XReality Group Ltd (XRG) AI Stock Analysis

• Market Cap: AU$43.23M
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• 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: 745,407,900
• 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

• Rating: 48 Neutral
• 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 Business Overview & Revenue Model

Company Description

XReality 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 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 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

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	8.04M	13.96M	9.16M	9.75M	6.57M	7.27M
Gross Profit	6.34M	11.54M	5.54M	5.44M	5.07M	5.60M
EBITDA	460.85K	-145.31K	-262.79K	2.16M	-3.30M	7.18M
Net Income	-2.15M	-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	1.90M	3.15M	-2.33M	-1.28M	-755.10K	741.27K
Operating Cash Flow	2.01M	3.32M	59.63K	2.07M	-55.34K	1.42M
Investing Cash Flow	-1.62M	-2.52M	-2.39M	-3.36M	-699.76K	-681.72K
Financing Cash Flow	708.14K	620.95K	2.95M	-17.21K	1.05M	766.51K

XReality Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VVA	67 Neutral	AU$172.46M	33.40	4.75%	―	30.36%	47.61%
JYC	67 Neutral	AU$156.42M	21.27	21.22%	5.32%	1.82%	-18.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHJ	55 Neutral	AU$119.42M	213.64	0.21%	7.09%	4.44%	-90.57%
EXP	52 Neutral	AU$109.63M	36.11	-0.76%	172.41%	5.73%	-1200.00%
XRG	48 Neutral	AU$43.23M	―	-30.04%	―	38.78%	31.65%
CEH	47 Neutral	AU$159.31M	172.73	-0.05%	―	10.76%	95.79%

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.