zSpace Raises Preferred Equity, Reshapes Capital Structure

An update from zSpace, Inc. ( (ZSPC) ) is now available.

On January 23, 2026, zSpace, Inc. entered into a securities purchase agreement with an institutional investor to issue Series P Convertible Preferred Stock and five-year warrants for its common stock in one or more closings, with an initial closing on January 27, 2026 raising $3 million from the sale of 1.5 million preferred shares and warrants for 1 million common shares at a preferred share price of $2 and warrant exercise price of $3, with capacity for up to $10 million in total financing under the agreement. Also on January 27, 2026, the company filed a Certificate of Designations in Delaware creating up to 5 million shares of Series P Convertible Preferred Stock carrying an 18% cumulative, paid-in-kind dividend, liquidation preference over junior securities, voting rights on an as-converted basis, significant protective provisions over future corporate actions, and a structured conversion feature into common stock beginning in year three and automatically in year five at the lower of the $2 conversion price or 80% of the 90-day VWAP, subject to ownership caps and an exchange cap tied to trading market rules, which together materially reshape zSpace’s capital structure and governance dynamics for preferred holders and common shareholders.

The most recent analyst rating on (ZSPC) stock is a Sell with a $0.47 price target. To see the full list of analyst forecasts on zSpace, Inc. stock, see the ZSPC Stock Forecast page.

Spark’s Take on ZSPC Stock

According to Spark, TipRanks’ AI Analyst, ZSPC is a Neutral.

The score is weighed down primarily by weak financial performance (declining revenue, very large losses, negative equity, and significant cash burn). Technicals also remain pressured with the stock below key longer-term moving averages and negative MACD. Offsetting these risks, the latest earnings call showed improving mix toward software/services and higher gross margins with sequential growth, but year-over-year declines and the absence of formal guidance keep confidence limited.

To see Spark’s full report on ZSPC stock, click here.

More about zSpace, Inc.

zSpace, Inc. is a publicly traded company that issues common and preferred stock and accesses institutional capital markets, indicating a focus on financing its operations and growth through structured equity instruments aimed at institutional and accredited investors.

Average Trading Volume: 957,930

Technical Sentiment Signal: Strong Sell

Current Market Cap: $15.25M

For a thorough assessment of ZSPC stock, go to TipRanks’ Stock Analysis page.