Glimpse Group (VRAR) AI Stock Analysis

• Market Cap: $19.41M
• Dividend Yield: N/A
• Average Volume (3M): 265.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 16.60%
• EPS Growth: 70.20%
• Country: US
• Employees: 45
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.05
• Shares Outstanding: 21,076,506
• 10 Day Avg. Volume: 190,592
• 30 Day Avg. Volume: 265,622
• PEG Ratio: 0.16
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 2.54
• P/FCF Ratio: -84.42
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 1.46
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: -5.41
• 1Y Price Target: $2.62
• Price Target Upside: 142.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.90 ▼(-16.94% Downside)

The score is held down primarily by shrinking revenue, continued losses, and negative operating/free cash flow, despite strong gross margins and a low-debt balance sheet. Technicals remain mixed with weak longer-term trend signals, while earnings-call updates show promising strategic initiatives but elevated near-term uncertainty and no revenue guidance. Potential dilution from the expanded ATM facility is an added risk.

Positive Factors

High Gross Margins

Sustained high gross margins (~72%) indicate strong unit economics in Glimpse’s XR software and services. This margin profile provides durable leverage to scale revenue, supports investment in product development, and cushions profitability while the firm builds recurring license and services revenue streams.

Clean Balance Sheet

A no-debt capital structure with meaningful cash on the balance sheet reduces financial risk and preserves strategic optionality. This allows Glimpse to fund operations or strategic initiatives without immediate refinancing, lowering bankruptcy risk and enabling measured investment in product and subsidiary development.

Brightline Spin-off Strategy

Spinning off Brightline could create a stand-alone, well-capitalized spatial computing business and unlock value across subsidiaries. A successful IPO would let each entity pursue focused go-to-market strategies, attract dedicated capital, and improve strategic clarity and resource allocation over the medium term.

Negative Factors

Declining Revenue Trend

A near-10% TTM revenue decline signals persistent demand or execution challenges. Sustained top-line contraction limits operating leverage, slows scale economics for software licensing, and raises the bar for management to restore growth across enterprise, education, and healthcare verticals.

Negative Cash Flow

Continued negative operating and free cash flow means the business is not yet self-funding. Persistent cash burn forces reliance on external capital, constrains reinvestment, and creates execution risk if funding access tightens or dilution-averse shareholders resist future financings.

Ongoing Net Losses

Material negative net margins (~-27% TTM) reflect that cost structure and revenue scale are not yet aligned for profitability. Continued losses limit retained-earnings growth, hamper long-term ROIC improvement, and increase the urgency to prove sustainable recurring revenue and margin conversion.

Glimpse Group Business Overview & Revenue Model

Company Description

The Glimpse Group, Inc., a virtual reality (VR) and augmented reality (AR) platform company, provides enterprise-focused software, services, and solutions in the United States. It offers QReal, a software that creates and distributes photorealistic 3D and AR content; Adept XR Learning, which provides higher education learning and corporate VR training solutions; PostReality, a cloud-based software as a service solution that enables users to create AR presentations; and XR Platform, a cloud-based, scalable and secure backend infrastructure, including proprietary cloud image recognition technology, online storage, creation and management of subscription plans, and invoicing and payments designed for VR/AR companies. The company also provides D6 VR, a VR-based, analysis, presentation, and education software platform; Immersive Health Group, a digital health platform that leverages VR/AR technology to simplify and streamline complex healthcare challenges in scale; Foretell Reality, an enterprise-grade and easy-to-use solution for meeting others in VR; and Early Adopter, which offers immersive VR and AR EdTech solutions for K-12 schools and pediatric hospital programs. In addition, it offers AUGGD that provides AR software and services primarily for the architecture, engineering, and construction industries; Glimpse Turkey for developing and creating web optimized 3D models, primarily for QReal; and custom specialized AR applications, and white label solutions and services. Further, the company provides Pagoni VR that offers VR video broadcasting solutions, which consists of Chimera that enables real-time communications between a presenter, and local and remote attendees in VR to universities, enterprise, entertainment venues, sports venues, and houses of worship. The company was incorporated in 2016 and is headquartered in New York, New York.

How the Company Makes Money

Glimpse Group generates revenue through multiple streams, primarily by offering VR and AR development services to businesses across different sectors. This includes custom software development, consulting services, and the licensing of proprietary technology. Additionally, the company earns money through the sale of its own VR/AR products and platforms, which can be used for training, marketing, and entertainment purposes. Strategic partnerships with tech companies and content creators also contribute to its revenue by expanding its service offerings and market reach, while subscription models for ongoing support and updates generate a consistent income stream. The company may also explore revenue through in-app purchases or premium features within its applications.

Glimpse Group Financial Statement Overview

Summary

Mixed fundamentals: high gross margins (~65–68% historically; ~72% in the latest quarter) and a very low-debt balance sheet, but TTM revenue declined (~9.9%) and profitability/FCF remain negative (cash burn still a key risk despite improvement vs. 2023–2024).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined ~9.9% versus the prior period, but the business continues to post solid gross margins (~65–68% in recent periods). Losses have meaningfully narrowed versus 2023–2024 (net margin improved from deeply negative levels to about -27% in TTM), indicating better cost control and/or mix. However, profitability is still negative at the operating and net levels, and the company has not yet demonstrated consistent revenue growth alongside the margin improvement.

Balance Sheet

Leverage appears very low with minimal debt relative to equity in TTM (debt-to-equity near zero), which reduces financial risk and provides flexibility. Equity is positive and sizable in the last two periods, supporting balance sheet stability. The key weakness is that returns remain negative because the company is still loss-making, so the balance sheet strength is not yet translating into attractive shareholder returns.

Cash Flow

Cash generation remains a pressure point: TTM operating cash flow and free cash flow are both negative, signaling the company is still consuming cash to run the business. Free cash flow has improved materially versus earlier years (when cash burn was far larger), but the company has not yet reached a self-funding profile. While free cash flow is roughly in line with net losses (suggesting non-cash items are not masking the burn), sustained negative cash flow remains a key risk until profitability and cash conversion improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.49M	10.53M	8.80M	13.48M	7.27M	3.42M
Gross Profit	6.20M	7.12M	5.86M	9.22M	6.03M	1.96M
EBITDA	-2.56M	-2.13M	-6.58M	-11.96M	-7.66M	-5.88M
Net Income	-2.57M	-2.55M	-6.39M	-28.56M	-5.97M	-6.09M
Balance Sheet
Total Assets	18.35M	19.28M	15.56M	24.28M	38.40M	3.22M
Cash, Cash Equivalents and Short-Term Investments	5.56M	6.83M	1.85M	5.62M	16.49M	1.77M
Total Debt	1.90K	131.75K	543.51K	829.40K	0.00	2.05M
Total Liabilities	2.20M	2.34M	4.02M	13.05M	9.58M	4.39M
Stockholders Equity	16.15M	16.94M	11.54M	11.22M	28.82M	-1.17M
Cash Flow
Free Cash Flow	-1.18M	-316.28K	-5.24M	-9.31M	-5.14M	-1.24M
Operating Cash Flow	-1.14M	-273.77K	-5.21M	-9.16M	-4.94M	-1.21M
Investing Cash Flow	-1.54M	-1.54M	-1.53M	-3.53M	-5.06M	-28.00K
Financing Cash Flow	6.83M	6.80M	2.97M	66.11K	26.48M	1.97M

Glimpse Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.08 is above the 20-day moving average (MA) of 1.06, above the 50-day MA of 1.03, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.33 is Neutral, 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 VRAR.

Glimpse Group 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%
BNAI	50 Neutral	$111.08M	-4.01	-218.30%	―	-24.72%	53.60%
AUID	46 Neutral	$26.82M	-1.09	-150.91%	―	141.81%	-21.61%
VRAR	45 Neutral	$19.41M	-7.18	-19.02%	―	16.60%	70.20%
INTZ	42 Neutral	$20.91M	-1.64	-132.37%	―	33.49%	82.01%
MSAI	42 Neutral	$15.28M	-0.82	-103.97%	―	―	―

Glimpse Group Corporate Events

Glimpse Group Expands ATM Equity Offering Capacity

On January 2, 2026, The Glimpse Group, Inc. amended its existing at-the-market equity offering program with WestPark Capital to raise the maximum aggregate amount of common stock it may offer and sell from $3.5 million to approximately $9.5 million, following earlier increases from an initial $3.1 million cap set on July 11, 2025 and revised on November 21, 2025. The expanded capacity under the ATM facility, under which no shares have yet been sold, gives the company significantly greater flexibility to access equity capital over time as market conditions permit, potentially affecting future dilution for shareholders while strengthening the firm’s ability to fund operations or strategic initiatives.

The most recent analyst rating on (VRAR) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Glimpse Group stock, see the VRAR Stock Forecast page.

Glimpse Group Stockholders Approve Directors and Executive Pay

On December 18, 2025, The Glimpse Group, Inc. held its annual general meeting of stockholders, with approximately 61% of outstanding common shares represented in person or by proxy, constituting a quorum for formal business. Stockholders re-elected Maydan Rothblum, Jeff Enslin and Alexander Ruckdaeschel as Class II directors to three-year terms ending at the 2028 annual meeting, approved on an advisory basis the Company’s executive compensation for fiscal year 2025, and ratified Turner, Stone & Company, L.L.P as the independent registered public accounting firm for the fiscal year ending June 30, 2026, signaling continued support for the current board composition, pay practices and audit oversight framework.

The most recent analyst rating on (VRAR) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Glimpse Group stock, see the VRAR Stock Forecast page.

Glimpse Group Reports Q1 FY 2026 Financial Results

On November 13, 2025, The Glimpse Group reported its financial results for Q1 FY 2026, ending September 30, 2025, highlighting a 43% revenue decrease compared to the previous year due to timing of Department of War contracts and U.S. Government budget delays. The company initiated the IPO/Spin-off process for its subsidiary, Brightline Interactive, aiming to establish it as an independent publicly traded company. Despite the revenue decline, Glimpse maintains a strong financial position with no debt and a clean capital structure, focusing on potential value creation alternatives.

The most recent analyst rating on (VRAR) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Glimpse Group stock, see the VRAR Stock Forecast page.