XMReality (XMR) Q3 2025 earnings summary

Executive summary

• Achieved record-high EBITDA and positive cash flow on a rolling 12-month basis for all months in the quarter, establishing long-term operational stability and a platform for future growth.

• Recurring revenues for the quarter significantly exceeded operating costs, supporting continued positive cash flow targets.

• Strong increase in service usage: up 60% year-over-year and 25% sequentially from Q2 2025.

• New customer acquisitions continued, including a notable agreement with KOR, an Australian industrial equipment distributor.

Financial highlights

• Annual Recurring Revenue (ARR) at quarter-end: 14,624 TSEK, down 309 TSEK from previous quarter, mainly due to a lost US contract and currency effects.

• Quarterly EBITDA: 1,121 TSEK (vs. -1,969 TSEK same quarter last year).

• Net sales for Q3: 3,727 TSEK (vs. 4,153 TSEK Q3 2024); for Jan–Sep: 11,604 TSEK (vs. 12,949 TSEK Jan–Sep 2024).

• Operating costs (excl. interest, depreciation): -3,306 TSEK (vs. -7,373 TSEK Q3 2024).

• Cash flow for the quarter: -2,853 TSEK (vs. -1,111 TSEK Q3 2024); cash at period end: 269 TSEK.

• Gross margin remained high at 98% (vs. 97% Q3 2024).

Outlook and guidance

• Confident in maintaining positive cash flow despite a major contract loss post-quarter, due to strong margin between recurring revenue and costs.

• Focus remains on increasing usage among new and existing customers and targeted marketing in specific verticals.