zSpace Inc. Common stock (ZSPC)

FairStock Score: 14/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering zSpace for $0.12 as of the close on 2026-10-13, a $1.6 million market capitalization. FairStock's P/E is -0.01 at that close, reflecting negative earnings. The company sells augmented and virtual reality hardware to K-12 and career education markets. In fiscal 2025, the year ended 2025-12-31, revenue was $27.9 million and net loss was $25.4 million, or diluted EPS -$1.01. In fiscal 2024, revenue was $38.1 million and net loss was $20.8 million, or diluted EPS $1.03. That is a shrinking business with large losses. The latest filed quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $5.4 million, net income of $288,000 and diluted EPS of $0.01, a rare profit. But fiscal Q1 2026, the quarter ended 2026-03-31, had revenue of $5.3 million, a net loss of $6.6 million and diluted EPS of -$4.70. One quarter does not prove durable profitability. Free cash flow is negative $11.4 million over the trailing twelve months; FairStock calculates that as -694.5% of the tiny market cap. ROCE is -103.45%. The Altman Z-Score is -55.72, implying severe financial distress risk, and the Piotroski F-Score is 4/9. The FairStock Score is 14/100, and no Lynch category is assigned because only two years of filed results are available. Graham would demand a margin of safety from assets and earnings; here earnings are negative, book value is not given, and cash burn exceeds market value. Buffett would ask about a moat and pricing power; I see no evidence in these numbers. Growth is negative. This is not a compounder; it is a speculative option on a turnaround. I would need proof of sustainable positive cash flow and a balance sheet that can survive.

In plain English: zSpace makes virtual and augmented reality tools for schools. The business lost money in its latest full year, sales fell from the year before, and it uses more cash than it brings in, though it did post a small profit in the most recent quarter. At $0.12, the price is very low, but it does not look like a safe bargain because the company is still unprofitable and burning cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer