zSpace Inc. (NASDAQ:ZSPC) shares surged 11.57% after hours to $0.11 on Thursday following news of a Kansas WorkforceONE augmented and virtual reality (AR/VR) partnership expansion, just days after its fourth-quarter results missed earnings per share estimates by 64.29% and revenue by 21.80%.
On Wednesday, zSpace highlighted that partner Kansas WorkforceONE, which connects employers to a skilled and motivated workforce across all 96 counties in the state, expanded its zSpace Inspire laptop deployment from 10 to 16 units. The program uses a mobile, counselor-led model to deliver immersive career exploration and workforce reskilling to students and adult learners statewide.
What Does the Q4 Data Say?
On Monday, zSpace announced fourth-quarter 2025 revenue of $4.8 million, down from $8.5 million a year earlier, missing the analyst estimate of $6.2 million by 21.80% due in part to a federal government shutdown.
Net loss widened to $7.3 million, compared with $3.6 million in fourth-quarter 2024. However, gross margin for the California-based technology firm improved 840 basis points, reaching 49%.
Full Year 2025 Financial Summary
For the full year, zSpace revenue declined to $27.9 million from $38.1 million, while net loss widened to $25.4 million from $20.8 million. Notably, gross margin improved 670 basis points, rising to 48% from 41%.
The company’s adjusted EBITDA declined to a loss of $14.8 million, compared with a loss of $9.9 million previously.
Trading Metrics, Technical Analysis
zSpace has a market capitalization of $3.97 million, with a 52-week high of $10.66 and a 52-week low of $0.10.
The Relative Strength Index (RSI) of ZSPC stands at 52.34.
Barrington Research maintained its Outperform rating on Tuesday but cut its price target from $3 to $0.50, a day after the company reported fourth-quarter results.
Over the past 12 months, the small-cap stock has dropped 98.73%.
ZSPC is currently trading at its 52-week low, closing the regular session at $0.10, down 7.94%, according to Benzinga Pro data.
The stock’s sharp decline and its positioning at its annual low highlight significant pressure, signaling high risk and the need for clear signs of recovery before investor confidence can return.
Benzinga’s Edge Stock Rankings indicate that ZSPC has a negative price trend across all time frames.
Photo Courtesy: FabrikaSimf on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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