Today’s announcement is the official confirmation that the 20 month A$5.6m DoD contract to develop prototypes for Mixed Reality (MR-1) use of the Operator XR system is now successfully completed. 

The first sale of MR-1 was announced in the 4C at the end of April (before formal completion of the project), we are now told it is a separate DoD customer than the one they worked with in development. An indication that there is demand and they are delivering on what the end customer wants as summed up in the announcement:

XRG CEO Wayne Jones said “Successfully delivering a significant R&D project for the US DoD validates our technology, and our team’s ability to deliver innovative, ambitious training capability on an aggressive timeline.”

This is a great milestone, but is new old news or at the very least expected.

The below slide from the HY26 presentation shows why it’s a great milestone. The current and rapidly growing ARR of A$7.0m is almost entirely made up of US Law Enforcement which is under 1% of the addressable market just in the US. The US Military market is 8x in size and they have just made their first sale into it.

The Thesis remains well and truly on track and continues to move towards the bull case. xReality Group are the leading innovators in a large and rapidly growing market for Law and Military VR/MR training support that improves training outcomes at lower costs in terms of time and resources for the users.

Disc: I own RL+SM