zSpace (ZSPC) investor relations material

Company overview and business model

• Provides AR/VR educational technology for K-12 schools, Career & Technical Education (CTE), and select international markets, offering a proprietary hardware and software platform for interactive 3D learning without goggles or glasses.

• Products include Inspire and Imagine laptops with autostereoscopic 3D graphics, tracked styluses, and a suite of software applications for STEM and CTE subjects.

• Sells directly to U.S. school districts and community colleges, with international sales via resellers; platform is in over 3,500 U.S. school districts and 50+ countries.

• Business model generates revenue from hardware, software licenses/subscriptions, and services, with a focus on growing software revenue.

Financial performance and metrics

• For the nine months ended September 30, 2025, revenue was $23.0M, down 22% from $29.6M in the prior year period; net loss was $18.1M.

• Hardware revenue fell 30% to $11.9M; software revenue fell 15% to $8.7M; services revenue rose 9% to $2.4M.

• Gross margin improved to 47% from 41% year-over-year; Adjusted EBITDA for the nine months was $(10.8)M.

• Cash and equivalents were $4.3M as of September 30, 2025; accumulated deficit was $308.5M.

• Company has a history of net losses and negative cash flows, with substantial doubt about its ability to continue as a going concern.

Use of proceeds and capital allocation

• Will not receive proceeds from resale of shares by selling stockholders; may receive up to $24.4M in gross proceeds from Tumim Stone Capital under a stock purchase agreement.

• Proceeds, if received, will be used for operating expenses, working capital, strategic, and general corporate purposes.