The Glimpse Group, Inc.

Q1 FY2026 revenue was approximately $1.4 million, down 43% from approximately $2.4 million in Q1 FY2025. Gross margin was approximately 72% versus approximately 68% in the prior year quarter. Adjusted EBITDA loss was $0.92 million compared with a $0.46 million loss a year ago. Cash and equivalents were approximately $5.56 million, with an additional $0.66 million in accounts receivable, and the company said it has no debt, no convertible debt, and no preferred equity. Management did not provide revenue guidance for the rest of fiscal 2026, citing multiple moving parts, and said gross margins should remain in the 65% to 75% range.

Lyron Bentovim emphasized that the quarter was more about strategic progress than near-term revenue growth, pointing to the formal start of value-creation initiatives centered on a potential Brightline spin-off. He said Brightline’s IPO spinout process began in October 2025, with Lucid Capital Markets and securities counsel engaged, and that a potential IPO could occur in the first half of calendar 2026, though success is not guaranteed. He also stressed continued traction in Foretell AI and said the company expects business growth to continue with a focus on software licenses.

Maydan Rothblum said the quarter was consistent with prior guidance that FY2026 revenue would be choppy by quarter. She cited approximately $1.4 million of revenue, a 43% year-over-year decline, and attributed the drop to timing of Department of War contracts, U.S. budget delays, and divestitures of noncore entities. She noted gross margin of approximately 72%, expects 65% to 75% margins, and said the company is at adjusted EBITDA breakeven at about $10 million of annual revenue, which matches fiscal 2025 revenue. She also highlighted $5.56 million of cash and equivalents, $0.66 million in receivables, and a clean capital structure with no debt, convertible debt, preferred equity, or contingent liabilities as of October 2025.

There were no analyst questions on the phone line or webcast, so the call did not include a substantive Q&A discussion. The main investor-facing concerns addressed proactively by management were government shutdown and continuing-resolution delays affecting DoW opportunities, plus uncertainty around the Brightline IPO spin-off timeline. Management said those DoW opportunities still could materialize in calendar 2026 and that the Brightline process is expected to unfold over the coming months.