zSpace, Inc. (ZSPC) AI Stock Analysis

• Market Cap: $17.93M
• Dividend Yield: N/A
• Average Volume (3M): 869.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -24.20%
• EPS Growth: 1.31%
• Country: US
• Employees: 78
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.21
• Shares Outstanding: 29,050,068
• 10 Day Avg. Volume: 1,231,959
• 30 Day Avg. Volume: 869,809
• PEG Ratio: 0.02
• Price to Book (P/B): -3.55
• Price to Sales (P/S): 1.37
• P/FCF Ratio: -5.86
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: -1.90
• 1Y Price Target: $2.30
• Price Target Upside: 400.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.92
• Revenue Forecast (FY): $31.70M

• Rating: 40 Underperform
• Price Target: $0.50 ▲(8.70% Upside)

zSpace, Inc. receives a low overall stock score due to significant financial challenges, including declining revenues and high operational losses. Technical analysis indicates weak momentum, and valuation metrics are unattractive with a negative P/E ratio. The earnings call provided some positive insights on international expansion and revenue mix improvements, but these are overshadowed by broader financial and market challenges.

Positive Factors

International Expansion

International expansion into new markets like Dubai and Europe enhances zSpace's global footprint, diversifying revenue sources and reducing reliance on the U.S. market.

Software and Services Revenue Growth

Increasing software and services revenue indicates a shift towards higher-margin, recurring income streams, improving long-term profitability and financial stability.

New Product Launch

The launch of Precision Measurement strengthens zSpace's product portfolio, enhancing its appeal in the education sector and supporting long-term growth through innovation.

Negative Factors

Declining Revenue

Significant revenue declines highlight challenges in maintaining market share and demand, potentially impacting future growth and financial health.

Financial Instability

Negative equity and high leverage indicate financial instability, limiting zSpace's ability to invest in growth and weather economic downturns.

Challenges in U.S. Market

Uncertainties in the U.S. education market create unpredictable revenue streams, complicating strategic planning and financial forecasting.

zSpace, Inc. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

zSpace generates revenue through several key streams, primarily by selling its zSpace systems, including hardware and software packages, to educational institutions and training organizations. They also monetize through licensing of their software applications and educational content, often in partnership with curriculum developers and educational publishers. Additionally, zSpace may engage in service agreements for installation, support, and training, further contributing to their earnings. Strategic partnerships with schools, universities, and corporations enhance their market reach and drive sales, while ongoing maintenance contracts provide a steady stream of recurring income.

zSpace, Inc. Financial Statement Overview

Summary

zSpace, Inc. faces significant financial challenges, including declining revenues, high operational losses, and negative equity. Despite a strong gross profit margin, the overall financial health is concerning due to persistent losses, high leverage, and reliance on external financing.

Income Statement

zSpace, Inc. shows declining revenue growth with a revenue decrease of 13.22% from 2023 to 2024. The gross profit margin is 40.86% for 2024, which is relatively strong, but the company is deeply unprofitable with a negative net profit margin of -54.66%. Additionally, EBIT and EBITDA margins are both significantly negative, indicating operational challenges.

Balance Sheet

The balance sheet reflects financial instability with negative stockholders' equity of -$14.69 million in 2024, suggesting more liabilities than assets. The debt-to-equity ratio is not meaningful due to negative equity. High leverage and negative equity raise concerns about financial solvency.

Cash Flow

Cash flows show negative operating and free cash flows in 2024, indicating cash outflows from operations. The free cash flow to net income ratio is not meaningful due to negative values. However, financing cash inflows suggest reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	31.55M	38.10M	43.92M	35.78M
Gross Profit	14.35M	15.57M	16.89M	13.13M
EBITDA	-19.96M	-17.96M	-10.10M	-11.38M
Net Income	-21.73M	-20.82M	-13.04M	-15.17M
Balance Sheet
Total Assets	13.46M	13.53M	13.85M	18.21M
Cash, Cash Equivalents and Short-Term Investments	4.27M	4.86M	2.82M	4.06M
Total Debt	10.96M	11.96M	19.07M	44.50M
Total Liabilities	33.14M	28.22M	144.32M	65.68M
Stockholders Equity	-19.68M	-14.69M	-130.47M	-47.47M
Cash Flow
Free Cash Flow	-19.07M	-8.89M	-6.42M	-8.91M
Operating Cash Flow	-19.05M	-8.87M	-6.41M	-8.90M
Investing Cash Flow	-26.00K	-13.00K	-5.00K	-11.00K
Financing Cash Flow	20.16M	10.48M	5.59M	6.94M

zSpace, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZSPC, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 1.07, and below the 200-day MA of 5.31, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 29.17 is Positive, neither overbought nor oversold. The STOCH value of 7.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZSPC.

zSpace, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CAN	49 Neutral	$510.85M	―	-62.67%	―	83.38%	50.44%
SSYS	49 Neutral	$811.26M	―	-15.13%	―	-2.93%	-22.55%
NNDM	45 Neutral	$345.01M	-1.49	-10.03%	―	42.17%	-215.37%
RCAT	44 Neutral	$789.04M	―	―	―	―	―
DDD	40 Neutral	$251.04M	-18.40	7.15%	―	-11.78%	―
ZSPC	40 Underperform	$17.93M	―	―	―	-24.20%	1.31%

zSpace, Inc. Corporate Events

zSpace Earnings Call: Mixed Sentiment Amid Challenges

In a recent earnings call, zSpace, Inc. conveyed a mixed sentiment regarding its financial performance. While the company celebrated significant strides in international expansion and a robust increase in software and services revenue, these positives were tempered by notable year-over-year declines in overall revenue and bookings. Challenges in the U.S. market, compounded by the impact of a government shutdown, contributed to a balanced view of the company’s current standing.

zSpace Reports Strategic Shift Amid Financial Challenges

zSpace, Inc., a leader in immersive augmented reality learning solutions for education, reported its third-quarter 2025 financial results, highlighting its strategic focus on software and services. The company noted a significant shift in its revenue composition, with software and services accounting for over 50% of total revenue, contributing to a gross margin increase of over 640 basis points. Despite a decrease in overall revenue to $8.8 million from $14.2 million in the same period last year, zSpace expanded its global reach by deploying its solutions in Dubai and Connecticut. The company faced a net loss of $6.2 million, compared to a $0.2 million loss in the previous year, attributed to macroeconomic challenges and funding uncertainties. Looking forward, zSpace remains committed to its strategy of delivering innovative learning solutions and is optimistic about growth as economic conditions improve.

zSpace, Inc. Reports Q3 2025 Financial Results

zSpace, Inc. reported its financial results for the third quarter of 2025, highlighting a focus on strategic priorities and software revenue growth, which now comprises over 50% of total revenue. Despite a decrease in total revenue to $8.8 million from $14.2 million in the previous year, the company saw a gross margin expansion of over 640 basis points. Key developments include the deployment of AR/VR learning platforms in Danbury Public Schools and a partnership with GEMS Education in Dubai, expanding zSpace’s global reach. The company continues to face macroeconomic challenges and funding uncertainty but remains committed to delivering innovative learning solutions and long-term shareholder value.

The most recent analyst rating on (ZSPC) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on zSpace, Inc. stock, see the ZSPC Stock Forecast page.

zSpace Transfers Stock Listing to Nasdaq Capital Market

On October 20, 2025, zSpace, Inc. announced the transfer of its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, effective October 16, 2025. This strategic move allowed zSpace to regain compliance with Nasdaq’s listing requirements, aligning better with its business profile and growth-stage status. The transfer is expected to provide a solid foundation for sustained compliance and support the company’s growth initiatives, including international expansion and the success of its Career Coach AI platform.

The most recent analyst rating on (ZSPC) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on zSpace, Inc. stock, see the ZSPC Stock Forecast page.

zSpace, Inc. Amends Convertible Note Terms

On October 15, 2025, zSpace, Inc. amended its Senior Secured Convertible Note with an institutional investor, reducing the ‘Floor Price’ of its common stock from $1.98 to $0.60 per share and adjusting other equity conditions. This amendment could potentially impact the company’s financial flexibility and stock performance. Additionally, the company held its 2025 annual meeting of stockholders, where all five proposals, including the election of directors and ratification of the audit firm, were approved, reflecting strong shareholder support and potentially influencing future governance and operational strategies.

The most recent analyst rating on (ZSPC) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on zSpace, Inc. stock, see the ZSPC Stock Forecast page.

zSpace, Inc. Faces Nasdaq Non-Compliance Notice

On October 1, 2025, zSpace, Inc. received a notice from Nasdaq indicating non-compliance with the requirement to maintain a minimum market value of publicly held shares of at least $15 million. The company has 180 days to regain compliance, failing which it may face delisting. zSpace, Inc. plans to monitor its market value and explore options to meet Nasdaq’s criteria, including potentially transferring to the Nasdaq Capital Market.

The most recent analyst rating on (ZSPC) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on zSpace, Inc. stock, see the ZSPC Stock Forecast page.