Xreality Group
xReality Group (ASX: XRG) develops and sells portable virtual reality tactical training systems through its Operator XR subsidiary to military and law enforcement agencies worldwide, generating revenue from multi-year software subscriptions, hardware sales, and R&D contracts.
- Company typePublic
- Founded2014
- HeadquartersBrookvale, Australia
- Headcount51–100
- GTM typeB2B
- OfferingSoftware
What Xreality Group does
xReality Group Limited (ASX: XRG) is an Australian-listed immersive technology company whose core operating business, Operator XR, develops and sells portable virtual reality tactical training systems to military and law enforcement agencies. The flagship OP-2 system combines a sub-40 lb single-case hardware platform with a software suite (Scenario Creator Suite, Operator Sketch, After-Action Review Module, and the Tactical SDK) that lets agencies author and run mission rehearsal, de-escalation, use-of-force, multi-officer coordination, active shooter, counter-drone, and subterranean-environment scenarios offline, with ISO:27001 and US DoD Authority to Operate credentials. Customers include the Texas Department of Public Safety, the US Department of Defense (Irregular Warfare Technical Support Directorate), the Australian Defence Force, the Western Australia Police Force, the Swedish Armed Forces, and approximately 100 agencies across 29 US states, supported by distributor and prime partnerships with Thales Australia, Promoteq, TSA Mexico, Team Endurance Group, and ALERRT. Revenue is generated through a mix of upfront hardware-and-software system sales, multi-year software subscriptions (typically 3 years, recognized monthly), R&D contracts, and support and maintenance services; ARR reached $6.2M as of December 2025 against FY25 total revenue of $14.0M AUD. The group also retains legacy consumer leisure businesses (FREAK VR entertainment venues and iFLY indoor skydiving facilities in Penrith and Gold Coast) that are being de-emphasized, with FREAK scheduled to exit by end of FY2026, while Red Cartel functions as an in-house VR/AR production studio supporting Operator XR.
Xreality Group firmographics
Firmographics- Name
- Xreality Group
- Legal name
- xReality Group Ltd
- Website
- https://xrgroup.com.au
- Company type
- Public
- Founded year
- 2014
- Operating status
- Operating
- Headcount range
- 51–100 employees
- Short description
- xReality Group (ASX: XRG) develops and sells portable virtual reality tactical training systems through its Operator XR subsidiary to military and law enforcement agencies worldwide, generating revenue from multi-year software subscriptions, hardware sales, and R&D contracts.
- Ownership category
- akta.pro rank
Xreality Group industry classification
Industry- Product category
- Defense and Law Enforcement VR Training Software
- NAICS
- Computer and Peripheral Equipment Manufacturing (3341), Software Publishers (5132), Computer and Peripheral Equipment Manufacturing (33411)
- SIC
- Electronic Computers (3571), Services-Computer Integrated Systems Design (7373)
- akta.pro primary industry
- Modeling, Simulation, Digital Twins & Mission Rehearsal Systems (IMABAOAL)
- akta.pro secondary industries
- VR/XR Hardware & Accessories (Headsets, Controllers, Trackers, Haptics) (MPAFAGAG), XR/AR/VR/MR Development Frameworks & Toolchains (MPAFAFAF), Autonomy Software, AI & Mission Management (UAS/UXV) (IMABAIAH)
Keywords
Where Xreality Group is headquartered
LocationHeadquarters
- HQ city
- Brookvale
- HQ country
- Australia
- HQ region
- Oceania
Offices6 records
Markets served
Xreality Group business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure, Supply Chain
Revenue model
- Software Licenses and Subscriptions: Operator XR generates recurring revenue through annual software licenses. Revenue is recognized monthly over the contract term (typically 3-year periods). Annual Recurring Revenue grew 114% to $4.7 million in FY25.
- VR Training Systems (Hardware and Software): One-time sales of OP-2 and OP-1 VR training systems including hardware, software licenses, implementation, and training. Total Contract Value reached $11.3 million in FY25 (176% increase).
- Support and Maintenance Services: Ongoing technical support and maintenance services bundled with system sales or sold as optional multi-year extensions. Texas DPS contract includes 2 years of support with optional 3 additional years.
- R&D Contracts: Research and development contracts with government agencies, including $5.6M DoD subcontract for subterranean training prototype delivered over 20 months.
- Consumer Entertainment: iFLY Indoor Skydiving venues and FREAK VR entertainment generate revenue through consumer experiences, subscriptions, and retail transactions. FREAK entertainment business scheduled for exit by end of FY2026.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Pay-as-you-go | Individual US Law Enforcement Agency Pricing |
| Subscription | Multi-year contract | Enterprise Government Contracts (Texas DPS) |
| Subscription | Monthly | Annual Recurring Revenue Model |
Go-to-market motion3 records
Distribution channels5 records
Marketing channels4 records
Xreality Group product offering
Product offeringCore offering
xReality Group, through its Operator XR subsidiary, develops and sells portable Virtual Reality tactical training systems for military and law enforcement agencies. Flagship offerings include the OP-2 immersive training system, the Interceptor counter-drone VR platform, and a Tactical SDK that lets agencies build custom scenarios. The hardware-software systems integrate with users' own weapons, run fully offline, and are sold via multi-year licenses with recurring annual subscriptions plus support and maintenance.
Product overview
Xreality Group operates as a multi-brand immersive technology company with two main divisions: Enterprise & Defence (Operator XR VR training platform) and Consumer Leisure (FREAK Entertainment, iFLY Indoor Skydiving). The core product is Operator XR, a mission-critical VR training system for military and law enforcement that includes the flagship OP-2 system, Interceptor counter-drone platform, and Tactical SDK. Supporting the training business is Red Cartel, an in-house VR/AR production studio. The legacy entertainment segment includes FREAK VR venues and iFLY wind tunnels, which are being phased out to focus on the high-growth Operator XR business.
Differentiator
Problem solved
Functional benefit
Brands
- Operator XR: Virtual Reality Tactical Solutions for Defence & Law Enforcement Industries
- Red Cartel
- FREAK Entertainment
- iFLY Indoor Skydiving
Products and services
- Operator XR Platform A mission planning and rehearsal VR training platform for military and law enforcement agencies that delivers portable, secure, scenario-based tactical training including de-escalation, use of force decision-making, and operational procedures.
- OP-2 Tactical Training System Flagship VR tactical training system for military and law enforcement combining hardware and software in a single portable case, with Scenario Creator Suite, Operator Sketch, Operator Create, Advanced Role Player, and After-Action Review Module.
- Interceptor Counter-Drone VR Platform Portable VR training platform for counter-drone (C-UAS) operations covering the detect-identify-track-defeat cycle for military units and law enforcement; sets up in under two minutes, weighs 23kg, and runs fully offline.
- Tactical Software Development Kit (SDK) SDK that empowers special forces, military, and law enforcement agencies to create custom immersive training scenarios with a visual editor, scripting API, multi-user collaboration, real-time scenario development, pre-built 3D asset library, and advanced AI behavior customization, operating offline.
- iFLY Indoor Skydiving (Penrith and Gold Coast) Vertical wind tunnel indoor skydiving facilities in Penrith (Sydney) and the Gold Coast serving tourists, professional skydivers, and military customers under license from the global iFLY brand.
- FREAK Entertainment (VR Entertainment Venues) Virtual reality entertainment venues operating multiplayer VR experiences including Free-Roam Arena, VR Arcade, VR Escape Rooms, VR Super Escape Rooms, VR Laser Tag, and FREAK Drive racing simulators.
- Red Cartel (VR/AR/XR Production Studio) VR, AR, and XR production studio with over 20 years of experience delivering content creation services for entertainment, oil and gas, mining, healthcare, and government sectors; provides in-house development capability for Operator XR.
Quantifiable outcome
- Operator XR contributed 63% of group revenue in H1 FY2026, demonstrating strong commercial traction
- +4 more outcomes
Companies that use Xreality Group
Customer profileNamed customers10 records
Segments3 records
Ideal customer profiles2 records
Xreality Group technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability4 records
Feature7 records
Xreality Group partnerships and signals
Strategic signalPartnerships
Five partnerships are on record, tiered core.
- Thales AustraliacoreMOU signed June 2026 for two-way collaboration to jointly pursue defence, security and law enforcement training and simulation programs. Either party may lead or support depending on the opportunity. Thales brings global reach and scale; Operator XR contributes in-service training technology and market penetration.
- PromoteqcoreSwedish distribution partner that facilitated Operator XR's first European contract with the Swedish Armed Forces (AUD $450,000 for OP-2 VR tactical training system).
- ALERRT Center (Advanced Law Enforcement Rapid Response Training)coreStrategic research collaboration with ALERRT Center at Texas State University (FBI-designated national standard for active shooter response training). Two-year initiative exploring XR-enhanced training efficacy, skill acquisition, physiological response, and decision-making. ALERRT has trained over 300,000 first responders.
- Team Endurance GroupcoreTeaming agreement for US DoD subcontract (AU$5.6M) through IWTSD. Endurance Group serves as prime contractor, Intermap as geospatial data partner. Project to deliver XR training for subterranean and subway environments over 20 months.
- Tecnología en Sistemas de Apoyo SA (TSA)coreDistribution partner in Mexico for Operator XR's VR technology for law enforcement and military markets. TSA is trusted provider to State Police and Judicial agencies across Mexico with over 500,000 police officers as potential customers.
Scale indicators19 records
Recent moves9 records
Expansion highlights7 records
Xreality Group competitors and assessment
Company assessmentDirect peers
- Bohemia Interactive Simulations: Bohemia Interactive Simulations (BISim) develops the Virtual Battlespace (VBS) family of products, a widely used military training and simulation platform. Direct competitor to Operator XR in defense simulation with overlapping customer base in defense forces.
- Varjo: Varjo produces high-fidelity VR/XR headsets widely adopted in defense, law enforcement, and industrial training. Competes with Operator XR in the high-end VR hardware stack used for mission-critical simulation.
- Vrgineers: Vrgineers builds enterprise-grade VR/XR training systems with a focus on aviation, military, and law enforcement. Closely comparable in mission profile, target customer, and emphasis on realism for tactical training.
- Striker VR: Striker VR develops advanced VR firearms training peripherals and haptic weapons for military and law enforcement. Direct comparable to Operator XR's weapon-integration approach and tactical training market focus.
Broad incumbents
- CAE: CAE is a global leader in simulation-based training for civil aviation, defense, and healthcare, with deep relationships across militaries and a broad portfolio including VR/AR. A larger incumbent in mission simulation competing for similar defense training budgets.
- Anduril Industries: Anduril is a large, well-capitalized US defense technology company expanding into immersive training and simulation alongside autonomy, counter-UAS, and command-and-control. A broader incumbent competitor in the same defense customers' procurement pipelines.
- Microsoft (HoloLens / AirSim): Microsoft's HoloLens and AirSim platforms are used across defense and enterprise training. A broad incumbent offering mixed-reality hardware and simulation infrastructure that competes indirectly with Operator XR's tactical training platform.
- Meta (Quest for Business): Meta's Quest VR hardware is widely deployed across enterprise and training use cases, including some government and defense applications. A broad incumbent whose hardware competes in adjacent segments of the training market.
- SAIC: SAIC provides large-scale defense simulation, training, and systems integration services to US federal and allied customers. A broad incumbent competing for the same defense training program dollars.
Emerging players
- Marathon Targets: Marathon Targets produces autonomous robotic moving targets for live-fire and combined-arms military training. Emerging player in tactical training with overlapping customer segments and adjacent training use cases.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks7 records
Key highlights8 records
Customer concentration
Xreality Group social profiles
Digital presenceXreality Group compliance and trust
Trust signalCompliance3 records
Xreality Group financial estimates
Financial estimateRevenue estimate
Valuation estimate
Xreality Group leadership team
Management profileNumber of profiles
Profiles6 records
Xreality Group subsidiaries and ownership
Company hierarchySubsidiaries6 records
Xreality Group funding detail
Funding detailFunding overview
Funding rounds1 record
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Xreality Group M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Xreality Group
What does Xreality Group do?
xReality Group, through its Operator XR subsidiary, develops and sells portable Virtual Reality tactical training systems for military and law enforcement agencies. Flagship offerings include the OP-2 immersive training system, the Interceptor counter-drone VR platform, and a Tactical SDK that lets agencies build custom scenarios. The hardware-software systems integrate with users' own weapons, run fully offline, and are sold via multi-year licenses with recurring annual subscriptions plus support and maintenance.
Is Xreality Group a public or private company?
Xreality Group is a public company. It is classified as public and is currently operating.
When was Xreality Group founded?
Xreality Group was founded in 2014. It employs 51 to 100 people.
Where is Xreality Group based?
Xreality Group is headquartered in Brookvale, Australia, in the Oceania region.
How does Xreality Group make money?
Five revenue lines are on record. Software Licenses and Subscriptions are the primary driver. The others are VR Training Systems (Hardware and Software), support and Maintenance Services, R&D Contracts and consumer Entertainment.
Who are Xreality Group's main competitors?
Direct peers on record are Bohemia Interactive Simulations, Varjo, Vrgineers and Striker VR. Broad incumbents are CAE, Anduril Industries, Microsoft (HoloLens / AirSim), Meta (Quest for Business) and SAIC. Marathon Targets is listed as an emerging player.
Does Xreality Group have an API?
No public API is recorded for Xreality Group.
What industry is Xreality Group in?
Xreality Group's product category is Defense and Law Enforcement VR Training Software. Its primary akta.pro industry code is IMABAOAL, Modeling, Simulation, Digital Twins & Mission Rehearsal Systems, with a secondary code of MPAFAGAG, VR/XR Hardware & Accessories (Headsets, Controllers, Trackers, Haptics). Its NAICS code is 3341 and its SIC code is 3571.