zSpace receives Nasdaq notice for non-compliance with market value rule

Published 28/11/2025, 19:48
zSpace receives Nasdaq notice for non-compliance with market value rule

zSpace, Inc. (NASDAQ:ZSPC) announced it received a notice from the Nasdaq Stock Market stating that the company is not in compliance with Nasdaq Listing Rule 5550(b)(2), which requires a minimum market value of listed securities of $35 million. According to a press release statement based on a filing with the Securities and Exchange Commission, the company’s market value was below this threshold for the previous 30 consecutive business days as of Tuesday.

The notice does not have an immediate impact on the listing or trading of zSpace’s common stock on the Nasdaq Capital Market. Under Nasdaq Listing Rule 5810(c)(3)(C), zSpace has 180 calendar days, or until May 26, 2026, to regain compliance. To do so, the company’s market value must close at $35 million or more for at least 10 consecutive business days within the compliance period. The Nasdaq staff may require a longer period at its discretion.

If zSpace does not regain compliance by the end of the 180-day period, Nasdaq staff will provide written notification that the company’s securities are subject to delisting. zSpace would have the right to appeal this determination to a Nasdaq Hearings Panel under Nasdaq Listing Rule 5815(a). There is no assurance that any appeal or compliance plan would be approved.

The company stated it intends to monitor its market value and is evaluating options to regain compliance with Nasdaq’s listing requirements. There is no assurance that it will be able to meet the requirements or maintain compliance with other Nasdaq criteria.

This information is based on a press release statement and a recent filing with the Securities and Exchange Commission.

In other recent news, zSpace Inc. reported its third-quarter 2025 earnings, revealing a revenue of $8.8 million, which marks a 38% decline compared to the previous year. Despite the decrease in revenue, the company experienced a notable improvement in gross margins, which rose to 51.2%. These financial results were released amidst the launch of a new augmented reality training application called Precision Measurement. This application is designed for Career and Technical Education programs in fields like manufacturing and quality assurance. It allows students to engage with measurement concepts through interactive 3D simulations on zSpace’s AR/VR platform. These developments highlight zSpace’s ongoing efforts to innovate in the educational technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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