xReality Group Limited

XRG.AX

Media & Entertainment · Consumer Cyclical

Price

A$0.06

-0.01 (-10.29%)

Market Cap

A$45.9M

Exchange

Australian Securities Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+66.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 349.3M (2021) → 581.3M (2025)

xReality Group Limited is a small Australian technology and media company that creates augmented reality (AR) and virtual reality (VR) experiences. It builds interactive digital content for brands, sports organizations, and entertainment clients who want to engage audiences in new ways. The company operates in the fast-growing immersive media space, where physical and digital worlds are blended together.

xReality earns revenue by selling custom AR and VR projects and licensing its technology platform to clients, which helps explain its relatively high gross margin above 70%. The company is based in Australia but pursues clients across the Asia-Pacific region and beyond. Its competitive position depends on its proprietary technology and creative capabilities, though as a micro-cap company it faces real risks from larger, better-funded rivals entering the immersive media market. The key growth driver is rising demand from brands and sports leagues for interactive fan experiences, but winning and retaining large contracts remains a significant challenge for a company of this size.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+74.2% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+26.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.6%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$5M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

xReality Group Limited grew revenue 74% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

78.9%

Premium pricing power — 78.9% gross margin

Operating Margin

26.2%

Excellent — 26.2% operating margin

ROCE

12.8%

Good — 12.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+45.6%

Fast-growing sales (45.6% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

10.8%

Modest free cash flow (10.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.43

Conservative — low debt load (0.43)

Interest Cover

0.64x

Dangerous — barely covers interest (0.6x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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