Executive Summary
The Glimpse Group reported QQ1 2025 revenue of approximately $2.44 million, marking a 41% QoQ increase from Q4 FY2024 but a 21% YoY decline compared with Q1 FY2024. The quarter benefited from a higher mix of Spatial Core revenues, which helped push gross margins to approximately 78.9% (vs. 62% in the year-ago quarter). Management emphasized ongoing strength in the Spatial Core and AI/cloud-driven immersive software pipeline, including multi-year DoD and enterprise opportunities with short-term contract values in the $5–$10 million range. Despite the top-line weakness versus a year ago, the company expects revenue in the next three quarters to average above $3 million per quarter and FY2025 revenue to be in the $11–$12 million range (a 25–35% year-over-year increase from FY2024). Adjusted EBITDA loss improved to about $0.46 million in QQ1 2025 from roughly $1.29 million in QQ1 2024, and management projects positive cash flow in the remaining quarters of FY2025 with no near-term capital raise and a clean balance sheet (no debt).
Key Performance Indicators
QoQ: 41.17% | YoY:-21.47%
QoQ: 74.32% | YoY:-506.20%
QoQ: -25 391 333.49% | YoY:-849 101 144.95%
QoQ: -23 264 320.83% | YoY:-689 316 072.84%
Key Insights
Revenue: QQ1 2025 revenue of $2.438M, YoY change −21.47%, QoQ change +41.17%.
Gross Profit: $1.923M; Gross Margin ≈ 78.87% (0.7887); YoY gross profit change ≈ −0.02%, QoQ ≈ +61.29%.
Operating Income: −$1.0349M; Operating Margin ≈ −42.44% (−0.4244).
EBITDA: −$0.7506M; EBITDARatio ≈ −0.3078.
Net Income: Reported net income appears anomalous (−$1.014B) in the provided data, which is inconsistent with the company’s scale; management commentary focuses on cash flow and EBI...
Financial Highlights
Revenue: QQ1 2025 revenue of $2.438M, YoY change −21.47%, QoQ change +41.17%.
Gross Profit: $1.923M; Gross Margin ≈ 78.87% (0.7887); YoY gross profit change ≈ −0.02%, QoQ ≈ +61.29%.
Operating Income: −$1.0349M; Operating Margin ≈ −42.44% (−0.4244).
EBITDA: −$0.7506M; EBITDARatio ≈ −0.3078.
Net Income: Reported net income appears anomalous (−$1.014B) in the provided data, which is inconsistent with the company’s scale; management commentary focuses on cash flow and EBITDA trends rather than GAAP net income in the near term.
EPS: Reported EPS appears to be a large negative value inconsistent with the revenue size; data quality note applies.
Cash Flow: Net cash from operating activities −$0.425M; Depreciation & Amortization $0.251M; Stock-based compensation $0.367M; Change in working capital −$0.062M; Free cash flow −$0.435M.
Liquidity & Balance Sheet: Cash and cash equivalents ≈ $1.414M; Net cash position after debt ≈ −$1.043M; Total assets ≈ $15.165M; Total liabilities ≈ $4.274M; Total stockholders’ equity ≈ $10.891M; No debt or convertible debt reported; current ratio ≈ 0.83; gross margin ≈ 78.9%; operating margin ≈ −42.4%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.44M |
-21.47% |
41.17% |
| Gross Profit |
1.92M |
-0.02% |
61.29% |
| Operating Income |
-1.03M |
-506.20% |
74.32% |
| Net Income |
-1,014.19B |
-849 101 144.95% |
-25 391 333.49% |
| EPS |
-55.83K |
-689 316 072.84% |
-23 264 320.83% |
Key Financial Ratios
operatingProfitMargin
-42.4%
netProfitMargin
-41593000%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
Management Commentary
Theme: Growth prospects and contract pipeline
- “During the quarter, we delivered the first phase of our large DoD contract and have made significant progress towards securing several multimillion-dollar enterprise scale spatial computing cloud and AI-driven immersive software solutions.”
- “The short-term aggregate value for those contracts is in the $5 million to $10 million range. We expect to get confirmation on one of these contracts in December 2024, and to receive additional confirmations in early 2025 due to budgetary delays.”
- “Our subsidiary, QReal saw a significant increase in revenue, driven by demand from its largest customer for AR lenses and 3D models.”
- “We expect revenues to continue to increase in the coming quarters based on signed contracts and our advanced revenue pipeline.”
- “We also expect to be cash flow positive in the current quarter and the quarters after, which will result in an increased cash balance without the need for capital raise.”
- “The Board of Directors is exploring various aggressive strategic options to enable the business to invest in its growth while unlocking value and may pursue such options during the fiscal year.”
- “Divestiture creates approximately $4 million of expected net cash value to Glimpse over the next two years, inclusive of annual cash savings.”
- “Glimpse will retain revenues from QReal’s largest customer in full until such time that Glimpse has collected at least $1.35 million in net cash.”
- “No material change is expected for our revenues for fiscal year 2025 and 2026 as Glimpse retains revenues from QReal’s largest customer.”
- “We do not intend to raise capital in the foreseeable future, especially since we expect our operations to generate positive cash flow and grow our cash balance.”
- Theme: Operational efficiency and guidance
- “Our cash operating expense base pre-revenue is now less than $1 million per month.”
- “Gross margin going forward is expected to be in the 60%–70% range.”
- Theme: Strategic repositioning and long-term view
- “We are positioned as a provider of AI and cloud-based enterprise immersive software and services and are poised for revenue growth and cash profitability.”
‘During the quarter, we delivered the first phase of our large DoD contract and have made significant progress towards securing several multimillion-dollar enterprise scale spatial computing cloud and AI-driven immersive software solutions.’
— Lyron Bentovim, President and CEO
‘We also expect to be cash flow positive in the current quarter and the quarters after, which will result in an increased cash balance without the need for capital raise.’
— Lyron Bentovim, President and CEO
Forward Guidance
Management guidance for FY2025 (year ending June 30, 2025) targets total revenue of roughly $11–$12 million, implying a 25%–35% year-over-year increase from FY2024. This outlook is anchored by: (1) a higher mix of Spatial Core revenues and related recurring software licenses; (2) a multi-quarter pipeline of enterprise and government DoD opportunities with short-term contract values in the $5–$10 million range and potential confirmations in late 2024/early 2025; (3) continued momentum in non-DoD immersive businesses and demand for AR/VR solutions across education, health, and enterprise customers. The company expects to generate positive cash flow in the remaining quarters of FY2025 with a cash balance that increases over time and no capital raise. Risks to the guidance include: government budgeting delays could postpone contract confirmations, execution risk on large spatial computing and AI-driven deals, and integration benefits from divestiture affecting near-term revenue mix. Key monitorables for investors include: the pace and monetization of Spatial Core deployments, cadence of DoD/enterprise contract awards, trajectory of gross margins (target 60–70%), and the company’s ability to scale operating expenses in line with revenue growth without compromising profitability.