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 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
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 Revenue13.96M13.96M9.16M9.75M6.57M7.27M
Gross Profit11.54M11.54M5.54M5.44M5.07M5.60M
EBITDA-145.31K-145.31K-262.79K2.16M-3.30M7.18M
Net Income-3.14M-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 Flow3.15M3.15M-2.33M-1.28M-755.10K741.27K
Operating Cash Flow3.32M3.32M59.63K2.07M-55.34K1.42M
Investing Cash Flow-2.52M-2.52M-2.39M-3.36M-699.76K-681.72K
Financing Cash Flow620.95K620.95K2.95M-17.21K1.05M766.51K

XReality Group Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.05
Price Trends
50DMA
0.06
Negative
100DMA
0.05
Positive
200DMA
0.04
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
31.95
Neutral
STOCH
-16.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:XRG, the sentiment is Neutral. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below 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 31.95 is Neutral, neither overbought nor oversold. The STOCH value of -16.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$152.28M20.7121.22%5.25%1.82%-18.84%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
AU$164.57M31.874.75%30.36%47.61%
55
Neutral
AU$115.19M206.060.21%7.04%4.44%-90.57%
52
Neutral
AU$113.41M-115.38-0.76%1.79%5.73%-1200.00%
51
Neutral
AU$176.80M-505.56-0.05%10.76%95.79%
48
Neutral
AU$40.25M-10.00-30.04%38.78%31.65%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:XRG
XReality Group Ltd
0.05
0.02
66.67%
AU:SHJ
Shine Justice Ltd.
0.71
-0.08
-10.13%
AU:JYC
Joyce Corporation Ltd
5.17
0.81
18.58%
AU:VVA
Viva Leisure Ltd.
1.74
0.27
18.37%
AU:EXP
Experience Co Ltd
0.14
0.02
16.67%
AU:CEH
Ardent Leisure Group Ltd
0.48
0.02
4.35%

XReality Group Ltd Corporate Events

xReality Group Ltd Announces 2025 AGM Details
Oct 20, 2025

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
Oct 6, 2025

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.

XReality Group Ltd Announces New Securities Issue to Bolster Growth
Sep 5, 2025

XReality Group Ltd has announced a proposed issue of 4,479,167 ordinary fully paid securities, scheduled for issuance on November 24, 2025. This move is part of a strategic effort to raise capital, potentially strengthening the company’s market position and providing additional resources for future growth initiatives.

XReality Group Ltd to Quote New Securities on ASX
Sep 2, 2025

XReality Group Ltd announced the quotation of 1,860,400 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of September 3, 2025. This move is part of previously announced transactions and is expected to enhance the company’s market presence and liquidity, potentially benefiting stakeholders by increasing the company’s visibility and investment appeal.

XReality Group Ltd Achieves Record FY25 Financial Performance
Aug 29, 2025

XReality Group Ltd has announced its financial results for FY25, showcasing a record performance with significant growth across various financial metrics. The company reported a 36% year-over-year increase in revenue, reaching $14.0 million, and a 61% rise in deferred revenue. Total contract value surged by 176%, while annual recurring revenue grew by 114%. These results underscore the company’s strong operational execution and market positioning, potentially enhancing stakeholder confidence in its future prospects.

XReality Group Ltd Affirms Governance Compliance
Aug 29, 2025

XReality Group Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which is accessible on their website. The statement confirms that the company has adhered to the ASX Corporate Governance Council’s recommendations, outlining the roles and responsibilities of the board and management, and ensuring accountability of the company secretary to the board. This announcement highlights XReality Group’s commitment to transparency and adherence to governance standards, potentially strengthening stakeholder confidence.

XReality Group Emphasizes Commitment to Corporate Governance
Aug 29, 2025

XReality Group Limited has released its Corporate Governance Statement, highlighting its commitment to sustainable governance practices in line with the ASX Corporate Governance Council’s Principles and Recommendations. The company has adopted most of the ASX recommendations, with explanations provided for those not adopted, underscoring its dedication to responsible management and shareholder value.

XReality Group Ltd Reports Revenue Growth Amidst Continued Losses
Aug 29, 2025

XReality Group Ltd reported a 36.3% increase in revenue for the year ended June 30, 2025, totaling $13.96 million, driven by a substantial 610% growth in the Operator XR segment. Despite the revenue growth, the company recorded a loss of $3.14 million, an improvement from the previous year’s loss, indicating a 23.6% reduction. The lack of declared dividends and a decrease in net tangible assets per share reflect ongoing challenges in profitability and asset management.

XReality Group Secures $2.1M Grant to Enhance AI in Tactical Training
Aug 6, 2025

XReality Group Limited has been awarded a $2.1 million grant from the Australian Government’s Industry Growth Program to enhance its Operator XR AI product roadmap. This funding aims to position Operator XR as a global leader in VR tactical training for law enforcement and defense markets. The grant will enable the integration of advanced AI and cloud services, increase manufacturing capacity, and achieve global security certifications, thereby enhancing the training system’s value and throughput. This initiative builds on previous efforts to advance XRG’s AI capabilities, ensuring long-term product differentiation and reduced costs for military and law enforcement customers.

xReality Group Secures $5.71 Million Contract with Texas DPS
Aug 6, 2025

xReality Group Limited’s US subsidiary, Operator XR LLC, has secured a $5.71 million contract with the Texas Department of Public Safety (DPS) to provide OP-2 training systems. This contract, the largest to date for Operator XR, includes software licenses, VR training systems, and support services, with an initial order of $4.3 million and an option for an additional $1.4 million in support over three years. The systems will enhance law enforcement training across Texas, reinforcing xReality’s U.S. growth strategy and expanding its footprint with a high-credibility reference customer.

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.

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