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XReality Group Ltd (AU:XRG)
ASX:XRG
Australian Market
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XReality Group Ltd (XRG) AI Stock Analysis

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AU:XRG

XReality Group Ltd

(Sydney:XRG)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
XReality Group Ltd's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability and cash flow challenges. Technical analysis provides some support with short-term bullish momentum, but valuation remains a concern due to negative earnings and lack of dividends. The absence of earnings call and corporate events data limits further insights.

XReality Group Ltd (XRG) vs. iShares MSCI Australia ETF (EWA)

XReality Group Ltd Business Overview & Revenue Model

Company DescriptionXReality Group Ltd (XRG) is an innovative technology company specializing in augmented reality (AR) and virtual reality (VR) solutions across various sectors, including entertainment, education, and enterprise applications. The company develops immersive experiences and interactive content designed to enhance user engagement and provide transformative digital experiences. XRG's core products include AR and VR software platforms, as well as hardware integrations that cater to both consumer and commercial markets.
How the Company Makes MoneyXRG 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 shows strong revenue growth but faces significant profitability and cash flow challenges. High leverage and negative returns on equity indicate financial risk, while cash flow metrics suggest limited liquidity.
Income Statement
45
Neutral
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
40
Negative
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
35
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue8.04M13.96M9.16M9.75M6.57M7.27M
Gross Profit6.34M11.54M5.54M5.44M5.07M5.60M
EBITDA460.85K-145.31K-262.79K2.16M-3.30M7.18M
Net Income-2.15M-3.14M-4.11M-1.69M-6.93M4.06M
Balance Sheet
Total Assets45.26M45.26M42.66M39.35M36.81M37.78M
Cash, Cash Equivalents and Short-Term Investments2.79M2.79M1.37M751.76K2.05M1.76M
Total Debt19.59M19.59M23.62M22.77M21.28M17.62M
Total Liabilities33.77M33.77M33.23M29.20M26.37M22.49M
Stockholders Equity11.49M11.49M9.43M10.16M10.44M15.29M
Cash Flow
Free Cash Flow1.90M3.15M-2.33M-1.28M-755.10K741.27K
Operating Cash Flow2.01M3.32M59.63K2.07M-55.34K1.42M
Investing Cash Flow-1.62M-2.52M-2.39M-3.36M-699.76K-681.72K
Financing Cash Flow708.14K620.95K2.95M-17.21K1.05M766.51K

XReality Group Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.06
Price Trends
50DMA
0.06
Positive
100DMA
0.04
Positive
200DMA
0.04
Positive
Market Momentum
MACD
<0.01
Positive
RSI
52.57
Neutral
STOCH
61.44
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 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 61.44 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
AU$172.46M33.404.75%30.36%47.61%
67
Neutral
AU$156.42M21.2721.22%5.32%1.82%-18.84%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
AU$119.42M213.640.21%7.09%4.44%-90.57%
52
Neutral
AU$109.63M36.11-0.76%172.41%5.73%-1200.00%
48
Neutral
AU$43.23M-30.04%38.78%31.65%
47
Neutral
AU$159.31M172.73-0.05%10.76%95.79%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:XRG
XReality Group Ltd
0.06
0.03
100.00%
AU:SHJ
Shine Justice Ltd.
0.69
-0.07
-9.21%
AU:JYC
Joyce Corporation Ltd
5.10
1.38
37.10%
AU:VVA
Viva Leisure Ltd.
1.75
0.41
30.60%
AU:EXP
Experience Co Ltd
0.14
0.02
16.67%
AU:CEH
Ardent Leisure Group Ltd
0.40
-0.06
-13.04%

XReality Group Ltd Corporate Events

xReality Group Reports Strong Q4 Financial Performance and Expansion
Jul 31, 2025

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
Jul 1, 2025

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
Jul 1, 2025

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
Jun 27, 2025

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
Jun 26, 2025

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
Jun 19, 2025

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
Jun 18, 2025

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
Jun 2, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 16, 2025