts receivable. We continue to maintain a clean capital structure with no debt, no convertible debt and no preferred equity.

• For the full details of our financial results, please refer to our 10Q filed on 5/15/25.

• In light of the strong traction in Spatial Core's AI and Cloud driven revenues, a deep pipeline of revenues across our businesses, our position in the Immersive industry, tier 1 customer base, positive cash flow, cash balance and clean balance sheet we believe that there continues to be a sharp disconnect between our intrinsic value and our current public company valuation - both stand alone and versus our public and private comps. As such, we may seek to utilize our untapped $2 million common share buyback plan in order to protect our stock if circumstances warrant its utilization.

Recent Business Updates:

• BLI is expected to deliver its $4 million+ Department of Defense ("DoD") contract this month, which would represent a foundational achievement as well as positioning Spatial Core as an Operating System for spatial computing integrating AI into 3D environments - digital twins, drones, robotics, etc.

• During the quarter, BLI successfully delivered to the US Navy its first full motion Immersive Simulator System. This milestone marks a significant achievement in the adaptation of immersive technologies to enhance the capabilities, effectiveness, and safety of the US Military Services, setting the ground for potential follow-on contracts.

• Foretell Reality entered into several contracts for its AI driven immersive training product.

• Sector 5 Digital entered into follow-on agreements with Halliburton, Ecolab, Galderma, Walmart and AT&T.

• Glimpse Lenses' Snap revenues grew significantly from the prior quarter and is tracking well.

• Glimpse Learning entered into multiple software license contracts in the healthcare and educational segments.

Q3 Fiscal Year 2025 Conference Call and Webcast
Date: Thursday, May 15, 2025
Time: 9:00 a.m. Eastern time
USA Dial In: 888-506-0062
International: 973-528-0011
Participant Access Code: 633925
Webcast: https://www.webcaster4.com/Webcast/Page/2934/52387

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

A playback of the webcast will be available through Friday, May 15, 2026. A replay of the teleconference will be available through Thursday, May 29, 2025. To listen, please call USA: 877-481-4010 or International: 919-882-2331; Replay Passcode: 52387. A webcast will also be available on the IR section of The Glimpse Group website (ir.theglimpsegroup.com) or by clicking the webcast link above.

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 Virtual Reality, Augmented Reality and Spatial Computing 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 does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. 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 March 31, 2025				As of June 30, 2024
		(Unaudited)				(Audited)
ASSETS
Cash and cash equivalents		$	7,058,020			$	1,848,295
Accounts receivable			652,118				723,032
Deferred costs/contract assets			605,562				170,781
Notes receivable			93,600				-
Prepaid expenses and other current assets			579,264				778,181
Total current assets			8,988,564				3,520,289
Equipment and leasehold improvements, net			70,975				167,325
Right-of-use assets, net			155,238				452,808
Intangible assets, net			161,253				487,867
Goodwill			10,857,600				10,857,600
Other assets			11,100				72,714
Total assets		$	20,244,730			$	15,558,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable		$	52,806			$	181,668
Accrued liabilities			780,330				340,979
Deferred revenue/contract liabilities			1,047,673				72,788
Lease liabilities, current portion			147,900				364,688
Contingent consideration for acquisitions, current portion			1,468,663				1,467,475
Total current liabilities			3,497,372				2,427,598
Long term liabilities
Contingent consideration for acquisitions, net of current portion			-				1,413,696
Lease liabilities, net of current portion			19,451				178,824
Total liabilities			3,516,823				4,020,118
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; 21,043,756 and 18,158,217 issued and outstanding, respectively			21,044				18,158
Additional paid-in capital			82,236,658				74,559,600
Accumulated deficit			(65,529,795	)			(63,039,273	)
Total stockholders' equity			16,727,907				11,538,485
Total liabilities and stockholders' equity		$	20,244,730			$	15,558,603

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

		For the Three Months Ended								For the Nine Months Ended
		March 31								March 31
		2025				2024				2025				2024
Revenue
Software services		$	1,283,287			$	1,466,397			$	6,641,652			$	6,510,740
Software license/software as a service			138,948				429,246				387,886				566,208
Total Revenue			1,422,235				1,895,643				7,029,538				7,076,948
Cost of goods sold			402,209				569,461				2,061,519				2,406,479
Gross Profit			1,020,026				1,326,182				4,968,019				4,670,469
Operating expenses:
Research and development expenses			829,815				1,136,848				2,610,038				4,209,518
General and administrative expenses			1,165,187				1,233,904				2,947,847				3,375,140
Sales and marketing expenses			483,138				559,681				1,606,236				2,138,539
Amortization of acquisition intangible assets			100,537				291,036				326,614				950,192
Goodwill impairment			-				-				-				379,038
Intangible asset impairment			-				-				-				522,166
Change in fair value of acquisition contingent consideration			26,012				(291,980	)			87,492				(4,317,524	)
Total operating expenses			2,604,689				2,929,489				7,578,227				7,257,069
Loss from operations before other income			(1,584,663	)			(1,603,307	)			(2,610,208	)			(2,586,600	)
Other income
Interest income			82,461				61,051				119,686				186,534
Net loss		$	(1,502,202	)		$	(1,542,256	)		$	(2,490,522	)		$	(2,400,066	)
Basic and diluted net loss per share		$	(0.07	)		$	(0.09	)		$	(0.13	)		$	(0.15	)
Weighted-average common shares outstanding for basic and diluted net loss per share			20,999,445				17,195,322				19,161,661				16,194,523

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

		For the Nine Months Ended March 31,
		2025				2024
Cash flows from operating activities:
Net loss		$	(2,490,522	)		$	(2,400,066	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation			390,467				1,040,759
Common stock and stock option based compensation for employees and board of directors			715,545				1,742,126
Net gain on divestiture of subsidiaries			(1,392,434	)			(1,000,000	)
Reserve on note received in connection with divestiture of subsidiaries			1,500,000				1,000,000
Gain on office lease termination			(34,660	)			-
Accrued non cash performance bonus fair value adjustment			-				(551,236	)
Acquisition contingent consideration fair value adjustment			87,492				(4,317,524	)
Impairment of intangible assets			-				901,204
Issuance of common stock to vendors			3,087				88,472
Adjustment to operating lease right-of-use assets and liabilities			(43,605	)			(99,144	)
Changes in operating assets and liabilities:
Accounts receivable			70,914				478,598
Deferred costs/contract assets			(434,781	)			86,347
Loans receivable			(9,600	)			-
Prepaid expenses and other current assets			198,917				(251,030	)
Other assets			5,349				(1,506	)
Accounts payable			(128,862	)			(214,705	)
Accrued liabilities			442,496				(388,644	)
Deferred revenue/contract liabilities			994,063				(396,546	)
Net cash used in operating activities			(126,134	)			(4,282,895	)
Cash flow used in investing activities:
Purchase of leasehold improvements and equipment			(41,453	)			(19,346	)
Payment of contingent consideration for acquisition			(1,500,000	)			-
Cash used in investing activities			(1,541,453	)			(19,346	)
Cash flows provided by financing activities:
Proceeds from securities purchase agreement, net			6,785,552				2,968,501
Proceeds from exercise of warrants			175,760				-
Issuance of note receivable			(84,000	)			-
Net cash provided by financing activities			6,877,312				2,968,501
Net change in cash and cash equivalents			5,209,725				(1,333,740	)
Cash and cash equivalents, beginning of year			1,848,295				5,619,083
Cash and cash equivalents, end of period		$	7,058,020			$	4,285,343
Non-cash Investing and Financing activities:
Issuance of common stock for satisfaction of contingent liability		$	-			$	974,647
Issuance of common stock for non cash performance bonus		$	-			$	490,360
Lease liabilities arising from right-of-use assets		$	20,344			$	113,182

The following table presents a reconciliation of net loss to Adjusted EBITDA for the three and nine months ended March 31, 2025 and 2024:

		For the Three Months Ended								For the Nine Months Ended
		March 31,								March 31,
		2025				2024				2025				2024
		(in millions)								(in millions)
Net loss		$	(1.50	)		$	(1.54	)		$	(2.49	)		$	(2.40	)
Depreciation and amortization			0.12				0.32				0.39				1.04
EBITDA loss			(1.38	)			(1.22	)			(2.10	)			(1.36	)
Stock based compensation expenses			0.31				0.62				0.71				1.83
Loss on subsidiary divestiture			-				-				0.11				-
Gain on office lease termination			-				-				(0.03	)			-
Non cash change in fair value of acquisition contingent consideration			0.03				(0.29	)			0.09				(4.32	)
Intangible asset and goodwill impairment			-				-				-				0.90
Non cash change in fair value of accrued performance bonus			-				-				-				(0.55	)
Adjusted EBITDA loss		$	(1.04	)		$	(0.89	)		$	(1.22	)		$	(3.50	)

SOURCE: The Glimpse Group, Inc.

View the original press release on ACCESS Newswire