zSpace Announces 1-for-25 Reverse Stock Split

zSpace (NASDAQ: ZSPC) will implement a 1-for-25 reverse stock split effective at market open on April 21, 2026, with trading on a split-adjusted basis beginning that day.

Rhea-AI Summary

zSpace (NASDAQ: ZSPC) will implement a 1-for-25 reverse stock split effective at market open on April 21, 2026, with trading on a split-adjusted basis beginning that day. The split was approved by the board on March 11, 2026 and stockholders via written consent on March 13, 2026.

The reverse split reduces outstanding shares from 75,981,805 to approximately 3,039,272, issues no fractional shares (fractions rounded up), assigns new CUSIP 98980W206, and is intended to help the company regain compliance with Nasdaq's minimum bid price requirement.

Positive

• Share price per share expected to increase through 1-for-25 reverse split
• Outstanding shares reduced from 75,981,805 to ~3,039,272
• Action intended to regain Nasdaq minimum bid price compliance

Negative

• Reverse split may reduce share liquidity due to ~25x consolidation
• Treatment of fractional shares could slightly alter individual holdings

Argus Apr 17 session

-38.46% close to close Open Argus

Details

News Market Reaction – ZSPC

On Apr 17, the day this news came out, ZSPC closed 38.46% below the previous close.

Data tracked by StockTitan Argus for the Apr 17 session.

Market Context

On Apr 17, the day this news came out, the stock closed 38.5% below the previous close. A negative r...

Analysis

On Apr 17, the day this news came out, the stock closed 38.5% below the previous close. A negative reaction despite the mechanical nature of a 1-for-25 reverse split would fit a pattern where investors have often sold into corporate actions and news. The stock previously traded at just $0.0871, far below its $1.08 200-day average and 99.16% below its $10.345 52-week high. With share count moving from about 75.98M to roughly 3.04M, any decline could reflect concerns about long-term fundamentals.

Key Figures

Reverse split ratio: 1-for-25 Par value: $0.00001 per share Effective date: April 21, 2026 +5 more

Reverse split ratio

1-for-25

Common stock reverse split ratio

Par value

$0.00001 per share

Common Stock par value

Effective date

April 21, 2026

Split-adjusted trading begins

Board approval date

March 11, 2026

Reverse split approved by Board

Stockholder consent date

March 13, 2026

Reverse split approved by stockholders

Pre-split shares

75,981,805 shares

Common Stock outstanding as of April 14, 2026

Post-split shares

approximately 3,039,272 shares

Common Stock expected outstanding after 1-for-25 split

Fractional shares treatment

Rounded up

Fractional shares rounded up to next whole share

Historical Context

5 past events · Latest: Apr 01

5 events

1. Apr 01

   Customer expansion

   24h Move

   -2.4%

   Kansas WorkforceONE expanded zSpace AR/VR laptop program across most Kansas counties.

2. Mar 30

   Earnings update

   24h Move

   +0.3%

   Q4 and FY 2025 results with revenue declines but margin improvement and new financing.

3. Mar 25

   Customer milestone

   24h Move

   -4.0%

   Atlanta Public Schools showcased decade-long AR/VR deployment across district schools.

4. Mar 18

   Deployment news

   24h Move

   -5.9%

   Bellflower Unified opened a 36-station AR/VR laptop lab at Mayfair High School.

5. Mar 17

   Convertible financing

   24h Move

   +0.3%

   Company issued an additional $4.3M senior secured convertible note under existing financing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reverse stock split, par value, common stock, nasdaq capital market, +4 more

8 terms

reverse stock split financial

"zSpace, Inc. ... intends to implement a 1-for-25 reverse stock split of its common stock"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

par value financial

"reverse stock split of its common stock, par value $0.00001 per share"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

common stock financial

"reverse stock split of its common stock, par value $0.00001 per share"

Common stock represents ownership shares in a company, giving investors a stake in its success and a say in important decisions through voting rights. It is the most common type of stock traded on markets and can provide income through dividends, as well as potential for value growth. For investors, holding common stock means sharing in the company’s profits and risks.

nasdaq capital market regulatory

"Trading in the common stock will continue on The Nasdaq Capital Market under the symbol"

The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

cusip financial

"The new CUSIP number for the Common Stock following the reverse stock split will be 98980W206."

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

View in glossary

transfer agent financial

"will receive a transmittal letter from the Company’s transfer agent as soon as practicable"

A transfer agent is a financial service that keeps the official record of who owns a company's shares, handles the buying and selling of those shares on paper or electronically, and issues or cancels stock certificates. Think of it as the company’s records keeper and mailroom combined—investors rely on it to make sure dividends, shareholder mailings, ownership changes, and proxy voting are processed accurately and securely, which protects ownership rights and helps prevent errors or fraud.

street name financial

"We do not expect stockholders who hold their shares in “street name” (that is, through a broker"

A "street name" is a way that stocks or other financial assets are registered under a broker's name rather than directly in an individual investor's name. This allows for easier buying, selling, and transferring of the assets, much like how a library might hold books on behalf of many readers. For investors, using a street name simplifies transactions and helps maintain privacy, but it also means the broker is the official record holder of ownership.

View in glossary

book-entry financial

"Stockholders who hold registered shares of Common Stock in registered book-entry form"

A book-entry is an electronic record that shows who legally owns a share, bond or other security instead of a paper certificate. Think of it like a bank ledger entry that tracks ownership and transfers; it makes buying, selling, dividend payments and ownership checks faster, cheaper and less risky for investors because nothing physical needs to be moved or stored.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN JOSE, Calif., April 17, 2026 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC) (“zSpace” or the “Company”), a leading provider of augmented and virtual reality (AR/VR) solutions for education and workforce development, intends to implement a 1-for-25 reverse stock split of its common stock, par value $0.00001 per share (the “Common Stock”) with trading to begin on a split-adjusted basis at the market open April 21, 2026. Trading in the common stock will continue on The Nasdaq Capital Market under the symbol “ZSPC”. The reverse stock split is intended to increase the per-share trading price of the Common Stock to enable the Company to regain compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The new CUSIP number for the Common Stock following the reverse stock split will be 98980W206.

The reverse stock split was approved by the Company’s Board of Directors on March 11, 2026, subject to stockholder approval, and the Company’s stockholders via written consent dated March 13, 2026.

Upon the effectiveness of the reverse stock split, every 25 shares of the Company’s issued and outstanding Common Stock will automatically be converted into one share of issued and outstanding Common Stock. No fractional shares will be issued as a result of the reverse stock split. Instead, any fractional shares that would have resulted from the split will be rounded up to the next whole number. As of April 14, 2026, there were 75,981,805 shares of Common Stock outstanding, resulting in approximately 3,039,272 shares of Common Stock outstanding following the reverse stock split.

The reverse stock split affects all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s outstanding Common Stock, except for adjustments that may result from the treatment of fractional shares.

Stockholders who hold registered shares of Common Stock in registered book-entry form will not need to take any action to receive their post-reverse stock split shares of Common Stock in registered book-entry form. Stockholders who hold their shares in certificated form will receive a transmittal letter from the Company’s transfer agent as soon as practicable after the effective date of the reverse stock split with instructions on how to receive their post-reverse stock split shares of Common Stock. We do not expect stockholders who hold their shares in “street name” (that is, through a broker, bank, or other holder of record) will need to take any action for their accounts to reflect the post-reverse stock split quantity of shares they hold. Brokers, banks, and other nominees who hold Common Stock will process the reverse stock split for the beneficial owners of Common Stock. Such brokers, banks, and other nominees may implement different procedures than those to be followed by registered stockholders for processing the reverse stock split, particularly with respect to the treatment of fractional shares. Stockholders who hold shares of our Common Stock in “street name” and who have questions regarding the procedures of their broker, bank or other nominee for processing the reverse stock split are encouraged to contact the organization holding their shares.

About zSpace

zSpace, Inc. (NASDAQ: ZSPC) delivers innovative augmented and virtual reality (AR/VR) experiences that drive achievement in STEM, CTE, and career readiness programs. Trusted by over 3,500 school districts, technical centers, community colleges, and universities, zSpace enables hands-on “learning by doing” experiences proven to improve engagement and student outcomes. Headquartered in San Jose, California, zSpace holds more than 80 patents, with research published in the Journal of Computer Assisted Learning (2021) validating the impact of 3D virtual reality technologies on student knowledge gains.

Forward-Looking Statements

Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the long-term potential of our business, ability to execute with discipline, our positioning for scalable, global growth and delivering sustainable value for our customers and shareholders. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the Company’s filings with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and zSpace, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Contacts

Press Contact:
Amanda Austin
press@zspace.com
408-498-4050

Investor Relations Contact:
Gateway Group
Cody Slach, Greg Robles
949.574.3860
ZSPC@gateway-grp.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does the 1-for-25 reverse stock split for ZSPC on April 21, 2026 mean for shareholders?

It consolidates every 25 existing shares into one new share, reducing total share count significantly. According to the company, this will lower outstanding shares from 75,981,805 to about 3,039,272 and adjust per-share trading prices starting April 21, 2026.

Will ZSPC shareholders need to take action for the April 21, 2026 reverse split?

Most shareholders need not take action; accounts will be adjusted automatically by brokers. According to the company, registered holders receive book-entry shares automatically and certificated holders will get transfer agent instructions after the effective date.

How will fractional shares be handled in the ZSPC 1-for-25 reverse split?

No fractional shares will be issued; fractional interests are rounded up to the next whole share. According to the company, this rounding policy applies uniformly, though brokers or nominees may follow different processing procedures for beneficial owners.

Will ZSPC continue trading on Nasdaq after the reverse stock split?

Yes, ZSPC will continue trading on The Nasdaq Capital Market under the same ticker. According to the company, trading will occur on a split-adjusted basis beginning at market open on April 21, 2026 and the new CUSIP will be 98980W206.

Why is zSpace implementing the 1-for-25 reverse split for ZSPC shares?

The company says the reverse split aims to raise the per-share price to regain Nasdaq's minimum bid price compliance. According to the company, the move is specifically intended to enable continued listing on The Nasdaq Capital Market.