Berliner Tageblatt - The Glimpse Group Reports Q2 Fiscal Year 2025 Financial Results - 50% Increase in Revenue and Positive EBITDA, Positive Cash Flow & Positive Net Income

Business Commentary by President & CEO Lyron Bentovim

Financial Summary:

• Q2 FY '25 revenue of approximately $3.17 million, reflecting: a) 52% increase compared to Q2 FY '24 (ending December 31, 2023) revenue of approximately $2.08 million, and b) 30% increase compared to Q1 FY '25 (ending September 30, 2024) revenue of approximately $2.44 million. The increase in both comparative periods was primarily driven by an increase in Spatial Core revenues, as well as growth in our other businesses.

• Gross Margin for Q2 FY '25 was approximately 64% compared to 68% for Q2 FY '24. The decrease was driven by revenue mix which tends to oscillate a bit between quarters. On average, we expect our going forward Gross Margin to continue to be in the 60-70% range.

• Q2 FY '25 positive adjusted EBITDA of approximately $0.28 million, compared to an adjusted EBITDA loss of approximately -$1.33 million for Q2 FY '24. Net Operating Cash provided from Operations for Q2 FY '25 was approximately $0.17 million, compared to a Net Operating Cash loss of approximately -$1.68 million for Q2 FY '24. Importantly, this is the first profitable EBITDA quarter in the Company's history as a publicly traded company, reflecting our significant restructuring efforts over the past few quarters combined with revenue growth.

• Driven by the timing of existing contracts revenue recognition, for Q3 FY '25 we expect a decline in revenue ($1.5-2 million) and negative adjusted EBITDA, to be more than offset by a strong Q4 FY '25 ($3.3-4.0 million revenue) and positive adjusted EBITDA. For FY '25 (ending June 30, 2025), we expect aggregate revenue to exceed $11 million, compared to $8.8 million for FY '24 (ended June 30, 2024), a 25%+ increase in annual revenue and breakeven adjusted EBITDA for the fiscal year vs. a significant adjusted EBITDA loss in the prior fiscal year.

• The Company's cash and equivalent position as of December 31, 2024 was approximately $8.5 million, with an additional $1.4 million in accounts receivable. The increase in our cash position was primarily a result of our December 2024 registered direct equity financing, in which we raised $7.3 million in gross cash proceeds from one investor in a clean structure. We continue to maintain a clean capital structure with no debt, no convertible debt and no preferred equity.

• On December 24, 2024, we received written notice from the Nasdaq informing the Company that it had regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum bid price of $1.00 per share. This closes the matter that originated on September 3, 2024.

• For the full detail of our financial results, please refer to our 8K and 10Q filed on 2/13/25.

Recent Business Updates:

• During the quarter, Brightline Interactive ("BLI") delivered a significant milestone on its $4 million+ Department of Defense ("DoD") contract.

• BLI entered into an initial contract with the US Navy for an Immersive, AI-Driven Simulator System, to be delivered in the coming months, setting the ground for potential follow-on contracts.

• BLI delivered a scalable immersive simulation to a global government service integrator, positioning itself as a leading middleware for processing and visualizing complex information in 3D space, and setting what we believe has the potential to become a new industry standard.

• The Continuing Resolution and the lack of a Federal budget for 2025 has delayed the potential awarding of multiple Government and DoD opportunities. We hope this will be resolved promptly in March 2025 when the current Continuing Resolution expires and with a new administration and Congress now in place.

• Led by Foretell Reality, we continue to make strong progress on commercializing our AI driven immersive training product and have experienced encouraging initial traction with our customers and partners.

Q2 Fiscal Year 2025 Conference Call and Webcast
Date: Thursday, February 13, 2025
Time: 9:00 a.m. Eastern time
USA Dial In: 888-506-0062
International: +1-973-528-0011
Participant Access Code: 831836
Webcast: https://www.webcaster4.com/Webcast/Page/2934/52015

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

A playback of the webcast will be available through Friday, February 13, 2026. A replay of the teleconference will be available through February 27, 2025. To listen, please call USA: 877-481-4010 or International: +1-919-882-2331; Replay Passcode: 52015. A webcast will also be available on the IR section of The Glimpse Group website (ir.theglimpsegroup.com) or by clicking the webcast link above.

Note about Non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.

In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest, taxes, depreciation, amortization and stock-based compensation expenses. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company's internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.

About The Glimpse Group, Inc.

The Glimpse Group (NASDAQ: VRAR) is a diversified Immersive technology platform company, providing enterprise-focused Virtual Reality, Augmented Reality and Spatial Computing software & services. Glimpse's unique business model builds scale and a robust ecosystem, while simultaneously providing investors an opportunity to invest directly into this emerging industry via a diversified platform. For more information on The Glimpse Group, please visit www.theglimpsegroup.com

Safe Harbor Statement

This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This press release may contain certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements, if provided, are based on information available to the Company as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business. Forward-looking statements, if provided, include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "view," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. All forecasts, if provided, are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, any forecasts, if provided, are entirely on management's best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

Company Contact:

Maydan Rothblum
CFO & COO
The Glimpse Group, Inc.
(917) 292-2685
[email protected]

THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

The following table presents a reconciliation of net loss to Adjusted EBITDA for the three and six months ended December 31, 2024 and 2023:

SOURCE: The Glimpse Group, Inc.

View the original press release on ACCESS Newswire

R.Adler--BTB