zSpace Announces Q3 Revenue of $8.79 Million, Exceeding Consensus Estimate of $7.88 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2025
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Q3 Financial Performance: zSpace reported a Q3 adjusted EBITDA loss of $2 million, highlighting a focus on strategic priorities and revenue control.
Revenue Composition: Over 50% of zSpace's revenue came from software and services, contributing to a gross margin expansion of over 640 basis points due to strong customer renewals.
New Product Launch: The company successfully launched its Career Explorer application, developed by the acquired Second Avenue Learning team, which has generated significant customer interest.
Global Expansion: zSpace began deploying its solutions with GEMS Education in Dubai and announced a full deployment of its Career Coach AI and STEM learning technology in Danbury Public Schools, Connecticut's largest high school district.
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Analyst Views on ZSPC
Wall Street analysts forecast ZSPC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZSPC is 2.30 USD with a low forecast of 0.90 USD and a high forecast of 3.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 0.472
Low
0.90
Averages
2.30
High
3.00
Current: 0.472
Low
0.90
Averages
2.30
High
3.00
About ZSPC
zSpace, Inc. is a provider of augmented reality (AR) and virtual reality (VR) educational technology solutions. It is focused on both United States K-12 schools and Career & Technical Education (CTE) markets. Its proprietary hardware and software platform provides the ability to deliver an interactive, stereoscopic three-dimensional (3D) learning experience to its users without the need to utilize VR goggles or specialty glasses. Its platform serves a range of critical educational tools designed for K-12 science, technology, engineering and math (STEM) lessons, and training skilled trades in areas, such as health sciences, automotive engineering/repair, Unity3D software programming and advanced manufacturing. Its hardware is the enabler of the 3D learning experience on its platform. It develops and delivers both platform management software, enabling the easy distribution, licensing and management of Web-enabled applications, and end user applications that students use on its devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
zSpace Completes Strategic Restructuring, Reducing Operating Costs by Over 30% to Focus on AR/VR Education Market
- Strategic Restructuring: zSpace has completed a comprehensive strategic restructuring aimed at optimizing its cost structure and enhancing operational efficiency, which is expected to reduce operating expenses by over 30%, thereby strengthening its financial profile and laying a more resilient foundation for future growth.
- Workforce Adjustments: The restructuring involved significant headcount reductions primarily within its U.S. operations to address macroeconomic pressures, ensuring the company's competitiveness in the edtech and immersive learning sectors.
- Market Adaptability: CEO Paul Kellenberger stated that post-restructuring, zSpace will be more focused on its core strengths, enhancing financial stability and creating greater value for customers and shareholders, reflecting an optimistic outlook on future profitability.
- Education Market Expansion: zSpace's flagship platforms continue to gain traction in K-12 education and vocational training, with recent partnerships and deployments underscoring strong demand for its solutions, indicating potential for further global market expansion.
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zSpace Expands CTE Application Suite to Enhance Student Career Skills
- Educational Innovation: zSpace will unveil its expanded Career and Technical Education (CTE) application suite at the ACTE CareerTech VISION in Nashville, Tennessee, covering automotive, health science, advanced manufacturing, and robotics, aimed at enhancing students' career skills through immersive learning.
- New Application Launch: The newly introduced automotive technology applications include high-voltage safety and battery diagnostics for electric and hybrid systems, enabling students to master complex systems in real environments and enhance their practical skills.
- AI-Powered Learning: The launch of zStylus One enhances the precision of all CTE learning applications, supporting realistic hands-on practice in automotive diagnostics and health science through embedded sensors and machine learning calibration, thereby improving learning outcomes.
- Career Exploration Platform: The Career Explorer application allows students to investigate various high-demand career fields, understand job requirements, and align classroom concepts with real-world skills, preparing them for future technology-driven careers.
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