zSpace misses Q4 revenue estimates amid federal governmnet shutdown

zSpace,.

30/03/2026 21:18

Corrects spelling error in headline

Overview

US AR/VR education firm's Q4 revenue fell and missed analyst expectations

Gross margin rose to 49% from 41%, driven by more software and services

Company completed restructuring, cut expenses, and secured new capital commitments

Outlook

Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

GOVERNMENT SHUTDOWN IMPACT - Co said Q4 revenue decline was driven by a freeze in orders and shipments during the U.S. Federal Government shutdown

SOFTWARE AND SERVICES MIX - Gross margin improvement attributed to higher mix of software and services, improved hardware cost profiles, and more company-owned software content

RESTRUCTURING AND COST CUTS - Co completed a strategic restructuring, reducing run-rate operating expenses by more than 30%

Company press release: ID:nGNX62Xwyx

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$4.80 mln
$6.20 mln (3 Analysts)
Q4 Net Income
-$7.30 mln
Q4 Adjusted EBITDA
-$3.70 mln
Q4 Gross Margin
49.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for zSpace, Inc. is $3.00, about 2,343% above its March 27 closing price of $0.12

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)