Quarterly ResultAug 13, 2026, 04:13 PM
zSpace Q2 Net Income $0.3M; Gross Margin Expands to 56%
AI Summary
zSpace, Inc. reported its second quarter 2026 financial results, achieving a net income of $0.3 million, a significant improvement from a net loss of $6.1 million in the prior year. This profitability was driven by a substantial expansion in gross margin to 56%, up from 43%, attributed to a shift towards higher-margin software and services revenue and a leaner hardware cost profile. However, revenue decreased to $5.4 million from $7.5 million year-over-year, partly due to delayed EMEA orders. The company also strengthened its balance sheet by converting over $12 million in debt to equity and continues its formal review of strategic alternatives.
Key Highlights
- Reported Q2 2026 net income of $0.3 million, compared to a net loss of $6.1 million in Q2 2025.
- Gross margin expanded to 56% in Q2 2026, up from 43% in Q2 2025.
- Revenue for Q2 2026 was $5.4 million, down from $7.5 million in Q2 2025.
- Adjusted EBITDA loss improved to $0.9 million in Q2 2026, from $4.5 million in Q2 2025.
- Eliminated over $12 million in debt by converting outstanding principal and interest into equity.
- Software and services comprised 47% of revenue in Q2 2026, up from 42% in Q2 2025.
- Annualized Contract Value (ACV) of renewable software was $9.4 million, a 13% decrease year-over-year.
Price Impact
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