Glimpse Group, Inc. (NASDAQ:VRAR) announced that it will pursue a spin‑off of its Brightline Interactive unit, creating a standalone public company focused on defense‑AI spatial computing. The board approved the spin‑off in September 2025, and investment banking partners were engaged in October 2025. Glimpse targets completion in the first half of 2026, with Brightline’s Spatial Core platform positioned to capture multi‑million‑dollar defense contracts and maintain gross margins of 65‑75%.
The spin‑off is intended to unlock the hidden value of Brightline’s high‑margin technology while allowing Glimpse to concentrate on its Foretell AI and other immersive‑technology initiatives. By separating the two businesses, each can pursue tailored growth strategies, attract investors with specific sector interests, and potentially achieve a higher valuation than when combined under a single corporate umbrella.
Brightline Interactive’s Spatial Core platform has secured a portfolio of defense contracts that generate significant recurring revenue. The unit’s gross margins, consistently between 65% and 75%, reflect strong pricing power and efficient cost management in a niche market that is expanding as defense agencies adopt AI‑driven spatial analytics for training, simulation, and intelligence operations. The platform’s proven track record positions Brightline to scale rapidly once it operates independently.
For Glimpse Group, the spin‑off frees management bandwidth and capital that can be redirected toward accelerating the development of Foretell AI, a generative‑AI platform that serves commercial and government customers. The move also signals confidence in the growth trajectory of both entities: Brightline’s defense‑AI focus aligns with a market projected to grow at a compound annual rate of 12% over the next decade, while Glimpse’s immersive‑technology portfolio is poised to benefit from the broader XR adoption wave.
The decision follows a broader industry trend in which companies separate high‑growth, high‑margin units to unlock shareholder value. Analysts note that the defense‑AI sector’s increasing budget allocations and the strategic importance of spatial computing give Brightline a strong competitive moat, while Glimpse’s focus on AI and XR positions it to capture emerging opportunities in both commercial and government markets.
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