zSpace Reports Second Quarter 2025 Financial Results
zSpace (NASDAQ: ZSPC), a leader in AR/VR education solutions, reported its Q2 2025 financial results with revenue flat at $7.5 million year-over-year and an increased net loss of ($6.1) million compared to ($4.7) million in Q2 2024. The company achieved a gross margin improvement to 43%, up 213 basis points from the previous year.
Notable achievements include winning the Future's Best of Show Award at ISTELive 25, launching the new Career Explorer™ application with Career Coach AI™, and expanding customer deployments in New York and California. The company's Annualized Contract Value (ACV) grew 11% to $10.9 million, with a Net Dollar Revenue Retention of 131% for key customers.
However, zSpace faces challenges from macroeconomic conditions and education funding uncertainties, reflected in a 54% year-over-year decline in bookings to $7.2 million and reduced cash position of $1.4 million, down from $3.0 million year-over-year.
zSpace (NASDAQ: ZSPC), leader nelle soluzioni AR/VR per l'istruzione, ha comunicato i risultati finanziari del secondo trimestre 2025: il fatturato è rimasto stabile a 7,5 milioni di dollari su base annua, mentre la perdita netta è aumentata a (6,1) milioni di dollari rispetto a (4,7) milioni nel Q2 2024. Il margine lordo è migliorato, raggiungendo il 43%, in crescita di 213 punti base rispetto all'anno precedente.
Tra i traguardi segnaliamo la vittoria del Future's Best of Show Award all'ISTELive 25, il lancio della nuova applicazione Career Explorer™ con Career Coach AI™ e l'ampliamento delle implementazioni presso clienti di New York e California. L'Annualized Contract Value (ACV) è cresciuto dell'11% raggiungendo 10,9 milioni di dollari, con una Net Dollar Revenue Retention del 131% tra i clienti chiave.
Tuttavia, zSpace deve fare i conti con condizioni macroeconomiche sfavorevoli e incertezze nel finanziamento dell'istruzione, evidenziate da una diminuzione delle prenotazioni del 54% su base annua, a 7,2 milioni di dollari, e da una posizione di cassa ridotta a 1,4 milioni di dollari, rispetto ai 3,0 milioni dell'anno precedente.
zSpace (NASDAQ: ZSPC), líder en soluciones AR/VR para educación, informó sus resultados financieros del segundo trimestre de 2025: los ingresos se mantuvieron en 7.5 millones de dólares interanuales y la pérdida neta aumentó a (6.1) millones de dólares frente a (4.7) millones en el Q2 de 2024. El margen bruto mejoró hasta el 43%, 213 puntos básicos más que el año anterior.
Entre los logros destacan la obtención del Future's Best of Show Award en ISTELive 25, el lanzamiento de la nueva aplicación Career Explorer™ con Career Coach AI™ y la expansión de despliegues en Nueva York y California. El Valor Anualizado de Contratos (ACV) creció un 11% hasta 10.9 millones de dólares, con una retención neta de ingresos por cliente del 131% para clientes clave.
No obstante, zSpace afronta retos por las condiciones macroeconómicas y la incertidumbre en la financiación educativa, reflejados en una caída de las reservas del 54% interanual, hasta 7.2 millones de dólares, y en una liquidez reducida de 1.4 millones de dólares, frente a 3.0 millones el año anterior.
zSpace (NASDAQ: ZSPC)는 AR/VR 교육 솔루션 분야의 선두 기업으로 2025 회계연도 2분기 실적을 발표했습니다. 매출은 전년 동기와 동일한 750만 달러를 기록했으나 순손실은 Q2 2024의 (470만 달러)에서 (610만 달러)로 확대되었습니다. 총이익률은 전년 대비 213베이시스포인트 개선되어 43%에 달했습니다.
주요 성과로는 ISTELive 25에서 Future's Best of Show Award 수상, Career Coach AI™를 탑재한 신규 애플리케이션 Career Explorer™ 출시, 뉴욕과 캘리포니아에서 고객 배포 확대 등이 있습니다. 연간화 계약 가치(ACV)는 11% 증가한 1090만 달러를 기록했으며 핵심 고객에 대한 순달러수익 유지율은 131%입니다.
다만 zSpace는 거시경제 상황과 교육 재원 불확실성으로 어려움을 겪고 있으며, 이는 예약(북킹)이 전년 대비 54% 감소한 720만 달러로 나타나고 현금 보유액이 전년 300만 달러에서 140만 달러로 줄어든 점에서도 확인됩니다.
zSpace (NASDAQ: ZSPC), spécialiste des solutions AR/VR pour l'éducation, a publié ses résultats du 2e trimestre 2025 : le chiffre d'affaires est resté stable à 7,5 millions de dollars en glissement annuel, tandis que la perte nette s'est alourdie à (6,1) millions de dollars contre (4,7) millions au T2 2024. La marge brute s'est améliorée à 43%, soit une hausse de 213 points de base par rapport à l'année précédente.
Parmi les réalisations figurent le prix Future's Best of Show à ISTELive 25, le lancement de la nouvelle application Career Explorer™ avec Career Coach AI™, et l'élargissement des déploiements clients à New York et en Californie. La valeur contractuelle annualisée (ACV) a augmenté de 11% pour atteindre 10,9 millions de dollars, avec un taux de rétention nette du chiffre d'affaires par client clé de 131%.
Cependant, zSpace doit faire face à des vents contraires macroéconomiques et à l'incertitude du financement de l'éducation, comme l'illustre une baisse des commandes de 54% sur un an, à 7,2 millions de dollars, et une trésorerie réduite à 1,4 million de dollars, contre 3,0 millions l'an passé.
zSpace (NASDAQ: ZSPC), ein führender Anbieter von AR/VR-Lösungen für den Bildungsbereich, meldete seine Finanzergebnisse für Q2 2025: der Umsatz blieb mit 7,5 Mio. USD unverändert gegenüber dem Vorjahr, während der Nettoverlust auf (6,1) Mio. USD anstieg gegenüber (4,7) Mio. USD im Q2 2024. Die Bruttomarge verbesserte sich um 213 Basispunkte auf 43%.
Zu den Erfolgen zählen der Gewinn des Future's Best of Show Award auf der ISTELive 25, die Einführung der neuen Career Explorer™-App mit Career Coach AI™ sowie erweiterte Kundenbereitstellungen in New York und Kalifornien. Der Annualized Contract Value (ACV) stieg um 11% auf 10,9 Mio. USD, und die Net Dollar Revenue Retention bei Schlüsselkunden lag bei 131%.
Dennoch steht zSpace vor Herausforderungen durch makroökonomische Einflüsse und Unsicherheiten bei der Bildungsfinanzierung, was sich in einem 54%igen Rückgang der Buchungen auf 7,2 Mio. USD gegenüber dem Vorjahr und einem verringerten Barbestand von 1,4 Mio. USD (vorjahr 3,0 Mio. USD) widerspiegelt.
- Gross margin improved to 43%, up 213 basis points year-over-year
- Annualized Contract Value (ACV) increased 11% to $10.9 million
- Net Dollar Revenue Retention reached 131% for customers with over $50,000 ACV
- Won Future's Best of Show Award at ISTELive 25
- Successfully launched Career Explorer application with AI integration
- Net loss widened to ($6.1) million from ($4.7) million year-over-year
- Bookings declined 54% year-over-year to $7.2 million
- Cash position decreased to $1.4 million from $3.0 million year-over-year
- Revenue remained flat at $7.5 million year-over-year
- Operating expenses increased to $7.7 million from $6.5 million year-over-year
Insights
zSpace posts flat revenue, widening losses, with improved margins but concerning cash position amid education funding challenges.
zSpace's Q2 2025 results reveal concerning financial trends despite some operational progress. Revenue remained flat at
The bright spots include a gross margin improvement of 213 basis points to
However, the company's cash position has deteriorated substantially, with cash, equivalents and restricted cash declining to
The company attributes challenges to macroeconomic conditions and shifting U.S. education funding policies, which is consistent with the funding uncertainty and order delays mentioned. Recent business highlights including award recognition and new product launches (Career Explorer with Career Coach AI) demonstrate innovation, but haven't translated to revenue growth.
SAN JOSE, Calif., Aug. 14, 2025 (GLOBE NEWSWIRE) -- zSpace (NASDAQ: ZSPC) (“zSpace” or the “Company”), a leader in augmented and virtual reality solutions for education, is announcing its financial results for the three and six months ended June 30, 2025.
“We are pleased with the strategic and operational progress we made in the second quarter,” said Paul Kellenberger, CEO of zSpace. “We successfully launched our new Career Explorer application following the acquisition of Second Avenue Learning, expanded customer engagement with major deployments in New York and California, and accelerated development of our AI Assistant—key milestones that strengthen our software platform and extend our leadership in immersive, personalized learning.”
Mr. Kellenberger continued, “While macroeconomic conditions and shifting U.S. education funding policies continue to present challenges, we believe zSpace is still uniquely positioned to sustain momentum despite these headwinds. Our solutions align with growing state-level autonomy, workforce development priorities, and the increasing demand for flexible, high-impact instructional tools. We remain focused on executing against our long-term strategy and are encouraged by the customer momentum and market interest we’re seeing across K–12 and CTE. With a solid foundation in place, we are confident in our ability to drive growth and deliver long-term value for our shareholders.”
Second Quarter 2025 Financial Summary vs. Same Year-Ago Period
- Revenue of
$7.5 million vs$7.5 million . - Gross margin of
43% vs.40% , up 213 basis points. - Net loss of (
$6.1) million vs. ($4.7) million .
Recent Business Highlights
- On July 9, 2025, zSpace announced that its zSpace Imagine headset-free AR/VR laptop solution won the Future’s Best of Show Award at ISTELive 25, presented by Tech & Learning in the Primary Education category. This marks the second consecutive year zSpace has received this award, underscoring its ongoing commitment to innovation in immersive learning technology.
- On June 27, 2025, zSpace unveiled its Career Explorer™ application at ISTELive 25, an innovative AR/VR tool designed to empower students in grades 5–8 to explore high-demand careers, including skilled trades, through immersive simulations. The application features Career Coach AI™, an on-demand assistant offering personalized career guidance aligned with national career development standards.
- On June 18, 2025, zSpace announced that Upper Bucks County Technical School (“UBCTS”) in Pennsylvania was named a zSpace School of Distinction, and automotive instructor Patrick Chrinko was recognized as a zSpace Educator of Distinction for leadership in integrating immersive AR/VR technology into Career and Technical Education (CTE). UBCTS has become a statewide model for workforce readiness using zSpace’s platform.
Second Quarter 2025 Financial Results
Revenue in the second quarter of 2025 was
Gross margins increased 213 basis points to
The Company’s hardware costs include shipping and handling fees paid to its primary logistics agent for tariffs, custom duties and related logistics expenses. For the three and six months ended June 30, 2025, these costs were approximately
During the three and six months ended June 30, 2025, the Company recorded excess and obsolete expenses of
Excluding the
Annualized Contract Value (“ACV”) of renewable software at June 30, 2025, was
Net Dollar Revenue Retention (NDRR) at June 30, 2025, was
Bookings in the second quarter of 2025 were
Operating expenses, excluding stock-based compensation expense, in the second quarter of 2025 were
Net loss in the second quarter of 2025 was (
Balance Sheet
As of June 30, 2025, zSpace had approximately
Conference Call
zSpace will host a conference call at 5:00 p.m. ET / 2:00 p.m. PT on Thursday, August 14, 2025, with the Company’s Chief Executive Officer, Paul Kellenberger, and the Company’s Chief Financial Officer, Erick DeOliveira. A live webcast of the call will be available on the Events and Presentations section of zSpace’s investor relations website.
To access the call by phone, please use this registration link and you will be provided with dial-in details.
To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website.
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 allows students and teachers to experience learning in the classroom that may otherwise be dangerous, impossible, counterproductive, or expensive using traditional techniques. Headquartered in San Jose, California, zSpace holds over 70 patents and our hands-on "learning by doing" solutions have been shown to enhance the learning process and drive higher student test scores, as evidenced by a study on the utility of 3D virtual reality technologies for student knowledge gains published in the Journal of Computer Assisted Learning in 2021.
Key Metric Definitions
We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. The calculation of the key metrics discussed below may differ significantly from other similarly titled metrics used by other companies, analysts, investors and other industry participants.
We reference bookings in this press release, which is an internal operational measure of the business. Bookings represent customer orders that have hardware, software and service components. Bookings indicate future revenue, which lags based on product shipping date, monthly recognition of certain subscription revenue and service delivery completion.
We reference Annualized Contract Value (ACV) in this press release, which is an internal operational measure of the business. To monitor our ability to retain and grow our customer base for our software we monitor the annualized contract value of active renewable software licenses.
We reference Net Dollar Revenue Retention (NDRR) in this press release, which is an internal operational measure of the business. We calculate our NDRR as of a given period end by starting with the ACV from all customers with contracts of at least
Bookings, ACV, and NDRR are non-GAAP financial measures (U.S. generally accepted accounting principles). These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Management believes that presenting these non-GAAP financial measures provide investors with additional analytical tools which are useful in evaluating our operating results and the ongoing performance of our underlying businesses because they (i) provide meaningful supplemental information regarding financial performance by excluding impact of one-time items and other items affecting comparability between periods, (ii) permit investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate our core operating performance across periods, and (iii) otherwise provide supplemental information that may be useful to investors in evaluating our financial results. We do not, nor do we suggest that investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
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 expected trading commencement and closing dates. 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.
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
| FINANCIAL TABLES – INCOME STATEMENT AND BALANCE SHEET | ||||||||||||||||
| INCOME STATEMENT | ||||||||||||||||
| 3 Months Ended June 30, | 6 Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 7,459 | $ | 7,503 | $ | 14,218 | $ | 15,344 | ||||||||
| Cost of goods sold | 4,285 | 4,470 | 7,838 | 9,609 | ||||||||||||
| Gross profit | 3,174 | 3,033 | 6,380 | 5,735 | ||||||||||||
| Gross profit % | 42.6 | % | 40.4 | % | 44.9 | % | 37.4 | % | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,274 | 1,071 | 2,369 | 3,048 | ||||||||||||
| Selling and marketing | 3,948 | 3,362 | 7,950 | 8,867 | ||||||||||||
| General and administrative | 4,281 | 2,129 | 7,774 | 8,738 | ||||||||||||
| Total operating expenses | 9,503 | 6,562 | 18,093 | 20,653 | ||||||||||||
| Loss from operations | (6,329 | ) | (3,529 | ) | (11,713 | ) | (14,918 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (301 | ) | (910 | ) | (803 | ) | (1,639 | ) | ||||||||
| Other income (expense), net | 14 | (268 | ) | 70 | (350 | ) | ||||||||||
| Loss on extinguishment of debt | — | — | (52 | ) | ||||||||||||
| Gain on change in fair value of convertible debt | 525 | — | 525 | — | ||||||||||||
| Loss before income taxes | (6,091 | ) | (4,707 | ) | (11,921 | ) | (16,959 | ) | ||||||||
| Income tax expense | 11 | 39 | 13 | 34 | ||||||||||||
| Net loss | $ | (6,102 | ) | $ | (4,746 | ) | $ | (11,934 | ) | $ | (16,993 | ) | ||||
| BALANCE SHEET | ||||||||||||
| June 30, | June 30, | December 31, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Selected Balance Sheet Information: | ||||||||||||
| Cash, cash equivalents and restricted cash | $ | 1,390 | $ | 2,972 | $ | 4,864 | ||||||
| Accounts receivable, net | $ | 4,643 | $ | 5,034 | $ | 3,176 | ||||||
| Inventory, net | $ | 2,596 | $ | 3,023 | $ | 3,238 | ||||||
| Total Assets | $ | 12,137 | $ | 14,909 | $ | 13,532 | ||||||
| Accounts payable & accrued expenses | $ | 10,575 | $ | 15,720 | $ | 11,021 | ||||||
| Convertible, other debt and accrued interest | $ | 20,163 | $ | 22,145 | $ | 13,557 | ||||||
| Total liabilities | $ | 34,433 | $ | 42,770 | $ | 28,220 | ||||||
| Temporary redeemable preferred stock | $ | — | $ | 112,142 | $ | - | ||||||
| Stockholders' deficit | $ | (22,296 | ) | $ | (140,003 | ) | $ | (14,688 | ) | |||
| Total Liabilities, Temporary Redeemable Preferred Stock, and Stockholders' Deficit | $ | 12,137 | $ | 14,909 | $ | 13,532 | ||||||
FAQ
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