Core Insights - zSpace, Inc. reported its financial results for Q4 and the full year 2025, highlighting a strategic focus on software and services, which now comprise 53% of revenue, up from 43% a year ago, contributing to a gross margin expansion of over 840 basis points [2][4][6]. Financial Performance - Q4 2025 revenue was $4.8 million, down from $8.5 million in Q4 2024, while full year 2025 revenue totaled $27.9 million compared to $38.1 million in 2024, primarily due to a freeze in orders and shipments during the U.S. Federal Government shutdown [4][6]. - Gross margin for Q4 2025 increased to 49% from 41% in Q4 2024, and for the full year, it rose to 48% from 41% in 2024, driven by improved hardware cost profiles and more company-owned software content [4][7]. - The net loss for Q4 2025 was ($7.3) million compared to ($3.6) million in Q4 2024, and the full year net loss was ($25.4) million versus ($20.8) million in 2024 [4][10]. Business Highlights - zSpace launched the zStylus One, an AI-enabled stylus, on November 18, 2025, enhancing AR deployment across its product lines [4]. - A strategic restructuring initiative completed on December 11, 2025, reduced operating expenses by over 30% [4]. - zSpace secured a $3 million strategic investment from Planet One Education on January 29, 2026, aimed at enhancing liquidity and supporting international collaboration [4]. - The company expanded its presence in Italy with new school deployments and training initiatives, gaining national visibility [4]. - On March 17, 2026, zSpace announced a $4.3 million senior secured convertible note to enhance working capital and support corporate purposes [4]. Key Metrics - Annualized Contract Value (ACV) of renewable software as of December 31, 2025, was $9.9 million, a 12% decrease year-over-year [7]. - Net Dollar Revenue Retention (NDRR) for customers with over $50,000 of ACV was 71% as of December 31, 2025 [8]. - Bookings in Q4 2025 were $3.4 million, down 21% year-over-year, while full year bookings were $26.1 million, down 34% year-over-year [8]. Balance Sheet - As of December 31, 2025, zSpace had approximately $1.0 million in cash and cash equivalents, down from $4.9 million a year earlier [11]. - Total liabilities increased to $30.1 million from $28.2 million in 2024, with stockholders' deficit growing to ($22.5) million from ($14.7) million [11][23].

Core Viewpoint - zSpace, Inc. has issued an additional $4,301,075 senior secured convertible note to strengthen its capital structure and support working capital needs [1][3]. Group 1: Financing Details - The additional note was issued on March 16, 2026, as part of a previously announced financing agreement that began on April 10, 2025, which included an initial note of $13,978,495 [2]. - The newly issued note is convertible into shares of the company's common stock [2]. Group 2: Use of Proceeds - zSpace plans to use the net proceeds from the additional note to repay outstanding debt, enhance working capital, and support general corporate purposes [3]. Group 3: Company Overview - zSpace, Inc. provides augmented and virtual reality solutions aimed at improving STEM, CTE, and career readiness programs, serving over 3,500 educational institutions [4]. - The company holds more than 80 patents and has research validating the impact of its technologies on student knowledge gains [4].

Core Insights - zSpace, Inc. has been awarded Tech & Learning's Best of 2025 Award of Excellence for its zSpace Career Explorer™ Powered by Career Coach AI™ in the Primary Education category, highlighting its innovative approach to career exploration in education [2][3] Company Overview - zSpace, Inc. specializes in augmented and virtual reality (AR/VR) solutions aimed at enhancing educational experiences, particularly in STEM and career readiness programs [10] - The company is trusted by over 3,500 educational institutions, including school districts and community colleges, and holds more than 80 patents related to its technology [10] Product Features - zSpace Career Explorer™ is designed for students in grades 5–12, allowing them to engage in immersive simulations of high-demand careers, thus moving beyond traditional career exploration methods [4] - The platform provides realistic, community-based environments where students can perform interactive tasks related to various skilled trades and technical fields, such as welding and medical technology [5] - The solution is delivered on headset-free AR/VR laptops, which eliminates the cost and safety concerns associated with traditional VR headsets, making it more accessible for classrooms [4] Educational Impact - In 2025, districts using zSpace Career Explorer™ reported increased student engagement in career-focused learning, particularly among students who previously felt underrepresented in traditional educational pathways [7] - Educators and counselors noted the platform's engagement metrics and reporting tools as significant benefits, enabling efficient measurement of student interaction and growth in career awareness [8] Recognition and Validation - The recognition from Tech & Learning underscores the positive impact of zSpace Career Explorer™ in classrooms across the nation, emphasizing its role in promoting equity and early career readiness [9]

Core Insights - zSpace has been awarded the Future's Best of Show Award at ISTE 2025 for its headset-free AR/VR laptop solution, zSpace Imagine, in the Primary Education category, marking the second consecutive year of recognition [1] - The award highlights zSpace's commitment to providing transformative technology for K–12 education, higher education, and workforce development [1] Company Overview - zSpace, Inc. specializes in augmented and virtual reality (AR/VR) experiences aimed at enhancing learning 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, technical centers, community colleges, and universities [5] - zSpace holds over 70 patents and focuses on hands-on learning experiences that improve student engagement and test scores [5] Product Details - zSpace Imagine is the first AR/VR laptop designed specifically for primary education, offering immersive learning experiences without the need for headsets [3] - The device features a stylus-enabled, glasses-free 3D display, allowing students to engage with STEM and core subjects in interactive ways [3] Awards and Recognition - The Best of Show Awards are evaluated by industry experts based on innovation, feature set, reliability, and performance [2] - zSpace's previous award in 2024 recognized its innovative Career Readiness Solution, which includes Career Coach AI™ [1][4]