Ispire Technology Inc. Reports Financial Results for Fiscal Second Quarter 2026

Rhea-AI Summary

Ispire Technology (NASDAQ: ISPR) reported fiscal Q2 2026 results for the quarter ended December 31, 2025, showing revenue of $20.3M (versus $41.8M prior year) and a net loss of $6.6M ($0.12 per share). Cash totaled $17.6M and working capital was $3.5M.

The company said gross profit was $3.5M (17.1% margin) and operating expenses declined to $10.3M as AR fell 19.5% to $37.9M, reflecting a shift to higher-quality customers and cost controls.

Positive

• Revenue repositioning away from lower-quality cannabis customers reduced future credit risk
• Net accounts receivable down 19.5% to $37.9M since June 30, 2025
• Operating expenses declined from $15.1M to $10.3M, showing cost discipline
• Cash balance of $17.6M and working capital of $3.5M

Negative

• Revenue declined by ~51% to $20.3M year-over-year
• Gross profit decreased to $3.5M and gross margin fell to 17.1%
• Continued net loss of $6.6M for the quarter

Key Figures

Q2 FY2026 Revenue: $20.3M Q2 FY2026 Gross Profit: $3.5M Q2 FY2026 Gross Margin: 17.1% +5 more

8 metrics

Q2 FY2026 Revenue $20.3M Three months ended December 31, 2025; vs $41.8M in Q2 FY2025

Q2 FY2026 Gross Profit $3.5M Three months ended December 31, 2025; vs $7.7M prior year quarter

Q2 FY2026 Gross Margin 17.1% Three months ended December 31, 2025; vs 18.5% in Q2 FY2025

Q2 FY2026 Operating Expenses $10.3M Three months ended December 31, 2025; vs $15.1M in Q2 FY2025

Q2 FY2026 Net Loss $6.6M Three months ended December 31, 2025; vs $8.0M loss in Q2 FY2025

Q2 FY2026 EPS ($0.12) per share Three months ended December 31, 2025; vs ($0.14) per share prior year

Cash Balance $17.6M Cash at December 31, 2025

Net Accounts Receivable $37.9M As of December 31, 2025; reduced from $47.0M at FY2025 end

Market Reality Check

Price: $3.37 Vol: Volume 37,883 is below th...

low vol

$3.37 Last Close

Volume Volume 37,883 is below the 20-day average of 62,505, suggesting muted pre-news positioning. low

Technical Shares at $3.06 trade above the $2.68 200-day MA, yet sit 38.55% below the 52-week high.

Peers on Argus

ISPR fell 4.67% ahead of earnings. Several tobacco/cannabis peers like XXII (-10...

ISPR fell 4.67% ahead of earnings. Several tobacco/cannabis peers like XXII (-10.14%), GNLN (-9.32%) and TPB (-2.63%) were also down, but scanner data did not flag a coordinated sector momentum move.

Previous Earnings Reports

5 past events · Latest: Sep 16 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Sep 16	FY25 earnings	Negative	-5.3%	Full-year FY2025 revenue decline and widened net loss with ongoing shift.
May 12	Q3 2025 earnings	Negative	-3.0%	Q3 FY2025 revenue drop and larger net loss despite Malaysia transition.
Feb 10	Q2 2025 earnings	Mixed	-6.6%	Slight revenue growth and better margins but sharply higher expenses and loss.
Nov 11	Q1 2025 earnings	Negative	-5.9%	Revenue decline with higher operating expenses and a wider quarterly loss.
Sep 26	FY24 earnings	Positive	+11.3%	Strong FY2024 revenue and gross profit growth despite continued net loss.

Pattern Detected

Earnings releases have typically been followed by modest, mostly negative price reactions.

Recent Company History

Over the past five earnings-related announcements, Ispire has often paired revenue pressure with cost actions and strategic repositioning. FY2024 results showed strong growth, with revenue rising to $151.9M and gross profit to $29.8M, but losses persisted. FY2025 results highlighted a revenue decline to $127.5M and a widened net loss of $39.2M, alongside PMTA and Malaysia initiatives. Quarterly updates through 2025 repeatedly featured lower cannabis revenue, Malaysia ramp, and age-gating/PMTA progress, with shares generally reacting negatively within a few percentage points.

Historical Comparison

earnings

-1.9 %

Average Historical Move

Historical Analysis

Earnings headlines have typically led to modest negative moves (average -1.89%), reflecting ongoing losses and transition efforts despite strategic progress.

Typical Pattern

Earnings updates show a transition from FY2024 growth with losses to FY2025 revenue contraction, heavier provisions, and ongoing cost-cutting while Malaysia manufacturing and PMTA/age-gating initiatives advance.

Market Pulse Summary

This announcement underscores Ispire’s tradeoff between revenue and quality of earnings. Q2 FY2026 r...

Analysis

This announcement underscores Ispire’s tradeoff between revenue and quality of earnings. Q2 FY2026 revenue fell to $20.3M, but operating expenses dropped to $10.3M and net loss narrowed to $6.6M. Management highlighted a 19.5% reduction in net accounts receivable to $37.9M, cash of $17.6M, and $3.5M in working capital. Investors may monitor future quarters for revenue stabilization, margin recovery, and progress on Malaysia capacity and age-gating technology adoption.

Key Terms

age-gating

1 terms

age-gating technical

"support the broader adoption of age-gating technology as a safer industry standard."

A policy or technology that limits access to certain products, content or online features until a user’s age is confirmed, typically via account data, ID checks or third-party verification. For investors, age-gating matters because it can shrink or shape the usable customer base, create compliance costs and affect revenue, advertising reach and legal risk—think of it like a bouncer deciding who can enter a store or club, which changes foot traffic and sales.

AI-generated analysis. Not financial advice.

Ongoing Focus on Collections Drives 19% Reduction in Net Accounts Receivable since June 30, 2025

Cash of $17.6 Million at December 31, 2025 

LOS ANGELES, Feb. 6, 2026 /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 second quarter of fiscal 2026, for the three months ended December 31, 2025.

Fiscal Second Quarter 2026 Financial Results

• Revenue of $20.3 million versus $41.8 million for the second quarter of fiscal 2025.
• Gross profit of $3.5 million compared to $7.7 million for the second quarter of fiscal 2025.
• Gross margin of 17.1% compared to 18.5% for the second quarter of fiscal 2025.
• Total operating expenses of $10.3 million compared to $15.1 million for the second quarter of fiscal 2025.
• Net loss of $6.6 million, compared to net loss of $8.0 million in the second quarter of fiscal 2025.

"This quarter represented an inflection point for Ispire during its yearlong cost cutting and customer quality rationalization efforts and we believe future quarters will see top line growth, consistent cash flows and bottom-line improvement. We are confident we have laid a solid foundation for future success," commented Michael Wang, Co-Chief Executive Officer of Ispire. "During the second quarter of fiscal 2026, we maintained our focus on prioritizing high-quality revenue, and reinforcing our disciplined and intentional approach to sustainable growth. This was particularly evident in our efforts to reduce net accounts receivable, which continues to have strong success. Over the second fiscal quarter we reduced net accounts receivable by 19.5% to $37.9 million, compared to $47.0 million at the end of fiscal year 2025."

"We continue to lay important groundwork across core areas of the business, including the ramp up of our manufacturing capabilities in Malaysia as we prepare to increase production throughout fiscal 2026. Momentum continues to build for our proprietary G-Mesh technology, with several large and mid-sized nicotine manufacturers engaged in discussions to evaluate its use in next-generation vaping devices, as we work toward potential licensing and partnership opportunities. In addition, our IKE Tech joint venture is making steady global progress, collaborating with regulators across Europe, Southeast Asia, and the Middle East to support the broader adoption of age-gating technology as a safer industry standard.  In the US, although most adult consumers want flavored e-cigarettes, nearly all of the flavored e-cigarettes are both unauthorized by the FDA and sold through illicit channels.  While we welcome the US Federal Government's strengthened enforcement mandate of the illicit trade of vapes, we believe that such enforcement can only be truly effective by pairing it with the creation of a robust, legal market of FDA authorized flavored e-cigarette products. Ispire, with IKE, is a key player in the creation of this market of legal, approved products, using its technologies to both prevent youth-access, ensure product authenticity and provide solutions to secure devices before misuse occurs. This is where we are seeing macro tailwinds in our favor relating to the US FDA's stated position on flavored ENDS products and age-gating. Since October 2025, the FDA's explicit position is that you must have age gating technology if you want flavored products approved. Ispire, through its IKE joint venture, has one of the leading and most low friction technologies in this space, and we look forward to capitalizing on this opportunity in due time", Mr. Wang concluded.

Jay Yu, Chief Financial Officer of Ispire, said, "The second quarter of fiscal 2026 reflects continued progress as we focused on strengthening the Company's financial foundation. Disciplined cost controls drove a year-over-year decline in operating expenses, which decreased from $15.1 million to $10.3 million over the second fiscal quarter, highlighting the impact of our efficiency initiatives. Our net accounts receivable also declined to $37.9 million as of December 31, 2025, compared with $47.0 million as of June 30, 2025, reflecting our ongoing focus on higher-quality customers. These actions position the Company for enhanced financial flexibility and support sustained value creation over the long term."

Financial Results for the Fiscal Second Quarter Ended December 31, 2025

Ispire reported revenue of $20.3 million for the fiscal second quarter ended December 31, 2025, versus $41.8 million for the prior comparable period. The decrease in revenue is due to the strategic shift away from lower quality cannabis customers, resulting in a decrease of overall product sales. 

For the second quarter of fiscal 2026, gross profit was $3.5 million compared to $7.7 million in the prior comparable quarter. Gross margin was 17.1% compared to 18.5% for the second 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 December 31, 2025.

Total operating expenses were $10.3 million for the second fiscal quarter of 2026, compared to $15.1 million for the same period last year.

Net loss was $6.6 million or $0.12 per share for the fiscal second quarter of 2026, versus a net loss of $8.0 million, or $0.14 per share for the fiscal second quarter of 2025.

At December 31, 2025, Ispire held cash of $17.6 million and working capital of $3.5 million.

Conference Call

The Company will conduct a conference call at 8:00 am ET on Friday, February 6, 2026, 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: Friday, February 6, 2026
• Time: 8:00 am ET
• Dial-In Numbers: United States 877-451-6152 or International +1 201-389-0879

This conference call will be webcast live and can be accessed by all interested parties at  https://viavid.webcasts.com/starthere.jsp?ei=1749224&tp_key=1ec45fe266.

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 11:59 pm ET on Friday, February 20, 2026. To listen, please dial 1-844-512-2921 or 1-412-317-6671. Use the passcode 13758138 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)
		December 31, 2025				June 30, 2025
Assets
Current assets:
Cash		$	17,565,334			$	24,351,765
Restricted cash			50,000				-
Accounts receivable, net			37,878,353				39,664,145
Inventories			5,037,414				6,647,970
Prepaid expenses and other current assets			3,120,978				2,244,505
Total current assets			63,652,079				72,908,385
Non-current assets:
Accounts receivable, net of current portion			-				7,367,158
Property, plant and equipment, net			2,599,861				2,952,800
Intangible assets, net			2,474,037				2,232,620
Right-of-use assets – operating leases			4,335,355				5,030,005
Other investment			2,000,000				2,000,000
Equity method investment			9,129,213				9,515,546
Other non-current assets			210,617				210,617
Total non-current assets			20,749,083				29,308,746
Total assets		$	84,401,162			$	102,217,131
Liabilities and stockholders' equity
Current liabilities
Accounts payable		$	3,137,235			$	4,172,476
Accounts payable – related party			42,444,624				52,420,256
Contract liabilities			4,971,135				4,861,250
Accrued liabilities and other payables			6,818,397				8,099,991
Income tax payable			12,590				-
Borrowing – current portion			1,146,766				1,146,766
Operating lease liabilities – current portion			1,659,698				1,838,815
Total current liabilities			60,190,445				72,539,554
Non-current liabilities:
Amount due to a related party			29,000,000				25,000,000
Borrowing – net of current portion			231,978				805,361
Operating lease liabilities – net of current portion			2,642,156				3,267,522
Total non-current liabilities			31,874,134				29,072,883
Total liabilities			92,064,579				101,612,437
Commitments and contingencies
Stockholders' (deficit)/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 December 31,      2025 and June 30, 2025			5,729				5,719
Treasury stock, at cost			(105,489)				(60,488)
Additional paid-in capital			50,593,580				48,833,601
Accumulated deficit			(57,927,041)				(48,065,267)
Accumulated other comprehensive loss			(230,196)				(108,871)
Total stockholders' (deficit)/equity			(7,663,417)				604,694
Total liabilities and stockholders' (deficit)/equity		$	84,401,162			$	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 December 31,								Six Months Ended December 31,
		2025				2024				2025				2024
Revenue		$	20,286,556			$	41,827,860			$	50,637,440			$	81,166,173
Cost of revenue			16,811,955				34,105,289				42,016,067				65,769,224
Gross profit			3,474,601				7,722,571				8,621,373				15,396,949
Operating expenses:
Sales and marketing expenses			1,476,328				2,061,664				3,041,172				5,053,911
Credit loss expenses			4,209,201				4,183,998				5,973,453				7,286,079
General and administrative expenses			4,663,939				8,836,964				9,176,924				15,679,883
Total Operating expenses			10,349,468				15,082,626				18,191,549				28,019,873
Loss from operations			(6,874,867)				(7,360,055)				(9,570,176)				(12,622,924)
Other income (expense):
Interest income			104,922				59,755				200,394				59,841
Interest expense			(100,191)				(13,073)				(212,367)				(24,537)
Exchange gain (loss), net			290,237				(245,173)				300,039				(127,588)
Other income, net			83,574				19,934				12,991				38,333
Total Other income (expense), net			378,542				(178,557)				301,057				(53,951)
Loss before income taxes			(6,496,325)				(7,538,612)				(9,269,119)				(12,676,875)
Income taxes			(106,586)				(460,031)				(592,655)				(916,784)
Net loss		$	(6,602,911)			$	(7,998,643)			$	(9,861,774)			$	(13,593,659)
Other comprehensive income (loss)
Foreign currency translation adjustments			(113,433)				73,470				(121,325)				(81,467)
Comprehensive loss		$	(6,716,344)			$	(7,925,173)			$	(9,983,099)			$	(13,675,126)
Net loss per share
Basic and diluted		$	(0.12)			$	(0.14)			$	(0.17)			$	(0.24)
Weighted average shares outstanding:
Basic and diluted			57,258,218				56,658,012				57,257,938				56,629,666

 

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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SOURCE Ispire Technology Inc.

FAQ

What were Ispire (ISPR) fiscal Q2 2026 revenue and net loss figures announced on February 6, 2026?

Ispire reported $20.3 million in revenue and a $6.6 million net loss for fiscal Q2 2026. According to the company, revenue fell from $41.8 million the prior year due to a strategic shift away from lower-quality cannabis customers.

How much cash and working capital did Ispire (ISPR) report at December 31, 2025?

Ispire held $17.6 million in cash and $3.5 million in working capital as of December 31, 2025. According to the company, these balances support near-term operations while cost controls take effect.

Why did Ispire (ISPR) revenue decline in fiscal Q2 2026 and how did that affect margins?

Revenue declined primarily from a strategic shift away from lower-quality cannabis customers, reducing product sales and higher-margin mix. According to the company, gross margin fell to 17.1% as fewer higher-margin products were sold.

What cost and receivable improvements did Ispire (ISPR) report for Q2 2026?

Ispire reduced operating expenses to $10.3M and lowered net accounts receivable by 19.5% to $37.9M. According to the company, these moves reflect disciplined cost controls and focus on higher-quality customers.

What commercial and regulatory opportunities did Ispire (ISPR) highlight for fiscal 2026?

Ispire emphasized ramping Malaysia manufacturing, licensing interest in its G-Mesh technology, and IKE joint venture work on age-gating for flavored ENDS. According to the company, FDA guidance since October 2025 may support demand for age-gating solutions.