Seventy percent of revenue comes from overseas! AI glasses leader XREAL rushes to Hong Kong stocks, with Alibaba and Sequoia participating in the investment

Ask AI · How XREAL’s Overseas Market Strategy Helps It Become the World’s Leading Smart Glasses Company?

Recently, the global AR glasses leader XREAL Ltd. officially submitted its prospectus to the Hong Kong Stock Exchange, planning to list on the Main Board, with China International Capital Corporation and Citigroup serving as joint sponsors. If this Hong Kong IPO succeeds, XREAL is expected to become the “world’s number one smart glasses company.”

XREAL was founded in 2017, formerly known as Nreal. Its core business is designing, developing, and selling consumer AR glasses and related software ecosystems. The company aims to bring AR technology from professional fields into the mass consumer market, with its products regarded as the key entry point for the next generation of spatial computing.

Currently, the company has formed three major product matrices: the Air series, the One series, and the Light-Ultra-Aura series. In 2019, XREAL launched its first commercialized consumer AR glasses, the Light series, marking an important early milestone in the industry.

In terms of technological layout, XREAL adopts an integrated “hardware + software + ecosystem” model. It has developed Nebula OS, which enables spatial perception, real-time interaction, and multi-task management; it possesses independent spatial perception algorithms and optical engines, pioneering connection solutions between AR glasses and smartphones, gaming consoles, PCs, and smart cars, and has launched lightweight AR glasses suitable for daily wear. Its core experience technology, the XREAL spatial display, is regarded by the industry as a key technological direction defining consumer AR experiences.

According to iResearch data, from 2022 to 2025, XREAL has ranked first in global AR glasses sales revenue for four consecutive years. By 2025, in the global smart glasses market—including AR glasses and non-display smart glasses—XREAL ranks second worldwide and first in China, with a global market share of 27%. As of December 31, 2025, its sales network covered 40 countries and regions, with local sales and operations teams in North America, Japan, and South Korea.

Financial data shows that from 2023 to 2025, XREAL achieved revenues of 390 million yuan, 394 million yuan, and 516 million yuan respectively, with a 30.8% year-on-year growth in 2025; during the same period, gross profit margins increased from 18.8% to 35.2%, with a continuous improvement in profitability structure. In 2025, AR glasses sales revenue reached 403 million yuan, accounting for 78.1% of total revenue; high-end product One series sold 111.4k units, generating 356 million yuan in revenue, becoming a major growth driver.

In 2025, the company’s overseas revenue accounted for as much as 71%, far exceeding the mainland Chinese market (29%). Among them, the United States is its largest single market, contributing 36.9% of revenue, with Japan and Europe contributing 14.6% and 13.8%, respectively, exemplifying a “China R&D, global sales” model for technology going abroad. In the first two months of 2026, product sales increased by 62% year-on-year.

Despite revenue growth, the company is still in an investment phase. From 2023 to 2025, net losses were 882 million yuan, 709 million yuan, and 456 million yuan, respectively, with losses narrowing each year; adjusted net losses also shrank from 437 million yuan to 250 million yuan.

Before the IPO, XREAL completed multiple rounds of financing, with investors including Alibaba, Sequoia China, Hillhouse, Yunfeng Fund, Kuaishou, NIO Capital, and other leading financial and industrial capital. Strategic shareholders such as Taobao China Holdings, fashion eyewear brand Gentle Monster, and consumer electronics manufacturer Luxshare Precision have brought synergies in online channels, fashion design, and supply chain resources.

According to the prospectus, the funds raised will mainly be used for R&D investment, global channel expansion, production line upgrades, and working capital supplementation, to consolidate technological and market leadership and promote a long-term global strategy.

Cover source: Company official website