<span item_type="fundamental" item_id="acb982cfeea0162f150677be79a858b0" counter_id="ST/US/ZSPC" env="prod"></span><span item_type="announcement" item_id="648380132295907329" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 5.3 M, beating the estimate of USD 5.286 M.</p><p></p><h4>Revenue</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Software and Services Revenue Mix</h4><p>Software and services comprised 47% of revenue in the first quarter of 2026, compared to 43% in the same year-ago period.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Gross Margin</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Net Loss</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA loss was -$2.1 million in the first quarter of 2026, compared to -$4.4 million in the first quarter of 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Annualized Contract Value (ACV)</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Net Dollar Revenue Retention (NDRR)</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span> Excluding the impact of two key customer losses in the third quarter of 2025, normalized NDRR was 82%.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Bookings</h4><p>Bookings in the first quarter of 2026 were $6.1 million, representing an 8% decrease year-over-year and an over 80% sequential increase.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Backlog of Unfulfilled Orders</h4><p>The backlog of unfulfilled orders as of March 31, 2026, was $3.8 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Operating Expenses</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Cash, Cash Equivalents and Restricted Cash</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p><h4>Outlook / Guidance</h4><p>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.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span> There is no set deadline or definitive timetable for this review.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span> Furthermore, there is no assurance that this process will result in any specific transaction or outcome.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1637147/000110465926061231/zspc-20260514xex99d1.htm"></span></p>

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