zSpace announced a new deployment that will bring its headset‑free, stylus‑based AR/VR learning platform to 19 schools in Danbury Public Schools, the largest high‑school district in Connecticut, serving more than 12,000 students. The rollout includes the newly opened Danbury High School West campus and three middle schools—Broadview, Rogers Park, and Westside Middle School Academy—providing a broad, district‑wide reference for future large‑scale adoptions.
The platform features zSpace’s award‑winning Career Coach AI, which delivers geo‑localized career information and real‑time exploration opportunities. Students will use the system for virtual dissections, engineering simulations, 3D modeling, and AI‑powered career research, all within the classroom. The deployment also highlights the company’s headset‑free, stylus‑based approach, which has already been adopted by more than 3,500 school districts nationwide.
While the deployment signals a strategic win, it comes amid a challenging financial backdrop. In Q2 2025, zSpace reported flat revenue of $7.5 million year‑over‑year, a net loss of $6.1 million versus a $4.7 million loss in Q2 2024, and a 54 % decline in bookings. The company also received a Nasdaq non‑compliance notice in October 2025 for minimum market value requirements, raising liquidity and investor confidence concerns. These headwinds underscore the importance of new contracts for future revenue growth.
The Danbury deployment aligns with zSpace’s strategy to expand its presence in the K‑12 and CTE markets. Securing a large, high‑profile district contract provides a reference that can drive future upsell of services and software, potentially offsetting the current bookings decline. However, the company’s margin expansion to 43 % in Q2 2025—up from 40 % a year earlier—was driven by improved hardware cost profiles and a higher mix of company‑owned software content, indicating that the company is still managing costs effectively even as revenue growth slows.
Dr. Kara Casimiro, Superintendent of Danbury Public Schools, praised the deployment as a “transformative step for career readiness.” CEO Paul Kellenberger emphasized that immersive technology is a key driver of workforce development and that the company remains focused on scaling its high‑margin AI platform while navigating short‑term financial headwinds.
The market reaction to the announcement has been tempered by the Nasdaq notice and the company’s widening net loss, but the deployment is viewed as a positive reference point that could help stabilize future revenue streams as zSpace continues to pursue growth in the competitive immersive learning space.
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