Glimpse Group (VRAR) AI Stock Analysis

• Market Cap: $23.18M
• Dividend Yield: N/A
• Average Volume (3M): 265.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• 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: 0.95
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: -8.56
• 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: $1.00 ▼(-7.87% 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 ~72% gross margins indicate strong pricing power and low direct costs typical of software/AI offerings. High markup on delivered solutions improves the path to operating leverage once revenue stabilizes, making future profitability attainable with modest revenue recovery.

Low leverage and cash runway

A debt-free balance sheet and multi-million dollar cash balance reduce financial distress risk and provide flexibility to fund the Brightline spin-off or product commercialization. This capital structure supports strategic optionality without interest burdens, improving long-term survivability.

Strategic spin-off and AI product traction

Divesting Brightline could create a focused, well-capitalized pure-play in defense/AI, unlocking value and allowing Glimpse to concentrate on Immersive/Foretell AI. Foretell's early license renewals in education and healthcare point to a scalable recurring revenue base and platform stickiness.

Negative Factors

Declining revenue trend

Sustained revenue declines weaken operating leverage and make fixed-cost absorption harder, delaying profitability despite high gross margins. Dependence on timing of government contracts and divestitures increases volatility and reduces predictable multi-period cash flows.

Negative operating and free cash flow

Ongoing negative operating and free cash flow means the business is not yet self-funding and remains reliant on external financing. Continued cash burn constrains investment, risks dilution or restrictive funding terms, and limits the firm’s ability to scale long-term initiatives independently.

Equity dilution risk from expanded ATM facility

A materially expanded at-the-market offering provides financing flexibility but creates a persistent dilution overhang if used. If cash burn or weak revenue continues, reliance on equity raises could dilute existing holders and undermine long-term per-share value creation.

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

Glimpse Group shows strong revenue growth, but profitability and cash flow challenges persist. The low leverage is a positive sign, yet the negative returns and cash flow issues suggest financial instability. The company needs to improve its profitability and cash flow management to enhance its financial health.

Income Statement

The company has shown significant revenue growth, particularly in the latest year, which is a positive indicator. However, the persistent negative net profit margin and EBIT margin highlight ongoing profitability challenges. The gross profit margin remains strong, but the inability to translate this into net profitability is concerning.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio, indicating low leverage, which is a positive aspect. However, the negative return on equity suggests that the company is not generating sufficient returns on its equity base. The equity ratio is relatively stable, but the negative ROE is a significant concern.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, which are concerning for sustainability. The free cash flow to net income ratio is above 1, indicating that free cash flow is higher than net income, but the overall negative cash flow growth and coverage ratios highlight liquidity issues.

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	-1.53M	-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: Neutral
• Last Price: 1.08
• 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 VRAR, the sentiment is Neutral. The current price of 1.08 is above the 20-day moving average (MA) of 0.95, below the 50-day MA of 1.11, and below the 200-day MA of 1.33, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	56 Neutral	$16.07M	-0.57	-218.30%	―	-24.72%	53.60%
VRAR	45 Neutral	$23.18M	-8.82	-19.02%	―	16.60%	70.20%
AUID	42 Neutral	$14.59M	-0.62	-150.91%	―	141.81%	-21.61%
INTZ	42 Neutral	$24.83M	-2.07	-132.37%	―	33.49%	82.01%
MSAI	42 Neutral	$18.77M	-0.87	-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.