Q3 2025 zSpace, Inc. Earnings Call Transcript

Nov 13, 2025 / 10:00 PM GMT

Release Date Price: $18 (-5.26%)

Transcript 10-Q8-K

Key Points

Positve

ZSPACE Inc (ZSPC) achieved a sequential revenue growth of 18%, demonstrating strong execution and focus on delivering customer value.
The company's software and services revenue now comprises over 50% of total revenue, contributing to a gross margin expansion of over 640 basis points.
Successful integration of Second Avenue Learning led to the launch of a career exploration application, showcasing the company's ability to deliver innovative AI-powered education products.
ZSPACE Inc (ZSPC) is leveraging artificial intelligence to eliminate language barriers, expanding its global reach and ensuring accessibility across various educational geographies.
The company has secured international deployments in regions such as Dubai, Italy, Bulgaria, and Poland, indicating strong momentum in international markets.

Negative

Year-to-date revenues were down 22% year over year, reflecting challenges in the overall revenue performance.
The annualized contract value of renewable software decreased by 10% compared to the previous year, indicating challenges in customer renewals.
Bookings for the nine-month period ending September 30th were down 35% year over year, highlighting a decline in new business.
Gross profit decreased by 10% against the same period last year, affected by tariffs and a one-time charge related to discontinued software license inventory.
The company faces ongoing uncertainty related to tariff impacts and the education funding environment in the US, affecting the predictability of future business volumes.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ZSPC.OQ - zSpace, Inc.
Q3 2025 zSpace, Inc. Earnings Call
Nov 13, 2025 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello and thank you for participating in today's conference call to discuss ZSpace's financial results for the third quarter ended September 30th, 2025.

Joining us today are ZS Space CEO Paul Kallenberger and CFO Eric de Olivera and Greg Robus from Investigations.

Following the remarks will open the call for analyst questions.

Before we go further, I would like to turn the call over to Mr. Roberts as he reads the company's safe harbor statement. Greg, please go ahead.

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Unidentified_2 [2]
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Thanks operator, good afternoon and thank you for

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