Alex Paris's questions to zSpace (ZSPC) leadership • Q2 2025
Question
Alex Paris asked about the anticipated tariff impact for the second half of the year, the status of moving manufacturing out of China, the quarter-end backlog figure, and sought more detail on the Career and Technical Education (CTE) market opportunity, including the split between K-12 and community colleges.
Answer
CFO Erick DeOliveira stated the tariff situation remains volatile but the company intends to pass costs through, which may cause some margin compression. He also provided the Q2 ending backlog figure of $7.3 million. CEO Paul Kellenberger confirmed that the core Inspire product is now manufactured in Thailand, with benefits expected later in the year, and noted that CTE business is currently concentrated in high schools but expanding in community colleges.