zSpace, Inc. (ZSPC)
OTHER OTC:ZSPC
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zSpace, Inc.
(OTC:ZSPC)
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Rating:42Neutral
Price Target:
$0.18
▲(268.00% Upside)
Action:Reiterated
Date:06/01/26
The score is driven primarily by very weak financial performance (large ongoing losses, negative equity, and sustained cash burn). Technicals also remain bearish with the stock far below key moving averages, despite oversold readings. Offsetting factors are limited: the earnings call showed improving margins and cost discipline, and recent debt restructuring may ease near-term pressure, but delisting risk and continuing top-line/retention challenges keep the overall outlook low.
Positive Factors
Higher‑margin software mix
A rising software/services mix (47% of revenue) and better hardware economics underpin structurally higher gross margins. Recurring software contracts improve revenue visibility and margins versus one‑time hardware sales, enabling more durable profitability leverage as installed base grows.
Negative Factors
Weakened balance sheet
Persistent negative equity and meaningful debt relative to assets materially constrain capital flexibility. The capital structure limits ability to fund growth internally, elevates recapitalization and dilution risk, and gives creditors/ preferred holders priority over common shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Higher‑margin software mix
A rising software/services mix (47% of revenue) and better hardware economics underpin structurally higher gross margins. Recurring software contracts improve revenue visibility and margins versus one‑time hardware sales, enabling more durable profitability leverage as installed base grows.
Read all positive factors
zSpace, Inc. (ZSPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$921.66K
Dividend YieldN/A
Average Volume (3M)909.43K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-28.81%
EPS Growth-48.69%
CountryUS
Employees78
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-27.07
Shares Outstanding4,798,430
10 Day Avg. Volume517,754
30 Day Avg. Volume909,428
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.52
Price to Sales (P/S)0.42
P/FCF Ratio-0.66
Enterprise Value/Market Cap10.50
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit0.75
Enterprise Value/Ebitda-0.43
Forecast
1Y Price Target
$0.19Price Target Upside280.00% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-5.25
Revenue Forecast (FY)$24.72M
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 t...
How the Company Makes Money
zSpace makes money primarily by selling its education-focused immersive learning platform as a combination of hardware and software. Key revenue streams include: (1) hardware sales of zSpace interactive 3D displays and related peripherals used in ...
zSpace, Inc. Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: encouraging operational progress (sequential revenue/bookings recovery, gross margin expansion, meaningful cost reductions, product launches and notable deployments) alongside material top-line and retention challenges (22% YoY revenue decline, ACV down 13%, NDRR at 65% for the reported cohort), geopolitical order disruptions, constrained funding visibility in target markets, and a modest absolute cash balance. Management's actions (expense cuts, product innovations, and a Board strategic review) and sequential improvements provide cautious optimism, but significant YoY declines and renewal shortfalls prevent a clearly positive view.Positive Updates
Sequential Revenue and Bookings Recovery
Revenue grew 8% sequentially off Q4 2025 weakness, and bookings for the quarter were $6.1M (down 8% YoY) but up 81% sequentially, indicating improving demand momentum in early 2026.
Negative Updates
Year-over-Year Revenue Decline
First quarter revenues were $5.3M, down 22% YoY, reflecting continued top-line pressure following a challenging 2025.
Read all updates
Q1-2026 Updates
Positive
Negative
Sequential Revenue and Bookings Recovery
Revenue grew 8% sequentially off Q4 2025 weakness, and bookings for the quarter were $6.1M (down 8% YoY) but up 81% sequentially, indicating improving demand momentum in early 2026.
Read all positive updates
Company Guidance
Management did not provide formal guidance but outlined a scenario where, with modest sequential gross‑margin expansion and current run‑rate operating expenses (~$19M annual, excluding stock‑based comp), the company could approach EBITDA breakeven by year‑end; that scenario assumes a repeat of last year’s ~ $30M top line (versus pre‑IPO demand of $35–44M) and illustrative quarterly seasonality of 20% Q1 / 30% Q2 / 30% Q3 / 20% Q4. Key Q1 metrics supporting the view included bookings of $6.1M (‑8% YoY, +81% QoQ), revenue $5.3M (‑22% YoY, +8% QoQ) with software & services 47% of revenue (up from 43%), ACV of renewable software $10.1M (‑13% YoY, +2% QoQ; normalized $11.2M), net dollar retention for ≥$50k ACV customers 65% (normalized 82%), gross profit $2.8M (‑13% YoY) and gross margin 53% (+5.6 ppt YoY, +3.9 ppt QoQ), operating expenses $4.9M ex‑SBC (‑35% YoY) with people costs 54% of OpEx (‑43% YoY), and cash of $2.9M versus $1.1M a year ago—factors management cited as consistent with the breakeven pathway if demand and margins track their assumptions.zSpace, Inc. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
14
Very Negative
Cash Flow
12
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.35M | 27.86M | 38.10M | 43.92M | 35.78M |
| Gross Profit | 12.84M | 13.26M | 15.57M | 16.89M | 13.13M |
| EBITDA | -22.43M | -23.89M | -17.96M | -10.10M | -11.38M |
| Net Income | -26.11M | -25.39M | -20.82M | -13.04M | -15.17M |
Balance Sheet | |||||
| Total Assets | 10.48M | 7.59M | 13.53M | 13.85M | 18.21M |
| Cash, Cash Equivalents and Short-Term Investments | 2.86M | 1.02M | 4.86M | 2.82M | 4.06M |
| Total Debt | 12.34M | 17.71M | 11.96M | 19.07M | 44.50M |
| Total Liabilities | 35.85M | 30.09M | 28.22M | 144.32M | 65.68M |
| Stockholders Equity | -25.38M | -22.51M | -14.69M | -130.47M | -47.47M |
Cash Flow | |||||
| Free Cash Flow | -16.38M | -18.00M | -8.89M | -6.42M | -8.91M |
| Operating Cash Flow | -16.35M | -17.97M | -8.87M | -6.41M | -8.90M |
| Investing Cash Flow | -28.00K | -26.00K | -13.00K | -5.00K | -11.00K |
| Financing Cash Flow | 18.29M | 14.38M | 10.48M | 5.59M | 6.94M |
zSpace, Inc. Technical Analysis
Negative
0.05
Price Trends
0.95
Negative
4.50
Negative
15.01
Negative
Market Momentum
-0.23
Negative
31.75
Neutral
54.21
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 0.05 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.95, and below the 200-day MA of 15.01, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 54.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZSPC.
zSpace, Inc. Risk Analysis
zSpace, Inc. disclosed 51 risk factors in its most recent earnings report. zSpace, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
zSpace, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $49.33M | -99.10 | -1.56% | ― | 15.50% | 94.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $40.51M | -2.33 | -15.75% | ― | -18.35% | -170.78% | |
51 Neutral | $55.65M | -2.52 | -66.25% | ― | -19.66% | 97.84% | |
47 Neutral | $13.71M | -0.93 | -7.04% | ― | 11.39% | 30.41% | |
45 Neutral | $7.21M | -0.50 | -17.53% | ― | -16.56% | -412.98% | |
42 Neutral | $921.66K | >-0.01 | 120.74% | ― | -28.81% | -48.69% |
* Technology Sector Average
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zSpace, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
zSpace Restructures Debt and Overhauls Capital Structure
Positive
Jun 1, 2026
On May 28, 2026, zSpace, Inc. undertook a comprehensive restructuring of about $12 million of debt owed to 3i, LP and Fiza Investments Limited, converting portions into common stock and a new Series P-2 Convertible Preferred Stock while amending e...
Business Operations and StrategyFinancial Disclosures
zSpace Begins Strategic Review Amid Mixed First-Quarter Results
Negative
May 14, 2026
On May 14, 2026, zSpace reported first-quarter 2026 revenue of $5.3 million, down from $6.8 million a year earlier, as EMEA orders were delayed or returned due to the Iran war, though gross margin improved to 53% on a richer mix of company-owned s...
Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
zSpace Faces Nasdaq Delisting After Reverse Stock Split
Negative
Apr 23, 2026
On December 11, 2025, zSpace, Inc. disclosed that it had fallen out of compliance with Nasdaq’s $1.00 minimum bid price requirement after its shares traded below that threshold for 30 consecutive sessions, triggering a 180‑day cure per...
Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
zSpace Announces 1-for-25 Reverse Stock Split Implementation
Negative
Apr 17, 2026
On April 16, 2026, zSpace, Inc. filed a Certificate of Amendment to implement a 1-for-25 reverse stock split of its common stock, effective at 11:59 p.m. Eastern on April 20, 2026, with trading to begin on a split-adjusted basis on April 21 under ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
zSpace Reports 2025 Results Amid Restructuring and Financing
Negative
Mar 30, 2026
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...
Business Operations and StrategyPrivate Placements and Financing
zSpace Restructures Debt and Defers Interest Obligations
Negative
Mar 24, 2026
On March 19, 2026, zSpace, Inc. refinanced its outstanding debt with Itria Ventures LLC by entering a new $1,344,500 term loan at 18.99% interest, payable in 24 equal monthly installments, and using the proceeds to fully repay two prior $1,000,000...
Business Operations and StrategyPrivate Placements and Financing
zSpace Amends Convertible Note, Adds New Financing Round
Neutral
Mar 16, 2026
On April 10, 2025, zSpace, Inc. entered into a securities purchase agreement with an institutional investor for a senior secured convertible note with an original principal amount of $13,978,495, which closed on April 11, 2025 and is convertible i...
Regulatory Filings and ComplianceStock Split
zSpace Stockholders Approve Potential Reverse Stock Split Authorization
Neutral
Mar 13, 2026
On March 13, 2026, stockholders of zSpace, Inc. holding 50.33% of the company’s voting power acted by written consent to authorize the board to implement a reverse stock split of the company’s common shares at a ratio between 1‑f...
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.