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): 0.14
• 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: 0.39p ▼(-50.51% 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

An 85.98% gross margin signals strong unit economics and pricing power typical of software/content businesses. This durable margin profile supports long-term scalability and the potential to translate incremental revenue into improving operating leverage once fixed costs are absorbed.

Conservative capital structure

Very low leverage and an 87.16% equity ratio reduce refinancing and solvency risk, giving management flexibility to fund product development or absorb shortfalls. A conservative balance sheet is a durable buffer during extended investment cycles in enterprise software.

Structural market tailwinds & positioning

As a provider of VR immersive learning targeting schools and corporates, the company sits in a secularly growing market for digital and remote education. Durable structural adoption of edtech and potential hardware/content partnerships support a long-term addressable market expansion.

Negative Factors

Declining revenue trend

Material revenue decline over recent periods undermines scale benefits of the high gross margin model. Sustained top-line contraction constrains ability to invest in content, retain institutional customers, and achieve operating leverage, risking long-term competitiveness.

Negative operating and free cash flow

Persistent negative OCF and FCF indicate the business consumes cash to sustain operations and growth. Over months this requires external funding, limits reinvestment capacity, and raises liquidity risk, making long-term execution dependent on financing or rapid cash generation improvement.

Ongoing operating losses

Continued negative EBIT and net margins show the company has not reached operational break-even. Even with high gross margins, sustained losses erode equity and necessitate either margin expansion, cost reduction, or continued external capital — all structural execution risks over months.

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 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: Positive
• RSI: Positive
• 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 0.44, above the 50-day MA of 0.57, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 21.92 is Positive, neither overbought nor oversold. The STOCH value of 23.81 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EXR	43 Neutral	£1.84M	-0.57	-75.42%	―	-38.77%	-1.67%
TERN	43 Neutral	£4.04M	-7.50	-19.70%	―	-77.04%	86.67%
AIQ	41 Neutral	£2.27M	-7.14	―	―	-47.47%	12.50%
SORT	38 Underperform	£2.29M	-0.93	-556.25%	―	51.87%	62.47%

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.