|
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|
|||||
|
|
|
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
"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:
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."
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 Instagram, LinkedIn, Twitter 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, |
|
|
June 30, |
|
||
|
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; |
|
|
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 |
|
|||||
|
|
|
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
[email protected]
PR Contact:
Ellen Mellody
570-209-2947
[email protected]
SOURCE Ispire Technology Inc.
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