ENGAGE XR flags 2025 revenue drop as enterprise softness persists and education focus deepens

ENGAGE XR Holdings plc (LSE:EXR) said it expects revenue for 2025 to fall sharply to around €1.9 million, down from €3.4 million the previous year, citing delays in contract completions and a marked decline in enterprise customer renewals. The weakness was most pronounced in the second half of the year, as slower global technology hiring weighed on corporate spending decisions.

Despite the drop in turnover, management expects a material improvement in profitability metrics, with the EBITDA loss forecast to narrow to approximately €2.4 million from €4.0 million in 2024. The improvement reflects ongoing cost discipline and operational efficiencies, which also supported a year-end cash position of €1.6 million, ahead of market expectations.

Strategically, ENGAGE XR is accelerating its pivot toward the education market, where usage levels are increasing and larger K-12 customers have expanded their licence commitments. As part of this push, the company has introduced official Chromebook support, enabling it to better address the dominant device used in US classrooms. The group is set to showcase this capability at the Bett Conference in London through a joint demonstration with Lenovo.

The board said it remains focused on conserving cash while evaluating initiatives aimed at enhancing long-term shareholder value. Management believes education markets across schools, universities and home-schooling environments—particularly in the US and the Middle East—offer a more resilient growth path as enterprise demand continues to face headwinds.

Overall, the outlook for ENGAGE XR is constrained by declining revenue and ongoing losses. Technical indicators point to a bearish trend, while valuation metrics remain unattractive due to negative earnings and the absence of dividend support.

More about VR Education Holdings

ENGAGE XR Holdings plc is an AI and spatial computing technology company behind the ENGAGE platform, which delivers immersive virtual and augmented reality environments for education, training and collaboration. The platform is used by enterprise and educational customers globally for onboarding, learning, meetings and product demonstrations, with a growing emphasis on K-12, higher education and home-school markets, particularly in the United States and the Middle East.