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SAN JOSE - zSpace, Inc. (NASDAQ:ZSPC) released a new augmented reality training application called Precision Measurement, designed for Career and Technical Education programs in manufacturing, machining, and quality assurance, according to a company press release issued Wednesday. The micro-cap company, with a market value of just $22.58 million, is launching this product amid significant financial challenges, with revenue declining 24.2% over the last twelve months to $31.55 million.
The application runs on zSpace's AR/VR platform and allows students to practice measurement concepts through interactive 3D simulations. Users can manipulate virtual measuring instruments, evaluate tolerances, and identify errors in a digital environment.
"Precision measurement is one of the most essential yet challenging skills to teach in manufacturing and mechanical CTE programs," said Paul Kellenberger, CEO of zSpace, in the statement.
The software targets high school and postsecondary technical education programs as an alternative to physical equipment. It covers geometric tolerances, precision tools, and error detection through simulated exercises.
Precision Measurement joins zSpace's existing portfolio of applications supporting career pathways in manufacturing, automotive technology, health science, and engineering.
The company will demonstrate the new application at ACTE's CareerTech VISION event on December 10-11, 2025, in Nashville, Tennessee.
zSpace, headquartered in San Jose, California, provides AR/VR learning solutions to over 3,500 educational institutions and holds more than 80 patents in the field.
In other recent news, zSpace Inc. reported its Q3 2025 earnings, revealing a revenue of $8.8 million, which marks a 38% decline compared to the same period last year. Despite the decrease in revenue, zSpace Inc. experienced an improvement in gross margins, which rose to 51.2%. This indicates a more efficient cost structure or pricing strategy. The financial results reflect a mixed performance for the company, with positive movement in certain areas despite overall revenue challenges. The market's reaction to these earnings was cautiously optimistic, as seen by the stock's rise in after-hours trading. These developments are crucial for investors monitoring zSpace Inc.'s financial health and operational efficiency. Analysts and investors alike will be interested in how the company plans to address the revenue decline while maintaining or improving margins. No analyst upgrades or downgrades were reported in conjunction with this earnings release.
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