zSpace Inc Financials
This page shows zSpace Inc (ZSPC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 2 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
zSpace's improved gross economics are being overwhelmed by subscale overhead and financing dependence as sales contract.
From FY2024 to FY2025, gross margin expanded from40.9% to47.6% , yet operating cash burn roughly doubled from-$8.9M to-$18.0M as revenue fell to$27.9M ; that combination says the core problem is not product-level economics but a cost structure and cash use that do not shrink with lower volume. The$14.4M financing inflow mostly replaced cash consumed by operations, leaving only$1.0M on hand, so new capital functioned more like operating fuel than balance-sheet strengthening.
Even with higher gross margin, overhead stayed larger than gross profit in FY2025, which is why operating margin slid to
The balance sheet became tighter, with cash down to
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of zSpace Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
zSpace Inc has an operating margin of -79.5%, meaning the company retains $-79 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -46.4% the prior year.
zSpace Inc's revenue declined 26.9% year-over-year, from $38.1M to $27.9M. This contraction results in a growth score of 0/100.
zSpace Inc's current ratio of 0.37 is below the typical benchmark, resulting in a score of 2/100. This tight liquidity could limit financial flexibility if cash inflows slow.
zSpace Inc passes 4 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, zSpace Inc generates $0.71 in operating cash flow (-$18.0M OCF vs -$25.4M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
zSpace Inc earns $-15.0 in operating income for every $1 of interest expense (-$22.1M vs $1.5M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
zSpace Inc generated $27.9M in revenue in fiscal year 2025. This represents a decrease of 26.9% from the prior year.
zSpace Inc's EBITDA was -$22.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 25.4% from the prior year.
zSpace Inc reported -$25.4M in net income in fiscal year 2025. This represents a decrease of 21.9% from the prior year.
zSpace Inc earned $-1.01 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 198.1% from the prior year.
Cash & Balance Sheet
zSpace Inc held $1.0M in cash against $10.1M in long-term debt as of fiscal year 2025.
zSpace Inc had 1M shares outstanding in fiscal year 2025. This represents a decrease of 94.3% from the prior year.
Margins & Returns
zSpace Inc's gross margin was 47.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 6.7 percentage points from the prior year.
zSpace Inc's operating margin was -79.5% in fiscal year 2025, reflecting core business profitability. This is down 33.1 percentage points from the prior year.
zSpace Inc's net profit margin was -91.1% in fiscal year 2025, showing the share of revenue converted to profit. This is down 36.5 percentage points from the prior year.
Capital Allocation
zSpace Inc invested $5.3M in research and development in fiscal year 2025. This represents an increase of 8.3% from the prior year.
ZSPC Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $5.3M+8.3% | $4.8M-44.9% | $8.8M+17.9% | $7.5M+10.4% | $6.8M-20.8% | $8.5M-40.0% | $14.2M+89.5% | $7.5M |
| Cost of Revenue | $2.5M0.0% | $2.5M-42.6% | $4.3M+0.2% | $4.3M+20.6% | $3.6M-29.8% | $5.1M-35.6% | $7.9M+75.8% | $4.5M |
| Gross Profit | $2.8M+17.0% | $2.4M-47.1% | $4.5M+41.7% | $3.2M-1.0% | $3.2M-7.7% | $3.5M-45.4% | $6.4M+109.8% | $3.0M |
| R&D Expenses | $992K-27.1% | $1.4M-13.2% | $1.6M+23.1% | $1.3M+16.3% | $1.1M+36.0% | $805K-22.6% | $1.0M-2.9% | $1.1M |
| SG&A Expenses | $3.3M+22.1% | $2.7M-19.9% | $3.4M-20.9% | $4.3M+22.6% | $3.5M+112.0% | $1.6M-18.9% | $2.0M-4.5% | $2.1M |
| Operating Income | -$3.9M+30.2% | -$5.6M-17.5% | -$4.8M+24.3% | -$6.3M-17.6% | -$5.4M-94.8% | -$2.8M-11616.7% | $24K+100.7% | -$3.5M |
| Interest Expense | $344K-6.8% | $369K+20.6% | $306K+1.7% | $301K-40.0% | $502K-13.4% | $580K-2.7% | $596K-34.5% | $910K |
| Income Tax | $2K0.0% | $2K+300.0% | -$1K-109.1% | $11K+450.0% | $2K | N/A | N/A | $39K |
| Net Income | -$6.6M+10.0% | -$7.3M-18.1% | -$6.2M-1.1% | -$6.1M-4.6% | -$5.8M-60.8% | -$3.6M-1677.5% | -$204K+95.7% | -$4.7M |
| EPS (Diluted) | $-4.70 | N/A | $-0.26+3.7% | $-0.27+95.8% | $-6.38 | N/A | $6.92+125.0% | $-27.73 |
ZSPC Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $10.5M+38.1% | $7.6M-43.6% | $13.5M+10.9% | $12.1M+23.2% | $9.8M-27.2% | $13.5M | N/A | N/A |
| Current Assets | $9.4M+45.5% | $6.5M-51.4% | $13.3M+11.0% | $12.0M+22.8% | $9.8M-24.3% | $12.9M | N/A | N/A |
| Cash & Equivalents | $2.9M+179.9% | $1.0M-76.1% | $4.3M+207.3% | $1.4M+23.1% | $1.1M-76.8% | $4.9M+51.8% | $3.2M+7.8% | $3.0M |
| Inventory | $2.0M-15.4% | $2.4M+2.5% | $2.3M-9.6% | $2.6M+30.8% | $2.0M-38.7% | $3.2M | N/A | N/A |
| Accounts Receivable | $2.6M+80.3% | $1.4M-60.2% | $3.6M-22.1% | $4.6M+21.0% | $3.8M+20.8% | $3.2M | N/A | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $35.9M+19.1% | $30.1M-9.2% | $33.1M-3.7% | $34.4M+16.8% | $29.5M+4.4% | $28.2M | N/A | N/A |
| Current Liabilities | $13.1M-24.3% | $17.3M-11.5% | $19.6M-5.4% | $20.7M+3.8% | $19.9M-4.6% | $20.9M | N/A | N/A |
| Long-Term Debt | $17.3M+70.9% | $10.1M-8.7% | $11.1M-3.1% | $11.4M+50.3% | $7.6M+22.9% | $6.2M | N/A | N/A |
| Total Equity | -$25.4M-12.7% | -$22.5M-14.3% | -$19.7M+11.7% | -$22.3M-13.6% | -$19.6M-33.6% | -$14.7M+84.8% | -$96.6M+31.0% | -$140.0M |
| Retained Earnings | -$322.3M-2.1% | -$315.8M-2.4% | -$308.5M-2.0% | -$302.3M-2.1% | -$296.2M-2.0% | -$290.4M | N/A | N/A |
ZSPC Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$3.0M+23.4% | -$3.9M-60.5% | -$2.5M+64.5% | -$6.9M-49.2% | -$4.6M+7.6% | -$5.0M-373.3% | $1.8M+770.8% | -$274K |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Investing Cash Flow | -$2K+60.0% | -$5K+16.7% | -$6K | N/A | N/A | -$5K-400.0% | -$1K | N/A |
| Financing Cash Flow | $4.9M+625.9% | $673K-87.6% | $5.4M-25.5% | $7.3M+646.1% | $978K-84.8% | $6.5M+476.4% | -$1.7M-184.6% | $2.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
ZSPC Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 53.1%+3.9pp | 49.1%-2.0pp | 51.2%+8.6pp | 42.5%-4.9pp | 47.4%+6.8pp | 40.7%-4.1pp | 44.7%+4.3pp | 40.4% |
| Operating Margin | -74.9%+41.4pp | -116.2%-61.7pp | -54.5%+30.3pp | -84.9%-5.2pp | -79.7%-47.3pp | -32.4%-32.5pp | 0.2%+47.2pp | -47.0% |
| Net Margin | -124.9%+25.4pp | -150.3%-80.1pp | -70.2%+11.7pp | -81.8%+4.5pp | -86.3%-43.8pp | -42.5%-41.1pp | -1.4%+61.8pp | -63.2% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | -62.6%+33.4pp | -96.0%-50.2pp | -45.8%+4.4pp | -50.3%+8.9pp | -59.2%-32.4pp | -26.8% | N/A | N/A |
| Current Ratio | 0.72+0.3 | 0.37-0.3 | 0.68+0.1 | 0.58+0.1 | 0.49-0.1 | 0.62 | N/A | N/A |
| Debt-to-Equity | -0.68-0.2 | -0.45+0.1 | -0.56-0.0 | -0.51-0.1 | -0.39+0.0 | -0.42 | N/A | N/A |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Note: Shareholder equity is negative (-$22.5M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.37), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is zSpace Inc's annual revenue?
zSpace Inc (ZSPC) reported $27.9M in total revenue for fiscal year 2025. This represents a -26.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is zSpace Inc's revenue growing?
zSpace Inc (ZSPC) revenue declined by 26.9% year-over-year, from $38.1M to $27.9M in fiscal year 2025.
Is zSpace Inc profitable?
No, zSpace Inc (ZSPC) reported a net income of -$25.4M in fiscal year 2025, with a net profit margin of -91.1%.
What is zSpace Inc's EBITDA?
zSpace Inc (ZSPC) had EBITDA of -$22.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does zSpace Inc have?
As of fiscal year 2025, zSpace Inc (ZSPC) had $1.0M in cash and equivalents against $10.1M in long-term debt.
What is zSpace Inc's gross margin?
zSpace Inc (ZSPC) had a gross margin of 47.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is zSpace Inc's operating margin?
zSpace Inc (ZSPC) had an operating margin of -79.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is zSpace Inc's net profit margin?
zSpace Inc (ZSPC) had a net profit margin of -91.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is zSpace Inc's operating cash flow?
zSpace Inc (ZSPC) generated -$18.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are zSpace Inc's total assets?
zSpace Inc (ZSPC) had $7.6M in total assets as of fiscal year 2025, including both current and long-term assets.
How much does zSpace Inc spend on research and development?
zSpace Inc (ZSPC) invested $5.3M in research and development during fiscal year 2025.
What is zSpace Inc's current ratio?
zSpace Inc (ZSPC) had a current ratio of 0.37 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is zSpace Inc's debt-to-equity ratio?
zSpace Inc (ZSPC) had a debt-to-equity ratio of -0.45 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is zSpace Inc's return on assets (ROA)?
zSpace Inc (ZSPC) had a return on assets of -334.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is zSpace Inc's cash runway?
Based on fiscal year 2025 data, zSpace Inc (ZSPC) had $1.0M in cash against an annual operating cash burn of $18.0M. This gives an estimated cash runway of approximately 1 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
Why is zSpace Inc's debt-to-equity ratio negative or unusual?
zSpace Inc (ZSPC) has negative shareholder equity of -$22.5M as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is zSpace Inc's Piotroski F-Score?
zSpace Inc (ZSPC) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are zSpace Inc's earnings high quality?
zSpace Inc (ZSPC) has an earnings quality ratio of 0.71x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can zSpace Inc cover its interest payments?
zSpace Inc (ZSPC) has an interest coverage ratio of -15.0x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is zSpace Inc?
zSpace Inc (ZSPC) scores 0 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.