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].

Core Insights - zSpace, Inc. has announced the international launch of the zSpace Inspire 2 Laptop at the GESS Dubai 2025 Conference, showcasing its commitment to making immersive learning accessible without the need for headsets [1][5] - The zSpace Inspire 2 Laptop integrates augmented and virtual reality, allowing students to engage in hands-on, 3D interactive experiences across various subjects [2][4] - The company is leveraging AI to enhance language accessibility, providing support in over 50 languages to eliminate language barriers in education [3] Product Features - The zSpace Inspire 2 Laptop combines AR and VR in a portable format, enabling exploration of science, engineering, health, and career concepts through interactive experiences [2] - It features a patented stereoscopic display and stylus-based interaction, allowing users to manipulate virtual objects realistically [2][4] - The device is designed for both classroom and individual learning, with a powerful graphics system and an expansive software ecosystem [4] Market Presence - zSpace has been a pioneer in AR/VR learning experiences for over a decade, with systems used in more than 3,500 K–12 schools, technical centers, and universities globally [4][7] - The launch of the Inspire 2 Laptop represents a significant milestone in zSpace's mission to enhance global access to immersive learning [5] Strategic Initiatives - The company is focusing on global expansion by integrating advanced AI models for language support, ensuring that educational content is accessible to a diverse audience [3] - zSpace is inviting educators and training providers at GESS Dubai to explore partnership opportunities and implementation support [5]

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].

Group 1: Virtual Reality Stocks Overview - Seven Virtual Reality stocks to watch include Meta Platforms, zSpace, DIH Holding US, and The Glimpse Group, identified by MarketBeat's stock screener tool [2] - Virtual reality stocks are shares of companies involved in developing, manufacturing, or supporting VR hardware, software, and content, with performance driven by adoption rates and technological advances [2] Group 2: Meta Platforms (META) - Meta Platforms, Inc. develops products for connecting people through mobile devices, PCs, VR headsets, and wearables, operating in two segments: Family of Apps and Reality Labs [3] - The Family of Apps segment includes Facebook, Instagram, Messenger, and WhatsApp, facilitating sharing, messaging, and community engagement [3] Group 3: zSpace (ZSPC) - zSpace Technologies, Inc. provides augmented and virtual reality technology primarily for the education market, offering hardware and software for K-12 STEM applications and career education [4] Group 4: DIH Holding US (DHAI) - DIH Holding US, Inc. operates as a robotics and VR technology provider in the rehabilitation industry across multiple regions, offering products like ArmeoPower and ArmeoSpring for arm and hand therapy [5][8] Group 5: The Glimpse Group (VRAR) - The Glimpse Group, Inc. is a VR and AR platform company providing enterprise-focused software and solutions, including QReal for 3D interactive models and Immersive Health Group for healthcare solutions [6]

Core Insights - zSpace, Inc. has introduced two new products, BodyViz and Virtual ECG, to enhance health science education through immersive augmented reality solutions [1][10] - The U.S. healthcare system is facing a significant workforce crisis, with a projected need for 1.1 million new registered nurses and over 3.2 million lower-wage healthcare workers by 2030 [3] - Traditional anatomy education is hindered by high costs and logistical challenges, particularly affecting community colleges and rural institutions [4] Company Developments - BodyViz is a 3D anatomy visualization platform that utilizes real medical imaging data, allowing students to explore human anatomy without the need for cadavers or expensive labs [5][6] - Virtual ECG by zSpace offers an interactive simulation for cardiac electrophysiology education, enabling students to manipulate electrodes and interpret ECG waveforms in real time [8] - Both products are designed to align with national health science standards and support certification preparation for various healthcare roles [11] Industry Context - The healthcare workforce crisis necessitates innovative solutions to expand access to quality training, particularly for community colleges and technical centers [10] - The integration of BodyViz and Virtual ECG into zSpace's platform aims to democratize access to anatomy education and prepare students for urgent healthcare workforce needs [10][11] - zSpace will showcase these innovations at the National Consortium for Health Science Education (NCHSE) Conference, highlighting their commitment to advancing health science training [12][13]

Core Insights - zSpace, Inc. has received approval to transfer its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, effective October 16, 2025, which aligns better with its current business profile and market capitalization [1][4][5] - The transfer indicates that zSpace has regained compliance with all applicable Nasdaq listing standards, resolving any prior noncompliance issues [3][4] - The Nasdaq Capital Market is deemed more appropriate for growth-stage companies like zSpace, providing a suitable regulatory framework while maintaining investor access [4][5] Company Overview - zSpace, Inc. specializes in immersive augmented reality (AR) learning solutions for education, trusted by over 3,500 educational institutions [6] - The company holds more than 70 patents and has research validating the impact of its AR/VR technologies on student outcomes [6] - zSpace is committed to maintaining its Nasdaq listing and aims to build long-term stockholder value through operational excellence and market expansion [5][6]

Core Insights - zSpace, Inc. has partnered with GEMS Education to introduce immersive AR/VR learning at the School of Research and Innovation in Dubai, marking a significant advancement in experiential STEM education in the UAE [1][2][3] - This collaboration aligns with the UAE's national agenda for innovation and digital transformation in education, aiming to equip students with essential 21st-century skills [2][3] Company Overview - zSpace, Inc. is a leader in AR/VR educational solutions, providing hands-on learning experiences that enhance student engagement and outcomes, trusted by over 3,500 educational institutions [6] - GEMS Education is the largest private education provider in the region, operating a network of schools that educate over 200,000 students from more than 180 nationalities [2][7] Partnership Details - The partnership will integrate zSpace's headset-free immersive AR technology into GEMS' STEM curriculum, allowing students to engage with complex scientific concepts through interactive simulations [3][5] - zSpace has also expanded its international presence, securing deployments in various countries, including Italy, Bulgaria, and Poland, indicating a growing demand for innovative educational technologies [4][5] Educational Impact - The AR/VR platform from zSpace enables students to explore STEM subjects through realistic 3D experiences, enhancing their understanding of subjects like biology, chemistry, and engineering [5] - The AI-powered Career Coach provided by zSpace offers localized career insights, helping students navigate job opportunities relevant to their regions [5]

Core Insights - zSpace, Inc. has been recognized in the October 2025 issue of American School Board Journal for its innovative use of augmented reality (AR) technology in education, particularly in preparing students for in-demand careers [1][4] - The integration of zSpace technology at Atlanta College and Career Academy (ACCA) is highlighted as a model for advancing equitable education and enhancing STEM learning [2][3] Company Overview - zSpace, Inc. specializes in augmented and virtual reality (AR/VR) solutions aimed at improving achievement in STEM, Career and Technical Education (CTE), and career readiness programs [5] - The company is trusted by over 3,500 educational institutions, including school districts and universities, and holds over 70 patents [5] Industry Context - The National School Boards Association (NSBA) emphasizes the growing importance of technology-driven approaches in CTE, as labor markets increasingly demand future-ready graduates [3] - The recognition from NSBA underscores the critical role of immersive technology in preparing students for the workforce [4]