Zspace

Q2 FY2026 EarningsQ2 FY26 revenue of $5.4M missed the $7.9M consensus by 31.7%, driven by a 34% YoY decline in hardware units and extended K-12 sales cycles. GAAP EPS of $0.02 significantly beat the expected -$0.13, though this was primarily driven by non-operating gains from debt restructuring rather than fundamental improvement. Gross margin of 56.4% exceeded the 54.4% estimate, but high operating expenses relative to revenue and a 34% decline in ACV highlight severe liquidity risks and a pending Nasdaq delisting.