SAN JOSE, Calif., Nov. 25, 2025 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC), a global leader in immersive augmented reality (AR) learning solutions for education, today announced that Boca Raton Community Middle School, home to 1,000 students in Palm Beach County, has reimagined career exploration and student engagement through the implementation of the zSpace AR/VR learning lab. Over the past three years, Principal Lisa Lee and her team have leveraged zSpace to elevate instruction, energize after schoo ...

Immersive AR/VR Experience Builds Student Skills in Measurement, Machining, and Quality AssuranceSAN JOSE, Calif., Nov. 19, 2025 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC), a global leader in immersive augmented reality (AR) learning solutions for education, today announced the release of Precision Measurement by zSpace, an immersive training application designed to enhance Career and Technical Education (CTE) programs focused on manufacturing, machining, and quality assurance. Precision Measurement en ...

SAN JOSE, Calif., Nov. 18, 2025 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC), a global leader in immersive augmented reality (AR) learning solutions for education, today announced the zStylus One, its most advanced stylus to date, powered by AI. Continuing the evolution of zSpace interaction tools, the zStylus One delivers higher precision, easier deployment, and greater reliability for educators, IT teams, and students. This advancement is backed by a newly granted U.S. patent, further solidifying our c ...

Financial Data and Key Metrics Changes - Year-to-date revenues were $23 million, down 22% year-over-year [7] - Q3 revenues of $8.8 million were down 38% year-over-year but represented an 18% sequential improvement over Q2 [11] - Gross profit was $10.9 million year-to-date, down 10% against the same period last year [9] - Gross margins for the nine-month period were 47.3%, up 6.4 percentage points versus the prior year period [10] - Adjusted EBITDA losses narrowed to below $2 million for the third quarter [15] Business Line Data and Key Metrics Changes - Software and services revenue comprised over 50% of total revenue, contributing to gross margin expansion of over 640 basis points [3] - Software and services revenues made up 57% of total revenues in Q3, an 11 percentage point mix shift [11] - Annualized contract value of renewable software was $10.2 million, down 10% compared to 12 months ago [8] - Net dollar revenue retention of customers with at least $50,000 of ACV was 77% [8] Market Data and Key Metrics Changes - The company has secured deployments in Italy, Bulgaria, Poland, and additional locations across the Middle East [5] - CTE customers drove 49% of bookings value, up from 41% in the prior year comparable period [12] Company Strategy and Development Direction - The company is focusing on advancing its strategy and controlling internal factors while navigating external headwinds [3] - AI is being leveraged to eliminate language barriers and expand global reach [4] - The company is cautiously optimistic about the long-term growth potential despite ongoing uncertainties in the U.S. education funding environment [6] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the fourth quarter due to ongoing uncertainties related to tariff impacts and education funding [6] - The government shutdown has created delays in purchasing and funding decisions for customers [19] - Management remains confident in the ability to improve the quality of both hardware and software revenues [16] Other Important Information - The integration of Second Avenue Learning has led to the launch of the Career Explorer application [4] - The company is managing stock-based compensation to a target burn rate of less than 7% for the full year [14] Q&A Session Summary Question: Impact of government shutdown on zSpace - The government shutdown has created obstacles for end users in making purchasing and funding decisions, leading to delays in accepting shipments and concluding purchase orders [19][20] Question: Recent wins and deployments - The deployment in Danbury School District is focused on middle and high schools, with potential for broader district-wide implementation [28] Question: Net dollar revenue retention and customer renewals - The decline in net dollar revenue retention is attributed to two large customers who could not fully renew their commitments due to budget constraints [32] Question: International segment contribution and tariff challenges - The international segment is seeing strong demand, with a focus on expanding partnerships in Italy, Bulgaria, and Poland [51] - Tariffs have had a modest impact on gross margins, primarily affecting the sales motion earlier in the year [53] Question: New hardware and margin trends - A new stylus is expected to enhance user experience and simplify logistics, contributing to future margin improvements [60]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-42431 ZSPACE, INC. (Exact name of registrant as specified in its charter) | Delaware | 35-2284050 | | --- ...

Financial Performance - Revenue for Q3 2025 was $8.8 million, down 38% from $14.2 million in Q3 2024[4] - Net loss for Q3 2025 was ($6.2) million, compared to a net loss of ($0.2) million in Q3 2024[4] - Bookings in Q3 2025 were $7.4 million, a decrease of 37% year-over-year[7] Revenue Composition - Software and services accounted for 57% of total revenue, up from 46% year-over-year[4] - Annualized Contract Value (ACV) of renewable software decreased by 10% year-over-year to $10.2 million[6] - Net Dollar Revenue Retention (NDRR) was 77% for customers with over $50,000 of ACV, down from the previous year[7] Product and Technology Initiatives - zSpace deployed its Career Coach AI and STEM learning technology in Danbury Public Schools, serving over 12,000 students[4] - The company partnered with GEMS Education to expand its AR/VR learning solutions in Dubai[4] - zSpace launched zKnow™, an AI-assistant for educators, enhancing classroom efficiency[12] Profitability Metrics - Gross margin increased to 51% from 45% in the same quarter last year, reflecting a 640 basis point improvement[4]

Core Insights - zSpace, Inc. reported financial results for Q3 2025, highlighting a focus on strategic priorities and revenue growth in software and services despite macroeconomic challenges [2][4]. Financial Performance - Revenue for Q3 2025 was $8.8 million, a decrease from $14.2 million in Q3 2024, attributed to an unusually large customer order in the previous year that did not repeat [4][6]. - Software and services accounted for 57% of total revenue, up from 46% year-over-year [6]. - Gross margin improved to 51% from 45% in the same quarter last year, reflecting a 642 basis point increase due to better hardware cost profiles and more company-owned software content [5][6]. - The net loss for Q3 2025 was ($6.2) million, compared to a net loss of ($0.2) million in Q3 2024 [6][8]. - Adjusted EBITDA for the quarter was ($2.0) million, down from $0.4 million in the prior year [6]. Business Highlights - zSpace launched the Career Explorer application, developed by the acquired Second Avenue Learning team, which has generated strong customer interest [2]. - The company partnered with GEMS Education to deploy AR/VR learning solutions in Dubai, marking a significant expansion in its international presence [6]. - Danbury Public Schools in Connecticut fully deployed zSpace's Career Coach AI and STEM learning technology across its middle and high schools, serving over 12,000 students [6]. - zSpace introduced several new training solutions, including the Heavy Machine & Vehicle Inspection Virtual Trainer and the Medical Assisting Skills Virtual Trainer, enhancing its product offerings [6]. Key Metrics - Annualized Contract Value (ACV) for renewable software was $10.2 million as of September 30, 2025, a 10% decrease from the previous year [7]. - Net Dollar Revenue Retention (NDRR) was 77% for customers with over $50,000 of ACV, down from the previous year [7]. - Bookings in Q3 2025 were $7.4 million, a decline of 37% year-over-year, with a backlog of unfulfilled orders amounting to $6.4 million [7]. Balance Sheet - As of September 30, 2025, zSpace had approximately $4.3 million in cash and cash equivalents, an increase from $3.2 million a year earlier [9][20]. - Total liabilities stood at $33.1 million, down from $42.5 million in the previous year [21].

Headset-Free Immersive Learning Brings the Future of Education to Classrooms Across the Middle East, Supported by AI-Driven Language AccessibilitySAN JOSE, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC), a global leader in immersive augmented (AR) solutions for education, today announced the international availability of the zSpace Inspire 2 Laptop at the GESS Dubai 2025 Conference, taking place November 11–13 at the Dubai World Trade Centre. The company will highlight its latest imme ...

Core Insights - Danbury Public Schools has integrated zSpace's AR/VR learning platform across its district, enhancing STEM education and career exploration for over 12,000 students [1][2][8] - The implementation includes the award-winning Career Coach AI, which provides localized career information and exploration opportunities [3][4] zSpace Technology Implementation - zSpace technology is deployed in Danbury High School West and three middle schools, focusing on hands-on STEM experiences and intelligent career guidance [1][2][4] - The Career Coach AI offers geo-located insights into career paths, utilizing data from authoritative sources like the Department of Labor [3][4] Educational Transformation - The integration of immersive AR/VR technology is aimed at preparing students for future careers, making complex concepts more accessible and engaging [4][5] - Students can explore various careers through virtual dissections, mechanical simulations, and 3D modeling, all within their classroom environment [5][6] Commitment to Career Readiness - Danbury Public Schools has introduced a district-wide 9th grade Career Exploration course, featuring customized zSpace activities aligned with the curriculum [6] - This foundational experience helps students understand diverse career paths and develop long-term educational visions [6] Company Overview - zSpace, Inc. is a leader in AR/VR educational solutions, trusted by over 3,500 educational institutions [9] - The company holds over 70 patents and focuses on enhancing learning through immersive experiences that improve student outcomes [9]

Core Viewpoint - zSpace, a leader in immersive augmented reality learning solutions, is set to release its third quarter financial results on November 13, 2025, after market close [1]. Company Overview - zSpace, Inc. (NASDAQ: ZSPC) specializes in augmented and virtual reality experiences aimed at enhancing STEM, CTE, and career readiness programs [3]. - The company is trusted by over 3,500 educational institutions, including school districts, technical centers, community colleges, and universities, promoting hands-on learning experiences that improve student engagement and outcomes [3]. - zSpace holds more than 70 patents and has research published in the Journal of Computer Assisted Learning, which validates the effectiveness of 3D virtual reality technologies in enhancing student knowledge [3]. Upcoming Events - In conjunction with the financial results announcement, zSpace will host a conference call on November 13, 2025, at 5:00 p.m. ET / 2:00 p.m. PT, featuring the CEO and CFO [2]. - A live webcast of the call will be available on the investor relations section of zSpace's website, and a replay will be accessible for a limited time [2].