Revenue: As of FY2026 Q2, the actual value is USD 1.3 M, missing the estimate of USD 2 M.EPS: As of FY2026 Q2, the actual value is USD -0.06.EBIT: As of FY2026 Q2, the actual value is USD -1.298 M.The Glimpse Group, Inc. reported financial and operational metrics for the three and six months ended December 31, 2025 and 2024, focusing on its immersive technology software development and commercialization segment.<h4>Revenue</h4><ul><li>Total Revenue:<ul><li>For the three months ended December 31, 2025, total revenue was $1.30 million, a decrease of -59% (or -$1.87 million) compared to $3.17 million in 2024.</li><li>For the six months ended December 31, 2025, total revenue was $2.70 million, a decrease of -52% (or -$2.91 million) compared to $5.61 million in 2024.</li><li>This decrease was primarily due to the timing of Department of War (DoW) contracts, U.S. Government budget delays, the run-off of certain legacy customers reflecting a Strategic Shift, and a decline in some existing customer accounts.</li></ul></li><li>Software Services Revenue:<ul><li>For the three months ended December 31, 2025, Software Services revenue was $1.18 million, a -62% decrease (or -$1.95 million) from $3.13 million in 2024.</li><li>For the six months ended December 31, 2025, Software Services revenue was $2.42 million, a -55% decrease (or -$2.94 million) from $5.36 million in 2024.</li></ul></li><li>Software License/Software as a Service Revenue:<ul><li>For the three months ended December 31, 2025, Software License revenue increased by 150% (or $0.06 million) to $0.10 million from $0.04 million in 2024.</li><li>For the six months ended December 31, 2025, Software License revenue remained flat at $0.25 million compared to 2024.</li></ul></li><li>Royalty Income:<ul><li>Royalty income was $0.02 million for the three months and $0.03 million for the six months ended December 31, 2025, representing a new revenue stream from prior subsidiary divestitures, with zero for the prior year period.</li></ul></li></ul><h4>Gross Profit</h4><ul><li>For the three months ended December 31, 2025, gross profit was $0.79 million, a -61% decrease (or -$1.24 million) from $2.03 million in 2024.</li><li>For the six months ended December 31, 2025, gross profit was $1.80 million, a -54% decrease (or -$2.15 million) from $3.95 million in 2024.</li><li>Gross Profit Margin:<ul><li>Gross profit margin was 61% for the three months ended December 31, 2025, down from 64% in 2024.</li><li>For the six months ended December 31, 2025, it was 67%, down from 70% in 2024, primarily due to changes in the cost structure of DoW projects.</li></ul></li></ul><h4>Operating Expenses</h4><ul><li>Total Operating Expenses:<ul><li>For the three months ended December 31, 2025, total operating expenses increased by 1% (or $0.03 million) to $2.05 million from $2.02 million in 2024.</li><li>For the six months ended December 31, 2025, total operating expenses decreased by -11% (or -$0.57 million) to $4.40 million from $4.97 million in 2024.</li></ul></li><li>Research and Development Expenses:<ul><li>Increased by 36% to $0.90 million for the three months ended December 31, 2025, from $0.66 million in 2024.</li><li>Increased by 5% to $1.87 million for the six months ended December 31, 2025, from $1.78 million in 2024.</li></ul></li><li>General and Administrative Expenses:<ul><li>Remained flat at $0.84 million for the three months ended December 31, 2025, compared to $0.85 million in 2024.</li><li>Increased by 2% to $1.82 million for the six months ended December 31, 2025, from $1.78 million in 2024.</li></ul></li><li>Sales and Marketing Expenses:<ul><li>Decreased by -20% to $0.30 million for the three months ended December 31, 2025, from $0.38 million in 2024.</li><li>Decreased by -44% to $0.63 million for the six months ended December 31, 2025, from $1.12 million in 2024.</li></ul></li><li>Amortization of Acquisition Intangible Assets:<ul><li>Decreased by -90% to $0.01 million for the three months ended December 31, 2025, from $0.10 million in 2024.</li><li>Decreased by -74% to $0.06 million for the six months ended December 31, 2025, from $0.23 million in 2024.</li></ul></li><li>Change in Fair Value of Acquisition Contingent Consideration:<ul><li>Was zero for the three months ended December 31, 2025, compared to $0.03 million in 2024.</li><li>Was $0.02 million for the six months ended December 31, 2025, compared to $0.06 million in 2024.</li></ul></li></ul><h4>Net Loss</h4><ul><li>For the three months ended December 31, 2025, net loss was -$1.23 million, compared to net income of $0.02 million in 2024.</li><li>For the six months ended December 31, 2025, net loss was -$2.26 million, compared to a net loss of -$0.98 million in 2024.</li></ul><h4>Adjusted EBITDA (Non-GAAP)</h4><ul><li>Adjusted EBITDA loss was -$0.89 million for the three months ended December 31, 2025, compared to an income of $0.28 million in 2024.</li><li>Adjusted EBITDA loss was -$1.83 million for the six months ended December 31, 2025, compared to a loss of -$0.17 million in 2024.</li></ul><h4>Cash Flow</h4><ul><li>Net cash used in operating activities:<ul><li>For the six months ended December 31, 2025, net cash used in operating activities was -$2.03 million, compared to -$0.25 million in 2024.</li></ul></li><li>Net cash used in investing activities:<ul><li>For the six months ended December 31, 2025, net cash used in investing activities was -$1.52 million, compared to -$0.03 million in 2024, primarily due to a $1.50 million contingent consideration payment related to the BLI acquisition.</li></ul></li><li>Net cash provided by financing activities:<ul><li>For the six months ended December 31, 2025, net cash provided by financing activities was $0.06 million, a decrease from $6.87 million in 2024, which included proceeds from securities purchase agreements.</li></ul></li></ul><h4>Capital Resources</h4><ul><li>As of December 31, 2025, The Glimpse Group, Inc. had cash and cash equivalents of $3.34 million and $0.56 million in accounts receivable.</li><li>The company had no outstanding debt obligations or preferred stock as of December 31, 2025.</li></ul><h4>Future Outlook and Strategy</h4><ul><li>The Glimpse Group, Inc. continued its Strategic Shift in fiscal year 2024, focusing on immersive technology solutions primarily driven by Spatial Computing, Cloud, and Artificial Intelligence (AI), including its product “Spatial Core” led by Brightline Interactive, Inc. (BLI).</li><li>The company’s board approved the exploration of a potential spin-off of its BLI subsidiary as a separate public company in September 2025, and is also exploring other divestiture alternatives for BLI, though the success of these initiatives is uncertain.</li><li>The At-The-Market Sales Agreement was amended to increase the maximum amount of common stock that can be offered and sold to $9,478,200, although no shares have been sold under this facility as of the filing date.</li></ul>

Glimpse | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 1.3 M