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 - 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 Insights - zSpace, Inc. has launched zKnow, an AI assistant designed to enhance the educational experience by providing instant answers to educators regarding immersive learning content and technical resources [1][2][3] - The introduction of zKnow follows the success of zSpace's Career Coach AI, which has received multiple awards, highlighting the company's commitment to meaningful AI integration in education [3][4] Immediate Impact for Educators - zKnow significantly reduces the time educators spend searching for information, allowing them to focus more on student instruction [2][3] - The AI assistant provides context-aware guidance tailored to immersive learning environments, ensuring that educators receive precise and actionable information [3][6] Proven AI Leadership in Education - zSpace's AI solutions have been recognized with prestigious awards, reaffirming the company's leadership in educational technology [3][4] - zKnow is a domain-specific solution, trained on zSpace's content library, ensuring accuracy and alignment with educational standards [4][6] Market Leadership Through Innovation - The launch of zKnow positions zSpace as a leader in the $8.7 billion immersive learning market, addressing the challenge of adoption complexity [7] - zSpace's focus on secure, purpose-built AI resonates with education decision-makers who prioritize student privacy and regulatory compliance [8] Key Features of zKnow - Instant access to a vast array of interactive lessons and curriculum resources [6] - Context-aware guidance that integrates AR/VR technologies with various subject areas [6] - A privacy-first design that complies with educational data governance frameworks [6]