zSpace, Inc. (ZSPC) AI Stock Analysis

• Market Cap: $26.44M
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -9.92%
• EPS Growth: 30.84%
• Country: US
• Employees: 78
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.27
• Shares Outstanding: 24,035,868
• 10 Day Avg. Volume: 526,784
• 30 Day Avg. Volume: 2,022,954
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.47
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: -6.77
• 1Y Price Target: $4.33
• Price Target Upside: 293.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 41 Neutral
• 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. Business Overview & Revenue Model

Company Description

zSpace, 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 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 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

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	36.97M	38.10M	43.92M	35.78M
Gross Profit	16.21M	15.57M	16.89M	13.13M
EBITDA	-13.54M	-17.65M	-6.90M	-9.85M
Net Income	-15.76M	-20.82M	-13.04M	-15.17M
Balance Sheet
Total Assets	12.14M	13.53M	13.85M	18.21M
Cash, Cash Equivalents and Short-Term Investments	1.08M	4.86M	3.13M	4.06M
Total Debt	18.14M	11.96M	19.07M	44.50M
Total Liabilities	34.43M	28.22M	37.37M	65.68M
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 Flow	13.02M	10.48M	5.59M	6.94M

zSpace, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SSYS	―	$943.91M	-8.27	-11.22%	―	-6.00%	17.87%
CAN	―	$886.42M	―	-75.92%	―	82.61%	42.42%
DDD	―	$388.61M	-2.31	-46.51%	―	-9.11%	58.95%
NNDM	―	$353.75M	-1.56	-6.85%	―	27.39%	-64.74%
RCAT	―	$1.34B	―	―	―	―	―
ZSPC	―	$26.44M	―	―	―	-9.92%	30.84%

zSpace, Inc. Corporate Events

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.

zSpace Reports Q2 2025 Financial Results and Strategic Progress

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.

zSpace, Inc. Reports Q2 2025 Financial Results

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.