Revenue Performance - Total revenue for the three months ended December 31, 2025, was approximately $1.30 million, a decrease of 59% compared to $3.17 million for the same period in 2024[114] - Total revenue for the six months ended December 31, 2025, was approximately $2.70 million, a decrease of 52% compared to $5.61 million for the same period in 2024[114] - Software Services revenue for the three months ended December 31, 2025, was approximately $1.18 million, a decrease of 62% compared to $3.13 million for the same period in 2024[116] - Software License revenue for the three months ended December 31, 2025, was approximately $0.10 million, an increase of 150% compared to $0.04 million for the same period in 2024[117] - Royalty income for the three months ended December 31, 2025, was approximately $0.02 million, reflecting a new revenue stream from prior subsidiary divestitures[118] Operating Expenses - Total operating expenses for the three months ended December 31, 2025, were approximately $2.02 million, a decrease of 1% compared to $2.05 million for the same period in 2024[113] - Operating expenses for the three months ended December 31, 2025 were approximately $2.05 million, an increase of 1% from $2.02 million in the same period of 2024[121] - Research and development expenses for the three months ended December 31, 2025 were approximately $0.90 million, reflecting a 36% increase from $0.66 million in the same period of 2024[122] - Sales and marketing expenses for the three months ended December 31, 2025 decreased by 20% to approximately $0.30 million from $0.38 million in the same period of 2024[124] Net Income and Cash Flow - Net loss for the three months ended December 31, 2025 was approximately $1.23 million, compared to net income of approximately $0.02 million for the same period in 2024[128] - Net cash used in operating activities for the six months ended December 31, 2025 was approximately $2.03 million, a significant increase from $0.25 million in the same period of 2024[135] - Net cash used in investing activities for the six months ended December 31, 2025 was approximately $1.52 million, compared to $0.03 million in the same period of 2024[136] - Total other income for the six months ended December 31, 2025 was approximately $0.34 million, a substantial increase from $0.04 million in the same period of 2024[127] - Cash and cash equivalents at the end of the period on December 31, 2025 were $3.34 million, a decrease of 60% from $8.44 million at the end of the same period in 2024[134] - Adjusted EBITDA loss for the three months ended December 31, 2025 was $0.89 million, compared to income of $0.28 million for the same period in 2024[133] Company Developments - Four customers accounted for approximately 81% of total gross revenues during the three months ended December 31, 2025[119] - The company entered into an At-the-Market Sales Agreement allowing for the sale of up to $9,478,200 of common stock as of January 2, 2026[111] - The company is exploring a potential spin-off of its subsidiary Brightline Interactive, Inc. to unlock shareholder value[112] Financial Position - As of December 31, 2025, the Company had no outstanding debt obligations[139] - As of December 31, 2025, the Company had no issued and outstanding preferred stock[140] - As of December 31, 2025, the Company had no outstanding contingent obligation[141] - As of the date of this filing, the ATM facility has not been utilized[142] Accounting and Risk Disclosures - Recent accounting pronouncements have been adopted, with potential impacts described in Note 2 of the financial statements[143] - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies[144]

Financial Performance - Q2 FY '26 revenue was approximately $1.30 million, a 59% decrease from $3.17 million in Q2 FY '25 and a 7% decrease from $1.40 million in Q1 FY '26[11] - Adjusted EBITDA loss for Q2 FY '26 was -$0.89 million, compared to a gain of $0.28 million in Q2 FY '25, reflecting the revenue decline[11] - The company reported a net loss of $1.23 million for Q2 FY '26, compared to a net income of $0.03 million in Q2 FY '25[18] - For the six months ended December 31, 2025, the net loss was $2.26 million, compared to a net loss of $0.98 million for the same period in 2024, representing a 130% increase in losses[20] - Adjusted EBITDA for the six months ended December 31, 2025, was a loss of $1.83 million, compared to a loss of $0.17 million for the same period in 2024, indicating a significant decline in performance[21] Cash and Assets - The company's cash and equivalents as of December 31, 2025, were approximately $3.34 million, with an additional $0.56 million in accounts receivable[11] - Total current assets decreased from $8.17 million as of June 30, 2025, to $4.91 million as of December 31, 2025[16] - Cash and cash equivalents at the end of the period were $3.34 million, down from $8.45 million at the end of the same period in 2024, showing a decline of 60%[20] - Cash used in operating activities for the six months ended December 31, 2025, was $2.03 million, compared to $0.25 million for the same period in 2024, reflecting an increase in cash outflow[20] - The company experienced a significant change in accounts receivable, with an increase of $0.28 million for the six months ended December 31, 2025, compared to a decrease of $0.67 million in 2024[20] Liabilities and Expenses - Total liabilities decreased from $2.34 million as of June 30, 2025, to $0.77 million as of December 31, 2025[16] - Stock-based compensation expenses for the six months ended December 31, 2025, were $0.57 million, compared to $0.41 million in 2024, representing a 39% increase[21] - The company incurred a payment of $1.5 million for contingent consideration related to acquisitions during the six months ended December 31, 2025[20] - The depreciation and amortization expense for the six months ended December 31, 2025, was $0.08 million, down from $0.27 million in 2024, indicating a reduction in asset depreciation[21] Strategic Initiatives - The company is pursuing a potential IPO for Brightline Interactive (BLI) in the first half of CY '26, having filed a confidential S1 registration statement with the SEC[6] - The strategic realignment process includes optimizing immersive businesses and leveraging assets to create shareholder value outside the immersive segment[6] - The company plans to change its ticker symbol to "GGRP" from "VRAR" by the end of February 2026[7] Other Financial Highlights - The company reported a net gain on divestiture of subsidiaries of $1.4 million in 2024, which was not repeated in 2025, impacting overall financial performance[20]

NEW YORK, NY / ACCESS Newswire / February 11, 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, will release its financial results for Q2 fiscal year 2026 (ended December 31, 2025) on Tuesday, February 17, 2026 at 8:30am ET. About The Glimpse Group, Inc. The Glimpse Group (NASDAQ:VRAR) is a diversified Immersive tech ...

Core Insights - The Glimpse Group, Inc. is focusing on strategic initiatives for calendar year 2026 aimed at unlocking shareholder value, which is believed to be undervalued in the current equity valuation [2][4] Business Strategy - The company plans to spin out Brightline Interactive (BLI) through an IPO, positioning it as a standalone entity focused on Physical AI and Spatial Computing for the Defense Tech/AI software segment [5] - BLI's solutions utilize the SpatialCore software platform for operational orchestration and training of digital twins, robotics, and autonomous systems [5] - The IPO is targeted for completion in the first half of CY '26, with Lucid Capital Markets engaged as the investment banking partner [5] - In parallel, the company is exploring private company spin-out alternatives for BLI to maximize its success and create value for shareholders [5] Immersive Technologies - The core Immersive business is driven by the Foretell Ai software product, which provides intelligent, conversational simulations in immersive environments [5] - Foretell Ai is gaining traction in the Education and Healthcare segments, with increasing enterprise interest and new license agreements [5] - A recent contract was secured with a NYC-based higher education institution for the deployment of a local Large Language Model infrastructure to run Foretell Ai [5] Financial Position - The company maintains a healthy capital structure with no debt and sufficient cash reserves for the next 12 months [11] - An S3 and ATM facility has been established, although there is no current intent to utilize these tools [11]

Core Insights - The Glimpse Group, Inc. has entered into a six-figure contract with a New York City-based higher education institution for the design, deployment, and integration of a local Large Language Model (LLM) infrastructure [1] - This LLM infrastructure is specifically configured to run Foretell AI in immersive environments, which will be utilized across various campus and community systems and programs [1] - The partnership highlights Glimpse's capability to integrate AI with immersive platforms, facilitating natural interactions with smart AI non-human virtual characters [1] Company Developments - The contract represents a significant step for Glimpse in expanding its offerings in the immersive technology sector [1] - The collaboration with the higher education institution underscores the growing demand for AI-driven solutions in educational settings [1] - The integration of AI in immersive environments is expected to enhance user experience and engagement within the institution [1]

Financial Data and Key Metrics Changes - Q1 fiscal year 2026 revenue was approximately $1.4 million, reflecting a 43% decrease compared to $2.4 million in Q1 fiscal year 2025, attributed to timing of Department of Defense contracts and U.S. government budgetary delays [18] - Gross margin for Q1 fiscal year 2026 was approximately 72%, up from approximately 68% for fiscal year 2025, with expectations to remain in the 65%-75% range [19] - Adjusted EBITDA loss for Q1 fiscal year 2026 was $0.92 million compared to a loss of $0.46 million in Q1 fiscal year 2025, indicating the impact of lower revenues [19] - Cash and equivalents as of September 30, 2025, were approximately $5.56 million, with an additional $0.66 million in accounts receivable, maintaining a clean capital structure with no debt [19] Business Line Data and Key Metrics Changes - Brightline Interactive made an initial successful delivery on a multi-million dollar annual SpatialCore contract with a Department of Defense entity, indicating progress in key contracts [13] - The AI software product, Fortel AI, is gaining traction in education and healthcare segments, with increasing enterprise interest and new licenses [14] Market Data and Key Metrics Changes - The company is closely monitoring the imposition of tariffs and has seen strong quoting activity as customers evaluate near-shore manufacturing strategies for North America and China [5] - Nortech operates under a Maquiladora structure, which reduces direct exposure to tariffs on goods produced in Mexico [8] Company Strategy and Development Direction - The immediate strategic focus is on the potential IPO spinoff of Brightline as an independent publicly traded company, expected to occur in the first half of calendar year 2026 [15] - The company is exploring value creation alternatives as a clean, healthy, NASDAQ-listed technology company, with a focus on growing the Fortel AI software licenses [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by government shutdowns and budgetary delays but remains optimistic about contract materialization in 2026 [13] - The company expects continued growth in its business, particularly through the Fortel AI software licenses [21] Other Important Information - The company will not provide revenue guidance for the remainder of fiscal year 2026 due to the many moving parts currently in play [19] Q&A Session Summary Question: Are there any questions from the phone lines? - There were no questions from the phone lines [22] Question: Are there any questions submitted via the webcast? - There were no questions submitted via the webcast [24]

Revenue Performance - Total revenue for the three months ended September 30, 2025, was approximately $1.40 million, a decrease of approximately 43% compared to $2.44 million for the same period in 2024[106] - Software Services revenue was approximately $1.25 million, down approximately 44% from $2.23 million in the prior year, attributed to timing of Department of War contracts and U.S. Government budget delays[109] - Three customers accounted for approximately 79% of total gross revenues during the three months ended September 30, 2025[113] Profitability and Expenses - Gross profit margin decreased to approximately 72% for the three months ended September 30, 2025, compared to approximately 79% for the same period in 2024, primarily due to changes in the cost structure of Department of War projects[114] - Total operating expenses for the three months ended September 30, 2025, were approximately $2.34 million, a decrease of approximately 21% from $2.96 million in the prior year, reflecting the divestiture of the QReal business[115] - Research and development expenses for the three months ended September 30, 2025, were approximately $0.97 million, a decrease of approximately 13% from $1.12 million in the prior year[117] - Sales and marketing expenses decreased by approximately 57% to $0.32 million for the three months ended September 30, 2025, compared to $0.74 million in the prior year[119] - Adjusted EBITDA loss was $0.92 million for the three months ended September 30, 2025, compared to a loss of approximately $0.46 million for the same period in 2024, reflecting a decrease in revenue and gross margin[128] Net Loss and Cash Flow - Net loss for the three months ended September 30, 2025, was approximately $1.03 million, compared to a net loss of approximately $1.02 million for the same period in 2024, reflecting reduced revenue and gross margin offset by lower operating expenses[123] - Net cash used in operating activities increased to approximately $1.29 million for the three months ended September 30, 2025, from approximately $0.42 million in the same period of 2024, representing a 207% increase[130] - The net decrease in cash and cash equivalents was $1.27 million for the three months ended September 30, 2025, compared to a decrease of $0.43 million in the same period of 2024, indicating a 195% increase in cash outflow[129] Cash Position and Financing - Cash and cash equivalents at the end of the period were $5.56 million, up 294% from $1.41 million at the end of the same period in 2024[129] - The company had no outstanding debt obligations as of September 30, 2025[133] - Net cash provided by financing activities was approximately $0.03 million for the three months ended September 30, 2025, compared to zero for the prior year period[132] Strategic Initiatives - The company entered into a $2+ million SpatialCore contract to be delivered over a 12-month period starting August 13, 2025[104] - The company is exploring a potential spin-off of its BLI subsidiary to unlock shareholder value and provide growth resources, though the process is in early stages and uncertain[105] Other Financial Metrics - As of September 30, 2025, the company had $0.66 million in accounts receivable[133] - The contingent consideration for acquisition liabilities included a $1.50 million cash component, which was paid in October 2025[134] - The company experienced a flat year-over-year net cash used in investing activities, primarily related to equipment purchases[131]

Financial Performance - Q1 FY '26 revenue was approximately $1.40 million, a 43% decrease from Q1 FY '25 revenue of approximately $2.44 million, attributed to timing of contracts and U.S. Government budget delays [3] - Adjusted EBITDA loss for Q1 FY '26 was -$0.92 million, compared to -$0.46 million for Q1 FY '25, indicating a decline in revenue [3] - The net loss for Q1 FY '26 was $1.03 million, with a basic and diluted net loss per share of $0.05 [16] - For the three months ended September 30, 2025, the net loss was $1.03 million, compared to a net loss of $1.02 million in 2024, indicating a slight increase in losses year-over-year [19] - Adjusted EBITDA loss for Q3 2025 was $0.92 million, compared to a loss of $0.46 million in Q3 2024, reflecting a deterioration in operational performance [19] - Cash flows used in operating activities for Q3 2025 totaled $1.29 million, significantly higher than $0.43 million in Q3 2024, indicating increased cash outflows [18] Assets and Liabilities - The company's cash and equivalents as of September 30, 2025, were approximately $5.56 million, with an additional $0.66 million in accounts receivable [3] - Total current assets as of September 30, 2025, were approximately $7.33 million, down from $8.17 million as of June 30, 2025 [14] - Total liabilities as of September 30, 2025, were approximately $2.20 million, compared to $2.34 million as of June 30, 2025 [14] - The company reported a cash and cash equivalents balance of $5.56 million at the end of Q3 2025, down from $6.83 million at the beginning of the period [18] Revenue Recognition and Contracts - Brightline Interactive made an initial delivery on a multi-million annual SpatialCore contract with a Department of War entity, with further significant opportunities anticipated [3] - The company signed several contracts with a major oil service company, with an aggregate contract value in the mid 6-figure dollars for 3D brand environments and corporate presentations [3] - Deferred revenue increased by $0.02 million in Q3 2025, contrasting with a substantial decrease of $0.38 million in Q3 2024, indicating a shift in revenue recognition [18] Expenses and Compensation - Gross Margin for Q1 FY '26 was approximately 72%, compared to approximately 68% for FY '25, with expectations to remain in the 65-75% range [3] - Stock-based compensation expenses for Q3 2025 were $0.25 million, down from $0.37 million in Q3 2024, showing a reduction in employee compensation costs [19] - Depreciation and amortization expenses decreased to $0.06 million in Q3 2025 from $0.16 million in Q3 2024, indicating lower asset depreciation [19] IPO and Future Prospects - The company initiated the IPO/Spin-out process for Brightline Interactive in October 2025, with a potential IPO expected in the first half of calendar year 2026 [9] Changes in Accounts Receivable - The company experienced a significant change in accounts receivable, with an increase of $0.18 million in Q3 2025 compared to a decrease of $0.15 million in Q3 2024 [18]

Core Insights - The Glimpse Group, Inc. has initiated the IPO/spin-off process for its subsidiary Brightline Interactive, marking a significant strategic move [1] - Brightline Interactive has made its first delivery on a multi-million dollar SpatialCore contract with a Department of War entity, indicating strong business development [1] Financial Summary - For Q1 FY '26, which ended on September 30, 2025, the company reported financial results that reflect growth and strategic advancements [1] - The revenue generated from the initial delivery of the SpatialCore contract is expected to contribute positively to the company's financial performance [1]

Group 1: Virtual Reality Stocks Overview - Seven Virtual Reality stocks to watch include Meta Platforms, zSpace, DIH Holding US, and The Glimpse Group, identified by MarketBeat's stock screener tool [2] - Virtual reality stocks are shares of companies involved in developing, manufacturing, or supporting VR hardware, software, and content, with performance driven by adoption rates and technological advances [2] Group 2: Meta Platforms (META) - Meta Platforms, Inc. develops products for connecting people through mobile devices, PCs, VR headsets, and wearables, operating in two segments: Family of Apps and Reality Labs [3] - The Family of Apps segment includes Facebook, Instagram, Messenger, and WhatsApp, facilitating sharing, messaging, and community engagement [3] Group 3: zSpace (ZSPC) - zSpace Technologies, Inc. provides augmented and virtual reality technology primarily for the education market, offering hardware and software for K-12 STEM applications and career education [4] Group 4: DIH Holding US (DHAI) - DIH Holding US, Inc. operates as a robotics and VR technology provider in the rehabilitation industry across multiple regions, offering products like ArmeoPower and ArmeoSpring for arm and hand therapy [5][8] Group 5: The Glimpse Group (VRAR) - The Glimpse Group, Inc. is a VR and AR platform company providing enterprise-focused software and solutions, including QReal for 3D interactive models and Immersive Health Group for healthcare solutions [6]