Core Insights - zSpace reported its financial results for the second quarter and first half of 2025, highlighting strategic progress despite macroeconomic challenges [1][2] Financial Performance - Revenue for Q2 2025 was $7.5 million, unchanged from Q2 2024, amid funding uncertainties and order delivery delays [4][7] - Gross margin increased by 213 basis points to 43% compared to 40% in Q2 2024, attributed to better hardware cost profiles and more company-owned software content [4][7] - Net loss for Q2 2025 was ($6.1) million, compared to a net loss of ($4.7) million in Q2 2024 [9][7] - Operating expenses, excluding stock-based compensation, rose to $7.7 million in Q2 2025 from $6.5 million in Q2 2024 [9] Business Highlights - The launch of the Career Explorer application and the acquisition of Second Avenue Learning were significant milestones for zSpace [2] - zSpace's zSpace Imagine headset-free AR/VR laptop solution won the Future's Best of Show Award at ISTELive 25, marking the second consecutive year for this recognition [7] - The Career Explorer application is designed for students in grades 5–8 to explore high-demand careers through immersive simulations [7] Customer Metrics - Annualized Contract Value (ACV) of renewable software increased by 11% year-over-year to $10.9 million as of June 30, 2025 [8] - Net Dollar Revenue Retention (NDRR) was 131% for customers with over $50,000 of ACV, indicating strong customer retention and growth [8] Balance Sheet - As of June 30, 2025, zSpace had approximately $1.4 million in cash and cash equivalents, down from $3.0 million a year earlier [10] - Total liabilities were $34.4 million, a decrease from $42.8 million as of June 30, 2024 [20]
zSpace Reports Second Quarter 2025 Financial Results