zSpace, Inc.

zSpace, Inc. has announced its intention to voluntarily delist its common stock from The Nasdaq Stock Market and deregister it under the Securities Exchange Act of 1934. The company plans to file a Form 25 with the SEC on or about September 25, 2026, with delisting expected to be effective around October 5, 2026. This decision follows Nasdaq's delisting determination, which the company's appeal could not overturn, and considers the substantial costs and limited benefits of continued listing amid a trading suspension since April 2026. The common stock is expected to continue trading on the OTC market.

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.

zSpace, Inc. announced that its AR/VR learning platform is being leveraged by L'ABCD Edutainment, its exclusive Italian representative, for a significant advance in medical imaging research. The research, presented at Politecnico Milano, demonstrates how zSpace enables the reconstruction and interactive exploration of 3D thyroid models from 2D ultrasound images using AI, eliminating the need for additional hardware sensors. This innovation aims to improve early and accurate identification of pathological thyroid conditions and expands zSpace's presence into advanced medical research applications in Europe.

zSpace, Inc. has completed a comprehensive debt restructuring, converting approximately $12.0 million of outstanding debt owed to 3i, LP and Fiza Investments Limited into a combination of Common Stock and a newly created Series P-2 Convertible Preferred Stock. This strategic move aims to strengthen the company's balance sheet by reducing its debt obligations. Additionally, the remaining senior convertible note held by 3i was amended, introducing a 9-month conversion moratorium and a structured repayment schedule, while the terms of the existing Series P Convertible Preferred Stock were also modified.

zSpace, Inc. announced it has entered into agreements with two lenders, Fiza Investments Limited and 3i, LP, to convert over $12 million in outstanding debt into equity. These transactions eliminate significant debt obligations, with Fiza converting approximately $10 million and 3i converting approximately $2 million, both at 150% of the market price. The move meaningfully strengthens the Company's financial position, reducing total debt to approximately $5 million and allowing zSpace to focus on delivering innovative learning experiences.

zSpace, Inc. highlighted its partnership with the Challenger Learning Center of Northeast Alabama and the JAX State STEAM Institute following the center's official ribbon cutting on May 8. The new center provides immersive, mission-based STEM experiences, utilizing zSpace laptops in its high-tech classrooms for students to interact with 3D models. zSpace's content team also developed custom interactive STEM mission scenarios to complement the center's programming, aiming to prepare students for future STEM careers and create a workforce pipeline in the region.

zSpace, Inc. reported a net loss of $(6.6) million for the first quarter of 2026, an increase from $(5.8) million in the prior year, while revenue declined to $5.3 million from $6.8 million. The company's management raised substantial doubt about its ability to continue as a going concern for at least the next twelve months, citing ongoing operating losses and negative cash flows from operations. Despite an increase in cash and cash equivalents, total liabilities grew significantly, and the stockholders' deficit deepened.

zSpace, Inc. announced its first quarter 2026 financial results, reporting $5.3 million in revenue and a net loss between ($5.9) million and ($6.9) million. Concurrently, the Board of Directors initiated a formal review of strategic alternatives to maximize shareholder value, which may include partnerships, business combinations, or a sale of the company. The company noted solid execution and early signs of market stabilization, with sequential bookings growth and expanded gross margins, despite year-over-year revenue decline due to geopolitical events.

zSpace, Inc. announced its plan to release financial results for the first quarter ended March 31, 2026, on Thursday, May 14, 2026, after market close. The company will host a conference call on the same day at 5:00 p.m. ET / 2:00 p.m. PT, featuring CEO Paul Kellenberger and CFO Erick DeOliveira. A live webcast of the call will be accessible via the investor relations section of zSpace's website, with a replay available for a limited period.

zSpace, Inc. received a delisting notice from The Nasdaq Stock Market LLC on April 21, 2026. The notice indicates that the company's securities had a closing bid price of $0.10 or less for ten consecutive trading days as of April 17, 2026, triggering Nasdaq Listing Rule 5810(c)(3)(A)(iii). This delisting determination follows a prior notice on December 11, 2025, regarding non-compliance with the minimum bid price rule, despite the company's recent 1-for-25 reverse stock split effective April 20, 2026.