XReality Group Ltd (XRG) AI Stock Analysis

• Market Cap: AU$34.20M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 13.03%
• EPS Growth: -30.00%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 743,547,550
• 10 Day Avg. Volume: 3,644,286
• 30 Day Avg. Volume: 2,494,255
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 49 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

XReality Group Ltd is primarily hindered by poor financial performance, with significant ongoing losses and high leverage. Technical indicators provide some positive short-term signals, but valuation metrics highlight severe profitability issues. Without earnings call or corporate events data, these financial and technical factors predominantly determine the overall score.

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

XReality Group Ltd generates revenue through multiple streams, including the sale and licensing of its AR/VR software platforms and tools. The company also earns income by providing custom development services for businesses seeking to implement AR/VR solutions in their operations. Additionally, XRG partners with educational institutions and entertainment companies to create specialized content, which contributes to its earnings. Strategic partnerships with hardware manufacturers and other technology firms further bolster XRG's revenue by expanding its market reach and product offerings.

XReality Group Ltd Financial Statement Overview

Summary

XReality Group Ltd faces significant financial challenges, with declining revenues, persistent losses, and high leverage. There is stability in gross profit margins, but improvements in profitability and cash flow generation are needed.

Income Statement

XReality Group Ltd has struggled with profitability. Gross profit margins are relatively stable, but the net profit margin remains negative, indicating ongoing losses. Revenue decreased by 6.1% compared to the previous year, and the company faced challenges in maintaining EBIT and EBITDA margins, both of which are negative.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.50, indicating significant leverage. The return on equity is negative due to the negative net income. However, the equity ratio is 22.1%, showing that a reasonable portion of the company's assets are financed by equity, though improvements are needed.

Cash Flow

The cash flow statement reveals poor free cash flow performance, with a significant negative growth rate. Operating cash flow to net income ratio is weak, suggesting challenges in converting income into cash. These factors contribute to a low cash flow score.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	9.16M	9.75M	6.57M	7.27M	5.55M
Gross Profit	5.54M	5.44M	5.07M	5.60M	4.12M
EBITDA	-262.79K	2.16M	-3.30M	7.18M	-878.38K
Net Income	-4.11M	-1.69M	-6.93M	4.06M	-5.13M
Balance Sheet
Total Assets	42.66M	39.35M	36.81M	37.78M	36.96M
Cash, Cash Equivalents and Short-Term Investments	1.37M	751.76K	2.62M	2.33M	846.15K
Total Debt	23.62M	22.77M	21.28M	17.62M	21.95M
Total Liabilities	33.23M	29.20M	26.37M	22.49M	25.76M
Stockholders Equity	9.43M	10.16M	10.44M	15.29M	11.19M
Cash Flow
Free Cash Flow	-2.33M	-1.28M	-755.10K	741.27K	-890.14K
Operating Cash Flow	59.63K	2.07M	-55.34K	1.42M	-383.43K
Investing Cash Flow	-2.39M	-3.36M	-699.76K	-681.72K	46.57K
Financing Cash Flow	2.95M	-17.21K	1.30M	938.14K	1.24M

XReality Group Ltd Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:XRG, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 90.20 is Negative, neither overbought nor oversold. The STOCH value of 68.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	75 Outperform	AU$143.41M	19.94	21.62%	5.77%	-2.09%	-24.35%
EXP	68 Neutral	AU$94.51M	34.72	2.10%	―	11.24%	―
VVA	65 Neutral	AU$138.80M	35.92	3.67%	―	18.52%	―
SHJ	63 Neutral	AU$108.65M	26.78	1.60%	8.59%	-10.06%	―
Sector *	56 Neutral	HK$25.37B	4.80	-2.69%	5.71%	-0.46%	-53.29%
XRG	49 Neutral	AU$34.20M	―	-35.18%	―	13.03%	-30.00%
CEH	49 Neutral	AU$137.94M	161.36	0.38%	―	9.00%	―

XReality Group Ltd Corporate Events

xReality Group Reports Strong Q4 Financial Performance and Expansion

xReality Group Limited reported a strong financial performance for the quarter ending June 30, 2025, with significant cash receipts and sales growth, particularly in the US market. The company achieved a net operational cashflow of $1.3 million and secured a $2 million placement from new institutional investors, indicating robust business momentum and expansion in its Operator XR enterprise division.

xReality Group Raises $2 Million Through Share Placement

xReality Group Limited has announced the issuance of 80 million fully paid ordinary shares to sophisticated and professional investors, raising $2 million at $0.025 per share. This move, conducted without disclosure under the Corporations Act, is expected to bolster the company’s financial position, potentially enhancing its capabilities in the simulation and training sectors, thereby strengthening its market position.

XReality Group Ltd Issues 80 Million New Shares on ASX

XReality Group Ltd announced the issuance of 80 million fully paid ordinary shares, which are set to be quoted on the Australian Securities Exchange (ASX) under the code XRG. This move is part of previously announced transactions and is expected to enhance the company’s market presence and liquidity, potentially impacting its stakeholders positively by increasing the availability of its securities.

XReality Group Ltd Announces Proposed Issue of 80 Million Securities

XReality Group Ltd has announced a proposed issue of 80 million ordinary fully paid securities, set to be issued on July 1, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s market positioning by increasing its capital base, which may support further growth and development in the virtual and augmented reality sector.

xReality Group Secures $2 Million for Global Expansion

xReality Group Limited has successfully raised $2 million through a placement to institutional and sophisticated investors, issuing 80 million shares at a 17% discount to the 30-day VWAP. The funds will be used to expand the company’s Operator XR platform, focusing on international law enforcement and military markets, with the new shares expected to commence trading on July 1, 2025.

XReality Group Director Increases Stake with Major Share Acquisition

XReality Group Ltd has announced a change in the director’s interest, with Philip Copeland acquiring 4,000,000 fully paid ordinary shares through an off-market trade. This acquisition increases his total holdings to 14,521,613 fully paid ordinary shares, indicating a significant personal investment in the company, which may reflect confidence in its future growth and stability.

XReality Group Shifts Focus to Operator XR for Global Expansion

XReality Group Ltd is shifting its focus towards its Operator XR product, which is experiencing significant growth and is aimed at providing advanced XR training solutions globally for defense and law enforcement. The company is expanding into key markets in North America, Asia, and Europe, while considering divesting its legacy entertainment businesses to strengthen its position in the global XR training industry.

XReality Group Director Increases Shareholding

XReality Group Limited announced a change in the director’s interest, with Wayne Jones acquiring an additional 290,000 ordinary fully paid shares through an on-market trade, increasing his total holdings to 53,150,410 shares. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future prospects and could impact shareholder perceptions and market positioning.