Glimpse Group (VRAR) AI Stock Analysis

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Glimpse Group

(NASDAQ:VRAR)

47Neutral

The overall stock score reflects a company with strong revenue growth and a notable milestone in achieving positive EBITDA. However, profitability challenges, negative cash flow, and a bearish technical outlook weigh heavily on the score. The company's financial leverage and negative valuation metrics suggest the need for cautious management and strategic improvements.

Glimpse Group (VRAR) vs. S&P 500 (SPY)

Market Cap

$22.10M

Dividend YieldN/A

Average Volume (3M)123.20K

Price to Earnings (P/E)―

Beta (1Y)0.46

Revenue Growth-21.53%

EPS Growth79.10%

CountryUS

Employees45

SectorTechnology

Sector Strength46

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.36

Shares Outstanding21,043,756

10 Day Avg. Volume90,402

30 Day Avg. Volume123,204

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.96

Price to Cash Flow (P/CF)39.80

P/FCF Ratio44.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Glimpse Group Business Overview & Revenue Model

Company DescriptionGlimpse Group (VRAR) is a technology company specializing in virtual reality (VR) and augmented reality (AR) solutions. The company operates within the emerging sectors of immersive technology, developing customized VR and AR applications for various industries including education, healthcare, marketing, and entertainment. Glimpse Group aims to leverage cutting-edge technology to enhance user experience and offer innovative solutions tailored to business needs.

How the Company Makes MoneyGlimpse Group makes money through multiple revenue streams predominantly centered around the development and deployment of VR and AR applications. The company generates income by providing bespoke solutions for businesses seeking to integrate immersive technology into their operations or marketing strategies. This involves a combination of project-based fees for custom application development and potential recurring revenue from software licensing or subscription models. Additionally, Glimpse Group may engage in strategic partnerships with industry leaders to co-develop products or expand their market reach, further contributing to their revenue. The company's ability to cater to various sectors allows for diversification in its revenue streams, capitalizing on the growing demand for VR and AR technologies.

Glimpse Group Financial Statement Overview

Summary

The company demonstrates potential with notable revenue growth and a solid cash position. However, it faces ongoing profitability challenges and cash flow issues, necessitating improvements in operational efficiency and cost management. The balance sheet is improving but still shows significant financial leverage.

Income Statement

Neutral

The income statement shows a mix of growth and challenges. Revenue has grown significantly over recent years, with a notable increase from 2021 to 2022. However, the company is facing substantial profitability challenges, with negative net and EBIT margins. The gross profit margin remains positive but is overshadowed by significant operating losses.

Balance Sheet

Neutral

The balance sheet reflects both strengths and weaknesses. The company has a strong cash position, significantly reducing net debt. However, the high level of liabilities relative to equity is concerning, indicated by a fluctuating debt-to-equity ratio over time. The equity ratio has improved, reflecting a stronger equity base despite past deficits.

Cash Flow

Neutral

Cash flow analysis reveals mixed results. While operating cash flow is improving, free cash flow has been consistently negative, indicating ongoing cash management challenges. The company has raised substantial financing, enhancing liquidity, but the conversion of cash flow into net income remains low.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
8.09M	8.80M	13.48M	7.27M	3.42M	1.95M
	Gross Profit
5.03M	5.86M	9.22M	6.03M	1.96M	808.12K
	EBIT
-6.95M	-6.62M	-28.81M	-8.20M	-4.71M	-4.92M
	EBITDA
-3.89M	-6.58M	-11.68M	-7.48M	-5.88M	-4.89M
	Net Income Common Stockholders
-1.01T	-6.39M	-28.56M	-3.73M	-6.28M	-5.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.45T	1.85M	5.62M	16.49M	1.77M	1.03M
	Total Assets
22.25T	15.56M	24.28M	38.40M	3.22M	2.00M
	Total Debt
201.62K	543.51K	829.40K	0.00	2.05M	1.73M
	Net Debt
-8.24M	-1.30M	-4.79M	-16.25M	281.85K	697.57K
	Total Liabilities
4.34T	4.02M	13.05M	9.58M	4.39M	2.30M
	Stockholders Equity
17.92T	11.54M	11.22M	28.82M	-1.17M	-305.69K
Cash Flow		Free Cash Flow
145.48B	-5.24M	-9.31M	-5.14M	-1.24M	-2.06M
	Operating Cash Flow
171.89B	-5.21M	-9.16M	-4.94M	-1.21M	-2.02M
	Investing Cash Flow
-26.41B	-1.53M	-3.53M	-5.06M	-28.00K	-32.66K
	Financing Cash Flow
6.88T	2.97M	66.11K	26.48M	1.97M	1.89M

Glimpse Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.05

Price Trends

50DMA

1.29

Negative

100DMA

1.59

Negative

200DMA

1.20

Negative

Market Momentum

MACD

-0.08

Negative

RSI

41.94

Neutral

STOCH

30.86

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRAR, the sentiment is Negative. The current price of 1.05 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.29, and below the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRAR.

Glimpse Group Risk Analysis

Glimpse Group disclosed 33 risk factors in its most recent earnings report. Glimpse Group reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Glimpse Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
AUID	51 Neutral	$99.85M	―	-115.55%	―	365.86%	92.57%
APCX	47 Neutral	$13.98M	―	-184.93%	―	-45.24%	64.61%
VRAR	47 Neutral	$22.10M	―	-39.89%	―	-21.53%	79.10%
MSAI	40 Underperform	$26.03M	―	-226.35%	―	―	―
BNAI	34 Underperform	$14.30M	―	-422.39%	―	―	-20.33%
DTSS	33 Underperform	$14.46M	―	-432.30%	―	99.64%	-958.75%

* Technology Sector Average

Performance Comparison

VRAR

Glimpse Group

1.15

-0.01

-0.86%

DTSS

Datasea

1.91

-5.70

-74.90%

APCX

AppTech

0.36

-0.52

-59.09%

AUID

Ipsidy

7.82

0.43

5.82%

BNAI

Brand Engagement Network

0.36

-3.37

-90.35%

MSAI

Infrared Cameras Holdings

0.80

-1.84

-69.70%

Glimpse Group Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -40.00% | Next Earnings Date: May 19, 2025

Earnings Call Sentiment Positive

The Glimpse Group showed strong performance with its first positive EBITDA and significant revenue growth, along with successful government contracts. However, there are concerns about an expected revenue decline in the next quarter and challenges from the continuing resolution impacting government opportunities.

Highlights

First Positive EBITDA

The Glimpse Group achieved positive EBITDA for the first time in its history as a public company, reflecting the success of strategic and operational restructuring.

Significant Revenue Growth

Q2 fiscal year 2025 revenue was approximately $3.17 million, marking a 52% increase compared to Q2 fiscal year 2024 and a 30% increase compared to Q1 fiscal year 2025.

U.S. Navy Contract

Brightline Interactive (BLI), a subsidiary of The Glimpse Group, entered into an initial contract with the U.S. Navy for an immersive AI-driven simulator system, setting the stage for potential follow-on contracts in 2025.

Positive Cash Flow

Net operating cash provided from operations for Q2 fiscal year 2025 was approximately $0.17 million compared to a cash loss of negative $1.68 million for Q2 fiscal year 2024.

Regained NASDAQ Compliance

The company regained compliance with NASDAQ listings, maintaining a minimum bid price of $1 per share as of December 24, 2024.

Lowlights

Upcoming Revenue Decline

For Q3 fiscal year 2025, the company expects a decline in revenue to a range of $1.5 million to $2 million with a negative adjusted EBITDA.

Gross Margin Decrease

Gross margin for Q2 fiscal year 2025 decreased to approximately 64% compared to 68% for Q2 fiscal year 2024, driven by revenue mix oscillation.

Continuing Resolution Impact

The continuing resolution and the launch of BLI for 2025 delayed the potential awarding of multiple government and DoD opportunities.

Company Guidance

During The Glimpse Group's Q2 Fiscal Year 2025 Investor Call, the company reported several positive financial milestones, including achieving positive EBITDA, positive cash flow, and a positive net income for the first time as a public company. Q2 FY25 revenue was approximately $3.17 million, marking a 52% increase from Q2 FY24 and a 30% increase from Q1 FY25. The gross margin for the quarter was 64%, and the company achieved a positive adjusted EBITDA of approximately $0.28 million, contrasting with a loss of $1.33 million in Q2 FY24. The company also raised $6.8 million in net proceeds from a registered direct equity offering, resulting in a cash position of approximately $8.5 million as of December 31, 2024. Looking forward, they expect a decline in Q3 FY25 revenue to between $1.5 million and $2 million, offset by a strong Q4 FY25 with expected revenue ranging from $3.3 million to $4 million, culminating in a fiscal year revenue exceeding $11 million and breakeven adjusted EBITDA.

Glimpse Group Corporate Events

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance

Glimpse Group Achieves Positive EBITDA, Revenue Surges

Positive

Feb 13, 2025

On February 13, 2025, The Glimpse Group announced its Q2 fiscal year 2025 financial results, highlighting a 52% revenue increase from the same quarter the previous year and a positive EBITDA for the first time in its history as a publicly traded company. The company also regained compliance with Nasdaq’s listing requirements and noted significant progress with recent contracts, including a major milestone in a Department of Defense project, despite potential delays in government-related opportunities due to budgetary issues.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.