Free cash flow remains consistently negative, highlighted by a $20.5 million outflow in 2026Q2, indicating that the current business model struggles to achieve self-sustaining operations.
| Cash from Operations | -23.18M | -273.77K | -5.21M | -9.16M | -4.94M | -1.21M | -2.02M | -2.14M |
| Operating CF Margin % | - | -2.6% | -59.17% | -67.96% | -67.98% | -35.35% | -104.06% | -217.52% |
| Operating CF Growth % | -13263.09% | 94.75% | 43.14% | -85.44% | -308.47% | 40.24% | 5.35% | - |
| Net Income | -15M | -2.55M | -6.39M | -28.56M | -5.97M | -6.09M | -4.99M | -5.58M |
| Depreciation & Amortization | 1.02M | 508.13K | 1.36M | 2.19M | 540.2K | 27.05K | 20.22K | 21.98K |
| Stock-Based Compensation | 5.47M | 984.14K | 2.18M | 4.97M | 2.89M | 2.95M | 2.55M | 2.91M |
| Deferred Taxes | 0 | 0 | 0 | 15.35M | 0 | -548.88K | 139.75K | 0 |
| Other Non-Cash Items | 5.69M | 133.86K | -1.89M | -699.81K | -2.02M | 943.5K | 314.02K | 484.04K |
| Working Capital Changes | 1.02M | 652.74K | -460.81K | -2.42M | -390.08K | 1.51M | -55.44K | 21.74K |
| Change in Receivables | 2.68M | -117.52K | 730.74K | 132.19K | -295.08K | -411.57K | -86.81K | -16.56K |
| Change in Inventory | 0 | 0 | 0 | -152.63K | 0 | 1.76M | -124.42K | -196.25K |
| Change in Payables | -1.19M | 46.7K | -274.11K | -419.72K | -132.03K | 260K | 79.18K | -43.01K |
| Cash from Investing | -14.97M | -1.54M | -1.53M | -3.53M | -5.06M | -28K | -32.66K | -17.8K |
| Capital Expenditures | -172.09K | -42.51K | -31.55K | -146.33K | -202K | -28K | -32.66K | -17.8K |
| CapEx % of Revenue | 2.51% | 0.4% | 0.36% | 1.09% | 2.78% | 0.82% | 1.68% | 1.81% |
| Acquisitions | 0 | -1.5M | -1.5M | -3.63M | -4.62M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -14.8M | 0 | 0 | 239.31K | 0 | 0 | 0 | 0 |
| Cash from Financing | 561.57K | 6.8M | 2.97M | 66.11K | 26.48M | 1.97M | 1.89M | 2.04M |
| Debt Issued (Net) | -77K | -160.6K | 0 | 0 | -250K | 2.1M | 1.88M | 0 |
| Equity Issued (Net) | -6.79M | 6.96M | 2.97M | 0 | 26.73M | 346.01K | 7K | 2.01M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 7.42M | 0 | 0 | 66.11K | 0 | -470.14K | 0 | 25K |
| Net Change in Cash | -37.59M | 4.98M | -3.77M | -12.63M | 14.48M | 737.08K | -168.55K | -121.07K |
| Free Cash Flow | -23.35M | -316.28K | -5.24M | -9.31M | -5.14M | -1.24M | -2.06M | -2.16M |
| FCF Margin % | -340.65% | -3% | -59.53% | -69.04% | -70.76% | -36.17% | -105.74% | -219.33% |
| FCF Growth % | -2009.68% | 93.97% | 43.69% | -81% | -315.54% | 39.83% | 4.61% | - |
| FCF per Share | -1.11 | -0.02 | -0.31 | -0.67 | -0.44 | -0.12 | -0.20 | -0.31 |
| FCF Conversion (FCF/Net Income) | 1.56x | 0.11x | 0.81x | 0.32x | 0.83x | 0.20x | 0.41x | 0.38x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent operating cash burn
As reported in financial statements, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio reaching an extreme 16.56 in 2026Q2, suggesting that accounting accruals and non-cash adjustments frequently decouple the company's reported losses from its actual cash position.
The wide variance in the OCF/NI ratio indicates that net income is a poor proxy for the company's underlying cash generation capabilities. Investors should monitor whether this divergence stems from lumpy milestone-based revenue recognition or significant shifts in working capital that mask the true economic cost of operations.
Based on the company's historical filings, free cash flow has remained consistently negative across most periods, with a notable $20.5M outflow in 2026Q2, highlighting the difficulty of achieving self-sustaining operations within the current subsidiary-heavy business model despite occasional minor positive cash flow quarters.
The inability to maintain positive free cash flow suggests that the company's growth initiatives are currently funded by external capital rather than internal operations. This trajectory warrants further investigation into whether the firm can reach a break-even point before its cash reserves are depleted by ongoing operating losses.
According to recent SEC filings, working capital changes have been highly inconsistent, swinging from a $1.4M inflow in 2026Q2 to a $343.6K outflow in 2026Q1, which indicates that the company struggles to manage its cash conversion cycle effectively across its diverse portfolio of XR subsidiaries.
This volatility in working capital suggests that the timing of client payments and project-related expenses is not yet synchronized, leading to unpredictable cash flow impacts. Such fluctuations may indicate that the company is vulnerable to liquidity crunches if project milestones are delayed or if receivables collection cycles lengthen.
Financial disclosures reveal that stock-based compensation, such as the $5.7M reported in 2026Q2, is frequently utilized to manage the cost structure, which effectively obscures the true cash cost of talent acquisition and retention in a highly competitive XR development market.
By relying on equity-based incentives, the company appears to be preserving cash at the expense of shareholder dilution. Analysts should consider whether this reliance on non-cash compensation is a sustainable strategy for long-term growth or if it merely delays the recognition of true operational expenses.
Quick answers to the most common questions about buying VRAR stock.
The Glimpse Group, Inc. (VRAR) generated $-0.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Glimpse Group, Inc. (VRAR) reported negative free cash flow of $0.3M in 2025, indicating capital requirements exceeded cash from operations.
The Glimpse Group, Inc. (VRAR) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.