We are a leading provider of augmented reality (AR) and virtual reality (VR) educational technology solutions. We believe that we are a recognized brand in the education market with a current focus on both United States K-12 schools and Career & Technical Education (CTE) markets. Our proprietary hardware and software platform provides the unique ability to deliver an interactive, stereoscopic three-dimensional (3D) learning experience to our users without the need to utilize VR goggles or specialty glasses. Our hands-on “learning by doing” solutions have been shown to enhance the learning process and drive higher student test scores, as evidenced by a study on the utility of 3D virtual reality technologies for student knowledge gains published in the Journal of Computer Assisted Learning in 2021. We allow students and teachers to experience learning in the classroom that may otherwise be dangerous, impossible, counterproductive, or expensive using traditional techniques. Our platform serves a broad range of critical educational tools designed for K-12 science, technology, engineering and math (STEM) lessons as well as training skilled trades in areas such as health sciences, automotive engineering/repair, Unity3D® software programming and advanced manufacturing. --- We sell our platform directly to United States school districts, both as a primary educational tool in K-12 classrooms and as a career training solution for higher grade levels, as well as to community college customers through both a direct sales and support team as well as regional resellers. Internationally, we rely exclusively on resellers to bring our products to those markets. Today, our platform is implemented in more than 3,500 of the approximately 13,000 United States public school districts. Our K-12 platform is currently deployed in over 80% of the largest 100 K-12 public school districts in the United States, as measured by student enrollment, and our CTE solutions have been deployed in approximately 73% of those public school districts we serve. Our CTE solutions have also been deployed in approximately 2% of United States community and technical colleges. In addition, we have partnered with over 25 resellers and have expanded our customer network into over 50 countries. We believe the applicability of our platform in education environments provides an opportunity for significant scale. Since 2014, we have been developing and delivering hardware and software technology focused on improving education in K-12 and CTE classrooms. We believe that our platform leads to (i) deeper understanding of content, (ii) increased motivation of students to learn, (iii) additional engagement of students with content and (iv) improved preparedness for the workforce. We believe that we have significant growth potential and that we have demonstrated a repeatable value proposition and the ability to scale our sales growth model. With a mature and tested go-to-market playbook and team in place, we are focused on scaling execution across a carefully selected set of growth vectors, including scaling in the United States, expanding internationally, investing in research and development (“R&D”), and acquiring software, both specific software applications and third party software developers, in order to increase the growth of our software offerings. Such acquisitions, if completed, are intended to be accretive to earnings and materially increase our software revenues. From a technology perspective, graphics and speed of computing have increased exponentially over time, but the physical computing experience has remained largely static since the introduction of the mouse and touchscreen in the 1980s. We believe limiting the user experience to the confines of a screen creates inherent limitations such as slowing technological breakthroughs, discouraging engagement and hampering creativity, particularly when utilizing technology as a learning tool. We were founded with the goal of eliminating that barrier between students and content and reinventing the student experience. We hope to accomplish this through a range of proprietary innovations in hardware and software that comprise the foundation of our educational platform. We believe that these innovations help to eliminate a barrier between digital content and students so that students can be immersed in content: manipulate it, experience it, and interact with it as if it were real. We are a Delaware corporation incorporated on October 26, 2006 under the name Infinite Z, Inc. On February 12, 2013, we effected a name change from Infinite Z, Inc. to zSpace, Inc. Our business is conducted through zSpace, Inc. and our other operating subsidiaries. Our principal executive office is located at 55 Nicholson Lane, San Jose, CA.
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- Meta Platforms (Oculus/Quest) for professional and educational virtual reality applications.
- Apple for immersive education technology.
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Here are the major products and services for zSpace, Inc.:
- zSpace Systems: Integrated augmented and virtual reality hardware solutions, including specialized displays, tracking glasses, and styluses, designed for interactive 3D experiences.
- Educational Content & Software: A comprehensive library of interactive applications and curriculum developed for K-12, higher education, and vocational training across various subjects such as science, anatomy, and engineering.
- Developer Platform: Tools and Software Development Kits (SDKs) provided to enable third-party developers to create custom augmented and virtual reality applications for the zSpace hardware.
- Professional Services: Training, implementation support, and technical assistance offered to help educational institutions and enterprises effectively integrate and utilize zSpace technology.
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ZSPACE (ZSPC) Major Customers
ZSPACE (symbol: ZSPC) sells primarily to other companies and organizations rather than directly to individual consumers. While the company's public filings, such as its 10-K reports, indicate that a significant portion of its revenue comes from a relatively small number of customers (e.g., one customer accounted for approximately 18% of revenue in 2022, and another 15% in 2021), ZSPACE does not publicly disclose the specific names of these major customer companies or their public symbols.
Instead, ZSPACE primarily serves the following categories of institutional customers:
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Educational Institutions: This is ZSPACE's largest and most prominent customer segment. It includes a wide range of organizations such as K-12 public and private schools, higher education institutions (colleges and universities), and vocational/technical training centers. These institutions utilize ZSPACE's virtual and augmented reality solutions to provide immersive learning experiences across subjects like science, engineering, and career technical education.
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Healthcare Organizations: Medical centers, hospitals, and specialized healthcare training facilities are key customers. They leverage ZSPACE technology for medical education, anatomical study, surgical planning, patient education, and advanced simulation training for healthcare professionals.
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Enterprise and Government Agencies: This category encompasses corporate entities, particularly those in sectors such as manufacturing, product design, and engineering, which use ZSPACE for training, prototyping, and visualization. It also includes various government agencies and military organizations that utilize ZSPACE's solutions for specialized training and simulation environments.
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Paul Kellenberger, Chief Executive Officer
Paul Kellenberger was appointed CEO of zSpace, Inc. in December 2006, and also serves as Chairperson since December 4, 2024. He has been with the company since its inception in 2007, a tenure of approximately 19 years. zSpace was initially founded as Infinite Z in 2007, and its virtual-holographic platform was developed with backing from In-Q-Tel, a venture capital firm associated with the Central Intelligence Agency.
Erick DeOliveira, Chief Financial Officer
Erick DeOliveira serves as the Chief Financial Officer for zSpace, Inc. Recent activities include selling shares of common stock to cover tax obligations.
Michael Harper, Chief Product and Marketing Officer
Michael Harper holds the title of Chief Product and Marketing Officer at zSpace, Inc., and has also been noted as the Chief Product, Engineering & Marketing Officer.
Ronald Rheinheimer, Chief Sales Officer
Ronald Rheinheimer is the Chief Sales Officer at zSpace, Inc. He has also been referred to as an Executive Officer and EVP, Global Sales & Solutions.
David Lorié, Secretary & General Counsel
David Lorié serves as the Secretary and General Counsel for zSpace, Inc.
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The rapid advancement and increasing market adoption of high-fidelity, standalone VR/AR headsets (e.g., Meta Quest series, Apple Vision Pro, and various enterprise solutions). These devices are becoming more powerful, affordable, and are supported by a rapidly expanding ecosystem of content, posing a direct threat to the perceived value and market share of ZSPACE's specialized desktop VR/AR hardware and proprietary content in the education and training sectors.
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The addressable market for ZSPACE (ZSPC), a company specializing in augmented reality (AR) and virtual reality (VR) educational technology solutions, is the global AR/VR in Education market, which also includes the sub-segments of Virtual Reality in Education and Augmented Reality in Education.
The global Augmented and Virtual Reality in Education market size was estimated at USD 4.58 billion in 2024 and is projected to grow from USD 5.533 billion in 2025 to USD 36.61 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 20.8% during this forecast period. Another estimate places the global augmented and virtual reality (AR/VR) market size in education to be valued at approximately USD 116.6 billion by 2035, growing at a CAGR of 15.7% during the forecast period. Furthermore, the global AR and VR in Education Market Size was valued at USD 3.8 Billion in 2023 and is projected to reach USD 14.2 Billion by 2028, growing at a CAGR of 29.6%.
Focusing on its sub-segments, the global Virtual Reality in Education sector market size is forecast to increase by USD 11.37 billion at a CAGR of 31.3% between 2024 and 2029, and is expected to grow to USD 11,371.5 million from 2025-2029. In 2024, the virtual reality in education market size was USD 16.13 billion and is projected to grow to USD 85.41 billion in 2029 at a CAGR of 40.1%. Another report states that the virtual reality market in education registered a current market size of USD 31.28 billion in 2025 and is forecast to reach USD 81.13 billion by 2030, delivering a 21.0% CAGR. The global virtual reality in education market size was valued at USD 14.55 billion in 2023 and is projected to grow from USD 17.18 billion in 2024 to USD 65.55 billion by 2032, exhibiting a CAGR of 18.2%. Additionally, the Virtual Reality in Education Market size was valued at USD 11.5 billion in 2023 and market revenue is growing at a CAGR of 30.2% from 2023 to 2030, reaching nearly USD 72.94 billion by 2030. The Virtual Reality for Education Market, valued at USD 1.82 billion in 2024, is projected to reach USD 15.0 billion by 2035, growing at a robust CAGR of 21.1% from 2025 to 2035.
For augmented reality specifically, the global augmented reality (AR) in education market is expected to rise at a CAGR of 32% and hit a valuation of US$ 55.84 billion by 2033, up from US$ 3.47 billion in 2023. The AR in Education Market expanded from USD 2.98 billion in 2024 to USD 3.93 billion in 2025, recording a compound annual growth rate (CAGR) of 31.67%, with projections pointing to a market size of USD 26.95 billion by 2032.
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Here are the expected drivers of future revenue growth for ZSPACE (ZSPC) over the next 2-3 years:
- Growth in Software and Services Revenue and Recurring Revenue Streams: ZSPACE is strategically shifting its revenue mix towards higher-margin software and services. The company has reported an 11% year-over-year growth in its software and services business, which is a critical component for scaling its platform with recurring revenue streams. The Annualized Contract Value (ACV) of renewable software has increased, driven by improved software content on new deployments and effective account management to boost retention and expansion among existing customers. Furthermore, the Net Dollar Revenue Retention (NDRR) for customers with over $50,000 of ACV was 131% as of June 30, 2025, indicating strong customer retention and upsell opportunities. This shift is also a key factor in the company's gross margin expansion.
- Launch and Expansion of New Products and Services: The introduction and continued development of new products are expected to drive revenue. ZSPACE has launched new products like Inspire 2 and Imagine, aimed at strengthening its market position. The company is also accelerating investment in the zSpace AI Assistant, which is seen as central to its long-term vision of improving student outcomes through personalized learning. Recent expansions to its health science education portfolio include new immersive applications such as BodyViz (a 3D anatomy visualization platform) and an updated Virtual ECG simulation, alongside the launch of three new applications for industrial robotics training.
- Expansion into New Geographic Markets: ZSPACE is expanding its global footprint. The international availability of the zSpace Inspire 2 Laptop, announced at GESS Dubai 2025, signifies an expansion into classrooms in the Middle East and other emerging markets. This international push includes integrating AI-driven language support with tools capable of working in over 50 languages to enhance accessibility.
- Increased Adoption within Career and Technical Education (CTE) Programs: The company's strong focus on Career and Technical Education (CTE) is anticipated to be a significant revenue driver. ZSPACE serves K-12 schools and CTE markets, and analyst commentary highlights ongoing operational progress within CTE programs, supported by recent partnerships. CTE customers contributed 32% of bookings value in Q2 2025, an increase from the prior year.
- Customer Growth and Deeper Penetration in the K-12 and Higher Education Markets: ZSPACE aims to grow its customer base and deepen its engagement within existing educational markets. The company's systems are utilized by over 2,400 U.S. school customers, technical centers, community colleges, and universities. Recent strategic customer wins, such as the deployment of AR/VR technology in Danbury Public Schools for career exploration and the implementation of zSpace Imagine Systems in Mendoza Unified School District for early STEM and career exploration, demonstrate continued momentum in securing and expanding its presence in the education sector.
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Share Issuance
- In December 2024, ZSPACE completed its Initial Public Offering (IPO) on Nasdaq, issuing 1,875,000 shares of common stock at a price of $5.00 per share.
- The IPO generated approximately $9.4 million in gross proceeds for the company.
- Underwriters were provided a 30-day option to purchase up to an additional 281,250 shares.
Outbound Investments
- In March 2025, zSpace acquired Blockscad, a browser-based 3D design and coding platform aimed at K–12 STEM education.
- In April 2025, zSpace announced the acquisition of Second Avenue Learning, a company focused on developing interactive digital content for education.
Capital Expenditures
- Capital expenditures for the fiscal year 2024 were approximately $0.
- For the trailing twelve months ending June 30, 2025, capital expenditures remained at approximately $0.
