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The Glimpse Group Reports Q3 Fiscal Year 2025 Financial Results

1. Glimpse Group reports Q3 FY '25 revenue of $1.4 million, down 25%. 2. Q4 FY '25 revenue expected to increase to $3.2-3.8 million and be profitable. 3. Positive cash flow for two consecutive quarters, reflecting cost-cutting measures. 4. New seven-figure deal expected soon, enhancing Spatial Core's revenue pipeline. 5. Company maintains debt-free status and cash position of $7 million.

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Why Bullish?

The expected increase in revenue and profitability in Q4 indicates positive growth. Historical evidence shows similar patterns led to stock price increases in tech firms.

How important is it?

Financial trajectory improvements in revenue and profitability will likely attract investor interest, impacting price positively.

Why Short Term?

Expected revenue recognition from new contracts will influence stock price gains shortly. Immediate projects with the Department of Defense also suggest short-term boosts.

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Thursday, 15 May 2025 08:30 AM 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 BentovimFinancial 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 WebcastDate: Thursday, May 15, 2025Time: 9:00 a.m. Eastern timeUSA Dial In: 888-506-0062International: 973-528-0011Participant Access Code: 633925Webcast: https://www.webcaster4.com/Webcast/Page/2934/52387Please 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 MeasuresA 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.comSafe Harbor StatementThis 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 RothblumCFO & COOThe Glimpse Group, Inc.(917) 292-2685[email protected]THE GLIMPSE GROUP, INC.CONDENSED CONSOLIDATED BALANCE SHEETSAs ofMarch 31, 2025As ofJune 30, 2024(Unaudited)(Audited)ASSETSCash and cash equivalents$7,058,020$1,848,295Accounts receivable652,118723,032Deferred costs/contract assets605,562170,781Notes receivable93,600-Prepaid expenses and other current assets579,264778,181Total current assets8,988,5643,520,289Equipment and leasehold improvements, net70,975167,325Right-of-use assets, net155,238452,808Intangible assets, net161,253487,867Goodwill10,857,60010,857,600Other assets11,10072,714Total assets$20,244,730$15,558,603LIABILITIES AND STOCKHOLDERS' EQUITYAccounts payable$52,806$181,668Accrued liabilities780,330340,979Deferred revenue/contract liabilities1,047,67372,788Lease liabilities, current portion147,900364,688Contingent consideration for acquisitions, current portion1,468,6631,467,475Total current liabilities3,497,3722,427,598Long term liabilitiesContingent consideration for acquisitions, net of current portion-1,413,696Lease liabilities, net of current portion19,451178,824Total liabilities3,516,8234,020,118Commitments and contingencies--Stockholders' EquityPreferred 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, respectively21,04418,158Additional paid-in capital82,236,65874,559,600Accumulated deficit(65,529,795)(63,039,273)Total stockholders' equity16,727,90711,538,485Total liabilities and stockholders' equity$20,244,730$15,558,603THE GLIMPSE GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)For the Three Months EndedFor the Nine Months EndedMarch 31March 312025202420252024RevenueSoftware services$1,283,287$1,466,397$6,641,652$6,510,740Software license/software as a service138,948429,246387,886566,208Total Revenue1,422,2351,895,6437,029,5387,076,948Cost of goods sold402,209569,4612,061,5192,406,479Gross Profit1,020,0261,326,1824,968,0194,670,469Operating expenses:Research and development expenses829,8151,136,8482,610,0384,209,518General and administrative expenses1,165,1871,233,9042,947,8473,375,140Sales and marketing expenses483,138559,6811,606,2362,138,539Amortization of acquisition intangible assets100,537291,036326,614950,192Goodwill impairment---379,038Intangible asset impairment---522,166Change in fair value of acquisition contingent consideration26,012(291,980)87,492(4,317,524)Total operating expenses2,604,6892,929,4897,578,2277,257,069Loss from operations before other income(1,584,663)(1,603,307)(2,610,208)(2,586,600)Other incomeInterest income82,46161,051119,686186,534Net loss$(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)$(0.15)Weighted-average common shares outstanding for basic and diluted net loss per share20,999,44517,195,32219,161,66116,194,523THE GLIMPSE GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)For the Nine Months Ended March 31,20252024Cash flows from operating activities:Net loss$(2,490,522)$(2,400,066)Adjustments to reconcile net loss to net cash used in operating activities:Amortization and depreciation390,4671,040,759Common stock and stock option based compensation for employees and board of directors715,5451,742,126Net gain on divestiture of subsidiaries(1,392,434)(1,000,000)Reserve on note received in connection with divestiture of subsidiaries1,500,0001,000,000Gain on office lease termination(34,660)-Accrued non cash performance bonus fair value adjustment-(551,236)Acquisition contingent consideration fair value adjustment87,492(4,317,524)Impairment of intangible assets-901,204Issuance of common stock to vendors3,08788,472Adjustment to operating lease right-of-use assets and liabilities(43,605)(99,144)Changes in operating assets and liabilities:Accounts receivable70,914478,598Deferred costs/contract assets(434,781)86,347Loans receivable(9,600)-Prepaid expenses and other current assets198,917(251,030)Other assets5,349(1,506)Accounts payable(128,862)(214,705)Accrued liabilities442,496(388,644)Deferred revenue/contract liabilities994,063(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, net6,785,5522,968,501Proceeds from exercise of warrants175,760-Issuance of note receivable(84,000)-Net cash provided by financing activities6,877,3122,968,501Net change in cash and cash equivalents5,209,725(1,333,740)Cash and cash equivalents, beginning of year1,848,2955,619,083Cash and cash equivalents, end of period$7,058,020$4,285,343Non-cash Investing and Financing activities:Issuance of common stock for satisfaction of contingent liability$-$974,647Issuance of common stock for non cash performance bonus$-$490,360Lease liabilities arising from right-of-use assets$20,344$113,182The following table presents a reconciliation of net loss to Adjusted EBITDA for the three and nine months ended March 31, 2025 and 2024:For the Three Months EndedFor the Nine Months EndedMarch 31,March 31,2025202420252024(in millions)(in millions)Net loss$(1.50)$(1.54)$(2.49)$(2.40)Depreciation and amortization0.120.320.391.04EBITDA loss(1.38)(1.22)(2.10)(1.36)Stock based compensation expenses0.310.620.711.83Loss on subsidiary divestiture--0.11-Gain on office lease termination--(0.03)-Non cash change in fair value of acquisition contingent consideration0.03(0.29)0.09(4.32)Intangible asset and goodwill impairment---0.90Non cash change in fair value of accrued performance bonus---(0.55)Adjusted EBITDA loss$(1.04)$(0.89)$(1.22)$(3.50)SOURCE: The Glimpse Group, Inc.

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