Author: xReality Group Ltd

xReality Group Limited (XRG) specialises in building and operating immersive XR products and experiences that enhance lives. xReality Group’s portfolio includes physical and digital simulation used across the enterprise, defence and consumer markets. Using technology we create experiences without the physical limitations found in the real world.

XR stands for eXtended Reality, and is a catch-all term for Virtual Reality (VR), Augmented Reality (AR) and Mixed Reality (MR). Extended Reality combines physical and digital simulation for both consumer and enterprise market segments. The XR category is growing rapidly with the market predicted to grow from US $26B in 2020 to US $905B in 2027. Facebook’s parent, Meta, is investing $10Bn US/year alone into accelerating development of the Metaverse.

The Company was founded by two ex-SAS soldiers to bring the joy of simulated human flight to the region through cutting-edge indoor skydiving facilities. In recent years, the Company has expanded its simulation portfolio from indoor skydiving to include out of home virtual reality entertainment, defence XR training and XR software development.

xReality Group companies include Operator XR, a Defence and Law Enforcement simulation training company, Red Cartel, an XR production company, two Australian iFLY Indoor Skydiving Facilities, and four FREAK Virtual Reality venues.

The Company listed on the ASX on 18 January 2013 as Indoor Skydive Australia Group Limited (ASX:IDZ) and was rebranded to xReality Group Limited ASX: XRG on 8th December 2021.

News

Operator XR Strategic Collaboration with ALERRT

Post author By xReality Group Ltd
Post date 03/04/2025

We’re excited to announce that Operator XR has entered a strategic research collaboration with the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University—the FBI-designated national standard for active shooter response training in the United States.

This two-year initiative represents a significant milestone in our mission to support law enforcement agencies with the most advanced extended reality (XR) training tools available.

Advancing Performance in High-Stress Environments

Since its inception, ALERRT has trained over 300,000 first responders across the U.S., leveraging more than $180 million in state and federal funding. Their deep expertise in evidence-based law enforcement training is an ideal match for Operator XR’s immersive technology platform.

The research collaboration will explore various aspects of XR-enhanced law enforcement training, including:

Training efficacy
Skill acquisition and retention
Physiological and psychological response measurement
Decision-making processes
Team dynamics in simulated environments.

“We are looking forward to working with the Operator XR team. We are especially excited to leverage the advanced capabilities of Operator XR’s multi-user VR training platform. Its customizable tools and immersive technology will expand our ability to study and improve law enforcement performance across a wide range of scenarios,” said Dr. Hunter Martaindale, Director of Research at ALERRT.

From Research to Real-World Readiness

Through this collaboration, Operator XR is providing ALERRT with state-of-the-art VR training equipment and early access to new capabilities. ALERRT will share insights from their research to inform and refine product development, ensuring Operator XR continues to meet the evolving needs of modern law enforcement.

“We’re excited to work with ALERRT’s cutting edge research team who are at the forefront of understanding the science of high-risk situations within law enforcement. This collaboration will help us validate and enhance our technology while contributing to research that ultimately helps prepare law enforcement professionals for the challenges they face in the field.” said Kim Hopwood, Chief Product & Technology Officer at Operator XR.

A Shared Commitment to Innovation and Impact

The collaboration is structured for an initial two-year period, with quarterly progress reviews and the potential for extension. The companies intend to pursue joint funding opportunities and collaborate research publications.

This initiative is a clear demonstration of Operator XR’s continued commitment to advancing mission-critical training through immersive, measurable, and training effective technology.

News

Steve Baxter Supports Operator XR’s U.S. Growth Outlook

Post author By xReality Group Ltd
Post date 05/03/2025

Steve Baxter Converts Debt-to-Equity with xReality Group, strengthening Operator XR's U.S. Growth Strategy

We’re excited to share that our largest shareholder, Steve Baxter, has further strengthened his commitment to our company by converting his $4.6 million debt holdings into equity at a 39% premium, pending shareholder approval.

Steve has been a key supporter of XRG from the beginning. As the founder of Beaten Zone Ventures, and a seasoned entrepreneur, his confidence in Operator XR – our immersive extended reality (XR) training solution for military and law enforcement – is a massive endorsement of our mission and growth trajectory.

Backing Our Expansion in the U.S. Market

This move comes at a pivotal time for Operator XR, which has been making waves in the U.S. market. In 2024, we secured a $5.6 million contract with the U.S. Department of Defense, and our presence among U.S. law enforcement agencies continues to expand.

Steve, a former Australian Defence Force (ADF) member, sees the massive opportunity ahead. His experience in the defence and technology sectors, coupled with his deep understanding of the U.S. security landscape, brings valuable strategic insights to our growth plans.

“I’m backing Aussie vets with a market-leading product winning in the U.S. This isn’t just financial support—it’s about doubling down on a team that’s cracking open a massive opportunity in the XR training and simulation market,” Steve said.

Reinforcing Our Growth Strategy

This decision is more than just a financial endorsement – it reflects belief in our vision, our technology, and our team. As Operator XR continues to scale, surpassing the 50-customer milestone and growing revenue 5.6x on pcp in H1FY25, Steve’s increased stake in XRG provides further strength to our business.

With the $3.37 billion U.S. training solutions market in our sights, we’re continuing to push boundaries and redefine how defence and law enforcement agencies train using immersive technology.

About Beaten Zone Ventures
Beaten Zone Ventures, founded by Steve Baxter, is a venture fund dedicated to early-stage investments in Australian defense technology companies. With a focus on sovereign capability and global impact, Beaten Zone supports innovators tackling complex challenges in security and defense.

Website: www.beatenzone.vc/

About Operator XR
Operator XR delivers next-generation immersive training systems for military and law enforcement. By combining cutting-edge extended reality (XR) technology with real-world defence and tactical expertise, Operator XR enhances decision-making, situational awareness, and performance in high-stakes environments.

Website: https://operatorxr.com/

News

xReality Group FY25 Half-Year Results

Post author By xReality Group Ltd
Post date 05/03/2025

We are pleased to bring you our FY25 half-year results, showcasing our strongest half-year result to date.

Key Highlights

XRG had its strongest half-year result to date, with Total Revenue exceeding $7.4m (up 32% on pcp) and NLAT improving to $1.0m from NLAT of $1.5m in pcp.
Operator XR revenue was $2.1m, (up $1.8m on pcp) with strong momentum expected to continue throughout FY25.
Annual Recurring Revenue from Operator XR has grown 60% from June 2024 to $3.6m
Board and management have resolved and streamlined the business to focus on Operator XR.

xReality Group: Leading the Future of Immersive Training & Entertainment

At xReality Group (XRG), we are committed to pushing the boundaries of Extended Reality (XR) technology, delivering cutting-edge VR and AR solutions across military and law enforcement training, as well as immersive entertainment experiences.

Over the past six months, we have made significant strides in expanding our presence, particularly in the U.S. market, strengthening our Operator XR division, and refining our strategic focus to maximize shareholder value.

Operator XR: Transforming Military & Law Enforcement Training

Our Operator XR business is at the forefront of immersive training, providing military and law enforcement agencies with a secure, portable, and highly immersive Mission Planning & Rehearsal System. Since the end of FY2024, we have secured 21 new customers, reinforcing our momentum in the U.S.

As of 31 December 2024, we are proud to report:

Total Contract Value (TCV) of $7.4 million, an 80% increase on entire FY2024
Annual Recurring Revenue (ARR) of $3.6 million
Expansion to 51 customers (up to end of Feb’25) across 30 U.S. federal, state, and local law enforcement agencies

Beyond the U.S., we are accelerating global expansion, having formally engaged distributors in Europe and Asia. Most recently, we secured an exclusive distributor in Sweden, opening doors to the European market.

A major highlight was the launch of OP-2 in November 2024, our most advanced software release yet. OP-2 introduces the “Scenario Creator Suite,” empowering agencies to design their own immersive training environments. LAPD SWAT and the FBI are already leveraging this upgrade, with all customers expected to transition by Q3 2025.

Financial Performance: Strong Growth & Strategic Expansion

We are excited to share significant financial progress for the half-year ending 31 December 2024:

Total Revenue: $7.4M (up 32% on pcp)
Closing Cash Position: $1.7M (up 24% from June 2024)
EBITDA: $0.9M (up 96% year-on-year)
Deferred Revenue: $5.8M

This growth is driven primarily by Operator XR, which contributed $2.1M in recognised revenue. Additionally, we received our annual R&D Grant of $1.125M and an inventory adjustment of $313K.

Our strong EBITDA growth (96%) reflects strategic investments in U.S. sales, customer service, and marketing, positioning us for continued expansion.

Entertainment: Stability Amid Strategic Realignment

XRG is reviewing its strategic options for its iFLY assets with its corporate advisors, there is no certainty on direction or timing of this process in its early stages.

The exit of FREAK will be complete by 30 June 2025, with all transition steps being worked through.

iFLY continues to deliver strong cash flow and customer engagement, while we assess its long-term potential in alignment with our core growth strategy.

Strategic Focus: Operator XR as the Core Growth Asset

Looking ahead, we recognise the massive growth potential of Operator XR and are actively transitioning XRG into a high-margin, technology-driven enterprise:

Operator XR’s revenue growth is far outpacing our legacy entertainment segment
We are streamlining entertainment operations to improve focus and profitability
Our goal is to establish XRG as a global leader in mission-critical simulation solutions

In line with our forward-thinking vision, we have welcomed Ash Crick, a globally recognised Artificial Intelligence (AI) expert, as our Chief AI Advisor. Ash will play a pivotal role in driving innovation across our product suite, with a particular focus on enhancing Operator XR’s immersive training simulations.

Outlook for H2-FY25

With a strong cash position, an expanding customer base, and accelerating momentum in the U.S., we are well-positioned for continued growth in 2H2025 and beyond.

View the full presentation or find further investor information via the buttons below.

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News

Alan Kohler talks with XRG CEO Wayne Jones

Post author By xReality Group Ltd
Post date 22/01/2025

XRG CEO, Wayne Jones, had the pleasure of sitting down with renowned business commentator Alan Kohler to discuss all things xReality Group.

“xReality Group: All Geared Up

Alan Kohler sits down with Wayne Jones, the CEO of xReality Group Ltd, to discuss the company’s entertainment business and its virtual and augmented reality business – centred on training defence force and law enforcement personnel.”

-Intelligent Investor

From exploring the history of XRG bringing simulated human flight to Australia, through iFLY Indoor Skydiving, to now producing the world’s most portable immersive virtual reality training system for law enforcement and military, the conversation offers great insight into the company and the trajectory of it’s global expansion, particularly in the United States.

Listen to the audio podcast or read through the transcript at the Intelligent Investor article:

About Operator XR

Operator XR systems enable Military personnel and Law Enforcement Officers to train operational tactics and procedures within a portable, virtual reality environment. Complimenting existing training methods, the virtual reality system allows end users to train more often, leading to increased preparedness across a broad range of scenarios centred on de-escalation tactics, use of force decision making, and operational procedures. Operator XR has offices in Sydney, Australia, and Virginia, USA. Find out more below:

Operator XR awarded $5.6M contract with US Department of Defence

Operator XR November 2024 Sales Update

News

Operator XR Sales Update November 2024

Post author By xReality Group Ltd
Post date 26/11/2024

We are pleased to present the latest sales performance update for Operator XR.

Operator XR, a wholly owned subsidiary of xReality Group Ltd, provides Military and Law Enforcement agencies around the world with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure, and highly immersive.

Highlights

Operator has sustained acceleration in the global military and law enforcement markets, with continued growth in the United States.

Operator has achieved a substantial boost in sales performance for FY25 year-to-date, with a Total Contract Value (TCV) of $7.13m; this represents a significant increase from $4.1m at the end of FY24, and a 14% increase since 1st October 2024.

Operator XR’s Annual Recurring Revenue (ARR) has also seen a remarkable rise, reaching $3.54m, representing 59% growth compared to EOFY24 and 16% growth since 1st October 2024.

A key driver of this success is the $5.6m project with the United States Department of Defense, which continues to progress as planned. Read article.

These milestones further validate the demand for Operator XR products and demonstrate the capacity for rapid expansion.

"The remarkable penetration of Operator XR across both the Law Enforcement and Military markets, particularly in the United States of America, has continued throughout the early stages of the financial year. The exposure gained through major customers, including the US Department of Defence, is beginning to open new opportunities to other federal agencies and brings further validation to the Operator XR software."

Wayne Jones Chief Executive Officer

Operator XR News & Media

XRG awarded $5.6M subcontract for US Department of Defense

XRG to deliver extended reality training for subterranean and subway environments; contract to create inroads for Operator XR military and police VR systems across 100+ US agencies… Read more.

Operator XR unveil OP-2

Operator XR has launched the next generation in portable, immersive tactical training for Military and Law Enforcement – OP-2. OP-2 combined Operator’s renowned Military and Law Enforcement systems, with a range of new features and capabilities… Read more.

Visit Operator XR.

9 News feature Operator XR

XRG recently invited Nine’s Annalise Bolt to demonstrate how Operator XR tech can drive invaluable, repeatable training that is extremely difficult, expensive, and in some cases impossible, to carry out in the real world… Watch segment.

Market Opportunities

The US remains the largest potential market for Operator XR with over 18,000 Law Enforcement agencies spanning Local, County, State and Federal levels. The average sale price for Operator XR products in the US ranges from $50,000 to $250,000 USD, with most orders paid upfront. Revenue from these sales is recognised monthly over a 3-year period as Annual Recurring Revenue, while project-based revenues are recognised upon meeting milestones.

Looking ahead

As we progress through FY25, we remain committed to building on this strong foundation and delivering sustained success for the business.

We will continue to provide regular updates on Operator XR and how the company is transforming mission planning and rehearsal for Defence and Law Enforcement across the globe.

Tags Augmented Reality, Extended Reality, Operator XR, Sales, Virtual reality

News

XRG awarded $5.6M subcontract for US Department of Defense

Post author By xReality Group Ltd
Post date 13/11/2024

Australian company to deliver extended reality training for subterranean and subway environments; contract to create inroads for its Operator XR military and police VR systems across 100+ US agencies.

xReality Group (ASX: XRG) has announced it has been awarded an AU$5.6 million subcontract as part of Team Endurance Group, for the Irregular Warfare Technical Support Directorate (IWTSD) to deliver extended reality (XR) training capabilities for subterranean and subway environments to the US Department of Defence (DoD).

The company’s Operator XR systems specialise in providing uniquely integrated, secure and highly immersive virtual reality (VR) military simulation and police training systems that enhance human performance in high-risk situations. The technology was meticulously designed by veteran SAS soldiers with deep expertise in advanced VR simulation platforms, backed by years of first-hand front-line experience, to meet the rigorous and specific demands of special forces and public safety roles.

The research and development (R&D) contract for the DoD will see Operator XR deliver a prototype solution including augmented reality (AR) headsets, hardware and software integration into operational weapons and Hazmat suits, with offline capabilities for uninterrupted functionality in underground environments. The project will be delivered over a 20 month period.

“Operator XR will allow Defence users to train for various terrorist events and other threats, using AR to simulate real-world scenarios that can be customised and adapted. This will drive invaluable, repeatable training that is extremely difficult, expensive, and in some cases impossible, to carry out in the real world,” said Wayne Jones, CEO at xReality Group.

“The advantage of Operator XR is that it is inherently easy to use. DoD personnel can quickly create, change and control environments to simulate countless scenarios featuring their service-specific weapons and equipment. This serves as an opportunity to enhance tactics, techniques and procedures at a higher frequency to supplement existing real-world training methods.”

The IWTSD project will be delivered through Team Endurance Group; a teaming agreement with two US-based companies: Endurance Group, serving as prime contractor, and Intermap, a geospatial data and analytics company.

The IWTSD is an innovation division that reports directly into the Secretary of Defence in the DoD. Once a prototype is delivered, a successful project has the potential to transition to full scale production.

About xReality Group

xReality Group Limited (XRG) are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment, training, and production.

xReality Group companies include XR production company Red Cartel, Defence simulation company Operator XR, two Australian Indoor Skydiving Facilities, and FREAK Virtual Reality venues.

About Operator XR

About Endurance Group

Endurance Group is a Service-Disabled Veteran Owned and Operated Business, providing end user specific and highly specialised subject matter expert staffing services, project management, and training, that focus on tactical, operational, and special activities for the US DoD and other government agencies.

About Intermap

Intermap Technologies is a geospatial intelligence solutions company focused on creating and analysing 3D terrain data to produce high-resolution thematic models of the Earth. The Company’s government solutions include special mission data collection and ISR, feature extraction, change detection and data and analytics delivered through cloud software solutions.

News

xReality Group Quarterly Activities Report: October 2024

Post author By xReality Group Ltd
Post date 12/11/2024

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.

News

9 News Feature Operator XR

Post author By xReality Group Ltd
Post date 27/10/2024

9 News

Operator XR creates a new frontier for military and law enforcement training.

Operator XR gives customers – like the US Department of Defense – the ability to train for various terrorist events and other threats, using AR to simulate real-world scenarios that can be customised and adapted.

xReality Group recently invited Nine’s Annalise Bolt to demonstrate how this tech can drive invaluable, repeatable training that is extremely difficult, expensive, and in some cases impossible, to carry out in the real world.

About Operator XR

News

Operator XR Unveil OP-2

Post author By xReality Group Ltd
Post date 17/10/2024

The World’s most portable immersive tactical training system just got more powerful.

Operator XR, a wholly-owned subsidiary of xReality Group, has launched the next generation in portable, immersive tactical training for Military and Law Enforcement, OP-2.

OP-2 sets a new standard for tactical training technology, combining Operator XR’s renowned Military and Law Enforcement systems, with a range of new features and capabilities. OP-2 offers unparalleled portability and immersive virtual reality training, rapidly developing users’ proficiency in their field.

OP-2 features a diverse training toolkit for all levels of police and dismounted soldiers, with use cases ranging from de-escalation and use of force decision making through to hostage rescue and mission rehearsal.

OP-2 Key Features Summary

Portability: Highly portable system weighing under 40 lbs/18kg in a single 56” case.

Integration: Integrate with users’ own equipment, including rifle, pistol, CEW and spray, for realistic and truly effective training.

Scenario Creator Suite: The powerful new Scenario Creator tool enables you to create fully-customised, fully-controlled, interactive and immersive scenes, with complete control over training outcomes.

Operator Sketch: Sketch unlimited building layouts and accurately recreate real-world floor plans, allowing you to train on any building configuration, no matter how complicated, in minutes.

Operator Create: Access a vast library of scenes and build scenarios with everything you need for a complex and realistic environment. From over 100 interactive props, to fully-dynamic characters and bystanders that react to commands and real-time events, every element is designed for realism.

Advanced Role Player: Dynamic characters include suspects, bystanders and crowds that react to commands and real-time events. Choose from Instructor-controlled characters, or act as real-life suspects using the role player headset, to challenge verbal, de-escalation and critical thinking skills.

After-Action Review Module: Gain deep insights into tactical proficiency, situational awareness, and use-of-force decision-making, helping Instructors assess and improve training outcomes with precision.

Easy to use: User-friendly Instructor tablet, and no backpack computers, base stations, IT staff or specialised skills required.

Secure: A completely offline system with no external internet, ensuring privacy and security with VR equipment that is ISO:27001 compliant with a US DoD Authority to Operate (ATO).

"In the high-stakes world of military and law enforcement, training must evolve to meet ever-changing threats. With OP-2, we're giving Instructors the tools to quickly adapt, control outcomes, and elevate training to an unprecedented new level."

Wayne Jones

CEO

OP-2 empowers Instructors to rapidly move personnel from basic to advanced levels, ensuring training aligns with real-world needs. The system’s innovative modules work together to enhance tactical readiness, enabling agencies to prepare for tomorrows challenges.

Operator XR: Adapt to tomorrows challenges.

Operator XR will be exhibiting at IACP Boston from 20-22 October where OP-2 will be showcased with live demonstrations available. Click below for more information, or visit Operator XR’s website to uncover the full power of OP-2.

Tags Operator XR, Virtual reality, VR

News

xReality Group Annual Report FY24

Post author By xReality Group Ltd
Post date 01/10/2024

Key Highlights

xReality Group Limited (XRG) had a transformative FY24, marked by rapid growth and the successful execution of strategic initiatives. XRG’s Operator XR exceeded expectations, especially in expanding its U.S. presence and building a robust customer base; the year saw a 193% increase in Total Contract Value (TCV) to $4.1 million and a fivefold increase in Annual Recurring Revenue (ARR). By the year’s end, the Operator XR had 29 global customers, including U.S. and Australian law enforcement and government agencies, with strong indicators for future expansion.

Financial Performance and Growth

In FY24, XRG reported a significant increase in revenue driven by strategic investments, cost management, and diversified high-margin projects.

Business Unit Highlights

Operator XR

Operator XR is the fastest growing segment for XRG, focusing on defence and law enforcement agencies across the globe. The total addressable market for Operator XR is valued at US$3.37 billion with the US accounting for nearly 40% of the total market.

FY24 was a breakthrough year for Operator with increased revenue from defence and government contracts, demonstrating the ability to capture opportunities in virtual defence training globally. Operator’s contributions are underscored by steady ARR, secured through multi-year agreements with a number of customers. This unit’s reliable revenue flow enhances XRG’s overall financial stability, especially as it continues to expand its market share within the high-demand military and law enforcement sectors.

Red Cartel

As XRG’s technology and content creation powerhouse, Red Cartel made substantial contributions to revenue by securing high-value contracts in VR and AR solutions. Its custom VR environments for training applications generated a consistent stream of revenue, positioning Red Cartel as a profitable division within XRG.

iFLY Indoor Skydiving

iFLY achieved positive cashflow in a soft retail market, with $1,636k cash receipts throughout the year. Both iFLY facilities were upgraded to more efficient electrical systems, and iFLY Gold Coast was fitted with solar panels to provide further savings on electricity in the future.

FREAK Entertainment

FREAK continued to grow its consumer base with updated VR offerings, reporting an increase in gross receipts from its Arcade games. This unit has strengthened its revenue through subscriptions and frequent player engagement.

Outlook for the Future

Looking forward, we’re optimistic about our growth potential, with a strong focus on further penetrating the law enforcement and defence markets both locally and globally. As immersive technologies continue to evolve, XRG’s position in VR/AR and its innovations in training technology make it well-equipped to capture future market opportunities.

Read the full report below or find out further investor information below.

About xReality Group