VR Education Holdings (EXR) AI Stock Analysis

• Market Cap: £1.84M
• Dividend Yield: N/A
• Average Volume (3M): 954.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -38.77%
• EPS Growth: -1.67%
• Country: UK
• Employees: 67
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 524,826,200
• 10 Day Avg. Volume: 1,570,741
• 30 Day Avg. Volume: 954,234
• PEG Ratio: 0.10
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -0.85
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: 0.34p ▼(-56.67% Downside)

The overall stock score is primarily impacted by the company's financial performance challenges, including declining revenue and persistent losses. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to negative earnings and lack of dividends. These factors collectively result in a low stock score.

Positive Factors

High Gross Margins

Very high gross margins (~86%) reflect the software and content nature of the business, indicating strong unit economics and scalability. Over the medium term, this margin profile supports leverage as revenue stabilizes, enabling profitability improvement if operating costs are managed.

Strong Balance Sheet / Low Leverage

A high equity ratio and negligible debt provide durable financial flexibility and reduce solvency risk. This structure allows the company to absorb revenue volatility, fund strategic initiatives or partnerships, and avoid near-term refinancing pressure, preserving long-term operational continuity.

Recurring Licensing & Subscription Model

A licensing and subscription revenue model yields recurring, contractable revenue and customer stickiness. Over months to years this improves predictability of cash flows and customer lifetime value, supporting scalable sales and content investment across educational and corporate markets.

Negative Factors

Declining Revenue Trend

Material revenue contraction weakens scale and undermines fixed-cost absorption, limiting margin expansion. If the decline persists over the next several months, it will constrain R&D and go-to-market spend, impairing the company’s ability to regain market share and achieve sustainable growth.

Persistent Negative Cash Flow

Ongoing negative operating and free cash flow indicates the business consumes cash to operate and grow. Over 2–6 months this reduces financial runway, increases reliance on external financing or dilution, and limits the ability to invest in product development and sales necessary for durable growth.

Declining Assets and Equity Trend

A downward trend in total assets and equity, despite current strong ratios, signals shrinking balance-sheet depth. Continued erosion would limit investment capacity, weaken lender confidence, and reduce strategic optionality, making the company more vulnerable to industry headwinds over the medium term.

VR Education Holdings Business Overview & Revenue Model

Company Description

VR Education Holdings (EXR) is a leading provider of virtual reality (VR) and immersive learning solutions, focusing primarily on the education sector. The company develops innovative software and content designed to enhance learning experiences through immersive technologies. Its core products include educational VR platforms that allow institutions to create engaging and interactive environments for students, catering to both academic and professional development needs.

How the Company Makes Money

The company generates revenue primarily through the sale of its VR educational software and subscription services to educational institutions and corporate clients. Key revenue streams include licensing fees from schools and universities that adopt its VR platforms, as well as direct sales of immersive learning content. Additionally, VR Education Holdings may engage in partnerships with hardware manufacturers and educational content creators, further enhancing its offerings and expanding its market reach. The increasing demand for digital and remote learning solutions, especially in the wake of the COVID-19 pandemic, has contributed to its revenue growth, as more institutions seek innovative ways to deliver education.

VR Education Holdings Financial Statement Overview

Summary

VR Education Holdings faces challenges in maintaining revenue growth and achieving profitability, with declining revenue and consistent net losses. Despite strong gross profit margins and a solid equity base, persistent negative cash flows and declining assets pose liquidity risks.

Income Statement

VR Education Holdings has experienced declining revenue over the past two years, with a recent revenue contraction of 7.94% from 2023 to 2024. Gross profit margins remain strong at 85.98% in 2024, indicating efficient cost management. However, persistent negative EBIT and net profit margins reflect ongoing operational and net losses, highlighting profitability challenges.

Balance Sheet

The company's balance sheet shows a solid equity base with a strong equity ratio of 87.16% in 2024, which is favorable for stability. The debt-to-equity ratio remains low at 0.007, indicating minimal leverage. However, declining total assets and equity over the years could signal potential risk if the trend continues.

Cash Flow

Operating cash flow is negative, reflecting ongoing cash usage to sustain operations. The free cash flow remains consistently negative, which raises concerns about liquidity and the ability to fund growth internally. The operating cash flow to net income ratio is slightly above 1, suggesting cash flow issues are in line with net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39M	3.40M	3.69M	3.87M	2.39M	1.42M
Gross Profit	2.05M	2.92M	3.31M	3.16M	1.89M	1.01M
EBITDA	-3.85M	-3.88M	-3.90M	-5.54M	-2.49M	-2.07M
Net Income	-3.79M	-3.97M	-4.05M	-6.00M	-3.13M	-2.73M
Balance Sheet
Total Assets	3.55M	5.41M	9.23M	3.71M	8.96M	3.44M
Cash, Cash Equivalents and Short-Term Investments	2.11M	3.57M	7.91M	2.21M	7.79M	2.03M
Total Debt	37.62K	34.54K	87.27K	7.88K	20.39K	59.14K
Total Liabilities	397.37K	693.16K	702.50K	1.23M	501.97K	416.56K
Stockholders Equity	3.15M	4.72M	8.53M	2.48M	8.46M	3.02M
Cash Flow
Free Cash Flow	-3.36M	-4.29M	-4.30M	-5.57M	-2.67M	-2.16M
Operating Cash Flow	-3.36M	-4.27M	-4.28M	-5.49M	-2.55M	-2.04M
Investing Cash Flow	-2.29K	-24.09K	-17.46K	-74.46K	-115.70K	-127.07K
Financing Cash Flow	-58.04K	-52.73K	10.00M	-12.51K	8.43M	2.90M

VR Education Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EXR, the sentiment is Negative. The current price of 0.78 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.45, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 33.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EXR.

VR Education Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRB	70 Outperform	£154.26M	19.10	15.34%	1.71%	3.48%	318.89%
OMG	69 Neutral	£65.31M	-65.39	-0.94%	7.26%	8.00%	-253.45%
SKL	69 Neutral	£70.34M	64.34	17.89%	0.77%	14.64%	916.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PEN	47 Neutral	£9.75M	-2.01	-52.41%	―	-31.21%	-292.31%
RM	46 Neutral	£101.76M	-67.32	-3.40%	―	-14.23%	97.27%
EXR	43 Neutral	£1.84M	-0.57	-75.42%	―	-38.77%	-1.67%

VR Education Holdings Corporate Events

ENGAGE XR Revenue Slumps as Enterprise Demand Weakens, Education Push Intensifies

ENGAGE XR warned of a sharp revenue decline for 2025, expecting around €1.9m versus €3.4m a year earlier, after delays in contract signings and a significant erosion in enterprise client renewals, particularly in the second half as global tech hiring slowed. Despite the top-line weakness, the group anticipates narrowing its EBITDA loss to about €2.4m from €4.0m, aided by operational efficiencies and tight cost control, which also left year-end cash at €1.6m, ahead of market expectations. Management is pivoting the business more decisively toward the education segment, where usage is rising and larger K-12 customers have expanded licences, and has added official Chromebook support to target the dominant classroom device in the US ahead of a joint demonstration with Lenovo at the Bett Conference in London. The board remains focused on preserving cash while exploring initiatives to improve long-term shareholder returns, betting that education markets across schools, universities and homeschool environments, particularly in the US and Middle East, will underpin future growth as enterprise demand remains under pressure.

The most recent analyst rating on (GB:EXR) stock is a Hold with a £0.37 price target. To see the full list of analyst forecasts on VR Education Holdings stock, see the GB:EXR Stock Forecast page.