zSpace, Inc. (ZSPC) Market Cap
zSpace, Inc. has a market capitalization of $1.3M.
Financials based on reported quarter end 2025-12-31
Price: $0.05
▼ -0.03 (-38.46%)
Market Cap: 1.34M
NASDAQ · time unavailable
CEO: Paul E. Kellenberger
Sector: Technology
Industry: Computer Hardware
IPO Date: 2024-12-05
Website: https://zspace.com
zSpace, Inc. (ZSPC) - Company Information
Market Cap: 1.34M · Sector: Technology
zSpace, Inc. provides augmented and virtual reality educational technology solutions for K-12 schools, and career and technical education markets in the United States and internationally. The company provides StudioA3, an application that allows teachers to build lessons for various subject using pre-made models; hardware products comprising stylus, eyewear, laptop, and power adapter products; and installation and/or training services. Its platform offers a range of educational tools designed for K-12 science, technology, engineering, and math lessons, as well as training skilled trades in areas, such as health sciences, automotive engineering/repair, and software programming and advanced manufacturing. The company was formerly known as Infinite Z, Inc. and changed its name to zSpace, Inc. in February 2013. The company was incorporated in 2006 and is based in San Jose, California.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 1 sources)
Consensus Price Target
Low
$20
Median
$20
High
$20
Average
$20
Potential Upside: 37213.4%
Price & Moving Averages
Related Companies in Technology
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"ZSPC reported revenue of ~$4.85M for the period ended 2025-12-31, alongside a net loss of ~$7.29M (EPS: -$25,387.21). Net margin was deeply negative at roughly -150% (net income divided by revenue), indicating substantial operating/profitability stress. Free cash flow was also negative at about -$3.95M, driven by negative operating cash flow of approximately -$3.94M; capex was minimal (~-$5K). On the balance sheet, total assets were ~$7.59M versus total liabilities of ~$30.09M, leaving total equity of about -$22.51M. Net debt stood at ~$9.31M, implying limited balance-sheet resilience and elevated funding/liquidity risk. From a valuation and investor-return standpoint, the market price is ~$0.1135, with a sharp decline of about -98.5% over 1 year and -88.4% over 6 months. With dividends paid at $0 and no buyback information provided, shareholder returns have been dominated by capital depreciation. The analyst price target consensus shown ($20) is not reconcilable with the current price and should be interpreted cautiously given the company’s losses and negative equity profile."
Revenue Growth
Revenue was ~$4.85M, but no prior-period growth rate was provided in the dataset, limiting assessment of trend or stability.
Profitability
Net income was -$7.29M versus $4.85M revenue (net margin ~-150%), with EPS of -$25,387.21 indicating severe profitability challenges.
Cash Flow Quality
Free cash flow was about -$3.95M, supported by negative operating cash flow (~-$3.94M). Dividends were $0; no buyback data provided.
Leverage & Balance Sheet
Balance sheet shows total equity of about -$22.51M (liabilities ~4.0x assets) and net debt of ~$9.31M, suggesting elevated financial risk.
Shareholder Returns
Total shareholder value has deteriorated materially: price is down ~-98.5% over 1 year and ~-77.9% YTD, with no dividends provided.
Analyst Sentiment & Valuation
Consensus price target of $20 is far above the current ~$0.1135 and is not supported by the provided loss-making fundamentals; valuation confidence appears low.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
ZSPC’s Q4 and full-year 2025 results show improving profitability quality despite sharp revenue contraction. Revenue fell to $27.9M (-27% YoY) in 2025, but software/services held up better (-15%) and grew to 49% of mix (+7 pp), lifting gross margin to 47.6% (+6.7 pp). Q4 revenue was $4.8M (-43% YoY), with management attributing the slump to a freeze in orders and shipments during the U.S. federal government shutdown; nevertheless, Q4 gross margin rose to 49.1% (+8.4 pp) as the 57% software/services mix (+10 pp) and rate factors drove gains. The risk picture is dominated by funding uncertainty (tariffs, freezes, shutdown effects) and Middle East conflict delaying shipments/acceptance. Liquidity deteriorated materially to ~$1M cash at Dec 31, 2025. Management’s 2026 path to adjusted EBITDA breakeven is scenario-based: repeat 2025 revenue (~$27–28M), expand gross margin by ~7 pp YoY, and rely on December cost cuts (OpEx run-rate ~ $19M ex-SBC) to reach breakeven/near-breakeven. Customer normalization excluding two large accounts implies materially higher retention (NDRR 88%), suggesting stability beyond the macro-impacted renewals.
Growth Catalysts
- Gross margin expansion driven by software/services mix: Q4 software/services 57% of revenue (+10 pp mix shift vs prior year)
- Next-generation hardware: launched zStylus One (AI-enabled stylus) designed to eliminate external sensor module/embedded tracking in the laptop; expected to support broader adoption of next-gen platforms as customers upgrade
- Continued software-led customer renewals and adoption of software offerings (software/services over 50% of total revenue in Q4, over 50% full-year mix)
Business Development
- Pennsylvania: Greater Altoona Career & Technology Center expanded Dental Assistant Program using zSpace Inspire 2 and zSpace Dental Anatomy Application
- California: Mayfair High School established a 36-station zSpace Inspire AR/VR laptop lab (new customer; targeted CPE and core academics)
- Atlanta Public Schools (APS): long-standing multi-year integration since 2015 across elementary/middle/high school (ongoing/renewed deployments)
- Planet One: named as late January capital partner (convertible preferred of $3 million; also referenced for potential international expansion cooperation/joint venture)
- Also referenced: additional capital via Planet One and '3i' (named partner/investor mentioned without further numeric detail for '3i')
Financial Highlights
- Full year 2025 revenue: $27.9M, down 27% YoY
- Full year software & services revenue down only 15% YoY; represented 49% of revenue portfolio vs 42% in 2024 (+7 percentage points)
- Full year gross margin: 47.6%, up 6.7 percentage points vs 2024
- Q4 2025 revenue: $4.8M, down 43% YoY (attributed to freeze in orders/shipments during U.S. federal government shutdown)
- Q4 software & services: 57% of revenue (+10 pp mix shift); hardware fell below 50% for second quarter in a row
- Q4 gross margin: 49.1%, up 8.4 percentage points vs Q4 2024 (mix shift contributed +2.8 pp; rate-based factors +5.6 pp)
- Quarter ended cash: ~$1.0M cash/cash equivalents/restricted cash at Dec 31, 2025 vs $4.9M at Dec 31, 2024
- One-time gross profit impacts in 2025: discontinued software license inventory charge tied to exit of China and bringing previously resold third-party titles in-house; gross profit also affected by applicable tariffs and duties
- Renewable software annualized contract value (ACV) as of Dec 31, 2025: $9.9M, down 12% YoY
- Net dollar revenue retention (customers with at least $50k ACV) as of Dec 31, 2025: 71%; management states normalization excluding two large customers would imply $11.1M ACV (down 2%) and 88% NDRR
- Bookings: Q4 bookings $3.4M, down 21% YoY; full-year bookings for 12-month period ending Dec 31 $26.1M, down 34% YoY
- Share-based comp: Q4 included $2.0M stock-based compensation; RSU burn rate managed at 6.2% vs 7% target
Capital Funding
- Planet One convertible preferred: $3 million announced late January 2026 (structural/investment capital; no additional balance-sheet debt details provided for this tranche)
- Additional capital mentioned: 'Planet One and [3i]' (amount for 3i not specified)
- Restructuring/financing: additional restructuring of 'Itria and PISA' debt announced last week (terms/amount not specified)
- Cash runway noted implicitly via liquidity: approximately $1.0M cash/cash equivalents/restricted cash at Dec 31, 2025
Strategy & Ops
- December 2025 restructuring: eliminated approximately half of FTE positions across all levels and ~1/3 of people costs
- Board reduction: reduced Board of Directors from 7 seats to 5
- Abolished executive bonus plan for 2026
- OpEx run-rate target: management believes current OpEx run rate is closer to $19M annually excluding stock-based compensation
- Revenue strategy emphasis: maintain/expand gross margin expansion via software mix, first-party software content, and hardware refreshes that reduce bill of materials costs
- International accessibility: AI translation to support 50+ languages across platform, website content, and application interfaces
- K-12/Career pathway mix shift: CTE continues to grow; Q4 bookings by segment CTE 56% (from 58% in Q4 2024), and CTE discussed as >50% of mix
Market Outlook
- No formal 2026 guidance; management intent to avoid issuing guidance that may require rescinding
- Breakeven target logic: if 2026 revenue repeats 2025 levels (~$27M-$28M), then cost reductions plus ability to expand gross margins by ~7 percentage points YoY could bring adjusted EBITDA to at or near breakeven
- CFO reference to consensus: adjusted EBITDA consensus negative $12.5M for 2026; management stated breakeven is within reach under scenario assumptions
- Q1 2026: as of March 30 (near end of quarter), progress has become 'more mixed' in March due to Middle East conflict delaying shipments/acceptance for opportunities tied to customers based in the region; Q1 is described as 'ridiculously back-end loaded'
- Next reporting: expects to speak at first quarter 2026 results (date not provided)
Risks & Headwinds
- Macro/funding uncertainty continued: tariff policy, education funding freezes, and prolonged U.S. federal government shutdown impacted Q4 orders/shipments
- Federal funding timing/disruption effects: lingering hesitancy from K-12 buyers despite ~10% of funding in the company’s market coming from federal sources (including a state that reportedly sent money back due to uncertainty)
- Middle East conflict (war in Iran): delays international opportunities; Q1 shipment/acceptance risk for March given customer base in the Middle East
- Customer renewal risk: renewable software annualized contract value down 12%; NDRR 71% reflects two large customers whose expanded commitments in 2024 were not fully renewed due to macro factors
- Tariffs/duties impact gross profit and are explicitly cited as headwind
- Liquidity risk: cash reduced to ~$1M at Dec 31, 2025 vs $4.9M prior year
Sentiment: MIXED
Note: This summary was synthesized by AI from the ZSPC Q4 2025 (reported for fourth quarter and full year ended Dec 31, 2025) earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.