zSpace, Inc. (ZSPC) Earnings Call Transcripts

zSpace, Inc.'s Latest Earnings Call - Q4 FY2025

In the fourth quarter and full year ended December 31, 2025, zSpace, Inc. reported revenues of $27.9 million, a decline of 27% year-over-year, with Q4 revenues at $4.8 million, down 43% year-over-year. The company experienced significant challenges due to macroeconomic factors, including a federal government shutdown, which impacted order fulfillment. Management expressed cautious optimism for 2026, indicating potential for breakeven adjusted EBITDA if revenue performance stabilizes around 2025 levels, supported by cost reductions and improved gross margins.

Reported metrics

Guidance from management

Management anticipates that if 2026 revenues stabilize around 2025 levels, they could achieve breakeven adjusted EBITDA due to cost reductions and improved gross margins. However, they did not provide formal guidance due to ongoing uncertainties.

What management said

Let me take that, Alex. The answer is we hope so. And the war in Iran just really put everything kind of on the back burner for obvious reasons. Erick alluded -- so the answer is we think so. It's something that we're still pursuing. There are some other opportunities, Erick alluded to in his commentary in the Middle East, even some bigger ones. And we're hoping those come back.

Yes. So CTE is more than 50%. I think the exact number is 56% versus 48%, Erick, in the previous year. Sorry? Yes. So it continues to grow. And some of that, Rohit, had to do with the funding. And again, Alex was asking the questions about the funding. Perkins is a big part of money in the CTE world that is a federal funding that has continued to expand and it's an annuity. But the CTE side of the business -- and by ...

What analysts pressed on

Analysts expressed concerns about the macroeconomic environment affecting funding in the K-12 sector and the impact of the federal government shutdown on order fulfillment. There were questions regarding the outlook for 2026 and whether zSpace could maintain or improve its revenue performance given these challenges.

Main topics on the call

• Revenue Decline — zSpace's total revenues for 2025 were $27.9 million, down 27% year-over-year. Q4 revenues were particularly affected, falling 43% due to a government shutdown that froze orders and shipments. Management noted, "It was no...
• Gross Margin Expansion — Despite revenue declines, zSpace achieved gross margin expansion of 6.7 percentage points to 47.6% for the year, driven by a shift towards software and services, which comprised over 50% of total revenue in Q4. Managemen...
• Cost Management Initiatives — The company undertook significant restructuring in December 2025, reducing operating expenses to a run rate of approximately $19 million. This was part of a strategy to align costs with revenues and achieve breakeven EBI...
• Customer Engagement and Wins — zSpace reported meaningful customer wins in educational sectors, including partnerships with Greater Altoona Career & Technology Center and Mayfair High School. These engagements are expected to contribute positively to ...

Read the full zSpace, Inc. transcript (Q4 FY2025) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 6 zSpace, Inc. earnings call transcripts on record, spanning March 28, 2025 to May 14, 2026. Based on this history, zSpace, Inc. reports quarterly. The most recent call on file is dated May 14, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

ZSPC

Exchange

OTCPK

Country

US

Sector

Consumer Discretionary

Industry

Diversified Consumer Services

Calls on record

6

First call

March 28, 2025

Most recent

May 14, 2026

Reporting cadence

quarterly