XMReality (XMR) Q4 2025 earnings summary

Executive summary

• Achieved record-high EBITDA for both the quarter and full year, with the highest service usage since inception.

• Positive cash flow generated in each of the last seven months, confirming sustainable profitability.

• Service usage increased 42% year-over-year, with a 26% rise compared to the same quarter last year and 16% sequentially.

• Focus for 2026 is on acquiring new customers and increasing usage among existing ones.

Financial highlights

• Q4 net sales: 3,792 TSEK; full year: 15,392 TSEK (down from 17,025 TSEK year-over-year).

• Q4 EBITDA: 1,256 TSEK (vs. -2,674 TSEK prior year); full year EBITDA: 2,690 TSEK (vs. -13,881 TSEK prior year).

• Q4 cash flow: 22 TSEK; full year cash flow: -253 TSEK (improved from -1,343 TSEK prior year).

• Q4 gross margin: 99% (up from 94% prior year).

• Annual Recurring Revenue (ARR) at year-end: 13,413 TSEK, down from 14,624 TSEK previous quarter, mainly due to a terminated large license agreement.

• Q4 net result: -388 TSEK; full year net result: -3,826 TSEK (vs. -23,282 TSEK prior year).

Outlook and guidance

• Entering 2026 with a stable financial base and focus on reversing the downward ARR trend.

• Short-term priority is closing ongoing deals and acquiring new customers in current segments.

• Strategic initiatives planned to address churn and contract reductions for long-term ARR growth.