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zSpace, Inc. ( (ZSPC) ) has issued an update.
On March 30, 2026, zSpace reported fourth-quarter and full-year 2025 results showing revenue declines driven largely by a U.S. federal government shutdown, even as it accelerated a strategic mix shift toward software and services that lifted gross margins. Fourth-quarter revenue fell to $4.8 million from $8.5 million a year earlier and full-year revenue dropped to $27.9 million from $38.1 million, while software and services rose to 53% of quarterly revenue and 49% for the year, expanding gross margin to 49% in the quarter and 48% for 2025, but net losses widened and cash fell to about $1 million, prompting restructuring, cost cuts and new financings to bolster liquidity and support international expansion and K–12 and CTE growth.
The company took multiple structural actions in late 2025 and early 2026, including a December 11, 2025 restructuring that cut run-rate operating expenses by more than 30%, a new AI-enabled zStylus One product launch, and fresh capital from a $3 million strategic investment and a $4.3 million secured convertible note. Recent deployments at institutions such as Bellflower’s Mayfair High School and Atlanta Public Schools, as well as growing activity and visibility in Italy, underscore zSpace’s effort to deepen its installed base and position itself for scalable global growth despite weaker bookings, lower software contract values and elevated net losses.
The most recent analyst rating on (ZSPC) stock is a Hold with a $0.41 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., listed on Nasdaq as ZSPC, is a San Jose, California-based provider of augmented and virtual reality solutions focused on STEM, career and technical education, and career-readiness programs in the education sector. Its hardware and software platform, used by more than 3,500 school districts and higher-education institutions, delivers hands-on immersive learning experiences backed by a portfolio of over 80 patents and published research on learning outcomes.
Average Trading Volume: 1,210,750
Technical Sentiment Signal: Sell
Current Market Cap: $4.09M
For an in-depth examination of ZSPC stock, go to TipRanks’ Overview page.