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zSpace, Inc.
(OTC:ZSPC)
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Rating:41Neutral
Price Target:
$0.10
▼(-29.29% Downside)
Action:Reiterated
Date:09/29/26
The score is driven primarily by weak financial performance (shrinking revenue, very large losses, ongoing cash burn, and negative equity). Technical indicators also show a weak setup (price below key moving averages with negative MACD and sub-50 RSI). Valuation provides limited support due to a negative P/E and no dividend yield, while the planned Nasdaq delisting/deregistration is a significant additional risk factor.
Positive Factors
Improved Gross Margin
The sustained improvement in gross margin indicates better unit economics and a stronger contribution from each dollar of revenue. If maintained, this provides a more favorable base for eventual operating leverage, although the company still needs sufficient sales growth and cost control to convert the improvement into profitability.
Negative Factors
Revenue Contraction
Persistent revenue contraction weakens the scale of the business and makes it harder to absorb fixed operating costs. The decline from 2023 levels suggests that improved margins alone may not be enough to restore profitability, while a smaller revenue base limits reinvestment and reduces operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Gross Margin
The sustained improvement in gross margin indicates better unit economics and a stronger contribution from each dollar of revenue. If maintained, this provides a more favorable base for eventual operating leverage, although the company still needs sufficient sales growth and cost control to convert the improvement into profitability.
Read all positive factors
zSpace, Inc. (ZSPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.89M
Dividend YieldN/A
Average Volume (3M)30.11K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth-34.31%
EPS Growth1.15%
CountryUS
Employees54
SectorGeneral
Sector StrengthN/A
IndustryComputer Hardware
Share Statistics
EPS (TTM)-20.22
Shares Outstanding37,067,920
10 Day Avg. Volume11,805
30 Day Avg. Volume30,115
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 Cap2.93
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit0.90
Enterprise Value/Ebitda-0.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-2.62
Revenue Forecast (FY)$27.55M
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 hardware products to produce devices t...
zSpace, Inc. Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 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
12
Very Negative
Cash Flow
16
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.29M | 27.86M | 38.10M | 43.92M | 35.78M |
| Gross Profit | 12.71M | 13.26M | 15.57M | 16.89M | 13.13M |
| EBITDA | -22.71M | -23.89M | -17.96M | -10.10M | -11.38M |
| Net Income | -19.72M | -25.39M | -20.82M | -13.04M | -15.17M |
Balance Sheet | |||||
| Total Assets | 8.28M | 7.59M | 13.53M | 13.85M | 18.21M |
| Cash, Cash Equivalents and Short-Term Investments | 856.00 | 1.02M | 4.86M | 2.82M | 4.06M |
| Total Debt | 6.49M | 17.71M | 11.96M | 19.07M | 44.50M |
| Total Liabilities | 21.47M | 30.09M | 28.22M | 144.32M | 65.68M |
| Stockholders Equity | -13.19M | -22.51M | -14.69M | -130.47M | -47.47M |
Cash Flow | |||||
| Free Cash Flow | -11.40M | -18.00M | -8.89M | -6.42M | -8.91M |
| Operating Cash Flow | -11.38M | -17.97M | -8.87M | -6.41M | -8.90M |
| Investing Cash Flow | -16.00K | -26.00K | -13.00K | -5.00K | -11.00K |
| Financing Cash Flow | 11.04M | 14.38M | 10.48M | 5.59M | 6.94M |
zSpace, Inc. Technical Analysis
Negative
0.14
Price Trends
0.14
Negative
0.16
Negative
2.53
Negative
Market Momentum
-0.01
Negative
40.87
Neutral
8.33
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 0.14 is above the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.14, and below the 200-day MA of 2.53, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, 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 53 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 2 New Risks
1.
Our common stock has been suspended from trading on Nasdaq and will be delisted, which has reduced the liquidity of our common stock and may impair our ability to raise capital. Q2, 2026
2.
We have issued a substantial number of shares of common stock, and we have limited authorized share capacity available to satisfy our obligations under our outstanding convertible securities. Q2, 2026
zSpace, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $54.41M | -157.78 | -1.25% | 3.19% | 10.52% | 95.37% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | $23.46M | -0.48 | -48.61% | ― | -17.36% | -469.66% | |
44 Neutral | $38.13M | -1.01 | -100.84% | 10.78% | -35.13% | 96.88% | |
43 Neutral | $12.50M | -1.00 | -5.14% | ― | -6.25% | 32.66% | |
42 Neutral | $4.21M | -0.27 | -229.43% | ― | -17.40% | -403.07% | |
41 Neutral | $3.89M | >-0.01 | 97.69% | ― | -34.31% | 1.15% |
* General Sector Average
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zSpace, Inc.
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zSpace, Inc. Corporate Events
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
zSpace Moves Forward With Voluntary Nasdaq Delisting Plan
Negative
Sep 15, 2026
On September 15, 2026, zSpace, Inc. announced plans to voluntarily delist its common stock from the Nasdaq Stock Market and deregister it under Section 12(b) of the Exchange Act, following a Nasdaq determination to delist issued on April 21, 2026 ...
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.