Texas DPS Contract Poses Growth Challenge for xReality Group

A Landmark US Contract

xReality Group Limited (ASX, XRG), through its wholly owned US subsidiary Operator XR LLC, has secured a landmark contract worth up to $5.7 million with the Texas Department of Public Safety (DPS). This deal represents the largest order for Operator XR’s flagship OP-2 virtual reality training systems to date, underscoring the company’s growing presence in the competitive US market for law enforcement training technology.

The contract includes an initial $4.3 million order covering software licenses, VR training systems, implementation, and two years of support services. Additionally, there is an optional $1.4 million extension for support services over the following three years, reflecting a potential long-term partnership.

Why Texas DPS Matters

The Texas DPS is a major law enforcement agency responsible for public safety across the second-largest US state by both population and area. Its duties span highway patrol, criminal investigations, driver licensing, and homeland security coordination. Serving over 30 million residents, the agency’s adoption of Operator XR’s OP-2 system is a significant endorsement of the technology’s readiness for large-scale deployment.

Operator XR’s immersive VR training platform aims to enhance officer preparedness by enabling more frequent, safer, and effective training scenarios. This contract not only validates the platform’s capabilities but also positions xReality Group as a serious contender in the US law enforcement training sector.

Strategic Implications and Future Prospects

CEO Wayne Jones highlighted the strategic importance of this contract, emphasizing the credibility gained from partnering with a respected agency like Texas DPS. The deal aligns with xReality’s broader US growth strategy and could pave the way for further contracts with other Department of Public Safety agencies across the country, of which there are 31.

Delivery of the OP-2 systems is expected throughout the second quarter of fiscal year 2026, with payment terms set at 30 days post-delivery. The optional support services over years three to five offer a recurring revenue stream that could enhance the contract’s lifetime value, contingent on uptake.

Overall, this contract marks a pivotal step for xReality Group as it leverages its advanced VR training technology to capture a growing share of the law enforcement training market in the US.