zSpace, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss ZSpace financial results for the second quarter ended June 30th, 2025. Joining us today are ZSpace CEO, Paul Kellenberger, CFO, Erg DeOliveira, and Greg Robles from Investor Relations. Following their remarks, we'll open the call for analyst questions. Before we go any further, I would like to turn the call over to Mr. Robles as he reads the company safe harbor statement. Greg, please go ahead, sir.

Thanks, operator. Good afternoon, and thank you for joining our conference call to discuss our second quarter 2025 financial results. Before we begin, I'd like to remind everyone that certain statements made on this call may be considered forward-looking statements. These statements are based on our current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially. Additionally, we may discuss certain key business metrics which are non-GAAP financial measures. A description of these non-GAAP measures and any comparison to the most directly comparable GAAP measures can be found in our earnings release on the Investor Relations section of our website. Now, I would like to turn the call over to the CEO of ZSpace, Paul Kellenberger. Paul.

Thank you, and good afternoon, everyone. Thank you for joining us for our second quarter earnings call. I am Paul Kellenberger, CEO of ZSpace, and with me is Eric D'Lavira, our chief financial officer. We're both excited to be here with you to discuss ZSpace, our Q2 performance, and our plan to drive growth. To begin, we're operating in a challenging and evolving macroeconomic environment. Global trade dynamics remain unpredictable and ongoing changes in U.S. education policy continues to cause funding uncertainty and delays for our school district customers, a trend that began in Q1. Despite these headwinds, ZSpace remains well positioned to navigate and capitalize on the shifting landscape. We're particularly focused on four key policy trends that directly impact our business. Number one, decentralization of federal funding. The continued redirection of education dollars from the federal to state level is creating a more localized decision-making environment, opening doors for ZSpace to align with state-specific priorities and build deeper partnerships. Number two, expansion of school choice. The increased emphasis on charter schools and voucher programs is accelerating demand for flexible, high-impact instructional solutions across a growing diversity of educational models. Number three, focus on flexibility and innovation. States now have greater autonomy to invest in emerging technologies and instructional approaches. ZSpace's immersive learning platform is well suited to meet this call for innovation. And the fourth item, implementation of block grants. A central feature of the Department of Education's current approach, block grants consolidate categorical programs into broader funding pools, giving states greater freedom to allocate resources. We believe this shift will become a significant growth catalyst for ZSpace, particularly as funding becomes more predictable and is directed towards workforce development, PPE and STEM education. While we continue to closely monitor these external policy developments, we've also made meaningful internal progress across product integration and innovation. Most notably, this past quarter, we successfully completed the integration of our second avenue acquisition, culminating in the launch of our career explorer application, which is now in the market. We believe this product will drive meaningful growth in our software business and strengthen our leadership in career exploration and CTE. In parallel, we've accelerated investment in the ZSpace AI assistance, which is central to our long-term vision of improving student outcomes through intelligent, personalized learning. This strategic focus positions ZSpace at the forefront of AI-driven education, delivering real-time support and guidance to learners while empowering educators with actionable insights to enhance instruction. In the areas of industry recognition and customer momentum, I would like to illustrate our momentum and success with a few examples. In June, ZSpace was honored with the Tech in Learning Award at ISTE, the largest annual K-12 education conference in the US, further validating our innovation and impact. We also achieved several key strategic customer wins across both new and existing markets, reinforcing our value proposition in the competitive and rapidly evolving education sector. The first example is Northwell School of Health Sciences, which is a collaboration with New York City Public School District funded by the Bloomberg Philanthropies Organization. As part of a flagship health sciences campus launch in New York City, Northwell School of Health Sciences selected ZSpace as a cornerstone technology in its -the-art simulation labs. This deployment included ZSpace-inspired systems across multiple labs with a broad spectrum of healthcare applications. The second example I would like to highlight is the Mendoza Unified School District here in California. They implemented ZSpace-imagined systems at three elementary schools as part of an early STEM and career exploration initiative, marking a major investment in immersive learning at the K-5 level. Overall, we remain confident in the long-term potential growth of ZSpace and our ability to deliver on our vision. That said, we are approaching the second half of the year with measured caution, given the continued uncertainty in the broader macroeconomic and education funding environment. Importantly, this caution is not a reflection of customer mirror demand. In fact, as evidenced by recent wins in ongoing engagement, both existing customers and prospects continue to express interest in our solutions and a desire to expand usage. The challenge lies not in demand, but in the persistent delays and constraints around funding. We believe that as the federal education policy continues to take shape and funding mechanisms become more predictable, the longer-term outlook for ZSpace will strengthen. With that, I will turn the call over to Eric to walk through our financial results in more detail. Eric?