zSpace, Inc. (ZSPC) AI Stock Analysis

• Market Cap: $24.28M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• 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: 1,439,648
• 30 Day Avg. Volume: 1,218,763
• 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: 3.77
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: -6.77
• 1Y Price Target: $3.50
• Price Target Upside: 227.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 39 Underperform
• Price Target: $1.50 ▲(40.19% Upside)

zSpace, Inc. receives a low overall stock score due to significant financial instability, marked by high operational losses and negative equity. Technical analysis indicates a bearish trend, and valuation metrics highlight unprofitability. These factors collectively suggest a high-risk investment.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient production and pricing strategies, which can support long-term profitability if operational costs are managed.

Innovative Product Offering

Focusing on AR/VR in education provides a competitive edge in a niche market, potentially driving future growth as technology adoption increases in schools.

Strategic Partnerships

Strategic partnerships enhance product offerings and expand market reach, fostering sustainable revenue streams and strengthening market position.

Negative Factors

Declining Revenue

Declining revenue signals potential market challenges or competitive pressures, which could hinder growth and long-term financial stability if not addressed.

Negative Equity

Negative equity indicates financial instability, raising concerns about the company's solvency and its ability to manage liabilities without external support.

High Operational Losses

Significant operational losses reflect inefficiencies and may require restructuring or cost-cutting measures to achieve profitability and ensure long-term viability.

zSpace, Inc. Business Overview & Revenue Model

Company Description

zSpace, Inc. (ZSPC) is a technology company specializing in augmented and virtual reality (AR/VR) solutions, primarily focusing on the education sector. The company's core products include immersive learning hardware and software designed to enhance educational experiences through interactive 3D simulations and visualizations. zSpace aims to engage students and educators by providing innovative tools that facilitate hands-on learning and exploration across various subjects.

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

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: Neutral
• Last Price: 1.07
• 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 Neutral. The current price of 1.07 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.82, and below the 200-day MA of 7.28, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 44.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
SSYS	59 Neutral	$982.18M	―	-11.22%	―	-6.00%	17.87%
NNDM	56 Neutral	$369.03M	―	-6.85%	―	27.39%	-64.74%
RCAT	54 Neutral	$1.75B	―	-100.48%	―	―	―
DDD	51 Neutral	$402.71M	―	-46.51%	―	-9.11%	58.95%
CAN	50 Neutral	$595.63M	―	-75.92%	―	82.61%	42.42%
ZSPC	39 Underperform	$24.28M	―	―	―	-9.92%	30.84%

zSpace, Inc. Corporate Events

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.

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.

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.