XReality Group Ltd (XRG) AI Stock Analysis

• Market Cap: AU$37.55M
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 38.78%
• EPS Growth: 31.65%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 750,972,400
• 10 Day Avg. Volume: 915,579
• 30 Day Avg. Volume: 1,471,560
• PEG Ratio: 0.17
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 5.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: AU$0.05 ▲(0.00% Upside)

XReality Group Ltd's overall stock score is primarily influenced by its financial performance, which highlights strong revenue growth but significant challenges in profitability and cash flow. The technical analysis suggests mixed momentum, while the valuation is weakened by a negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and product adoption, which can drive long-term business success and market position.

Gross Profit Margin

A high gross profit margin shows effective cost control at the production level, providing a strong foundation for potential future profitability.

Market Expansion

Strategic partnerships expand market reach and diversify revenue streams, enhancing the company's competitive position and long-term growth prospects.

Negative Factors

High Leverage

High leverage increases financial risk and can limit the company's ability to invest in growth opportunities, impacting long-term stability.

Negative Profitability

Ongoing losses and negative profitability hinder the company's ability to generate returns for shareholders and invest in future growth.

Weak Cash Flow

Weak cash flow limits financial flexibility and the ability to fund operations and growth initiatives, posing a risk to long-term sustainability.

XReality Group Ltd Business Overview & Revenue Model

Company Description

xReality Group Limited owns and operates indoor skydiving facilities in Australia and Malaysia. It operates in two segments, Entertainment and Enterprise. The company manages indoor skydiving facilities under the brand iFly Downunder in Penrith, Sydney; and iFLY Gold Coast brand in Surfers Paradise, Queensland. It also operates FREAK, a virtual reality gaming venue that combines cutting edge multiplayer games, incredible 4D effects, and curated physical spaces located in Penrith, Gold Coast, Westfield Bondi Junction, and Macquarie Centre. In addition, the company owns and operates virtual, augmented, and mixed reality facilities that combines physical and digital simulation for consumer and enterprise market segments. Further, it operates Red Cartel, a virtual, augmented, and eXtended reality that is a location-based entertainment and animated content for games, venues, and enterprise; and operator tactical solutions, offers training and operational simulation products for global defence and law enforcement agencies, using virtual reality and augmented reality technologies. It serves tourists, enthusiast, military, and active skydivers. The company was formerly known as Indoor Skydive Australia Group Limited and changed its name to xReality Group Limited in December 2021. xReality Group Limited was incorporated in 2011 and is based in Penrith, Australia.

How the Company Makes Money

XRG generates revenue through multiple streams, primarily by selling its AR and VR software solutions to businesses across different industries. The company offers subscription-based licensing models for its platforms, which provide ongoing access to updates and new features. Additionally, XRG partners with hardware manufacturers to develop integrated solutions, earning revenue through hardware sales and joint ventures. The company also engages in custom development projects for clients, creating tailored experiences that generate additional income. Strategic partnerships with educational institutions and entertainment companies further contribute to its earnings, as XRG provides specialized content and training modules that leverage its technology.

XReality Group Ltd Financial Statement Overview

Summary

XReality Group Ltd is experiencing strong revenue growth, but profitability and cash flow challenges persist. High leverage and negative returns on equity indicate financial risk, while cash flow metrics suggest limited liquidity. The company needs to focus on improving profitability and managing debt levels to enhance financial stability.

Income Statement

XReality Group Ltd has shown significant revenue growth of 32.49% in the latest year, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by a negative net profit margin of -22.51% and negative EBIT and EBITDA margins. The gross profit margin is robust at 82.68%, suggesting effective cost management at the gross level, but the transition to net profitability remains a challenge.

Balance Sheet

The company's balance sheet reflects high leverage, with a debt-to-equity ratio of 1.70, indicating potential financial risk. The return on equity is negative, at -27.35%, highlighting challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the high debt levels suggest a lower proportion of equity financing.

Cash Flow

Cash flow analysis reveals a concerning trend, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low at 0.31, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is close to 1, suggesting that while free cash flow is nearly covering net losses, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.96M	13.96M	9.16M	9.75M	6.57M	7.27M
Gross Profit	11.54M	11.54M	5.54M	5.44M	5.07M	5.60M
EBITDA	-145.31K	-145.31K	-262.79K	2.16M	-3.30M	7.18M
Net Income	-3.14M	-3.14M	-4.11M	-1.69M	-6.93M	4.06M
Balance Sheet
Total Assets	45.26M	45.26M	42.66M	39.35M	36.81M	37.78M
Cash, Cash Equivalents and Short-Term Investments	2.79M	2.79M	1.37M	751.76K	2.05M	1.76M
Total Debt	19.59M	19.59M	23.62M	22.77M	21.28M	17.62M
Total Liabilities	33.77M	33.77M	33.23M	29.20M	26.37M	22.49M
Stockholders Equity	11.49M	11.49M	9.43M	10.16M	10.44M	15.29M
Cash Flow
Free Cash Flow	3.15M	3.15M	-2.33M	-1.28M	-755.10K	741.27K
Operating Cash Flow	3.32M	3.32M	59.63K	2.07M	-55.34K	1.42M
Investing Cash Flow	-2.52M	-2.52M	-2.39M	-3.36M	-699.76K	-681.72K
Financing Cash Flow	620.95K	620.95K	2.95M	-17.21K	1.05M	766.51K

XReality Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:XRG, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:XRG.

XReality Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JYC	67 Neutral	AU$157.01M	21.35	21.22%	5.11%	1.82%	-18.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VVA	58 Neutral	AU$162.11M	31.39	4.75%	―	30.36%	47.61%
SHJ	55 Neutral	AU$116.03M	207.58	0.21%	7.30%	4.44%	-90.57%
CEH	51 Neutral	AU$211.77M	-605.56	-0.05%	―	10.76%	95.79%
EXP	48 Neutral	AU$90.73M	-92.31	-0.76%	2.08%	5.73%	-1200.00%
XRG	43 Neutral	AU$37.55M	-9.26	-30.04%	―	38.78%	31.65%

XReality Group Ltd Corporate Events

xReality Group Limited Announces Director’s Interest Change

xReality Group Limited has announced a change in the director’s interest, with Kim Hopwood acquiring 1,666,667 ordinary shares and 5,000,000 unlisted options as part of a short-term incentive bonus for FY25. This change reflects the company’s strategy to incentivize leadership through equity, potentially aligning executive interests with shareholder value and impacting the company’s market positioning positively.

XReality Group Ltd Director’s Interest Update

XReality Group Ltd has announced a change in the indirect interest of its director, Wayne Jones, in the company’s securities. The change involves the acquisition of 1,979,167 ordinary shares and 7,000,000 premium priced options, increasing the total number of ordinary shares held to 55,129,577. This adjustment in shareholding reflects a strategic move by the director, potentially impacting the company’s market perception and stakeholder interests.

XReality Group Ltd Announces Quotation of New Securities on ASX

XReality Group Ltd has announced the quotation of 4,479,167 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective November 26, 2025. This move is part of a previously announced transaction, potentially impacting the company’s market presence and providing stakeholders with new investment opportunities.

XReality Group Ltd Issues 12 Million Unquoted Securities

XReality Group Ltd announced the issuance of 12,000,000 unquoted equity securities under the code XRGAR, with options expiring on various dates at various prices. This issuance is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s capital structure and investment appeal.

XReality Group Ltd Announces Cessation of 1,000,000 Securities

XReality Group Ltd has announced the cessation of 1,000,000 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future growth prospects.

XReality Group Ltd Announces Cessation of Securities

XReality Group Ltd announced the cessation of 1,000,000 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions of the company’s financial strategy and market positioning.

xReality Group Limited’s AGM Resolutions Passed, Signaling Strategic Growth

xReality Group Limited announced that all resolutions proposed at their 2025 Annual General Meeting were passed by the required majority. The resolutions included the adoption of the Remuneration Report, elections of directors, approval of a 10% placement capacity, and the issuance of options and shares to key personnel. The approval of these resolutions, particularly the special resolution for the 10% placement capacity, signifies a strategic move to enhance the company’s operational capabilities and stakeholder value, potentially impacting its market positioning positively.

xReality Group Limited Reports Strong FY25 Growth and Strategic Market Expansion

xReality Group Limited reported a significant financial performance improvement for FY25, with a 36% increase in total income to $14 million, driven by the Operator XR platform’s success. The company’s strategic focus on the U.S. and Australian markets has resulted in substantial growth in customer base and contract value, supported by strong investor confidence and a robust balance sheet. The company is poised for further expansion, leveraging its immersive training solutions to meet the needs of military and law enforcement agencies, with plans to commercialize outputs from its U.S. Department of Defense contract.

XReality Group Ltd to Quote Over 1 Million Securities on ASX

XReality Group Ltd has announced the quotation of 1,085,318 fully paid ordinary securities on the Australian Securities Exchange (ASX), scheduled for November 5, 2025. This move is part of previously announced transactions and is expected to enhance the company’s market presence and provide additional capital for growth initiatives.

xReality Group Expands Global Reach with New XR Products

xReality Group announced plans to enhance its product development over the next six months, including the release of Operator XR Sentinel and Operator XR C-UAS, aimed at military and government customers. The company is also expanding its global reach beyond the USA, increasing its distribution network in Europe and APAC to meet growing demand.

xReality Group Ltd Announces 2025 AGM Details

xReality Group Ltd has announced its 2025 Annual General Meeting (AGM) scheduled for 21 November 2025, to be held in Sydney. Shareholders are encouraged to participate either in person or by proxy, with detailed instructions available on the company’s website. The meeting will address formal business matters, and shareholders are urged to submit questions in advance and consider switching to electronic communications for updates.

xReality Group Expands Leadership to Drive Global Growth

xReality Group Limited has appointed Executive Director Kim Hopwood as Chief Operating Officer, expanding his role to oversee operations in Australia and the United States as the company scales its Operator XR deployments. This strategic move underscores the company’s growth phase and investment in product development, with additional leadership support in North America to enhance local execution and operational efficiency.