zSpace Q4 Revenue Slumps to $4.8M as Software Share Hits 53%
zSpace reported Q4 revenue of $4.8 million, down from $8.5 million, and full-year revenue of $27.9 million versus $38.1 million, while net loss widened to $7.3 million in Q4 and $25.4 million. Software and services share rose to 53% in Q4, boosting gross margin by 840 basis points to 49%.
1. Financial Results
zSpace recorded fourth-quarter revenue of $4.8 million versus $8.5 million year-over-year and full-year revenue of $27.9 million compared to $38.1 million; net loss widened to $7.3 million in Q4 and $25.4 million full-year, while adjusted EBITDA losses reached $3.7 million and $14.8 million respectively.
2. Revenue Mix and Margins
Software and services comprised 53% of Q4 revenue, up from 43% a year earlier, driving gross margin expansion of 840 basis points to 49%; full-year software share climbed to 49%, lifting gross margin by 670 basis points to 48%.
3. Capital Structure and Liquidity
Cash and equivalents declined to $1.0 million from $4.9 million year-over-year, offset by a $3.0 million strategic investment, a $4.3 million senior secured convertible note, and debt facility refinancing; the company also executed a restructuring that cut run-rate operating expenses by over 30%.
4. Product Launches and Customer Deployments
In November 2025, zSpace launched the AI-enabled zStylus One and later expanded AR/VR deployments at Bellflower Unified’s Mayfair High School and Atlanta Public Schools, while also advancing international education programs in Italy.