Trading Update

ENGAGE XR Holdings Plc, an AI/Spatial Computing technology company, announces the following update on trading for the 12 months ending 31 December 2025.

Financial Highlights:

• The Group expects to report revenue of c.€1.9m (2024: €3.4m) with the Company experiencing delays in contracts being signed and lower than expected enterprise sales and renewals during the year;
• The Group expects to report an EBITDA loss of c.€ 2.4m (2024: loss of €4.0m), broadly in line with market expectations as management continued to focus on operational efficiencies and strong cost control; and
• With management's focus on cost control and cash, cash balances at year end was €1.6m ahead of market expectations (31 December 2024: €3.6m).

ENGAGE's primary enterprise use case was training and onboarding new hires, and the global slowdown in hiring especially across the technology sector significantly impacted demand during 2025. Several of our larger enterprise clients renewed at materially lower levels or didn't renew during the second half of the year, which resulted in a lower than expected Q4 performance.

We have seen continued traction within the K-12 education sector, where platform usage is increasing. Several larger clients have expanded their licence volumes over the past year and ENGAGE is now serving both the 'homeschool' and 'in-class' lab environments, representing a strategic realignment with the platform's original design and core strengths.

In late December 2025, ENGAGE released an update to support newer Chromebook devices and will be demonstrating the platform alongside Lenovo at the Bett Conference in London on 21 January 2026. Official Chromebook support was driven by direct client demand and enables greater scalability within the US education market, where Chromebooks are the dominant device.

Having regard to the current trading performance of the Company, the Board is also very much focussed on the Company's cash resources and this will remain a key priority to ensure the company continues to have the required cash resources to fund its operations and to deliver against the opportunities the Board sees for ENGAGE.

David Whelan CEO, ENGAGE XR, said: "Overall, 2025 was another challenging year for the Company across multiple fronts due to continued headwinds, especially from the erosion of the enterprise client renewals. The Board recognises the need to deliver improved performance for our shareholders over the long term and therefore as a board we will continue to explore initiatives to deliver on this objective.

Notwithstanding the headwinds the Company is confronting, especially in the Enterprise space, as a management team, we continue to believe that the Education sector provides and important opportunity for the Company which will create value for ENGAGE's proposition. We believe that the ENGAGE platform is relevant across schools, universities and the homeschool market, with the United States and Middle East continuing to be key geographic opportunities for the Company.