Revenue growth remains highly volatile, with a 53.8% year-over-year contraction in 2026Q3, despite the company maintaining a robust 88.8% gross margin.
| Sales/Revenue | 6.85M | 10.53M | 8.8M | 13.48M | 7.27M | 3.42M | 1.95M | 983.18K |
| Revenue Growth % | -21.73% | 19.58% | -34.7% | 85.51% | 112.41% | 75.88% | 97.86% | - |
| Cost of Goods Sold | 2.32M | 3.41M | 2.94M | 4.27M | 1.24M | 1.46M | 1.14M | 424.97K |
| COGS % of Revenue | - | 32.37% | 33.41% | 31.64% | 17.08% | 42.71% | 58.46% | 43.22% |
| Gross Profit | 4.53M | 7.12M | 5.86M | 9.22M | 6.03M | 1.96M | 808.12K | 558.22K |
| Gross Margin % | 66.14% | 67.63% | 66.59% | 68.36% | 82.92% | 57.29% | 41.54% | 56.78% |
| Gross Profit Growth % | - | 21.44% | -36.39% | 52.93% | 207.43% | 142.57% | 44.77% | - |
| Operating Expenses | 19.97M | 9.86M | 12.48M | 38.02M | 12.37M | 7.91M | 5.73M | 6.14M |
| OpEx % of Revenue | - | 93.68% | 141.74% | 282.01% | 170.19% | 231.21% | 294.48% | 624.65% |
| Selling, General & Admin | 4.63M | 5.84M | 7.11M | 12.53M | 7.59M | 3.48M | 3.3M | 3.58M |
| SG&A % of Revenue | - | 55.45% | 80.78% | 92.92% | 104.46% | 101.65% | 169.53% | 363.74% |
| Research & Development | 4.28M | 3.49M | 5.46M | 8.79M | 6.16M | 3.18M | 2.43M | 2.57M |
| R&D % of Revenue | - | 33.19% | 61.97% | 65.23% | 84.74% | 93.03% | 124.95% | 260.92% |
| Other Operating Expenses | 1.19M | 529.56K | -88.48K | 16.7M | -1.38M | 1.25M | 0 | 0 |
| Operating Income | -15.44M | -2.74M | -6.62M | -28.81M | -6.34M | -5.95M | -4.92M | -5.58M |
| Operating Margin % | -225.21% | -26.05% | -75.15% | -213.65% | -87.27% | -173.92% | -252.94% | -567.88% |
| Operating Income Growth % | - | 58.55% | 77.03% | -354.16% | -6.59% | -20.94% | 11.87% | - |
| EBITDA | -15.21M | -2.23M | -5.25M | -26.61M | -5.8M | -5.92M | -4.9M | -5.56M |
| EBITDA Margin % | -221.96% | -21.22% | -59.68% | -197.39% | -79.84% | -173.13% | -251.9% | -565.64% |
| EBITDA Growth % | -159.97% | 57.48% | 80.26% | -358.65% | 2.05% | -20.88% | 11.89% | - |
| D&A (Non-Cash Add-back) | 200.87K | 508.13K | 1.36M | 2.19M | 540.2K | 27.05K | 20.22K | 21.98K |
| EBIT | -15.38M | -2.64M | -7.95M | -14.15M | -8.2M | -5.91M | -4.91M | -5.58M |
| Net Interest Income | 192.25K | 189.68K | 221.76K | 242.4K | 32.23K | -174.44K | -72.87K | 6.89K |
| Interest Income | 192.25K | 189.68K | 221.76K | 242.4K | 32.23K | 6.2K | 8.58K | 6.89K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 180.64K | 81.45K | 0 |
| Other Income/Expense | 432.25K | 189.68K | 221.76K | 242.4K | 376.32K | -141.02K | -72.87K | 6.89K |
| Pretax Income | -15M | -2.55M | -6.39M | -28.56M | -5.97M | -6.09M | -4.99M | -5.58M |
| Pretax Margin % | -218.91% | -24.25% | -72.63% | -211.86% | -82.09% | -178.04% | -256.69% | -567.18% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.89K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.12% |
| Net Income | -15M | -2.55M | -6.39M | -28.56M | -5.97M | -6.09M | -4.99M | -5.57M |
| Net Margin % | -218.91% | -24.25% | -72.63% | -211.86% | -82.09% | -178.04% | -256.69% | -566.48% |
| Net Income Growth % | -131.38% | 60.08% | 77.61% | -378.74% | 2.06% | -22% | 10.34% | - |
| Net Income (Continuing) | -15M | -2.55M | -6.39M | -28.56M | -5.97M | -6.09M | -4.99M | -5.58M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.71 | -0.13 | -0.38 | -2.05 | -0.32 | -0.61 | -0.49 | -0.81 |
| EPS Growth % | -92.25% | 65.79% | 81.46% | -540.63% | 47.54% | -24.49% | 39.51% | - |
| EPS (Basic) | - | -0.13 | -0.38 | -2.05 | -0.32 | -0.61 | -0.49 | -0.54 |
| Diluted Shares Outstanding | 21.08M | 19.63M | 16.68M | 13.93M | 11.73M | 10.29M | 10.29M | 6.86M |
| Basic Shares Outstanding | 21.08M | 19.63M | 16.68M | 13.93M | 11.73M | 10.29M | 10.29M | 6.86M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent operating cash burn
As indicated by the most recent quarterly data, VRAR experienced a significant 53.8% year-over-year revenue decline in 2026Q3, highlighting the inherent volatility of its project-based business model and the difficulty in maintaining consistent growth across its diverse subsidiary portfolio in the current enterprise spending environment.
The sharp revenue drop suggests that the company's reliance on bespoke XR implementations may be susceptible to lumpy contract cycles and shifting enterprise priorities. Investors should monitor whether this contraction represents a structural pivot away from lower-margin service work or a broader inability to sustain demand for its specialized XR solutions.
According to the reported financial statements, VRAR maintained a robust 88.8% gross margin in 2026Q3, demonstrating that despite top-line instability, the company retains significant pricing power or cost efficiency in the delivery of its core 3D content and software services relative to its direct industry peers.
This high gross margin profile suggests that the underlying intellectual property or specialized labor utilized in its XR projects commands a premium in the marketplace. However, the wide variance in quarterly gross margins warrants further investigation into whether these fluctuations are driven by changes in project mix or inconsistent cost accounting across subsidiaries.
Based on the income statement analysis, VRAR's operating leverage remains severely constrained, as evidenced by the 2026Q3 operating margin of -19.3%, which reflects a failure to scale revenue sufficiently to cover the fixed costs associated with its extensive subsidiary-based organizational structure and ongoing R&D investments.
The persistent gap between gross profit and operating income indicates that corporate overhead and R&D spending are currently outpacing the company's ability to generate organic growth. This suggests that the 'hub-and-spoke' model may be creating redundant administrative costs that prevent the firm from achieving meaningful operating scale.
Financial disclosures reveal that stock-based compensation remains a recurring feature of the cost structure, with $138.7K reported in 2026Q3, which complicates the assessment of true economic profitability and suggests that management is relying on equity-based incentives to preserve cash in a period of negative net income.
The reliance on non-cash compensation, while preserving liquidity, may mask the true cost of talent acquisition and retention in the competitive XR development space. Investors should be wary of the potential for future shareholder dilution if the company continues to utilize equity to bridge the gap between operating losses and cash requirements.
While the company's diversified subsidiary approach is intended to capture value across multiple XR verticals, the consistent operating losses and recent revenue contraction suggest that the model may be fundamentally inefficient, potentially leading to long-term value destruction if the firm cannot achieve a path to profitability.
Short-sellers would likely focus on the lack of a clear inflection point toward positive operating cash flow and the potential for continued capital raises to fund operations. The absence of a unified, scalable software platform suggests that the company may remain a collection of disparate service units rather than a cohesive, high-margin technology enterprise.
Quick answers to the most common questions about buying VRAR stock.
For fiscal year 2025, The Glimpse Group, Inc. (VRAR) reported total revenue of $10.5M. This represents a 970.8% increase compared to $1.0M in 2019.
The Glimpse Group, Inc. (VRAR) reported a net loss of $2.6M for the fiscal year ending 2025.
The Glimpse Group, Inc. (VRAR) reported an operating income of $-2.7M, resulting in an operating profit margin of -26.0%. This margin reflects the operational efficiency of the business before interest and taxes.
The Glimpse Group, Inc. (VRAR) generated $7.1M in gross profit for the year, representing a gross profit margin of 67.6%. This demonstrates the company's core pricing power and production efficiency.