Trading Update

7 January 2026

ENGAGE XR Holdings Plc

("ENGAGE XR" or the "Group")

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.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR. 

For further information, please contact:

About ENGAGE XR

ENGAGE XR Holdings plc (AIM: EXR) has developed ENGAGE, an immersive training, education and collaboration platform, offering cutting-edge VR/AR tools and environments that elevate employee training and student outcomes. Trusted by enterprise and educational clients worldwide, ENGAGE leverages the transformative power of spatial computing to revolutionize onboarding, sales meetings, product demos and a host of other vital business operations.

For further information, please visit: https://engagevr.io/

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Group's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Group's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

The Group cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Group only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Group will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.