zSpace, Inc. (ZSPC) AI Stock Analysis

• Market Cap: $63.61M
• Dividend Yield: N/A
• Average Volume (3M): 57.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -16.28%
• EPS Growth: 34.51%
• Country: US
• Employees: 78
• Sector: Technology
• Sector Strength: 94
• Industry: Computer Hardware
• EPS (TTM): -0.23
• Shares Outstanding: 22,881,681
• 10 Day Avg. Volume: 82,670
• 30 Day Avg. Volume: 57,428
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.67
• Price Target Upside: 283.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 41 Neutral
• Price Target: $2.50 ▼(-10.07%Downside)

The overall stock score is primarily influenced by financial instability and weak technical indicators. Despite positive corporate events indicating strategic progress and potential future growth, the current financial and technical conditions pose significant risks.

Positive Factors

Financial Performance

Revenue was ahead of guidance and consensus expectations despite continued uncertainty in its end markets related to funding and other macro concerns.

Growth Potential

Analyst reiterates an OUTPERFORM rating and a $10 price target, indicating confidence in the company's future opportunities and growth potential.

Product Introduction

The introduction of the Inspire 2 laptop and Imagine Learning Solution is expected to lead to better revenue growth in the second and third quarters.

Negative Factors

Financial Results

The fourth quarter results and revenue guidance for the first quarter were below expectations, causing the stock to trade $2.00 lower.

Market Challenges

School districts are still navigating funding challenges and delays, impacting the timing of committed orders and hardware deliveries.

Revenue Decline

Revenue declined 29.2% to $8.5 million due to capital constraints prior to the company's IPO, limiting its ability to fulfill backlog orders.

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, Inc. generates revenue through the sale of its AR/VR hardware and software solutions, which are primarily targeted at educational institutions such as schools, colleges, and universities. The company offers a range of products, including zSpace laptops and desktop units equipped with 3D glasses and styluses, as well as software that provides immersive learning experiences. Additionally, zSpace may engage in licensing agreements with content developers to expand its library of educational applications. Key revenue streams include direct sales to educational institutions, software licensing fees, and ongoing support and maintenance services. Strategic partnerships with educational content providers and technology distributors also contribute to the company's revenue generation.

zSpace, Inc. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	Dec 2023	Dec 2022
Income Statement
Total Revenue	―	―
Gross Profit	16.89M	13.13M
EBITDA	―	―
Net Income	-13.04M	-14.78M
Balance Sheet
Total Assets	13.85M	18.21M
Cash, Cash Equivalents and Short-Term Investments	―	―
Total Debt	19.07M	44.50M
Total Liabilities	37.37M	65.68M
Stockholders Equity	―	―
Cash Flow
Free Cash Flow	-6.42M	-8.91M
Operating Cash Flow	-6.41M	-8.90M
Investing Cash Flow	―	―
Financing Cash Flow	―	―

zSpace, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSYS	56 Neutral	$911.01M	―	-13.00%	―	-9.29%	17.86%
NNDM	56 Neutral	$332.44M	―	-9.62%	―	7.35%	16.59%
RCAT	54 Neutral	$1.11B	―	-100.48%	―	―	―
Sector *	50 Neutral	C$3.14B	2.33	-63.57%	2.47%	4.49%	-6.15%
CAN	48 Neutral	$276.54M	―	-90.43%	―	65.68%	50.28%
DDD	43 Neutral	$240.09M	―	-99.85%	―	-8.09%	22.06%
ZSPC	41 Neutral	$63.61M	―		―	-16.28%	34.51%

zSpace, Inc. Corporate Events

zSpace, Inc. Enters Stock Purchase Agreement with Tumim

On July 8, 2025, zSpace, Inc. entered into a Common Stock Purchase Agreement and a Registration Rights Agreement with Tumim Stone Capital LLC, allowing the company to sell up to $30 million worth of newly issued shares of common stock over a 24-month period. The agreement provides zSpace with flexibility in timing and amount of sales, with proceeds intended for operating expenses, working capital, and other corporate purposes. The arrangement is subject to conditions such as stockholder approval for exceeding a 19.99% issuance cap and ensuring Tumim does not own more than 4.99% of the company’s stock.

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.

zSpace Announces Chief Sales Officer Transition

On June 11, 2025, zSpace, Inc. announced that Chief Sales Officer Ron Rheinheimer will resign in connection with his retirement after nine years with the company. Mr. Rheinheimer will remain until January 1, 2026, to assist with the transition to his successor, Matt Cole, who will assume the role on June 16, 2025.

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.

zSpace Reports Q1 2025 Financial Results Amid Challenges

On May 14, 2025, zSpace reported its financial results for the first quarter of 2025, highlighting strategic progress despite a revenue decline. The company successfully transitioned to the Inspire 2 laptop, expanded software capabilities through acquisitions, and joined the Russell 2000® and Russell 3000® Indexes. While facing a challenging macro environment, zSpace closed a $20 million convertible debt financing facility to support strategic initiatives. The company saw an 11% increase in its higher margin software and services business, and a significant improvement in gross margins, positioning itself for long-term growth.

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.

zSpace, Inc. Approves 2025 Incentive Plan for Executives

On May 7, 2025, zSpace, Inc. announced that its Board of Directors approved a 2025 short-term incentive plan for its executive officers. This plan, recommended by the Compensation Committee, offers annual bonuses based on performance objectives. The bonuses are divided into a company component, based on revenue and EBITDA goals, and an individual component, based on personal performance objectives. The plan outlines specific payout percentages depending on the achievement of threshold, target, and high goals, with eligibility contingent on continued employment through the payment date.

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.