On March 30, 2026, zSpace, Inc. (NASDAQ: ZSPC) announced its financial results for the fourth quarter and full year ended December 31, 2025. The company reported a revenue of $4.8 million for Q4 2025, a significant decrease from $8.5 million in the same quarter of the previous year. For the full year, zSpace's revenue was $27.9 million, down from $38.1 million in 2024. The decline in revenue was attributed to a freeze in orders and shipments during the U.S. Federal Government shutdown. Despite a 10 percentage point increase in software and services revenue contribution to 53%, the company faced a net loss of $7.3 million in Q4 2025, compared to a loss of $3.6 million in Q4 2024. For the full year, the net loss increased to $25.4 million from $20.8 million in 2024. The gross margin improved to 49% from 41% in Q4 2024, reflecting better hardware cost profiles and increased company-owned software content. CEO Paul Kellenberger expressed confidence in the company's long-term potential despite ongoing macroeconomic challenges, emphasizing the importance of strategic actions taken to strengthen the balance sheet and align with market conditions. The company will host a conference call to discuss these results further.

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