The Glimpse Group Reports Q2 Fiscal Year 2026 Financial Results

Formally Initiated A Strategic Realignment Process To Accelerate Value Creation

NEW YORK, NY / ACCESS Newswire / February 17, 2026 / The Glimpse Group, Inc. ("Glimpse") (NASDAQ:VRAR), a diversified Immersive Technology platform company providing enterprise-focused Immersive Technology, Spatial Computing and Artificial Intelligence ("AI") driven software and services, announced financial results for its second quarter fiscal year 2026, ended December 31, 2025 ("Q2 FY '26").

Business Commentary by President & CEO Lyron Bentovim

Strategic Update:

As discussed previously, Glimpse's Board of Directors has approved a formal process of exploring and pursuing various strategic alternatives, all aimed at unlocking and maximizing Glimpse shareholder value in calendar year 2026. These primarily revolve around three focus areas:

Spin off IPO/Divestiture of Brightline Interactive ("BLI")

Optimization of our Immersive businesses

Leveraging our platform, assets and know-how to create sustained shareholder value outside of the Immersive segment

Brightline Interactive ("BLI") Spinout/IPO:

We are actively in the process of potentially IPOing BLI as its own independent, Nasdaq listed company - a PURE PLAY, standalone, well capitalized provider of Physical AI, Spatial Computing, Cloud-based, Operational Simulation Middleware to the Department of War ("DoW") and Big Data enterprises.

In early January 2026, we filed a BLI confidential S1 registration statement with the SEC and are currently in process.

Our goal is to complete the potential BLI IPO in the first half of CY '26 and we believe that we are on track to achieve that. However, there is no guarantee that the IPO will materialize as it is subject to finalizing the SEC and Nasdaq review and approval processes, market conditions and investor interest.

In parallel to the BLI IPO path, we are also actively exploring alternative paths to capitalize BLI and put it in a position to maximize its potential.

Immersive Technologies:

The Immersive tech industry at large is facing significant headwinds. While our Immersive companies are doing well and are operating at cash breakeven levels, it is unclear if, and when, significant scale will be achieved. It remains a long term play.

While we continue to focus on the Immersive growth opportunities, specifically in the Education/Healthcare/Corporate segments, we don't believe that there is sufficient growth potential in the short-to-medium turn to drive significant shareholder value.

Glimpse Platform Leverage:

We believe that there are considerable opportunities to leverage Glimpse's public company infrastructure to create value-add, platform, opportunities outside and unrelated to the Immersive tech industry.

We have begun the process of actively exploring and analyzing these opportunities, with the intent of executing on our plans in the coming year.

As part of our strategic realignment and focus on a wider platform play, we are in the process of changing our ticker to "GGRP" (replacing VRAR). We expect the new ticker to go into effect towards the end of February 2026.

Financial Summary:

Q2 FY '26 revenue of approximately $1.30 million, reflecting a 59% decrease compared to Q2 FY '25 (ending December 31, 2024) revenue of approximately $3.17 million; and down by approximately 7% compared to Q1, FY '26 revenues of approximately $1.40 million. The decrease reflects timing of DoW contracts and U.S. Government budget delays, and the divestiture of non-core entities.

Gross Margin for Q2 FY '26 was approximately 61%, compared to approximately 64% for Q2 FY ‘25. We expect our Gross Margins to remain in the 60-70% range.

Adjusted EBITDA loss for Q1 FY '26 was -$0.89 million compared to $0.28 million gain for Q2 FY '25, reflecting the decline in revenue this quarter.

The Company's cash and equivalent position as of December 31, 2025 was approximately $3.34 million, with an additional $0.56 million in accounts receivable.

We continue to maintain a clean capital structure with no debt, no convertible debt, no preferred equity and no contingent liabilities. The Company has not drawn down any funds on its ATM.

For the full details of our financial results, please refer to our 10Q filed on 2/17/26.

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 Immersive Technology, Spatial Computing and AI driven 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 is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the "Securities Act"), and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act and other applicable securities laws. 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

(Unaudited)

(Audited)

3,342,713

6,832,725

561,888

840,551

561,563

48,971

105,000

160,600

334,492

289,810

4,905,656

8,172,657

48,605

54,898

196,510

122,094

60,717

10,857,600

11,100

16,019,471

19,279,066

86,575

228,371

238,583

446,896

242,977

52,576

151,602

127,046

1,483,583

719,737

2,338,472

48,967

4,704

768,704

2,343,176

21,077

21,056

83,080,512

82,506,758

(67,850,822

)

(65,591,924

)

15,250,767

16,935,890

16,019,471

19,279,066

THE GLIMPSE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

2025

2024

2025

2024

For the Three Months Ended

For the Six Months Ended

December 31,

2025

2024

2025

2024

1,175,269

3,129,108

2,423,202

5,358,365

103,947

39,826

251,731

248,938

20,481

23,417

1,299,697

3,168,934

2,698,350

5,607,303

510,231

1,144,007

901,112

1,659,310

789,466

2,024,927

1,797,238

3,947,993

894,387

659,699

1,867,787

1,780,222

843,821

845,381

1,823,055

1,782,660

303,946

384,223

628,035

1,123,098

9,069

100,536

60,717

226,077

28,161

16,417

61,480

2,051,223

2,018,000

4,396,011

4,973,537

(1,261,757

)

6,927

(2,598,773

)

(1,025,544

)

240,000

36,168

18,945

99,875

37,224

(1,225,589

)

25,872

(2,258,898

)

(988,320

)

(0.06

)

0.00

(0.11

)

(0.05

)

(0.06

)

0.00

(0.11

)

(0.05

)

21,075,935

18,361,274

21,070,457

18,262,745

21,075,935

24,521,976

21,070,457

18,262,745

THE GLIMPSE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Six Months Ended

December 31,

2025

2024

(2,258,898

)

(988,320

)

83,199

272,615

573,775

407,231

(1,397,066

)

1,500,000

(34,660

)

16,417

61,480

(5,597

)

(41,787

)

278,663

(668,847

)

(512,592

)

(52,003

)

(40,900

)

(44,682

)

99,757

5,349

(141,796

)

114,108

(208,313

)

295,521

190,401

214,369

(2,029,423

)

(253,153

)

(16,189

)

(26,406

)

(1,500,000

)

(1,516,189

)

(26,406

)

55,600

(84,000

)

6,785,552

175,000

55,600

6,876,552

(3,490,012

)

6,596,993

6,832,725

1,848,295

3,342,713

8,445,288

The following table presents a reconciliation of Net income (loss) to Adjusted EBITDA income (loss) for the three and six months ended December 31, 2025 and 2024:

For the Three Months Ended

For the Six Months Ended

December 31,

2025

2024

2025

2024

(in millions)

Net income (loss)

(1.23

)

0.02

(2.26

)

(0.98

)

Depreciation and amortization

0.02

0.12

0.08

0.27

EBITDA income (loss)

(1.21

)

0.14

(2.18

)

(0.71

)

Stock based compensation expenses

0.32

0.04

0.57

0.41

(Gain) loss on sale of business/subsidiary/lease termination

0.07

(0.24

)

0.07

Non cash change in fair value of acquisition contingent consideration

0.03

0.02

0.06

Adjusted EBITDA income (loss)

(0.89

)

0.28

(1.83

)

(0.17

)

SOURCE: The Glimpse Group, Inc.