The Glimpse Group Inc (US37892C1062.SG) Q4 2024 Earnings Report

The Glimpse Group's QQ4 2024 results show a modest sequential and year-over-year revenue decline, with a robust gross margin yet ongoing operating losses driven by continued investment in R&D and strategic acquisitions. Revenue for the quarter totaled $1.73 million, down 8.8% QoQ and 8.2% YoY, while gross profit reached approximately $1.19 million for a gross margin near 69%. Despite the margin strength, operating income deteriorated to a loss of about $4.03 million and net income to a loss of about $3.99 million, translating to an EPS of −$0.24. These profitability pressures reflect sustained investment activity intended to scale the company’s Immersive Technology Hardware and Immersive Technology Software platforms, including significant non-cash and acquisition-related effects. The cash flow profile remains tight in the near term. Operating cash flow was negative at roughly −$0.93 million, with a free cash flow of about −$0.94 million. Investing activities included acquisitions and capital expenditures totaling around −$1.51 million, contributing to a net decrease in cash of approximately $2.44 million for the period. The balance sheet remains solid on liquidity grounds: cash of about $1.85 million against modest debt ($543k total), and sizable goodwill ($10.86 million) and intangible assets ($0.49 million) on the asset side. The company carries a current ratio of ~1.45 and a debt ratio of ~2.3%, with net debt materially negative due to cash holdings. Strategically, Glimpse continues to invest in IP, software development, and acquisitions to position for longer-term growth in VR/AR software and related immersive capabilities. However, the near-term investment cadence implies continued operating losses until topline growth or cost efficiency improves meaningfully. Absent explicit near-term guidance, investors should monitor revenue stabilization, margin progression, progress on integration of acquisitions, and the cadence of discretionary spend as levers for turning profitability positive.