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zSpace, Inc. (ZSPC)
NASDAQ:ZSPC
US Market
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zSpace, Inc. (ZSPC) AI Stock Analysis

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ZSPC

zSpace, Inc.

(NASDAQ:ZSPC)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
$1.00
▼(-9.09% Downside)
zSpace, Inc. is facing significant financial difficulties, with declining revenues, high operational losses, and negative equity being the most impactful factors. The technical analysis indicates a bearish trend with weak momentum. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.
Positive Factors
Product Expansion
The addition of BodyViz and Virtual ECG enhances zSpace's product offerings in health sciences, potentially increasing market penetration and revenue in the education sector.
Strategic Partnerships
Partnering with GEMS Education expands zSpace's reach in the UAE, strengthening its position in the global education market and fostering long-term growth opportunities.
Regulatory Compliance
Regaining compliance with Nasdaq listing standards ensures continued access to capital markets, supporting financial stability and future growth initiatives.
Negative Factors
Declining Revenue
A significant revenue decline suggests challenges in maintaining sales momentum, which could hinder long-term growth and market competitiveness.
Negative Cash Flow
Negative cash flow from operations indicates potential liquidity issues, limiting the company's ability to invest in growth and innovation without external funding.
High Leverage
High leverage and negative equity raise concerns about financial solvency, potentially impacting the company's ability to withstand economic downturns.

zSpace, Inc. (ZSPC) vs. SPDR S&P 500 ETF (SPY)

zSpace, Inc. Business Overview & Revenue Model

Company DescriptionzSpace, Inc. (ZSPC) is a technology company specializing in immersive augmented and virtual reality solutions aimed primarily at education and training sectors. The company develops a suite of products that combine hardware and software to create interactive 3D experiences, enhancing learning and engagement in subjects like science, engineering, and medicine. zSpace's core offerings include their zSpace systems, which integrate virtual reality with physical interaction, allowing users to manipulate 3D content in real-time.
How the Company Makes MoneyzSpace 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 financial challenges with declining revenues, high operational losses, and negative equity. While the gross profit margin indicates some pricing power, the overall financial health is concerning due to persistent losses, high leverage, and reliance on external financing.
Income Statement
20
Very Negative
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
15
Very Negative
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
25
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022
Income Statement
Total Revenue36.97M38.10M43.92M35.78M
Gross Profit16.21M15.57M16.89M13.13M
EBITDA-13.54M-17.65M-6.90M-9.85M
Net Income-15.76M-20.82M-13.04M-15.17M
Balance Sheet
Total Assets12.14M13.53M13.85M18.21M
Cash, Cash Equivalents and Short-Term Investments1.08M4.86M3.13M4.06M
Total Debt18.14M11.96M19.07M44.50M
Total Liabilities34.43M28.22M37.37M65.68M
Stockholders Equity-22.30M-14.69M-23.52M-47.47M
Cash Flow
Free Cash Flow-14.77M-8.89M-6.42M-8.91M
Operating Cash Flow-14.75M-8.87M-6.41M-8.90M
Investing Cash Flow-21.00K-13.00K-5.00K-11.00K
Financing Cash Flow13.02M10.48M5.59M6.94M

zSpace, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.10
Price Trends
50DMA
1.47
Negative
100DMA
2.23
Negative
200DMA
6.57
Negative
Market Momentum
MACD
-0.11
Negative
RSI
37.65
Neutral
STOCH
21.25
Neutral
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 1.1 is below the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.47, and below the 200-day MA of 6.57, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 21.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZSPC.

zSpace, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$37.18B12.37-10.20%1.83%8.50%-7.62%
$943.91M-8.27-11.22%-6.00%17.87%
$886.42M-75.92%82.61%42.42%
$388.61M-2.31-46.51%-9.11%58.95%
$353.75M-1.56-6.85%27.39%-64.74%
$1.34B
$26.44M-9.92%30.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZSPC
zSpace, Inc.
0.96
-15.19
-94.06%
DDD
3D Systems
3.03
<0.01
0.33%
SSYS
Stratasys
11.10
3.96
55.46%
NNDM
Nano Dimension
1.62
-0.61
-27.35%
RCAT
Red Cat Holdings
11.38
8.21
258.99%
CAN
Canaan
1.37
0.01
0.74%

zSpace, Inc. Corporate Events

Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
zSpace Transfers Stock Listing to Nasdaq Capital Market
Positive
Oct 20, 2025

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.

Private Placements and FinancingShareholder Meetings
zSpace, Inc. Amends Convertible Note Terms
Neutral
Oct 17, 2025

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
zSpace, Inc. Faces Nasdaq Non-Compliance Notice
Negative
Oct 3, 2025

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.

zSpace Reports Q2 2025 Financial Results and Strategic Progress
Aug 15, 2025

zSpace, Inc. is a San Jose-based company specializing in augmented and virtual reality solutions for education, focusing on immersive learning experiences in STEM, career readiness, and technical education.

Business Operations and StrategyFinancial Disclosures
zSpace, Inc. Reports Q2 2025 Financial Results
Neutral
Aug 14, 2025

zSpace, Inc. reported its financial results for the second quarter of 2025, highlighting strategic progress despite challenges in the education sector. The company launched its Career Explorer application and expanded its AI Assistant, strengthening its position in immersive learning. Financially, zSpace maintained steady revenue but faced increased net losses and operational expenses compared to the previous year. The company remains optimistic about its long-term growth strategy, supported by customer engagement and market interest.

The most recent analyst rating on (ZSPC) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on zSpace, Inc. stock, see the ZSPC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 28, 2025