zSpace reported a 14% decrease in total revenue for the first quarter of 2025, falling to $6.76 million from $7.84 million in Q1 2024. This decline was primarily driven by a 26% decrease in hardware revenue, which dropped to $3.83 million.
Despite the revenue decline, the company demonstrated improved gross profitability, with overall gross profit increasing by 19% to $3.21 million and gross margin expanding from 34% to 47%. Services revenue showed strong growth, increasing by 43% to $0.98 million.
However, zSpace continued to incur significant operating losses, with a loss from operations of $5.38 million and a net loss of $5.83 million for the quarter. The company's cash, cash equivalents, and restricted cash stood at a critical $1.13 million, and management expressed substantial doubt about its ability to continue as a going concern without additional funding.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.