zSpace ZSPC

OTC ZSPC

$0.10 -0.02 (-16.67%)

At close: Oct 15, 2026 · 4:00 PM EDT

zSpace (ZSPC) stock price is $0.10, down 16.67% on the day, as of Oct 15, 2026. It has a market cap of $1.01Mn, and is classified in the Education Technology industry (Technology sector).

Key Stats

Market Cap1.01 Mn

P/E-0.05

P/S0.04

Div. Yield0.00

Total Debt (Qtr)1.36 Mn

Revenue Growth (1y) (Qtr)-27.66

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About

zSpace, Inc. is a leading provider of augmented reality and virtual reality educational technology products focused on K-12 schools, career and technical education, and select international markets. The company designs and delivers a proprietary hardware and software platform that enables interactive, stereoscopic three-dimensional learning experiences without requiring VR goggles or specialty glasses. Its technology supports hands-on learning in science, technology,…

zSpace, Inc. generates revenue through the sale of its hardware, software, and services to educational institutions and training organizations. Primary products include the Inspire and Imagine laptops, which deliver autostereoscopic 3D graphics, and patented tracked styluses that allow users to interact with virtual objects in open space. The company also provides platform management software, end-user applications, implementation services, and professional development training to support customer adoption and effective use of its solutions.

The company operates through the following segments:

Hardware: This segment includes the design and delivery of zSpace’s proprietary computing devices that enable the 3D learning experience. Key products are the Inspire Laptops, built in partnership with a major PC OEM for general K-12 and CTE use, and the Imagine Laptops, designed specifically for elementary school students with a smaller, lighter form factor. The segment also includes the patented tracked stylus, which features three buttons, haptic feedback, and eye-tracking integration to allow natural interaction with virtual objects as if they were physical.
Software: This segment encompasses the development and delivery of platform management tools and end-user applications that run on zSpace devices. The software includes internally developed and third-party created applications covering K-12 STEM subjects such as Science, Math, and Health, as well as CTE-focused content in areas like Automotive, Advanced Manufacturing, Health, Agri-Sciences, and Unity3D® programming. The platform supports a growing library of curriculum-aligned modules designed for classroom and career training environments.
Services: This segment provides implementation and professional development support to help customers deploy and effectively use zSpace solutions. In the United States, the company maintains a network of trainers with education experience to ensure positive user outcomes. Internationally, these services are delivered exclusively through third-party resellers who provide localized support and training to schools and institutions in global markets.

zSpace, Inc. holds a differentiated position in the educational technology market due to its proprietary autostereoscopic 3D platform that does not require headsets or glasses, offering a unique kinesthetic learning experience. The company competes with firms such as Chegg, Coursera, Instructure, Kahoot, and Powerschool in the broader edtech space, as well as with VR/AR companies like Avantis Education, Prisms VR, Interplay Learning, and Victory XR. Its competitive advantages include a broad and deep content library spanning multiple subjects and grade levels, patented hardware technology with eye-tracking and haptic feedback, and strong brand recognition as a trusted provider in K-12 and CTE markets across the United States.

zSpace, Inc. serves public school districts, community colleges, technical colleges, trade schools, and career training institutions primarily in the United States, with additional reach into over 50 countries through international resellers. The company’s platform is implemented in more than 3,500 of the approximately 13,000 U. S. public school districts, including over 80% of the largest 100 K-12 districts by student enrollment. Its CTE solutions have been deployed in approximately 73% of the public school districts it serves, reflecting strong adoption in career-focused education programs.

Investment Thesis

▲ Bull case

zSpace operates in the augmented reality (AR) and virtual reality (VR) educational technology sector, which is experiencing structural growth driven by increasing adoption of immersive learning tools in K-12 and higher education institutions globally, with market projections indicating sustained double-digit annual expansion through 2030 as governments and school districts allocate budgets toward digital transformation initiatives, positioning the company to benefit from long-term secular trends rather than relying on cyclical demand fluctuations, and its early-mover advantage in curriculum-aligned AR/VR content creates switching costs that could support durable customer relationships and recurring revenue streams over time.
Despite the IPO-related litigation concerns highlighted in recent news, zSpace's core technology platform demonstrates tangible educational efficacy through peer-reviewed studies showing improved student engagement and knowledge retention in STEM subjects, which could lead to broader institutional adoption if the company successfully navigates current legal challenges and redirects focus toward product validation and sales execution, potentially unlocking upside in markets where traditional edtech solutions have struggled to deliver measurable learning outcomes.
The company's recent IPO provided substantial capital infusion that, if managed prudently, could be deployed to strengthen its balance sheet, fund strategic acquisitions of complementary content or technology assets, and expand its sales force into underserved geographic regions, thereby accelerating market penetration beyond its current concentrated customer base and reducing reliance on any single district or funding source for revenue stability.
Management's silence on the litigation in public communications may reflect a strategic decision to avoid prejudicing ongoing legal proceedings while maintaining operational focus, suggesting that internal controls and compliance protocols have been strengthened post-IPO to prevent recurrence of disclosure issues, which could restore investor confidence over time as the legal process unfolds and any potential settlements are resolved without material impact on ongoing operations.

zSpace operates in the augmented reality (AR) and virtual reality (VR) educational technology sector, which is experiencing structural growth driven by increasing adoption of immersive learning tools in K-12 and higher education institutions globally, with market projections indicating sustained double-digit annual expansion through 2030 as governments and school districts allocate budgets toward digital transformation initiatives, positioning the company to benefit from long-term secular trends rather than relying on cyclical demand fluctuations, and its early-mover advantage in curriculum-aligned AR/VR content creates switching costs that could support durable customer relationships and recurring revenue streams over time.
Despite the IPO-related litigation concerns highlighted in recent news, zSpace's core technology platform demonstrates tangible educational efficacy through peer-reviewed studies showing improved student engagement and knowledge retention in STEM subjects, which could lead to broader institutional adoption if the company successfully navigates current legal challenges and redirects focus toward product validation and sales execution, potentially unlocking upside in markets where traditional edtech solutions have struggled to deliver measurable learning outcomes.
The company's recent IPO provided substantial capital infusion that, if managed prudently, could be deployed to strengthen its balance sheet, fund strategic acquisitions of complementary content or technology assets, and expand its sales force into underserved geographic regions, thereby accelerating market penetration beyond its current concentrated customer base and reducing reliance on any single district or funding source for revenue stability.
Management's silence on the litigation in public communications may reflect a strategic decision to avoid prejudicing ongoing legal proceedings while maintaining operational focus, suggesting that internal controls and compliance protocols have been strengthened post-IPO to prevent recurrence of disclosure issues, which could restore investor confidence over time as the legal process unfolds and any potential settlements are resolved without material impact on ongoing operations.

▼ Bear case

zSpace faces material legal and reputational risks stemming from allegations that its December 2024 IPO Registration Statement omitted critical disclosures regarding pre-IPO financial obligations to preferred shareholders and undisclosed litigation threats, which, if proven, could result in significant financial penalties, rescission claims, or forced settlements that drain cash reserves and divert management attention from core business execution, particularly concerning given the company's limited operating history as a newly public entity.
The allegations specifically highlight a failure to disclose that preferred shareholders were owed financial statements under purchase agreements and that non-disclosure of a major preferred shareholder created conflicts of interest, suggesting potential governance weaknesses and a pattern of inadequate transparency that may extend beyond the IPO process into ongoing financial reporting or investor relations practices, eroding trust with institutional investors and making future capital raising more difficult or expensive.
Even if the company's AR/VR technology has educational merit, its commercial success remains unproven at scale, with no evidence in the provided context of meaningful revenue growth, profitability, or sustainable unit economics, leaving it vulnerable to cash burn pressures as it competes against well-funded incumbents in the edtech space that have deeper distribution networks and established relationships with Ministry of Education buyers worldwide.
The lack of any recent earnings call transcript prevents assessment of management's commentary on operational performance, customer acquisition costs, or margin trends, creating an information vacuum where investors cannot evaluate whether the company is making progress toward product-market fit or simply consuming IPO proceeds while facing mounting legal liabilities, thereby increasing uncertainty about its ability to achieve long-term viability independent of external funding.

zSpace faces material legal and reputational risks stemming from allegations that its December 2024 IPO Registration Statement omitted critical disclosures regarding pre-IPO financial obligations to preferred shareholders and undisclosed litigation threats, which, if proven, could result in significant financial penalties, rescission claims, or forced settlements that drain cash reserves and divert management attention from core business execution, particularly concerning given the company's limited operating history as a newly public entity.
The allegations specifically highlight a failure to disclose that preferred shareholders were owed financial statements under purchase agreements and that non-disclosure of a major preferred shareholder created conflicts of interest, suggesting potential governance weaknesses and a pattern of inadequate transparency that may extend beyond the IPO process into ongoing financial reporting or investor relations practices, eroding trust with institutional investors and making future capital raising more difficult or expensive.
Even if the company's AR/VR technology has educational merit, its commercial success remains unproven at scale, with no evidence in the provided context of meaningful revenue growth, profitability, or sustainable unit economics, leaving it vulnerable to cash burn pressures as it competes against well-funded incumbents in the edtech space that have deeper distribution networks and established relationships with Ministry of Education buyers worldwide.
The lack of any recent earnings call transcript prevents assessment of management's commentary on operational performance, customer acquisition costs, or margin trends, creating an information vacuum where investors cannot evaluate whether the company is making progress toward product-market fit or simply consuming IPO proceeds while facing mounting legal liabilities, thereby increasing uncertainty about its ability to achieve long-term viability independent of external funding.

Product and Service Breakdown of Revenue (2025)

History

Geographical Breakdown of Revenue (2025)

History

Peer percentiles

How zSpace ranks

Ranked against the 99 companies in Vertical Software58 metrics · as of Oct 16, 2026

Valuation

12 metrics · Lower multiples rank higher; a negative multiple ranks last

P/ENegative earnings −0.05xMedian 40.2x 3^rd
P/FCFNegative free cash flow −0.09xMedian 18.5x 2^nd
P/Operating cash flowNegative operating cash flow −0.09xMedian 17.5x 3^rd
P/S 0.04xMedian 2.60x 97^th
P/BNegative shareholder equity −0.08xMedian 1.84x Not meaningful —
P/Tangible bookNegative tangible equity −0.07xMedian 2.34x Not meaningful —
EV/EBITDANegative EBITDA −0.09xMedian 18.6x 1^st
EV/EBITNegative EBIT −0.09xMedian 30.9x 1^st
EV/Revenue 0.06xMedian 2.98x 99^th
EV/FCFNegative free cash flow −0.13xMedian 19.8x 1^st
EV/Operating cash flowNegative operating cash flow −0.13xMedian 18.2x 1^st
PEG (3Y EPS CAGR) —Median 1.60 No data —

Growth

14 metrics · Year-on-year growth and three-year compound annual growth

Revenue growth (1Y) −34.3%Median 10.8% 4^th
Revenue CAGR (3Y) —Median 9.9% No data —
Gross profit growth (1Y) −21.6%Median 10.3% 7^th
Gross profit CAGR (3Y) —Median 10.9% No data —
Operating income growth (1Y) −16.9%Median 17.1% 27^th
Operating income CAGR (3Y) —Median 19.0% No data —
Net income growth (1Y) −25.1%Median 14.3% 32^nd
Net income CAGR (3Y) —Median 15.8% No data —
EPS growth (1Y) 88.6%Median 31.4% 77^th
EPS CAGR (3Y) —Median 22.9% No data —
Operating cash flow growth (1Y) 23.0%Median 14.4% 56^th
Operating cash flow CAGR (3Y) —Median 16.6% No data —
Free cash flow growth (1Y) 22.9%Median 13.1% 58^th
Free cash flow CAGR (3Y) —Median 16.2% No data —

Profitability

14 metrics · Margins, returns on capital and the quality of earnings

Gross margin 52.3%Median 64.2% 28^th
EBITDA margin −69.5%Median 9.0% 16^th
Operating margin −69.6%Median 0.4% 19^th
Pretax margin −81.2%Median −1.8% 18^th
Net margin −81.4%Median −2.8% 16^th
FCF margin −47.0%Median 8.7% 17^th
Operating cash flow margin −46.9%Median 10.3% 14^th
Return on equity —Median 1.1% No data —
Return on assets −210%Median −5.0% 9^th
Return on invested capital —Median 0.6% No data —
Return on capital employed —Median 0.5% No data —
Asset turnover 2.59xMedian 0.61x 96^th
Cash conversion (OCF / net income)Net income is not positive 0.58xMedian 2.07x Not meaningful —
Stock comp / revenue 30.6%Median 7.7% 10^th

Financial Health

11 metrics · Leverage, liquidity and solvency; less debt ranks higher

Debt / assets 16.5%Median 25.2% 64^th
Debt / equityNegative shareholder equity −0.10xMedian 0.33x Not meaningful —
Net debt / EBITDAEBITDA is not positive −0.03xMedian 1.78x Not meaningful —
Debt / FCFFree cash flow is not positive −0.12xMedian 3.39x Not meaningful —
Liabilities / assets 259%Median 42.7% 7^th
Equity / assetsNegative shareholder equity −159%Median 57.3% 7^th
Interest coverage −13.4xMedian −0.78x 30^th
Current ratio 0.69xMedian 1.77x 17^th
Quick ratio 0.33xMedian 1.44x 15^th
Cash ratio 0.08xMedian 0.75x 11^th
Altman Z-score −58.7Median 1.68 3^rd

Peer group

Peer Comparison

Companies in the Education Technology

View all peers

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	BRRN	Bryn Inc.	945.00 Bn	-4.21 Mn	-	0.00 Bn
2	VEEV	Veeva Systems Inc	51.57 Bn	0.00 Mn	14.91	-
3	IOT	Samsara Inc.	23.54 Bn	0.00 Mn	12.74	-
4	PTC	Ptc Inc.	22.16 Bn	0.00 Mn	7.50	0.03 Bn
5	TOST	Toast, Inc.	18.20 Bn	0.00 Mn	2.67	-
6	TRMB	Trimble Inc.	13.96 Bn	0.00 Mn	3.69	1.46 Bn
7	MANH	Manhattan Associates Inc	13.22 Bn	0.00 Mn	11.74	-
8	ZSPC	zSpace, Inc.	0.00 Bn	0.00 Mn	0.04	0.00 Bn