xReality Group Lands $800,000 Contract with Australian State Government Customer

Technology company xReality Group (ASX: XRG) is on a winning streak, with the recent announcement of an $800,000 contract with a new Australian state government customer. The deal will see multiple Operator XR virtual reality training systems delivered to the unnamed government body in the third quarter of 2025.

xReality Group is known for developing enterprise software for mission-critical simulations for military and law enforcement. Their Operator XR virtual reality police training and military simulation systems have gained global recognition for their ability to enhance human performance in high-risk situations.

Chief executive officer Wayne Jones expressed his excitement about the new contract, highlighting the company’s strong sales performance in June. The company saw a 75% increase in Operator XR’s annual recurring revenue (ARR) during the month, reaching $2.21 million.

The success in June was not an isolated incident, as Operator XR added a further $1.43 million in sales in the final month of the financial year. This brought the year-to-date contract value increase to $4.1 million, a 54% growth compared to the previous year.

Looking ahead, Mr Jones mentioned a large sales pipeline expected to materialize in the first quarter of FY2025. The company’s recent acquisition of an additional $500,000 in working capital will support the increasing demand in the US markets and help streamline logistics for Operator XR orders.

With the global police and military simulation training market projected to grow significantly in the coming years, xReality Group is well-positioned to capitalize on this trend. The company’s innovative solutions and strong sales performance indicate a promising future ahead.