Investment Thesis
zSpace is in severe financial distress with negative stockholders' equity of -$22.5M, indicating technical insolvency. The company is burning $18M annually in operating cash with only $538K in cash reserves, while revenue has collapsed 26.9% YoY and net losses reached $25.4M on just $27.9M in revenue. The current ratio of 0.37x signals a critical liquidity crisis that threatens the company's ability to continue operations.
Strengths
- Gross margin of 47.6% indicates product has underlying value
- Company continues to generate some revenue despite decline
- Recent insider activity shows some engagement
Risks
- Negative stockholders' equity of -$22.5M represents technical insolvency
- Critical liquidity crisis: current ratio 0.37x cannot cover short-term obligations
- Operating cash flow negative $18.0M with only $538K cash remaining
- Revenue declining 26.9% YoY with net losses of $25.4M
- Unsustainable burn rate threatens going concern
Key Metrics to Watch
- Cash runway and monthly cash burn rate
- Stockholders' equity trend and refinancing activities
- Revenue stabilization and customer retention
- Operating cash flow and path to profitability
Financial Metrics
Revenue
27.9M
Net Income
-25.4M
EPS (Diluted)
$-1.01
Free Cash Flow
-18.0M
Total Assets
7.6M
Cash
538.0K
Profitability Ratios
Gross Margin
47.6%
Operating Margin
-79.5%
Net Margin
-91.1%
ROE
N/A
ROA
-334.7%
FCF Margin
-64.5%
Balance Sheet & Liquidity
Current Ratio
0.37x
Quick Ratio
0.24x
Debt/Equity
N/A
Debt/Assets
396.7%
Interest Coverage
N/A
Long-term Debt
17.7M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-20T00:15:20.693117 |
Data as of: 2025-12-31 |
Powered by Claude AI