Company Interview / xReality sales surge on law enforcement and defence deals

Key points:

Shift from entertainment wind tunnels to defence and law enforcement training solutions Operator XR system used by US police and first responders for immersive scenario-based training Latest quarter delivered $7.4 million in cash receipts, with strong US sales momentumxReality (ASX:XRG) winning contracts with police and major US state agencies

Wayne Jones of xReality highlights how virtual and augmented reality are transforming defence and law enforcement training, offering immersive scenario-based simulations. Jones outlines how the business shifted from wind tunnel entertainment centres, once used for indoor skydiving, to developing innovative military and law enforcement training solutions. Using this foundation, the company now focuses on Operator XR, a virtual reality-based system designed for defence and policing.

Jones explains the Operator XR system provides portable offline simulations, used heavily in the US by police and first responders. The technology aims to replicate high-pressure, real-world situations in a virtual environment, improving training retention and decision-making. This method, Jones states, overcomes the cost and complexity of traditional training exercises, allowing personnel to experience, practise, and prepare for challenging scenarios more efficiently.

The latest financial results, according to Jones, show $7.4 million in quarterly cash receipts, with Operator XR contributing $5.2 million, significantly outpacing the legacy wind tunnel segment. Jones reports rapid growth in the US, where xReality (ASX:XRG) has supplied systems to around 94 enforcement agencies, including a major contract with the Texas Department of Public Safety. The business continues to scale in the US market, and Jones sees considerable runway for further expansion.