Key Highlights
- Highest Cash Receipts for any quarter on record to date.
- Cash receipts of $4,303,251, up 40% on Q4.
- Continued rapid sales growth of Operator XR (Enterprise) across US and Australian markets
during the quarter:
- Annual Recurring Revenue increased 38% to $3.04M
- Total Contract Value increased 73% for the quarter to $6.2M
- 190 qualified and active sales opportunities with a total sales pipeline of $27.2M
- $5.6M Contract awarded for US Department of Defence Project
- Entertainment Sector revenue increase of 16% on Q4 2024
Operational Update by Business Sector
Operator XR – Enterprise Software and Technology
Operator XR continues to grow significantly across the United States and Australia. This includes securing a $5.6 million AUD contract with the United States Department of Defence (USDOD) to deliver an immersive training capability which will enhance xReality Group’s recurring revenue streams over the next 20 months. Additional agreements with multiple police departments and agencies in both regions have driven impressive increases in ARR and Total Contract Value.
- ARR Update: The ARR for Operator XR reached $3,041,695, marking a 38% quarterly growth.
- Contract Growth: The Total Contract Value for Q1 was $6,248,604, a 73% increase from the previous quarter.
- Marketing Efforts: Operator XR’s brand presence has expanded through strategic digital marketing and trade show participation, including:
- IACP conference in Boston, USA
- INL conference in Greece
- Land Forces expo in Australia
- Upcoming events include I/ITSEC in Florida, USA, where xReality will present as part of Team Defence Australia (AUSTRADE), and the Shot Show in Las Vegas, USA.
Entertainment Sector – iFLY Indoor Skydiving & FREAK Entertainment
The Entertainment division showed strong quarterly growth, with cash receipts totalling $2.18 million, a 16% rise from Q4. iFLY Downunder (Sydney West) & Gold Coast locations saw a combined revenue increase of $300,000, fuelled by a resurgence in retail and tourism.
Corporate Activity
On October 11, xReality Group secured an additional $500,000 short-term working capital facility from Causeway Financial. This funding is earmarked to bolster inventory and facilitate project acceleration in line with growing demand.