The Glimpse Group (VRAR) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended December 31, 2025, declined 59% year-over-year to $1.30 million, mainly due to timing of government contracts, budget delays, divestitures, and a strategic shift away from legacy customers.

• Net loss for the quarter was $1.23 million, compared to net income of $0.02 million or $0.03 million in the prior year.

• Gross profit margin decreased to 61% for the quarter (from 64%), reflecting changes in project cost structure.

• Adjusted EBITDA loss was $0.89 million for the quarter, down from a $0.28 million gain in the prior year.

• Strategic realignment underway, including a potential BLI spin-off IPO, optimization of immersive businesses, and exploring new platform opportunities.

Financial highlights

• Software Services revenue fell 62% for the quarter, while Software License revenue rose 150% for the quarter but was flat for the six months.

• Royalty income emerged as a new revenue stream, contributing $0.02 million for the quarter.

• Operating expenses were flat for the quarter at $2.05 million, reflecting cost reductions and divestitures.

• Gain on sale of business contributed $0.24 million to other income in the six-month period.

• Cash and equivalents as of December 31, 2025, were $3.34 million, with $0.56 million in accounts receivable.

Outlook and guidance

• Management expects to realize approximately $2.48 million in unfulfilled performance obligations over the next six months.

• Targeting completion of the BLI IPO in the first half of calendar year 2026, subject to regulatory and market conditions.

• Gross margins expected to remain in the 60–70% range.

• No material changes to expected revenues for the year ending June 30, 2026, following recent divestitures.

• Immersive segment seen as a long-term play with limited short- to medium-term growth potential.