Engage XR revenue falls on delayed contract signings

Despite that, the AIM-traded immersive communications firm narrowed its EBITDA loss slightly to €3.9m from €4m in 2023, supported by cost controls and a strategic shift toward recurring revenue in the education and training sectors.

Education revenue rose to €1.3m, up from €1.1m the year prior, driven by renewals and expansion among key partners, including OptimaED in the US and InspiredED in the UK.

Gross margins eased to 86% from 90%, and the company ended the year with €3.6m in cash and no debt.

Operationally, education and corporate training now accounted for over half of year-to-date revenue in 2025, up from 38% in 2024.

Notably, OptimaED increased its license count sixfold over the past year, with further growth expected.

Engage XR also secured its largest-ever contract through a partnership with PwC in the Middle East and renewed deals with Bank of America, KPMG, and PwC.

It said its AI-powered ‘School of AI’ learning initiative is now live and reportedly engaging thousands of students daily.

In the first five months of 2025, Engage XR said it had made progress expanding its sales pipeline, though conversion delays persist.

The group reduced its monthly cost base to around €0.2m in the second quarter, and said it expected momentum to build through the remainder of 2025 and into 2026, supported by partnerships with Meta, Lenovo and a network of global resellers.

“2024 was a year of transition and strategic change,” said chief executive officer David Whelan.

“While headline revenue declined, our pivot to education and training is delivering tangible results.

“With strong partnerships, a growing reseller network, and a leaner cost base, we are well positioned to scale recurring revenue and deliver long-term value.”

At 1309 BST, shares in Engage XR Holdings were flat at 0.95p.

Reporting by Josh White for Sharecast.com.