Would be interesting to know how the xm25 actually works.
Speculation: Sounds like it might have a little computer chip transceiver in the round and some sort of guidance mechanism controlled by the chip, with the parameters being set by the laser range finder. I would expect there would have to be a guidance system in order to achieve the accuracy they are talking about, perhaps controlled by a link back to the range finder using relative gps. Optical might be a bit hard if you are firing at hidden targets!
If it has a guidance system something like that, it could be targeted over quite a large span of ranges for the same kind of round.
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