zSpace, Inc. Completes Strategic Restructuring to Enhance Financial Stability

SAN JOSE, Calif., Dec. 11, 2025 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC), recognized as a leader in immersive augmented reality (AR) learning solutions, has successfully completed a significant strategic restructuring. This initiative aims to optimize its cost structure, improve operational efficiency, and prepare the company for sustained long-term success. The restructuring aligns with zSpace’s commitment to adapting to changing market dynamics while delivering cutting-edge augmented and virtual reality (AR/VR) experiences that support achievement in STEM and career readiness programs.

Key Elements of the Restructuring

The restructuring process involved substantial headcount reductions and operational realignments, primarily in its U.S. operations, due to prevailing macroeconomic challenges impacting performance this fiscal year. These strategic actions are projected to lower zSpace’s run-rate operating expenses by over 30%. This reduction is expected to enhance the company's financial resilience and position it to take advantage of growth opportunities in the edtech and immersive learning sectors, both domestically and internationally.

Leadership Insights

Paul Kellenberger, CEO of zSpace, commented, “As we emerge from this restructuring, zSpace is more focused and better equipped to drive value for our customers, partners, and shareholders. By aligning our resources with our core strengths and market conditions, we’ve not only enhanced our financial stability but also positioned ourselves for future growth.” Kellenberger expressed optimism for the future, emphasizing a renewed focus on profitability and the company’s commitment to leadership in transforming educational experiences through AR/VR technologies.

Commitment to Accessible Learning

Despite these changes, zSpace remains dedicated to making immersive learning both accessible and effective. The company’s flagship platforms are gaining traction in K-12 education as well as CTE/Vocational training sectors. Recent partnerships and deployments highlight increasing demand for zSpace's innovative solutions, paving the way for further advancements and an expansion of its global reach. This strategic focus aims to deliver enhanced value to all stakeholders involved.

About zSpace, Inc.

zSpace, Inc. (NASDAQ: ZSPC) specializes in delivering groundbreaking augmented and virtual reality (AR/VR) experiences designed to drive achievement in STEM, CTE, and career readiness programs. With a trusted presence in over 3,500 school districts, technical centers, community colleges, and universities, zSpace empowers hands-on "learning by doing" experiences proven to boost engagement and improve student outcomes. Headquartered in San Jose, California, zSpace is a holder of over 80 patents, and research published in the Journal of Computer Assisted Learning (2021) underscores the effectiveness of 3D virtual reality technologies in enhancing student knowledge gains.

Forward-Looking Statements

This announcement contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements, including projections about the company's ability to optimize its cost structure and enhance operational efficiency, involve inherent risks and uncertainties that may cause actual results to differ materially. Factors affecting these results include, but are not limited to, general economic conditions and other considerations outlined in the Risk Factors section of the company’s SEC filings. Forward-looking statements represent management's current expectations and beliefs and are subject to change without notice.

Contact Information

• Press Contact: Amanda Austin, Senior Marketing Director, zSpace, Inc. - press@zspace.com
• Investor Relations Contact: Gateway Group - Cody Slach, Greg Robles, 949.574.3860 - ZSPC@gateway-grp.com