Glimpse Group (NASDAQ: VRAR) Q2 revenue falls 59% amid BLI spin-out plan

Rhea-AI Filing Summary

The Glimpse Group, Inc. reported Q2 fiscal 2026 results and outlined a major strategic realignment. Revenue for the quarter ended December 31, 2025 was about $1.30 million, down 59% from $3.17 million a year earlier and about 7% below the prior quarter. Gross margin was 61%. The company posted a net loss of $1.23 million, versus net income of $0.03 million in the prior-year quarter, and an adjusted EBITDA loss of $0.89 million compared with a $0.28 million gain a year ago.

Cash and equivalents were $3.34 million as of December 31, 2025, with $0.56 million in accounts receivable and no debt, convertible debt, preferred equity or contingent liabilities. Management has initiated a strategic realignment, including a potential spin-off IPO of Brightline Interactive as a separate Nasdaq-listed company, following a confidential S-1 filing in early January 2026, though completion is not guaranteed. The company is also exploring value-creation opportunities outside immersive technology and plans to change its ticker from VRAR to GGRP toward the end of February 2026.

Positive

• None.

Negative

• Sharp revenue contraction and profit deterioration: Q2 FY 2026 revenue was approximately $1.30 million, down 59% year over year, contributing to a swing from a small prior-year profit to a $1.23 million net loss and a $0.89 million adjusted EBITDA loss.
• Meaningful cash burn over six months: Cash and equivalents declined from $6.83 million to $3.34 million over the six months ended December 31, 2025, driven by operating and investing outflows, which may limit flexibility despite the absence of debt.

Insights

Equity analyst – small-cap technology

Sharp revenue decline and swing to losses, partly offset by a clean balance sheet and a planned BLI spin-out strategy.

The Glimpse Group showed significant top-line pressure in Q2 FY 2026. Revenue fell to $1.30 million, a 59% decline versus the prior-year quarter, attributed to timing of Department of War contracts, U.S. government budget delays and divestiture of non-core entities. This drove a shift from modest prior-year profitability to a net loss of $1.23 million and an adjusted EBITDA loss of $0.89 million.

Despite weaker earnings, the balance sheet remains relatively simple, with $3.34 million in cash and equivalents, additional receivables and no debt or preferred equity as of December 31, 2025. However, six-month operating and investing cash outflows reduced cash from $6.83 million to $3.34 million, highlighting ongoing cash burn.

Strategically, management is pursuing a potential IPO of Brightline Interactive, following a confidential S-1 filed in January 2026, targeting completion in the first half of calendar 2026, while stressing there is no guarantee of success. The company is also exploring ways to leverage its public-company platform beyond immersive technologies and plans a ticker change to GGRP later in February 2026. Actual impact will depend on execution of the BLI transaction and the pace of any new platform initiatives.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 17, 2026

THE GLIMPSE GROUP, INC.

(Exact name of registrant as specified in charter)

Nevada		001-40556		81-2958271
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification No.)

15 West 38th St., 12th Floor

New York, NY 10018

(Address of principal executive offices) (Zip Code)

(917)-292-2685

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, par value $0.001 per share		VRAR		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mart if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 17, 2026, The Glimpse Group, Inc. issued a press release announcing financial results for its quarter ended December 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
99.1		Press release, dated February 17, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 17, 2026

THE GLIMPSE GROUP, INC.
By:	/s/ Lyron Bentovim
	Lyron Bentovim
	Chief Executive Officer

Exhibit 99.1

The Glimpse Group Reports Q2 Fiscal Year 2026 Financial Results

Formally Initiated A Strategic Realignment Process To Accelerate Value Creation

NEW YORK, NY, 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)

		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	)

FAQ

How did The Glimpse Group (VRAR) perform financially in Q2 FY 2026?

The Glimpse Group generated about $1.30 million in Q2 FY 2026 revenue, down 59% year over year. It reported a $1.23 million net loss and a $0.89 million adjusted EBITDA loss as lower Department of War contract timing and divestitures pressured results.

What strategic realignment is The Glimpse Group (VRAR) undertaking?

The company has initiated a strategic realignment focused on spinning out Brightline Interactive, optimizing immersive businesses, and leveraging its public-company platform beyond immersive technology. Management is actively exploring and analyzing new platform opportunities with plans to execute during the coming year.

What is happening with Brightline Interactive (BLI) at The Glimpse Group?

The Glimpse Group is pursuing a potential IPO of Brightline Interactive as an independent Nasdaq-listed company. A confidential S-1 was filed in early January 2026, with a goal to complete the IPO in the first half of calendar 2026, though completion is not guaranteed.

What is The Glimpse Group’s cash and debt position as of December 31, 2025?

As of December 31, 2025, The Glimpse Group held $3.34 million in cash and equivalents and $0.56 million in accounts receivable. The company states it has no debt, no convertible debt, no preferred equity and no contingent liabilities on its balance sheet.

How did The Glimpse Group’s profitability change year over year in Q2 FY 2026?

Profitability weakened significantly. The Glimpse Group moved from $0.03 million net income in the prior-year quarter to a $1.23 million net loss. Adjusted EBITDA shifted from a $0.28 million gain to a $0.89 million loss, reflecting lower revenue.

Is The Glimpse Group changing its stock ticker from VRAR?

Yes. As part of its strategic realignment and broader platform focus, The Glimpse Group plans to change its ticker symbol from VRAR to GGRP. The company expects the new ticker to become effective toward the end of February 2026, subject to normal processes.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 110.4 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 3.0 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.9 KB