Glimpse Group, Inc. Q4 FY2025 earnings call

• Fiscal year 2025 was remarkable with return to revenue growth, annual cash flow neutrality, Tier 1 customer wins, divestiture of non-core assets, and 7 new patents focused on AI and immersive tech integration.
• Brightline Interactive achieved critical milestones including DOW contracts, delivery of simulators to Navy, CRADA with Army, and a robust pipeline.
• Other entities had milestones like NIH grant, Montefiore partnership, and enterprise service agreement.
• Plan to spin out Brightline to unlock shareholder value, with Board approval and expected process in coming months.

Fiscal year 2025 revenue was approximately $10.5 million, an increase of approximately 20% compared to fiscal year 2024 revenue of approximately $8.8 million. Q4 fiscal year 2025 revenue was approximately $3.5 million, an approximate 105% increase compared to Q4 fiscal year 2024 revenue of approximately $1.7 million and an approximate 150% increase compared to Q3 fiscal year 2025 revenue of approximately $1.4 million. Gross margin for fiscal year 2025 was approximately 67.5% on par with 67% for fiscal year 2024. The company was essentially cash breakeven for the fiscal year, with a net operating cash loss of approximately negative $0.27 million compared to negative $5.2 million in 2024. Cash and equivalents as of June 30, 2025, were approximately $6.85 million with an additional $0.85 million in accounts receivable. Brightline Interactive was a key driver, with significant contracts and milestones in defense and enterprise segments.

• Fiscal year 2026 revenue expected to exceed 2025 revenue.
• Q1 2026 revenue expected to be significantly lower than Q4 2025, then sequential growth.
• Spin-off of Brightline expected to happen early in 2026 if everything goes according to plan.

• Forward-looking statements subject to risks and uncertainties.
• DOW contracting is slow and complex.
• Potential challenges with execution of spin-off plan.

Q: As we look at markets, do BLI's opportunities primarily lie in defense and defense-related industries or overlap with other opportunities in education and health care?

A: Brightline's main focus is defense, but it's exploring enterprise opportunities; education and health care are focuses of other Glimpse entities.

Q: When can we expect the spin-out of BLI to be consummated?

A: Expect to initiate the process in coming weeks, with process taking several months and something to happen early in 2026 if successful.

Q: Regarding health care, can services and AI go to major companies to sell to their customers?

A: Planning to find partners in industries to integrate AIA solutions, allowing them to offer on the platform.

Q: Do you plan to get into training employees for private enterprises?

A: Subsidiaries not directly focused on corporate training, but AIA solution allows soft skill training for employees.

Q: Is the proposed spinout of BLI considering overhead costs of being a small public company?

A: Taken into consideration, but value created for Glimpse shareholders and Brightline's access to capital make it valuable.

Q: When can we expect the spin-off? Do you see joint ventures with larger companies for Brightline services?

A: Expect spin-off early in 2026 if everything goes according to plan; constantly looking at partnerships with leading technology companies.