Shares in Engage XR Holdings PLC (AIM:EXR) dropped 15% on Tuesday after the immersive technology company reported an 8% fall in revenue and warned of ongoing delays in converting its sales pipeline into signed contracts.
Revenue for 2024 fell to €3.4 million from €3.7 million the previous year, mainly due to postponed contract closures and a decline in one-off enterprise activity.
Despite this, the group said education-related revenue grew to €1.3 million, buoyed by partner renewals and licence expansions, particularly from US-based OptimaED.
The EBITDA loss narrowed slightly to €3.9 million, supported by cost control, while cash reserves stood at €3.6 million at year-end with no debt. The company has since cut operating costs further, reducing monthly spend to €0.2 million.
Engage said it expects pipeline progress through 2025 and 2026, supported by partnerships with Meta, Lenovo and major resellers. However, near-term conversion delays continue to cloud visibility.
The shares fell 0.15p to 0.8p.