---
title: "Zspace | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 5.3 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286465873.md"
datetime: "2026-05-14T20:43:40.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286465873.md)
  - [en](https://longbridge.com/en/news/286465873.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286465873.md)
---

# Zspace | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 5.3 M

Revenue: As of FY2026 Q1, the actual value is USD 5.3 M, beating the estimate of USD 5.286 M.

#### Revenue

Revenue for the first quarter of 2026 was $5.3 million, compared to $6.8 million in the first quarter of 2025, representing an 8% sequential growth.

#### Software and Services Revenue Mix

Software and services comprised 47% of revenue in the first quarter of 2026, compared to 43% in the same year-ago period.

#### Gross Margin

Gross margin increased by 570 basis points to 53% in the first quarter of 2026, compared to 47% in the first quarter of 2025, driven by improvements in hardware cost profiles and more company-owned software content.

#### Net Loss

Net loss in the first quarter of 2026 was between -$5.9 million and -$6.9 million, compared to -$5.8 million in the first quarter of 2025.

#### Adjusted EBITDA

Adjusted EBITDA loss was -$2.1 million in the first quarter of 2026, compared to -$4.4 million in the first quarter of 2025.

#### Annualized Contract Value (ACV)

Annualized Contract Value (ACV) of renewable software was $10.1 million as of March 31, 2026, marking a 13% decrease compared to a year ago, but a 2% increase compared to December 31, 2025.

#### Net Dollar Revenue Retention (NDRR)

Net Dollar Revenue Retention (NDRR) was 65% as of March 31, 2026, for customers with over $50,000 of ACV, compared with the same customers as of March 31, 2025. Excluding the impact of two key customer losses in the third quarter of 2025, normalized NDRR was 82%.

#### Bookings

Bookings in the first quarter of 2026 were $6.1 million, representing an 8% decrease year-over-year and an over 80% sequential increase.

#### Backlog of Unfulfilled Orders

The backlog of unfulfilled orders as of March 31, 2026, was $3.8 million.

#### Operating Expenses

Operating expenses, excluding stock-based compensation expense, were $5.2 million in the first quarter of 2026, compared to $7.6 million in the first quarter of 2025.

#### Cash, Cash Equivalents and Restricted Cash

As of March 31, 2026, zSpace, Inc. had approximately $2.9 million in cash, cash equivalents, and restricted cash, compared to $1.1 million as of March 31, 2025.

#### Outlook / Guidance

The Board of Directors of zSpace, Inc. has initiated a formal review of strategic alternatives to maximize shareholder value, which may include various transactions like partnerships or a sale of the company. There is no set deadline or definitive timetable for this review. Furthermore, there is no assurance that this process will result in any specific transaction or outcome.

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