zSpace Inc., a leader in augmented and virtual reality solutions for education, reported its financial results for the second quarter of 2025. The company maintained a steady revenue of $7.5 million, consistent with the same period last year. However, the net loss widened to $6.1 million from $4.7 million in the previous year. The gross margin improved slightly, increasing to 43% from 40%, representing a rise of 213 basis points. Bookings in the second quarter were $7.2 million, marking a 54% decline year-over-year. Operating expenses, excluding stock-based compensation, rose to $7.7 million from $6.5 million in the second quarter of 2024. In terms of business operations, zSpace highlighted the launch of its new Career Explorer application following the acquisition of Second Avenue Learning. The company also reported major customer deployments in New York and California and accelerated development of its AI Assistant. These initiatives are aimed at strengthening zSpace's software platform and reinforcing its leadership in immersive, personalized learning. CEO Paul Kellenberger expressed confidence in the company's ability to sustain momentum despite macroeconomic challenges and shifting U.S. education funding policies.