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Thursday, November 6, 2025
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Ispire Technology Inc. Reports Financial Results for Fiscal First Quarter 2026

This Week

Cost cutting measures instituted in Fiscal 2025 helped cut total operating expenses by approximately 39% to $7.8 Million year-over-year

Net Accounts Receivable Reduced approximately 29% from $62.4 Million to $44.5 Million Year-Over-Year

Cash and Cash Equivalents of $22.7 Million at September 30, 2025 

LOS ANGELES, Nov. 6, 2025 /PRNewswire/ — Ispire Technology Inc. (NASDAQ: ISPR) (“Ispire,” the “Company,” “we,” “us,” or “our”), an innovator in vaping technology and precision dosing, today reported financial results for the first quarter of fiscal 2026, for the three months ended September 30, 2025.

Fiscal First Quarter 2026 Financial Results

  • Revenue of $30.4 million versus $39.3 million for the first quarter of fiscal 2025.
  • Gross profit of $5.1 million compared to $7.7 million for the first quarter of fiscal 2025.
  • Gross margin of 17.0% compared to 19.5% for the first quarter of fiscal 2025.
  • Total operating expenses of $7.8 million compared to $12.9 million for the first quarter of fiscal 2025.
  • Net loss of $3.3 million, compared to net loss of $5.6 million in the first quarter of fiscal 2025.

“Our first fiscal quarter 2026 results demonstrate the steps we instituted in fiscal 2025 to strengthen our financial foundation and position Ispire for sustainable, profitable growth are taking effect,” commented Michael Wang, Co-Chief Executive Officer of Ispire. “We made a deliberate decision to focus on quality customers over volume, and while revenue of $30.4 million reflects this strategic shift, the operational improvements are substantial. Our total operating expenses decreased significantly to $7.8 million compared to $12.9 million in the same period last year, a reduction of nearly 39% while our net accounts receivable declined approximately 29% from $62.4 million as of September 30, 2024 to $44.5 million as of September 30, 2025. This improvement was a direct result of our focus on aggressive cost controls, disciplined expense management, and higher quality customers, while bringing our non-GAAP EBITDA to $0.6 million for the quarter ended September 30, 2025. We expect this trend to continue through fiscal 2026.”

“From an operations standpoint, our IKE Tech joint venture is gaining meaningful traction globally, working with regulators in Europe, Southeast Asia, and the Middle East to adopt age-gating technology as a mandatory standard. We are in deep discussions with numerous large and medium-sized nicotine companies regarding our innovative G-Mesh technology solutions for their next-generation vaping devices, as we aim to secure licensure and/or partnership agreements in the coming months. Lastly, we remain excited about the build-out of our Malaysian manufacturing facility as we look to ramp up production in fiscal 2026,” Mr. Wang concluded.

Jay Yu, Chief Financial Officer of Ispire, said, “This quarter represents a significant milestone in our financial transformation. The substantial reduction in operating expenses from $12.9 million to $7.8 million year-over-year demonstrates that our cost optimization initiatives are delivering significant results. We also reduced net accounts receivable to $44.5 million as of Septmber 30, 2025 versus nearly $62.4 million as of September 30, 2024, as we continue to focus on improving working capital and pursuing higher-quality customers. We remain committed to generating shareholder value through sustainable cash flow generation and continued balance sheet strengthening.”

Financial Results for the Fiscal First Quarter Ended September 30, 2025

Ispire reported revenue of $30.4 million for the fiscal first quarter ended September 30, 2025, versus $39.3 million for the prior comparable period, a decrease of 22.8%. The decrease in revenue is the combined effect of decreases in product sales in the United States as well as a decrease in vaping product sales across Asia Pacific, Europe and South Africa. 

For the first quarter of fiscal 2026, gross profit was $5.1 million compared to $7.7 million in the year-ago period. Gross margin decreased to 17.0% compared to 19.5% for the first quarter of fiscal 2025. The decrease in gross margin was primarily due to changes in product mix with less higher margin products being sold during the three months ended September 30, 2025.

Total operating expenses were $7.8 million for the first fiscal quarter of 2026, compared to $12.9 million for the same period last year.

Net loss was $3.3 million or $0.06 per share for the fiscal first quarter of 2026, versus a net loss of $5.6 million, or $0.10 per share for the fiscal first quarter of 2025.

At September 30, 2025, Ispire held cash and cash equivalents of $22.7 million and working capital of $9.3 million

Non-GAAP First Quarter Net Income/loss

 Three Months Ended

  September 30,

2025

2024

NET LOSS

(3,258,863)

(5,595,016)

Add Credit Loss Expenses

1,764,252

3,102,081

Add Income Tax

486,069

456,753

Add Stock based compensation

938,148

2,007,588

Add Inventory Impairment

423,457

73,692

Add Depreciation and Amortization

253,410

204,807

Add Debt issuance cost amortization

32,312

NON-GAAP EBITDA

638,785

249,905

Management’s Explanation of Non-GAAP Financial Measures

The Company believes that presenting Non-GAAP financial information provides meaningful supplemental data that assists investors in understanding its operating results. The adjustments to GAAP net loss primarily include non-cash expenses or non-recurring items that management believes are not indicative of ongoing performance. The following non-GAAP financial measures should be considered in addition to, and not as a substitute for, the most directly comparable GAAP financial measures. We believe these non-GAAP financial measures, when used in conjunction with their most directly comparable GAAP financial measures, net income (loss), provide meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods, identify trends affecting our business, and project future performance. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Specifically, the adjustments include:

  • Credit loss expenses, a non-cash item, which reflect provisions recorded under the Company’s CECL methodology and may vary significantly as the Company develops additional historical experience.
  • Income tax expense, which can fluctuate based on jurisdictional mix and timing of taxable income.
  • Stock-based compensation, a non-cash expense related to equity awards.
  • Inventory impairment, representing non-cash write-downs of certain slow-moving or obsolete inventory.
  • Depreciation, which is a non-cash charge related to fixed assets.
  • Debt issuance cost amortization, which is a non-cash charge related to the loan payable.

Conference Call

The Company will conduct a conference call at 8:00 am Eastern Time on Thursday, November 6, 2025, to discuss the results, followed by a Q&A session.

To listen to the conference call, please dial in using the information below. When prompted upon dialing-in, please ask for the “Ispire Technology Call.”

  • Date: Thursday, November 6, 2025
  • Time: 8:00am ET
  • Dial-In Numbers: North America 844-826-3033 or International +1 412-317-5185

This conference call will be webcast live and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1738889&tp_key=82f919c8ba.

Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.

A playback will be available until 12:00 midnight Eastern Time on Thursday, November 20, 2025. To listen, please dial 844-512-2921 or +1 412-317-6671. Use the passcode 10203874 to access the replay.

About Ispire Technology Inc.
Ispire is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products. The Company’s operating subsidiaries own or license more than 400 patents worldwide. Ispire’s branded e-cigarette products are marketed under the Aspire name and are sold worldwide (except in the U.S., People’s Republic of China and Russia) primarily through its global distribution network. The Company also engages in original design manufacture (ODM) relationships with e-cigarette brands and retailers worldwide. The Company’s cannabis products are marketed under the Ispire brand name primarily on an ODM basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware in the US, Europe and South Africa and it recently commenced marketing activities and customer engagement in Canada and Latin America. For more information, visit www.ispiretechnology.com or follow Ispire on InstagramLinkedInTwitter and YouTube.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: whether the Company may be successful in re-entering the U.S. ENDS market; the approval or rejection of any PMTA submitted by the Company; whether the Company will be successful in its plans to further expand into the African market; whether the Company’s joint venture with Touch Point Worldwide Inc. d/b/a/ Berify and Chemular Inc. (the “Joint Venture”) may be successful in achieving its goals as currently contemplated, with different terms, or at all; the Joint Venture’s ability to innovate in the e-cigarette technology space or develop age gating or age verification technologies for nicotine vaping devices; the Company’s ability to collect its accounts receivable in a timely manner; the Company’s business strategies; the ability of the Company to market to the Ispire ONE™; Ispire ONE™’s success in meeting its goals; the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of its products on the markets; the Ispire ONE™ proving to be safe; and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Ispire’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequent filings which Ispire makes with the SEC. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by applicable law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In $USD, except share and per share data)

September 30,
2025

June 30,
2025

Assets

Current assets:

Cash

$

22,659,118

$

24,351,765

Restricted cash

50,000

Accounts receivable, net

44,522,796

39,664,145

Inventories, net

6,162,118

6,647,970

Prepaid expenses and other current assets

1,733,658

2,244,505

Total current assets

75,127,690

72,908,385

Non-current assets:

Accounts receivable – non current

7,367,158

Property, plant and equipment, net

2,731,346

2,952,800

Intangible assets, net

2,340,700

2,232,620

Right-of-use assets – operating leases

4,719,751

5,030,005

Other investment

2,000,000

2,000,000

Equity method investment

9,316,267

9,515,546

Other non-current assets

210,617

210,617

Total non-current assets

21,318,681

29,308,746

Total assets

$

96,446,371

$

102,217,131

Liabilities and stockholders’ equity

Current liabilities

Accounts payable

$

4,654,008

$

4,172,476

Accounts payable – related party

47,442,029

52,420,256

Contract liabilities

2,962,299

4,861,250

Accrued liabilities and other payables

7,575,391

8,099,991

Income tax payable

281,856

Borrowing – current portion

1,146,766

1,146,766

Operating lease liabilities – current portion

1,750,411

1,838,815

Total current liabilities

65,812,760

72,539,554

Non-current liabilities:

Amount due to a related party

29,000,000

25,000,000

Borrowing – net of current portion

518,669

805,361

Operating lease liabilities – net of current portion

2,883,856

3,267,522

Total non-current liabilities

32,402,525

29,072,883

Total liabilities

98,215,285

101,612,437

Commitments and contingencies

Stockholders’ equity:

Common stock, par value $0.0001 per share; 140,000,000 shares authorized;
     57,289,864 and 57,193,734 shares issued and outstanding as of September 30,
     2025 and June 30, 2025

5,729

5,719

Treasury stock, at cost

(105,489)

(60,488)

Additional paid-in capital

49,771,739

48,833,601

Accumulated deficit

(51,324,130)

(48,065,267)

Accumulated other comprehensive loss

(116,763)

(108,871)

Total stockholders’ (deficit)/equity

(1,768,914)

604,694

Total liabilities and stockholders’ equity

$

96,446,371

$

102,217,131

 

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE LOSS

(In $USD, except share and per share data)

Three Months Ended
September 30,

2025

2024

Revenue

$

30,350,884

$

39,338,313

Cost of revenue

25,204,112

31,663,935

Gross profit

5,146,772

7,674,378

Operating expenses:

Sales and marketing expenses

1,564,844

2,992,247

Credit loss expenses

1,764,252

3,102,081

General and administrative expenses

4,512,985

6,842,919

Total operating expenses

7,842,081

12,937,247

Loss from operations

(2,695,309)

(5,262,869)

Other (expense) income, net:

Interest income

95,472

86

Interest expense

(112,176)

(11,464)

Exchange gain, net

9,802

117,585

Other (expense) income, net

(70,583)

18,399

Total other (expense) income, net

(77,485)

124,606

Loss before income taxes

(2,772,794)

(5,138,263)

Income taxes

(486,069)

(456,753)

Net loss

$

(3,258,863)

$

(5,595,016)

Other comprehensive loss

Foreign currency translation adjustments

(7,892)

(154,937)

Comprehensive loss

(3,266,755)

(5,749,953)

Net loss per share

Basic and diluted

$

(0.06)

$

(0.10)

Weighted average shares outstanding:

Basic and diluted

57,273,184

56,601,320

For more information, kindly contact:

IR Contacts:
KCSA Strategic Communications
Phil Carlson
212-896-1233
ispire@kcsa.com 

PR Contact:
Ellen Mellody
570-209-2947
EMellody@kcsa.com 

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