zSpace, Inc. (ZSPC)
OTHER OTC:ZSPC
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zSpace, Inc.
(OTC:ZSPC)
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Rating:41Neutral
Price Target:
$0.12
▲(138.00% Upside)
Action:Reiterated
Date:05/07/26
The score is driven down primarily by very weak financial health (widening losses, negative equity, and accelerating cash burn) and strongly bearish technicals. Earnings-call initiatives (major cost reductions and margin/mix improvements) provide some upside optionality, but lack of formal guidance, weakening demand signals, and no dividend/meaningful earnings-based valuation support keep the overall risk profile high.
Positive Factors
Software & Services Mix
A rising software and services mix (majority in Q4, 49% for the year) shifts revenue toward higher-margin, recurring streams. This structurally reduces reliance on lumpy hardware sales, improves revenue predictability and supports long-term margin resilience even amid cyclical education spending.
Negative Factors
Steep Revenue Declines
Pronounced top-line contraction and materially weaker bookings (12‑month bookings down 34%) signal persistent demand weakness in core education channels. Structural revenue declines reduce scale benefits, impair long-term unit economics, and make sustaining recurring revenue growth and new deployments more difficult without new sales momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Software & Services Mix
A rising software and services mix (majority in Q4, 49% for the year) shifts revenue toward higher-margin, recurring streams. This structurally reduces reliance on lumpy hardware sales, improves revenue predictability and supports long-term margin resilience even amid cyclical education spending.
Read all positive factors
zSpace, Inc. (ZSPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$501.48K
Dividend YieldN/A
Average Volume (3M)909.43K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth-26.88%
EPS Growth-9.72%
CountryUS
Employees78
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-25.75
Shares Outstanding3,039,272
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 Cap33.57
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit1.27
Enterprise Value/Ebitda-0.75
Forecast
1Y Price Target
$12.50Price Target Upside24900.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-20.25
Revenue Forecast (FY)$25.83M
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:Mar 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: clear operational progress around software mix, gross margin expansion, new product innovation (zStylus One), notable customer wins and cost reduction actions that improve the company's path to adjusted EBITDA breakeven if revenues stabilize. However, material top-line declines, significant bookings contraction, a depleted cash position, weaker retention driven by a couple of large customers, and ongoing macro/geopolitical headwinds pose meaningful near-term risks. Management is cautiously optimistic but refrained from restoring formal guidance.Positive Updates
Software and Services Mix & Relative Outperformance
Software and services comprised the majority of revenue in Q4 (≈57%) and represented 49% of full-year revenue (up from 42% in 2024). Software and services revenue declined only ~15% year-over-year versus total revenue down 27%, helping stabilize recurring revenue quality and support margin expansion.
Negative Updates
Material Revenue Declines
Full-year revenue of $27.9M, down 27% year-over-year. Q4 revenue was $4.8M, down 43% year-over-year, reflecting weak order/ship activity and seasonality exacerbated by macro events.
Read all updates
Q4-2025 Updates
Positive
Negative
Software and Services Mix & Relative Outperformance
Software and services comprised the majority of revenue in Q4 (≈57%) and represented 49% of full-year revenue (up from 42% in 2024). Software and services revenue declined only ~15% year-over-year versus total revenue down 27%, helping stabilize recurring revenue quality and support margin expansion.
Read all positive updates
Company Guidance
Management did not restore formal guidance but provided scenario-based outlook: if 2026 top line roughly repeats 2025 (~$27.9M, down 27% YoY) and bookings/renewals trend in line with recent experience (12‑month bookings $26.1M, down 34%; Q4 bookings $3.4M, down 21%; ACV of renewable software $9.9M, down 12% — normalized $11.1M — and net dollar retention 71% for ≥$50k ACV customers, normalized 88%), then with the cost actions taken in December (≈50% of FTEs eliminated, ~1/3 of people costs cut; Board reduced 7→5; executive bonus abolished) and expected gross margin expansion of roughly 7 percentage points (2025 GM 47.6%, up 6.7pp; Q4 GM 49.1%, up 8.4pp), management believes adjusted EBITDA could be at or close to breakeven in 2026; they note a pro forma OpEx run rate of about $19M (ex‑stock comp) and year‑end cash of ≈$1M (vs $4.9M a year earlier), and will continue to manage revenue mix and expenses rather than issue formal guidance.zSpace, Inc. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
15
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 27.86M | 38.10M | 43.92M | 35.78M |
| Gross Profit | 13.26M | 15.57M | 16.89M | 13.13M |
| EBITDA | -22.14M | -17.96M | -10.10M | -11.38M |
| Net Income | -25.39M | -20.82M | -13.04M | -15.17M |
Balance Sheet | ||||
| Total Assets | 7.59M | 13.53M | 13.85M | 18.21M |
| Cash, Cash Equivalents and Short-Term Investments | 1.02M | 4.86M | 2.82M | 4.06M |
| Total Debt | 17.71M | 11.96M | 19.07M | 44.50M |
| Total Liabilities | 30.09M | 28.22M | 144.32M | 65.68M |
| Stockholders Equity | -22.51M | -14.69M | -130.47M | -47.47M |
Cash Flow | ||||
| Free Cash Flow | -18.00M | -8.89M | -6.42M | -8.91M |
| Operating Cash Flow | -17.97M | -8.87M | -6.41M | -8.90M |
| Investing Cash Flow | -26.00K | -13.00K | -5.00K | -11.00K |
| Financing Cash Flow | 14.38M | 10.48M | 5.59M | 6.94M |
zSpace, Inc. Technical Analysis
Negative
0.05
Price Trends
0.20
Negative
0.34
Negative
1.06
Negative
Market Momentum
-0.04
Negative
27.59
Positive
14.64
Positive
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 0.10, below the 50-day MA of 0.20, and below the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 27.59 is Positive, neither overbought nor oversold. The STOCH value of 14.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZSPC.
zSpace, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $34.58M | 10.93 | -3.96% | ― | 15.50% | 94.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $34.75M | -2.77 | -15.75% | ― | -18.35% | -170.78% | |
49 Neutral | $14.53M | -1.36 | -7.04% | ― | 11.39% | 30.41% | |
44 Neutral | $7.07M | -1.96 | -17.53% | ― | -16.56% | -412.98% | |
44 Neutral | $63.43M | -0.32 | -61.78% | ― | -4.34% | 99.77% | |
41 Neutral | $501.48K | -0.40 | 120.74% | ― | -26.88% | -9.72% |
* Technology Sector Average
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zSpace, Inc. Corporate Events
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.