Xreality Group Limited · ASX:XRG
Xreality — Investor Presentation (August 2025)
25 slides from Xreality's investor presentation, Aug 29, 2025
Slide 1: Investor Presentation FY25 Full Year Results
INVESTOR PRESENTATION FY25 Full Year Results 29 August 2025
Slide 2: FY25 Highlights
FY25 Highlights XRG delivers record financial and operational performance. Revenue $14.0m 36% YoY Net Ops Cashflow $3.3m $3.2m Annual Deferred Revenue $7.4m 61% YoY Recurring Revenue (ARR) $4.7m 114% YoY TCV $11.3m Up 176% in FY25 Cash balance $2.8m 104% YoY 2
Slide 3: Executive Summary
Executive Summary Company Overview • XReality Group (XRG) is a market leader in immersive Extended Reality (XR), delivering advanced training and Financial Snapshot operational planning systems for Global Defence and Law Enforcement Markets. Shares on Issue 743,547,525 • Companies within the current
Slide 4: FY25 Results
FY25 Results 4
Slide 5: Operator XR
Operator XR • Operator XR has seen continued expansion: ARR - Operator ($m) 5 • 140+ deployed systems worldwide 4 3 • 67 customers worldwide (individual agencies) 2 1 • Operator XR systems used in 29 US States - 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 • Operator XR’s growth is materially transformin
Slide 6: Operator XR: Continued Wins
Operator XR: Continued Wins XRG is winning in the VR Space US Law Enforcement Alaska • 60 individual Agencies including federal, state and county departments • Recently signed first Department of Public Safety (Texas) c.$5.7m US Military Customers • US Department of Defense • 20-month project valued
Slide 7: Operator XR: Record Contract Win
Operator XR: Record Contract Win • In August, xReality Group (XRG) was awarded a contract with the Texas Department of Public Safety, for up to $5.7 million marking the largest order to date for Operator XR’s OP-2 training systems. • The agreement comprises $4.3 million for software licenses, system
Slide 8: Legacy Assets
Legacy Assets iFLY Indoor Skydiving iFLY Revenue (A$m) XRG owns and operates two Australian indoor flying facilities under a license agreement with 4.5 the global “iFLY” Brand. 4.0 • iFLY Downunder (Sydney West): XRG’s flagship facility in Penrith, one of the largest vertical wind tunnels in the Sou
Slide 9: Financials
Financials 9
Slide 10: Profit & Loss
Profit & Loss Profit and Loss ($m) FY25 FY24 Δ pcp • FY25 was a strong year for XRG achieving: Enterprise (Operator XR) 5.1 0.7 610% Enterprise Grant Income 1.3 1.1 16% • $14.0m in Total Revenue Entertainment 7.6 8.4 -10% Revenue 14 10.2 36% • $11.3m in Total Contract Value Costs of Sales -2.4 -1.6
Slide 11: Balance Sheet
Balance Sheet Balance Sheet ($m) Jun-25 Jun-24 Δ pcp • Balance Sheet strengthening during FY25 Cash and cash equivalents 2.8 1.4 104% Trade and other receivables 1.7 2.7 -39% • Current borrowings decreased and gearing significantly Inventories 0.3 0.2 100% reduced to $5.0m from $8.6m during the peri
Slide 12: Cashflow
Cashflow • Receipts from customers strongly increasing by 99% on the back Cash Flow ($m) FY25 FY24 Δ pcp of Operator XR sales and projects throughout the year. Receipts from customers 18.7 9.4 99% Payments to suppliers and employees -14.9 -8.8 69% • Net Cashflow from operations increased significant
Slide 13: Outlook & Growth Strategy
OPERATOR IK Outlook & Growth Strategy
Slide 14: Operator XR Outlook
Operator XR Outlook XRG is streamlining the business, focusing on Operator XR growth. • Operator XR Product Development • Ongoing OP-2 software releases to all customers throughout the year. • OP-2 Heavy, a fixed facility system designed for larger police agency and military customers, with addition
Slide 15: Operator XR Journey
Operator XR Journey FY23 FY24 FY25 FY26 Operational • Impact of first sale in the US, • Established entry into the US • Continued investment in the US • Scale US sales and operations enhancing reputation and market operations, customer service credibility and sales teams • OP-2 Heavy fixed facility
Slide 16: Company Outlook
Company Outlook • XRG enters FY26 with a significantly strengthened balance sheet, lower gearing and a simplified structure following FY25 initiatives (execution of debt-to- equity, refinancing of debt and conducting a strategic placement). • FY26 balance sheet reflects • Debt reduced 43%, from $8.7
Slide 17: Contact
Contact Wayne Jones Chief Executive Officer wjones@xrgroup.com.au Kim Hopwood Chief Product & Technology Officer khopwood@xrgroup.com.au www.xrgroup.com.au www.xrgroup.com.au 17
Slide 18: Disclaimer
Disclaimer This presentation has been prepared by xReality Group Limited (XRG) and provides general background information about the Company’s activities. That information is current at the date of this presentation. The information is a summary and does not purport to be complete. This presentation
Slide 19: Appendix
OPERATOR IK Appendix 19
Slide 20: Core Product: Problem and Opportunity
Core Product: Problem • All training in high-risk environments is expensive, time • High end, expensive simulators have been used for consuming and complex strategic and operational level assets but no solution for tactical level troops and police officers Resulting in • Historically, those agencies
Slide 21: Operator XR: Revenue Model
Operator XR: Revenue Model • Below is a breakdown of the standard Operator XR sales cycle, along with its revenue treatment, which differs from the legacy entertainment business Customer System Enterprise Sales Cycle Example Projects Licensing Model 3-year system licensing contract example Typically
Slide 22: Key Offerings Summary
Key Offerings Summary Software • Developed in-house, the OP-2 software uses advanced multi-user Alaska networking, allowing groups of trainees in the same physical space to train in any virtual location. User Created Scenarios • Teams can quickly design mission-specific scenarios to train for real-t
Slide 23: The System
The System Operator XR: OP-2 for Military and Law Enforcement • Enables military to conduct virtual missions using their own specific service weapons and equipment. True integration of combat equipment for immersive near-real experience. • Law enforcement officers can train operational tactics and p
Slide 24: The Software
The Software Operator XR: OP-2 Scenario Creator Suite • Instructors can design fully customised and interactive training environments for their unique requirements. • Library of high-quality pre-built scenes and interactive props, including vehicles, forensic evidence, cover options, and everyday ob
Slide 25: Total Addressable Market
Total Addressable Market Total Addressable Annual Recurring Revenue 1% of Global Market = US$33m ARR Market > Market Share Sensitivity (USD$m) Total 1% 3% 5% 10% 20% Market Law Enforcement United States 2.73 8.19 13.65 27.30 54.61 273.04 Rest of the World 4.10 12.29 20.48 40.96 81.91 409.56 Law Enfo