xReality Group Reports Record FY25 Results
xReality Group Limited (ASX: XRG) has released its FY25 Annual Report and Investor Presentation, highlighting a year of record financial and operational performance. The results reflect the company’s focus on Operator XR and the continued scale of presence in global defence and law enforcement markets.
Strong FY25 Performance
For the financial year ending 30 June 2025, XRG reported total revenue of $14.0 million, representing a 36% increase on the prior year. This growth was underpinned by the rapid expansion of Operator XR, the company’s flagship immersive VR training platform designed for defence and law enforcement agencies.
Total Contract Value reached $11.3 million in FY25, a 176% increase in F25, demonstrating the company’s ability to secure multi-year agreements across priority customer segments. Annual Recurring Revenue soared 114% to $4.7 million, highlighting the strength of Operator XR’s scalable, subscription-based model. In addition, XRG delivered net operating cashflow of $3.3 million, compared with just $0.1 million in FY24, and closed the year with a cash balance of $2.8 million, more than double the prior year.
Business Unit Updates
Operator XR Driving Global Growth
FY25 results confirm the strategic shift towards Operator XR as XRG’s primary growth engine. Over FY25, the platform expanded to 67 customers worldwide, with more than 140 deployed systems across 29 US states. Customers now include leading law enforcement agencies, federal government organisations, and branches of the US Department of Defense.
Operator XR is purpose-built to deliver mission planning and rehearsal capabilities, enabling agencies to train for complex, high-risk scenarios in a secure, portable and highly immersive environment.
Operator XR’s product development has also accelerated, with OP-2 receiving new features such as AI-driven adaptive learning and automated scenario generation. In addition, Operator XR is progressing the launch of OP-2 Heavy, a fixed-facility system designed for larger police agencies and military customers, capable of supporting more complex and large-scale training scenarios.
These enhancements are designed to improve training effectiveness, reduce instructor workload, and increase scalability, ensuring Operator XR remains a leading solution in immersive tactical training.
A significant recent highlight was the award of the company’s largest contract to date – a $5.7 million agreement with the Texas Department of Public Safety. The deal validates Operator XR’s ability to operate at scale and establishes a high-credibility reference customer in one of the largest US law enforcement agencies. Read article.
Red Cartel
The Group’s VR production studio continues to support Operator XR development and content creation. Its expertise in immersive environments and simulation assets plays a critical role in keeping Operator XR at the cutting edge of training technology.
iFLY Indoor Skydiving
iFLY Downunder (Sydney) and iFLY Gold Coast delivered stable performance in a challenging consumer environment. The tunnels continue to attract professional skydivers and military training customers, contributing positive cashflow and supporting XRG’s overall investment in Operator XR.
FREAK Entertainment
The Surfers Paradise venue was closed during the year following cyclone damage, with no material impact on the Group’s financial results. The remaining NSW venues are expected to be exited during FY26, enabling us to simplify operations and direct resources towards the high-growth Operator XR business.
Building Momentum into FY26
Looking ahead, XRG enters FY26 with strong momentum. Wins such as the Texas DPS contract, combined with a $2.1 million Industry Growth Program grant from the Australian Government, provide a solid foundation for continued expansion. The company is also investing in international distributor networks across Europe, Southeast Asia, and the Middle East to accelerate access to Tier 1 customers and whole-of-government opportunities.
With defence and law enforcement agencies worldwide seeking new solutions to improve readiness and reduce training costs, XRG believes it is ideally positioned to capture significant market share. The FY25 results confirm the company’s trajectory towards becoming a global leader in immersive tactical training.
Operator XR News & Media
$5.71 million State of Texas contract for Operator XR Systems
Operator XR Strategic Collaboration with ALERRT
XRG awarded $5.6M subcontract for US Department of Defense