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ZSPC

zSpace, Inc.

ZSPC

zSpace, Inc. • NASDAQ
$0.43 ▲ 9.25% (+0.04)
Market Cap $10.22 M
52w High $32.69
52w Low $0.38
Dividend Yield 0%
P/E 0.52
Volume 380.66K
Outstanding Shares 24.04M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $8.793M ▲ $9.293M ▼ $-6.169M ▼ -70.158% ▲ $-6.169K ▼ $-5.804M ▼
Q2-2025 $7.459M ▲ $9.503M ▲ $-6.102M ▼ -81.807% ▲ $-0.27 ▼ $-5.788M ▼
Q1-2025 $6.759M ▼ $8.59M ▲ $-5.832M ▼ -86.285% ▼ $-0.26 ▲ $-5.327M ▼
Q4-2024 $8.535M ▼ $6.236M ▼ $-3.626M ▼ -42.484% ▼ $-1.11 ▼ $-3.043M ▼
Q3-2024 $14.219M $6.338M $-204K -1.435% $-0.062 $26K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $4.271M ▲ $13.458M ▲ $33.143M ▼ $-19.685M ▲
Q2-2025 $1.081M ▼ $12.137M ▲ $34.433M ▲ $-22.296M ▼
Q1-2025 $1.129M ▼ $9.849M ▼ $29.468M ▲ $-19.619M ▼
Q4-2024 $4.864M ▲ $13.532M ▼ $28.22M ▼ $-14.688M ▲
Q3-2024 $3.204M $14.377M $42.503M $-28.126M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-6.169M ▼ $-2.458M ▲ $-6K ▲ $5.434M ▼ $2.881M ▲ $-2.464M ▲
Q2-2025 $-6.102M ▼ $-6.926M ▼ $-15K ▼ $7.297M ▲ $261K ▲ $-6.941M ▼
Q1-2025 $-5.832M ▼ $-4.641M ▲ $0 ▲ $978K ▼ $-3.735M ▼ $-4.641M ▲
Q4-2024 $-3.626M ▼ $-5.024M ▼ $-5K ▼ $6.455M ▲ $1.66M ▲ $-5.029M ▼
Q3-2024 $-204K $1.838M $-1K $-1.715M $232K $1.837M

Five-Year Company Overview

Income Statement

Income Statement zSpace is still at a very early, small scale. Revenue has been flat for the past few years, and while the company does earn a reasonable margin on what it sells, it is not yet covering its operating costs. Losses are recurring, not one‑off, which signals a business still in the build‑out stage rather than a mature, profitable operation. The extreme swings in earnings per share mainly reflect changes in capital structure around the SPAC process, not a fundamental shift in the underlying business performance.

Balance Sheet

Balance Sheet The balance sheet is weak and highly constrained. Reported liabilities are larger than assets, equity is negative, and there is effectively no cash shown in these historical figures. Debt still plays a meaningful role in funding the company. This points to limited financial flexibility and a high reliance on new capital from the SPAC listing or other financings to stabilize the capital structure. Investors should expect the post‑IPO pro forma balance sheet to look very different from these legacy numbers, but the starting point is clearly fragile.

Cash Flow

Cash Flow The business is consistently using cash rather than generating it. Operating cash flow has been negative for several years, and free cash flow is also negative, although the absolute burn appears relatively steady. There is essentially no tangible capital spending, which fits an asset‑light, software‑ and content‑driven model, but it also means most investment is flowing through the income statement as operating expense. Until revenue scales meaningfully or costs are reined in, the company will likely remain dependent on external funding to support operations and growth initiatives.

Competitive Edge

Competitive Edge zSpace has a distinctive niche within educational technology. Its headset‑free AR/VR solution, backed by a sizable patent portfolio, lets students work together around shared 3D content rather than isolating them in headsets. The company pairs custom hardware with a broad library of curriculum‑aligned content and strong ties to thousands of schools and colleges, especially in science and career‑technical programs. This integrated, education‑first focus creates switching costs and a degree of customer loyalty. On the other hand, zSpace is still small compared with larger hardware and software players, and it operates in a space where new competitors and broader tech platforms can emerge quickly. Its dependency on education budgets and long, relationship‑driven sales cycles is both a moat and a constraint.

Innovation and R&D

Innovation and R&D Innovation is the clear strength of the story. zSpace has built a proprietary platform around stereoscopic displays, head‑tracking, and stylus‑based interaction that is purpose‑built for classrooms and labs. It continues to expand its software and content, particularly in career and technical training, and is layering in AI assistants for teachers and students, as well as career‑exploration tools. The strategy appears to be moving from hardware‑centric sales toward recurring software and services, which, if successful, could improve margins and revenue stability over time. The main execution risk is whether the company can keep releasing compelling new content and AI features fast enough, while maintaining a competitive hardware roadmap, given its limited financial resources.

Summary

Overall, zSpace combines a fragile financial base with a differentiated technology and a clear target market. The company’s historical figures show a tiny, flat revenue base, ongoing operating losses, and a balance sheet that needs reinforcement, which is what the SPAC transaction is meant to address. Against that, it offers a patented, classroom‑friendly AR/VR platform, deep curriculum integration, and a growing focus on workforce and technical education, all supported by a pipeline of AI‑enhanced tools. The central uncertainty is whether zSpace can turn its early market foothold and innovation into sustained, growing, and more predictable revenue before financial constraints become too tight. Key things to watch going forward are revenue growth in software and services, improvement in cash burn, balance‑sheet repair after the listing, and the company’s ability to stay ahead in the fast‑moving AR/VR and AI education landscape.

NEWS

November 25, 2025 · 8:00 AM UTC

Boca Raton Community Middle School Enhances Career Exploration With zSpace AR/VR Technology

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November 19, 2025 · 8:00 AM UTC

zSpace Unveils Precision Measurement to Power Next-Gen Workforce Training

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November 6, 2025 · 8:30 AM UTC

zSpace Expands Global Footprint with AI-Powered Inspire 2 AR/VR Laptop Launch at GESS Dubai 2025

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November 5, 2025 · 8:30 AM UTC

Danbury Public Schools Deploys Immersive AR/VR Technology Across District, Bringing AI-Powered Career Exploration to Over 12,000 Students

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October 30, 2025 · 4:05 PM UTC

zSpace Announces Third Quarter 2025 Earnings and Conference Call Information

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