Filing Flows › Technology › zSpace (ZSPC)
zSpace (ZSPC) earnings and revenue breakdown
Latest: Q2 2026 · 10-Q filed Aug 14, 2026 · zSpace (ZSPC) Q2 2026 earnings results →
Q2 2026 Revenue down 28% year over year to $5.4M · 5¢ of every $1 of revenue kept as net profit · operating margin -47.0%
zSpace made $5.4M in Q2 2026 (-28% Y/Y): Hardware $2.9M, Software $2.2M, Services $386K. Operating margin -47.0%, net earnings $287K. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Aug 14, 2026.
Drawing the Sankey…
Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF
What changed this quarter
Revenue was $5.4M in Q2 2026, down 28% year over year and up 3% from the previous quarter. Hardware was the largest line at 53% of revenue. Hardware lost $1.5M year over year (down 34%), 70% of the total change.
Gross margin was 56.4%, up 13.9 points from Q2 2025. Operating costs exceeded revenue by $2.5M, an operating margin of -47.0%. Operating expenses fell 41% while revenue fell 28%. Net earnings were $288K. The effective tax rate was 3.0%. Non-operating items added $2.8M, 954% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$2.0M. Non-cash charges added back $3K of depreciation and $1.6M of share-based compensation. Working capital and other items used $3.8M.
Quarterly history
| Quarter | Form | Filed | Revenue | Y/Y | Op. margin | Net earnings | Op. cash flow |
|---|---|---|---|---|---|---|---|
| Q2 2026 | 10-Q | Aug 14, 2026 | $5.4M | -28% | -47.0% | $287K | −$2.0M |
| Q1 2026 | 10-Q | May 15, 2026 | $5.3M | -22% | -74.9% | −$6.6M | −$3.0M |
| Q4 2025 | 10-K | Mar 30, 2026 | $4.8M | -43% | -116.2% | −$7.3M | −$3.9M |
| Q3 2025 | 10-Q | Nov 13, 2025 | $8.8M | -38% | -54.5% | −$6.2M | −$2.5M |
| Q2 2025 | 10-Q | Aug 14, 2025 | $7.5M | -0.6% | -84.9% | −$6.1M | −$6.9M |
| Q1 2025 | 10-Q | May 14, 2025 | $6.8M | -14% | -79.7% | −$5.8M | −$4.6M |
| Q4 2024 | 10-K | Mar 28, 2025 | $8.5M | — | -32.4% | −$3.6M | −$5.0M |
Charts
Interactive views
The same charts as the app — open one to draw it.
💵Where each $1 goesinteractive
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🌏Named in Asian annual reportsinteractive
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🔄Rotation against the market and its industry (RRG)interactive
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🔍Earnings qualityinteractive
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⚖️Fair value by methodinteractive
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🔭Outlook & guidanceinteractive
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📈Investments: gains and what it boughtinteractive
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🏭Its industry’s money flow (input-output)interactive
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About zSpace
We are a leading provider of augmented reality (AR) and virtual reality (VR) educational technology products. We focus on United States K-12 schools, the Career & Technical Education (CTE) sector and select international markets. Our proprietary hardware and software platform provides the unique ability to deliver an interactive, stereoscopic three-dimensional (3D) learning experience to our users without the need to utilize VR goggles or specialty glasses. Our hands-on “learning by doing” products have been shown to enhance the learning process and drive higher student test scores, as evidenced by a study on the utility of 3D virtual reality technologies for student knowledge gains published in the Journal of Computer Assisted Learning in 2021.
In its own words, from its 10-K, filed Mar 30, 2026.
zSpace against its Services-Prepackaged Software peers
The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: -28% against the peers' median +14%. Operating margin: -47.0% against the peers' median 15.2%.
| Company | Quarter | Revenue | Y/Y | Op. margin |
|---|---|---|---|---|
| ZSPC zSpace | Q2 2026 | $5.4M | -28% | -47.0% |
| MSFT Microsoft | Q1 FY27 | $92.3B | +19% | 49.8% |
| ORCL Oracle | Q1 FY27 | $19.3B | +30% | 34.8% |
| CRM Salesforce | Q2 FY27 | $11.3B | +11% | 20.5% |
| ADBE Adobe | Q3 FY26 | $6.8B | +13% | 34.8% |
| XYZ Block | Q3 2026 | $6.7B | +10% | 6.4% |
| INTU Intuit | Q4 FY26 | $4.4B | +14% | 10.9% |
| NOW ServiceNow | Q3 2026 | $4.1B | +20% | 9.4% |
| SHOP Shopify | Q3 2026 | $3.7B | +32% | 15.2% |
Source: zSpace 10-Q on SEC EDGAR · CIK 1637147 · Services-Prepackaged Software
More on ZSPC
History
Every quarter: Q2 2026 results · Q1 2026 results · Q4 2025 results · Q3 2025 results · Q2 2025 results · Q1 2025 results · Q4 2024 results