Shares in Engage XR Holdings PLC (AIM:EXR) fell 16% to 0.4p after the group reported a sharp drop in revenues, hit by delays to contract signings and weaker demand from corporate clients.
The AIM-listed AI and spatial computing business said it expects full-year revenue of about €1.9 million for 2025, down from €3.4 million a year earlier.
The company blamed the decline on lower-than-expected enterprise sales and renewals, particularly in the second half, as a global slowdown in hiring reduced demand for training and onboarding tools.
Several large corporate customers either renewed contracts at much lower levels or chose not to renew at all, weighing heavily on fourth-quarter performance.
The group expects to report an earnings loss before interest, tax, depreciation and amortisation of around €2.4 million, an improvement on the €4.0 million loss in 2024, reflecting tighter cost control.
Year-end cash stood at €1.6 million, down from €3.6 million a year earlier but ahead of market expectations.
Management said it had seen better momentum in the education market, with growing usage across schools and homeschooling. Recent product updates now support Chromebook devices, a key step for scaling in the US education sector.
Chief executive David Whelan said 2025 had been “another challenging year”, adding that the board remained focused on cash preservation while pursuing longer-term opportunities in education.