Glimpse Group, Inc.
For the period ended Dec 31, 2025. Filed Feb 17, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 17, 2026
BTLN$3.50+6.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001493152-25-022290
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-17.
0001493152-26-006951
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 70 previous paragraphs and 72 current paragraphs.
35 unchanged; 24 reworded; 13 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Significant Transactions
Current report
On November 21, 2025, the Sales Agreement was amended to increase the maximum amount we may offer and sell, from time to time through the Agent, from $3,081,340 to $3,502,910.
Current report
Subsequent to the end of the period, on January 2, 2026, the Sales Agreement was further amended to increase the maximum amount we may offer and sell, from time to time through the Agent, from $3,502,910 to $9,478,200.
Current report
As of the date of this filing, no Shares have been sold under the ATM facility.
Current report
For the three months ended December 31, 2025, Software License revenue was approximately $0.10 million compared to approximately $0.04 million for the three months ended December 31, 2024, an increase of 150%, reflecting license timing. For the six months ended December 31, 2025, Software License revenue was approximately $0.25 million compared to approximately $0.25 million for the six months ended December 31, 2024, flat period over period.
Current report
Operating expenses for the three months ended December 31, 2025 were approximately $2.05 million compared to approximately $2.02 million for the three months ended December 31, 2024, an increase of 1%. The increase primarily reflects headcount utilization changes, offset by decreases in revenue based incentive compensation and intangible asset amortization. Operating expenses for the six months ended December 31, 2025 were approximately $4.40 million compared to approximately $4.97 million for the six months ended December 31, 2024, a decrease of 11%. The decrease primarily reflects the divestiture of the QReal business, reduction in non-core businesses, decrease in revenue based incentive compensation and reduction in intangible asset amortization, offset by headcount utilization changes.
Current report
Research and development expenses for the three months ended December 31, 2025 were approximately $0.90 million compared to approximately $0.66 million for the three months ended December 31, 2024, an increase of 36%. The increase primarily reflects a lesser proportion of headcount expense being allocated to revenue projects cost of goods in the current period. Research and development expenses for the six months ended December 31, 2025 were approximately $1.87 million compared to $1.78 million for the six months ended December 31, 2024, an increase of 5%. The increase reflects a lesser proportion of headcount expense being allocated to revenue projects cost of goods in the current period, offset by decreased expense driven by the QReal divestiture.
Current report
Net loss for the three months ended December 31, 2025 was approximately $1.23 million compared to net income of approximately $0.02 million for the three months ended December 31, 2024. This is primarily driven by reduced revenue and related gross profit. Net loss for the six months ended December 31, 2025 was approximately $2.26 million compared to a net loss of approximately $0.98 million for the six months ended December 31, 2024. This is primarily driven by reduced revenue and related gross profit, partially offset by expense reductions and gain on sale of business.
Current report
Adjusted EBITDA loss was $0.89 million for the three months ended December 31, 2025 compared to $0.28 million income for the three months ended December 31, 2024. Adjusted EBITDA loss was $1.83 million for the six months ended December 31, 2025 compared to a $0.17 million loss for the six months ended December 31, 2024. The reduction in both periods is primarily driven by reduced revenue and related gross profit in the 2025 periods.
Current report
Net cash used in investing activities for the six months ended December 31, 2025 was approximately $1.52 million compared to approximately $0.03 million during the comparable 2024 period. The 2025 period primarily represents the final $1.50 million contingent consideration payment in October 2025 related to the BLI acquisition.
Current report
Net cash provided by financing activities during the six months ended December 31, 2025 was approximately $0.06 million compared to approximately $6.87 million during the six months ended December 31, 2024. The 2024 amount represents the proceeds of securities purchase agreements entered into with institutional investors.
Current report
As of December 31, 2025, the Company had no outstanding contingent obligation.
Current report
As of the date of this filing, the ATM facility has not been utilized.
Removed paragraphs (11)
Previous report
Significant Items
Previous report
SpatialCore Contract
Previous report
On August 13, 2025 we entered into a $2+ million SpatialCore contract to be delivered over a 12 month period.
Previous report
For the three months ended September 30, 2025, Software License revenue was approximately $0.15 million compared to approximately $0.21 million for the three months ended September 30, 2024. The decrease was due to the license timing with a higher education customer.
Previous report
Operating expenses for the three months ended September 30, 2025 were approximately $2.34 million compared to approximately $2.96 million for the three months ended September 30, 2024, a decrease of approximately 21%. The decrease reflects the divestiture of the QReal business and reduction in non-core businesses.
Previous report
Research and development expenses for the three months ended September 30, 2025 were approximately $0.97 million compared to approximately $1.12 million for the three months ended September 30, 2024, a decrease of approximately 13%. The decrease was driven by the divestiture of the QReal business and reduction in non-core businesses.
Previous report
Net loss for the three months ended September 30, 2025 was approximately $1.03 million compared to approximately $1.02 million for the three months ended September 30, 2024. This reflects a reduction in 2025 revenue and gross margin, fully offset by a reduction in operating expenses and a gain on sale of the Pose With the Pros business.
Previous report
Adjusted EBITDA loss was $0.92 million for the three months ended September 30, 2025 compared to approximately $0.46 million loss for the three months ended September 30, 2024. This reflects a reduction in 2025 revenue and gross margin partially offset by a reduction in operating expenses.
Previous report
Net cash used in investing activities was flat year over year. The amount represents equipment purchases.
Previous report
Net cash provided by financing activities was approximately $0.03 million for the three months ended September 30, 2025, compared to zero for the prior year period. The 2025 amounts represent repayment of notes receivable related to the divestiture of QReal.
Previous report
As of September 30, 2025, contingent consideration for acquisition liabilities represents a $1.50 million cash component which was paid in October 2025. This was the final payment due related to the BLI acquisition.
Reworded paragraphs (24)
Previous wording
We are an Immersive technology company, providing enterprise focused Virtual Reality (VR), Augmented Reality (AR) and Spatial Computing software and services (Immersive technologies). Glimpse’s operating entities are located primarily in the United States. We believe that we offer significant exposure to the rapidly growing and potentially transformative Immersive technology markets, while mitigating downside risk via our diversified model and ecosystem.
Current wording
We are an Immersive technology company, providing enterprise focused Spatial Computing, Virtual Reality (VR), and Augmented Reality (AR) software and services (Immersive technologies). Glimpse’s operating entities are located in the United States. We believe that we offer significant exposure to the rapidly growing and potentially transformative Immersive technology markets, while mitigating downside risk via our diversified model and ecosystem.
Previous wording
The Immersive technology industry is an early-stage technology industry with nascent markets. We believe that this industry has significant growth potential across verticals, may be transformative, and that our diversified ecosystem creates important competitive advantages. We currently target a wide array of industry verticals, including but not limited to: Corporate Training, Education, Healthcare, Government & Defense, Branding/Marketing/Advertising, Retail, Media & Entertainment, Corporate Events and Social VR support groups and therapy. We focus primarily on the business-to-business (B2B) and business-to-business-to-consumer (B2B2C) segments, and we are hardware agnostic.
Current wording
The Immersive technology industry is an early-stage technology industry with nascent markets. We believe that this industry has significant growth potential across verticals, may be transformative, and that our diversified ecosystem creates important competitive advantages. We currently target a wide array of industry verticals, including but not limited to: Government & Defense, Corporate Training, Education, Healthcare, Branding/Marketing/Advertising, Retail, Media & Entertainment, Corporate Events and Social VR support groups and therapy. We focus primarily on the business-to-business (B2B) segment and we are hardware agnostic.
Previous wording
In fiscal year 2024, we shifted our businesses (“Strategic Shift”) to focus on providing immersive technology solutions software and services that are primarily driven by Spatial Computing, Cloud and Artificial Intelligence (AI), including our product “Spatial Core,” led by our entity Brightline Interactive, LLC (“BLI”). We believe that Spatial Core is a key differentiator, growth driver and competitive advantage for us.
Current wording
In fiscal year 2024, we shifted our businesses (“Strategic Shift”) to focus on providing immersive technology solutions software and services that are primarily driven by Spatial Computing, Cloud and Artificial Intelligence (AI), including our product “Spatial Core,” led by our entity Brightline Interactive, Inc. (“BLI”). We believe that Spatial Core is a key differentiator, growth driver and competitive advantage for us.
Previous wording
At-The-Market Offering
Current wording
Increase in At-The-Market Offering
Previous wording
On July 11, 2025, we entered into a Sales Agreement with WestPark Capital, Inc., as sales agent, pursuant to which we may offer and sell, from time to time through WestPark Capital, Inc., up to $3,081,340 of our common stock, by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act. We refer to the foregoing transaction in this Quarterly Report on Form 10-Q as the “ATM Facility.” No shares under the ATM Facility have been sold to date.
Current wording
As previously reported, on July 11, 2025, we entered into an At-the-Market (“ATM”) Sales Agreement (the “Sales Agreement”) with WestPark Capital, Inc., as sales agent (the “Agent”), pursuant to which we could offer and sell, from time to time through the Agent, up to $3,081,340 of our common stock (the “Shares”), by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act.
Previous wording
Potential Subsidiary Spin Off
Current wording
Update on Potential Subsidiary Spin Off
Previous wording
In September 2025, the Company’s board of directors approved the exploration of a potential spin off of the Company’s BLI subsidiary as a separate public company to potentially unlock shareholder value and provide growth resources to BLI. This process is in its early stages and its structure and success are uncertain and may not occur.
Current wording
As previously reported, in September 2025, our board of directors approved the exploration of a potential spin off of our BLI subsidiary as a separate public company to potentially unlock shareholder value and provide growth resources to BLI. We filed a confidential S1 registration with the Securities and Exchange Commission (“SEC”). In parallel, we are also exploring other divestiture alternatives for BLI. The success of the potential BLI initial public offering or other divestiture is uncertain and may not occur.
Previous wording
Financial Highlights for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Current wording
Financial Highlights for the three and six months ended December 31, 2025 compared to the three and six months ended December 31, 2024.
Previous wording
The following table sets forth our results of operations for the three months ended September 30, 2025 and 2024:
Current wording
The following table sets forth our results of operations for the three months and six months ended December 31, 2025 and 2024:
Previous wording
Total revenue for the three months ended September 30, 2025 was approximately $1.40 million compared to approximately $2.44 million for the three months ended September 30, 2024, decrease of approximately 43%. The decrease reflects timing of Department of War (“DoW”) contracts and U.S. Government budget delays and run off of certain legacy VR/AR customers reflecting our Strategic Shift.
Current wording
Total revenue for the three months ended December 31, 2025 was approximately $1.30 million compared to approximately $3.17 million for the three months ended December 31, 2024, a decrease of 59%. Total revenue for the six months ended December 31, 2025 was approximately $2.70 million compared to approximately $5.61 million for the six months ended December 31, 2024, a decrease of 52%. The decrease for both periods primarily reflects timing of Department of War (“DoW”) contracts and U.S. Government budget delays, the run off of certain legacy customers reflecting our Strategic Shift and a decline in some existing customer accounts.
Previous wording
We break out our revenues into three categories - Software Services, Software License and Royalty Income.
Current wording
We break out our revenue into three categories - Software Services, Software License and Royalty Income.
Previous wording
For the three months ended September 30, 2025, Software Services revenue was approximately $1.25 million compared to approximately $2.23 million for the three months ended September 30, 2024, a decrease of approximately 44%. The decrease reflects timing of DoW contracts and U.S. Government budget delays and run off of certain legacy VR/AR customers reflecting our Strategic Shift.
Current wording
For the three months ended December 31, 2025, Software Services revenue was approximately $1.18 million compared to approximately $3.13 million for the three months ended December 31, 2024, a decrease of 62%. For the six months ended December 31, 2025, Software Services revenue was approximately $2.42 million compared to approximately $5.36 million for the six months ended December 31, 2024, a decrease of 55%. The decrease for both periods primarily reflects timing of DoW contracts and U.S. Government budget delays, the run off of certain legacy customers reflecting our Strategic Shift and a decline in some existing customer accounts.
Previous wording
Royalty income was negligible for the three months ended September 30, 2025 and zero for the prior year period.
Current wording
Royalty income was approximately $0.02 million and approximately $0.03 million, respectively, for the three and six months ended December 31, 2025, and zero for the prior year period, reflecting a new revenue stream driven by prior subsidiary company divestitures.
Previous wording
Three customers accounted for approximately 79% (35%, 27% and 17%, respectively) of the Company’s total gross revenues during the three months ended September 30, 2025. One of the same customers and a different customer accounted for approximately 57% (29% and 28%, respectively) of the Company’s total gross revenues during the three months ended September 30, 2024.
Current wording
Four customers accounted for approximately 81% (29%, 21%, 21% and 10%, respectively) of the Company’s total gross revenues during the three months ended December 31, 2025. One of the same customers and two other customers accounted for approximately 80% (56%, 14% and 10%, respectively) of the Company’s total gross revenues during the three months ended December 31, 2024. Three customers accounted for approximately 76% (28%, 28% and 19%, respectively) of the Company’s total gross revenues during the six months ended December 31, 2025. One of the same customers and another customer accounted for approximately 65% (44% and 21%, respectively) of the Company’s total gross revenues during the six months ended December 31, 2024.
Previous wording
Gross profit was approximately 72% for the three months ended September 30, 2025 compared to approximately 79% for the three months ended September 30, 2024. The decrease was primarily driven by the change in cost structure of DoW projects.
Current wording
Gross profit margin was approximately 61% for the three months ended December 31, 2025, compared to approximately 64% for the three months ended December 31, 2024. Gross profit margin was approximately 67% for the six months ended December 31, 2025 compared to approximately 70% for the six months ended December 31, 2024. The decrease for both periods was primarily driven by the change in cost structure of DoW projects.
Previous wording
General and administrative expenses for the three months ended September 30, 2025 were approximately $0.98 million compared to approximately $0.94 million for the three months ended September 30, 2024, an increase of approximately 4%. The increase reflects increased investor relation efforts.
Current wording
General and administrative expenses for the three months ended December 31, 2025 were approximately $0.84 million compared to approximately $0.85 million for the three months ended December 31, 2024, flat period over period. General and administrative expenses for the six months ended December 31, 2025 were approximately $1.82 million compared to approximately $1.78 million for the six months ended December 31, 2024, an increase of 2%. The six month period increase reflects increased investor relation efforts.
Previous wording
Sales and marketing expenses for the three months ended September 30, 2025 were approximately $0.32 million compared to approximately $0.74 million for the three months ended September 30, 2024, a decrease of approximately 57%. This decrease represents the divestiture of the QReal business, reduction in non-core businesses and decrease in revenue driven incentive compensation.
Current wording
Sales and marketing expenses for the three months ended December 31, 2025 were approximately $0.30 million compared to approximately $0.38 million for the three months ended December 31, 2024, a decrease of 20%. The decrease reflects a reduction in revenue driven incentive compensation. Sales and marketing expenses for the six months ended December 31, 2025 were approximately $0.63 million compared to approximately $1.12 million for the six months ended December 31, 2024, a decrease of 44%. The decrease represents the divestiture of the QReal business, reduction in non-core businesses and decrease in revenue driven incentive compensation.
Previous wording
Amortization of acquisition intangible assets expense for the three months ended September 30, 2025 was approximately $0.05 million compared to approximately $0.13 million for the three months ended September 30, 2024, a decrease of approximately 62%. The decrease is attributable to the run off of the remaining attributable useful life of the intangible acquisition assets.
Current wording
Amortization of acquisition intangible assets expense for the three months ended December 31, 2025 was approximately $0.01 million compared to approximately $0.10 million for the three months ended December, 2024, a decrease of 90%. Amortization of acquisition intangible assets expense for the six months ended December 31, 2025 was approximately $0.06 million compared to approximately $0.23 million for the six months ended December 31, 2024, a decrease of 74%. The decrease for both periods reflects the expiration of the intangible assets useful life in 2025.
Previous wording
Change in fair value of acquisition contingent consideration expense for the three months ended September 30, 2025 was approximately $0.02 million compared to approximately $0.03 million for the three months ended September 30, 2024. The expense represents the change in the present value of BLI cash contingent consideration between balance sheet measurement dates.
Current wording
Change in fair value of acquisition contingent consideration for the three months ended December 31, 2025 was zero compared to approximately $0.03 million for the three months ended December 31, 2024. Change in fair value of acquisition contingent consideration for the six months ended December 31, 2025 was approximately $0.02 million compared to approximately $0.06 million for the six months ended December 31, 2024. The decrease for both periods reflects the final consideration payment related to the BLI acquisition in October 2025.
Previous wording
Other income for the three months ended September 30, 2025 was approximately $0.30 million compared to approximately $0.02 million for the three months ended September 30, 2024. 2025 primarily represents a gain on sale of the Pose With the Pros business. 2025 also reflects increased investable cash balances and associated interest income as a result of the equity raise in December 2024.
Current wording
Other income for the three months ended December 31, 2025 was approximately $0.03 million compared to approximately $0.01 million for the three months ended December 31, 2025. The increase reflects increased investable cash balances and associated interest income as a result of the equity raise in December 2024. Other income for the six months ended December 31, 2025 was approximately $0.34 million compared to approximately $0.04 million for the six months ended December 31, 2025. The increase reflects the 2025 gain on sale of the Pose With the Pros business and also reflects increased investable cash balances and associated interest income as a result of the equity raise in December 2024.
Previous wording
The following table presents a reconciliation of net loss to Adjusted EBITDA for the three months ended September 30, 2025 and 2024:
Current wording
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:
Previous wording
Net cash used in operating activities was approximately $1.29 million for the three months ended September 30, 2025, compared to approximately $0.42 million during the three months ended September 30, 2024. This reflects a reduction in 2025 revenue and gross margin which is partially offset by a reduction in operating expenses, and the timing of cash receipts on DoW projects.
Current wording
Net cash used in operating activities was approximately $2.03 million for the six months ended December 31, 2025, compared to approximately $0.25 million during the six months ended December 31, 2024. This was primarily driven by reduced revenue and related gross profit in the 2025 period.
Previous wording
As of September 30, 2025, the Company had cash and cash equivalents of $5.56 million, plus $0.66 million of accounts receivable.
Current wording
As of December 31, 2025, the Company had cash and cash equivalents of $3.34 million, plus $0.56 million of accounts receivable.
Previous wording
Please see Note 2 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q that describes the impact, if any, from the adoption of recent accounting pronouncements.
Current wording
Please see Note 2 to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q that describes the impact, if any, from the adoption of recent accounting pronouncements.