Executive Summary
The Glimpse Group delivered a meaningful quarterly inflection in QQ2 2025 (period ended December 31, 2024). Revenues rose to approximately $3.17 million, up 52% year over year and about 30% quarter over quarter, driven by stronger Spatial Core contributions and growth across other businesses. GAAP EBITDA turned positive for the first time in the company’s history as a public company, with EBITDA of roughly $56.7 thousand and adjusted EBITDA of about $0.28 million, supported by substantial operating cash flow of $0.172 million for the quarter. Management attributes the improvement to ongoing strategic and operational restructuring and the incorporation of AI elements across the product suite, positioning Glimpse to benefit from AI-driven immersive technologies as adoption accelerates.
The quarter also showcased a strong cash position, approximately $8.5 million in cash and no debt, aided by a December 2024 registered direct equity financing that raised roughly $7.3 million gross proceeds. Management maintains a clean capital structure and expects positive cash flow in each remaining quarter of fiscal 2025, with guidance pointing to a strong Q4 and FY2025 revenue beating FY2024 by a substantial margin. Management also highlighted ongoing DoD/government opportunities via Brightline Interactive (BLI) and commercially focused AI-driven training through Foretell Reality, while acknowledging continued funding and budget timing uncertainties related to the government continuing resolution.
Looking forward, management provided conservative near-term guidance for Q3 2025 and a more constructive Q4, with FY2025 revenue projected to exceed $11 million and adjusted EBITDA breakeven for the year. The company reiterated OpEx discipline, targeting a run-rate below $0.9 million per month, and emphasized the potential for portfolio monetization or strategic acquisitions alongside ongoing organic growth in AI-enabled immersive solutions. Overall, QQ2 marks a positive inflection point, but the trajectory will hinge on government budget timing, the pace of DoD/commercial bookings, and the successful scaling of AI-enabled offerings.
Key Performance Indicators
QoQ: 100.67% | YoY:100.85%
QoQ: 100.00% | YoY:103.50%
QoQ: 100.00% | YoY:103.16%
Key Insights
Revenue: $3.17M in QQ2 2025, up roughly 52% YoY and ~30% QoQ. Gross margin: ~63.9% in QQ2 2025, slightly below QQ2 2024 (~68%) due to revenue mix. Operating income: $6.9k for QQ2 2025, margin ~0.22%. EBITDA: $56.7k (GAAP) in QQ2 2025; Adjusted EBITDA: ~$0.28M. Net income: $25.9k; net income margin ~0.82%. EPS: $0.0014 (GAAP), diluted $0.0011. Cash flow: Operating cash flow $0.172M; free cash flow ~$0.155M. Balance sheet: cash and cash equivalents $8.445M; current assets $10.862M; total assets $2...
Financial Highlights
Revenue: $3.17M in QQ2 2025, up roughly 52% YoY and ~30% QoQ. Gross margin: ~63.9% in QQ2 2025, slightly below QQ2 2024 (~68%) due to revenue mix. Operating income: $6.9k for QQ2 2025, margin ~0.22%. EBITDA: $56.7k (GAAP) in QQ2 2025; Adjusted EBITDA: ~$0.28M. Net income: $25.9k; net income margin ~0.82%. EPS: $0.0014 (GAAP), diluted $0.0011. Cash flow: Operating cash flow $0.172M; free cash flow ~$0.155M. Balance sheet: cash and cash equivalents $8.445M; current assets $10.862M; total assets $22.255M; total liabilities $4.337M; equity $17.918M. Debt: total debt $0.201M; net debt approximately -$8.244M (net cash). Liquidity/risk metrics: current ratio 2.54; quick ratio 2.54; gross margin target range going forward 60–70%. Revenue mix: government ~40% and commercial ~60%, with management signaling potential government mix expansion in 2025. Key growth drivers: Spatial Core revenue, AI-enabled Immersive platforms (Spatial, AI-driven training, AR/VR content), DoD/government contracts via Brightline Interactive, and Foretell Reality commercial traction. Guidance highlights: Q3 revenue estimated $1.5M–$2.0M with negative adjusted EBITDA offset by a strong Q4; FY2025 revenue expected to exceed $11M with breakeven adjusted EBITDA. OpEx trajectory: circa $0.9M per month; expectation of positive quarterly cash flow in 2025.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.17M |
52.61% |
29.96% |
| Gross Profit |
2.02M |
42.51% |
5.30% |
| Operating Income |
6.93K |
100.85% |
100.67% |
| Net Income |
25.87K |
103.50% |
100.00% |
| EPS |
0.00 |
103.16% |
100.00% |
Key Financial Ratios
operatingProfitMargin
0.22%
operatingCashFlowPerShare
$0.01
freeCashFlowPerShare
$0.01
priceEarningsRatio
438.24
Management Commentary
Strategic and AI integration: Lyron Bentovim states that the company is transitioning to focus on 'special core mostly complete' with 'increasing incorporation of enabling AI elements across our product base' to capture opportunities in immersive tech. Government and commercial mix: Lyron notes the current revenue split is 'around 40 percent government and 60% commercial' with expectations to 'increase the government percent' into 2025 as government opportunities mature. Near-term profitability and cash flow: Maydan Rothblum highlights positive Q2 2025 EBITDA and cash flow, describing Q2 as the first positive EBITDA quarter since going public and pointing to a clean balance sheet with no debt. Forging a path to FY2025 stability: Maydan outlines guidance for Q3 revenue of $1.5M–$2.0M with negative adjusted EBITDA offset by a strong Q4 where revenue could be $3.3M–$4.0M with positive adjusted EBITDA, and an FY2025 revenue target of >$11M with breakeven adjusted EBITDA. DoD/commercial pipeline and execution risk: Lyron discusses Brightline Interactive’s DoD contract progress and ongoing efforts to commercialize Foretell Reality AI-driven training, noting continued uncertainty around government funding timing but potential upside as the new administration and budget decisions unfold. Capital and liquidity actions: Lyron highlights the December 2024 NASDAQ compliance regain and the December 2024 equity financing that strengthened liquidity, with the company maintaining a clean capital structure and the potential for divestitures or acquisitions if value-accretive. Customer and market dynamics: Jack Rubinstein’s questions emphasize the expanding use of immersive simulations and AI to drive defense and commercial applications, which Lyron confirms as a major growth vector across military/defense, health care, education, and commercial settings.
"This is the first time we've achieved positive EBITDA in our history as a public company and is a direct result of our strategic and operational restructuring over the past several quarters."
— Lyron Bentovim
"For Q3 FY2025, we expect a decline in revenue to a range of $1.5 million to $2 million with a negative adjusted EBITDA to be more than offset by a very strong Q4 FY25 with significant revenue growth, positive adjusted EBITDA, and profitability."
— Lyron Bentovim
Forward Guidance
Near-term: Q3 FY2025 revenue expected in the range of $1.5M–$2.0M with negative adjusted EBITDA, offset by a strong Q4 FY2025 with revenue in the $3.3M–$4.0M range and positive adjusted EBITDA. Full-year FY2025: total revenue anticipated to exceed $11.0M, with breakeven adjusted EBITDA versus a prior year’s loss, implying meaningful operating leverage as contract timing and project recognitions favor H2. OpEx discipline: current cash operating expense base believed to be under $0.9M per month, with cash flow generation expected in each remaining quarter of FY2025 as revenue visibility improves. Balance sheet and liquidity: approximately $8.5M in cash as of 12/31/2024, plus ~$1.4M in accounts receivable; no debt and a clean capital structure. Key risks to monitoring: government budget appropriations and continuing resolutions (risk of delayed DoD awards), execution risk on larger DoD/commercial contracts, and the mix shift between government and commercial revenue that could pressure near-term margins before scale is achieved. Overall assessment: The QQ2 2025 results validate a strategic pivot toward AI-enabled immersive platforms and DoD/commercial pipelines; the company is positioned for improved profitability in FY2025, contingent on timely government spending and continued commercial adoption of its AI-driven immersive offerings. Investors should monitor government budgeting timelines, contract win rates, and the pace of AI-enabled product adoption across portfolio verticals.