Ispire Technology Inc. Reports Financial Results for Fiscal Third Quarter 2026
Rhea-AI Summary
Ispire Technology (Nasdaq: ISPR) reported fiscal Q3 2026 results for the quarter ended March 31, 2026. Revenue was $18.7M, gross profit $2.0M, and net loss $9.5M (‑$0.17/share). Cash rose sequentially by $468,000 to $18.0M and working capital was $0.9M. Management cited Malaysia manufacturing live, Vapor ODM ramp in July 2026, and future age‑gating and G‑Mesh opportunities targeting multi‑billion markets.
Positive
- Cash +$468,000 sequentially to $18.0M
- Operating expenses down 36% YoY to $5.9M
- Malaysia manufacturing live with 25% tariff advantage
- Vapor ODM launch scheduled July 2026
Negative
- Revenue down 28.6% YoY to $18.7M
- Gross margin 10.7% impacted by $2.2M product returns
- Bad debt expense $5.6M in the quarter
- Working capital low at $0.9M
- Net loss of $9.5M; loss widened 44.4% vs prior quarter
News Market Reaction – ISPR
On the day this news was published, ISPR gained 10.12%, reflecting a significant positive market reaction. Argus tracked a peak move of +9.8% during that session. Argus tracked a trough of -17.5% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $10M to the company's valuation, bringing the market cap to $110.00M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ISPR gained 16.67% while key peers were mostly down: TPB -0.79%, UVV -0.7%, KAVL -10.15%. Only XXII and GNLN were modestly positive, suggesting today’s move is company-specific rather than a broad tobacco-sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 06 | Q2 2026 earnings | Negative | +10.1% | Revenue halved year-over-year but cost controls and cash balance supported sentiment. |
| Sep 16 | FY 2025 results | Negative | -5.3% | Full-year revenue decline and wider net loss during strategic shift weighed on shares. |
| May 12 | Q3 2025 earnings | Negative | -3.0% | Lower revenue, wider loss, and margin compression amid cannabis-to-nicotine transition. |
| Feb 10 | Q2 2025 earnings | Neutral | -6.6% | Mixed quarter with margin improvement but sharply higher expenses and larger net loss. |
| Nov 11 | Q1 2025 earnings | Negative | -5.9% | Revenue decline and significantly wider net loss overshadowed margin gains and expansion. |
Earnings have often been challenging, but strong positive reactions have occurred when results or guidance signaled progress on repositioning and cost controls.
Over the last several earnings cycles, Ispire has reported declining revenue and persistent net losses while executing a strategic shift from cannabis hardware toward regulated nicotine and compliance technologies. Prior results highlighted shrinking sales, pressured margins, and sizable credit-loss provisions but also showed meaningful cost reductions and Malaysian manufacturing ramp-up. Price reactions have been mixed, with some negative moves on weak results and occasional strong gains when investors focused on stabilization or strategic progress, framing today’s Q3 FY2026 update within an ongoing turnaround narrative.
Historical Comparison
In the past earnings releases, ISPR’s average next-day move was -2.13%, typically skewing negative on weak results. Today’s 16.67% gain ahead of and around Q3 FY2026 results stands out as a notably more optimistic reaction.
Earnings updates trace a multi-quarter transition: revenue trending lower, net losses sizable, but operating expenses and manufacturing mix gradually shifting toward Malaysian production and regulated nicotine and compliance offerings.
Market Pulse Summary
The stock surged +10.1% in the session following this news. A strong positive reaction aligns with investors focusing on stabilization signs, including cash rising to $18.0M and operating expenses ex-bad debt falling to $5.9M, despite weaker revenue and margins. Historical earnings moves averaged -2.13%, so a gain of 16.67% marked a notable outlier, with prior patterns showing that enthusiasm could fade if losses and credit costs remain elevated.
AI-generated analysis. Not financial advice.
Cash Increased Sequentially by
Plans to Achieve Cash Flow Positive in Second Half of Calendar Year 2026
Business Stabilized Following Strategic Repositioning
Phased Roadmap Targets Billions in Addressable Market, Including
Michael Wang, Co-Chief Executive Officer of Ispire, commented, "This quarter reflects the successful stabilization of our business and with cash growing sequentially by
- Our
Malaysia manufacturing is live today, giving us a25% tariff advantage overChina in a~ global vape market.$73B - Supply of nicotine pouches to global customers commenced in April 2026.
- Vapor ODM launches in July 2026 for mid-sized brands, with large brand partnerships targeted for 2027.
- Looking further ahead (2027 and beyond):
- Age-gating technology through IKE Tech has the potential to unlock the ~
$50 –70B US flavored vape market - G-Mesh glass technology is already drawing interest from big tobacco in a
$24B + legal global market.
- Age-gating technology through IKE Tech has the potential to unlock the ~
"With cash generation this quarter and proprietary technologies in age-gating and G-Mesh that no competitor can replicate, we have multiple shots on goal across billion-dollar markets, and we believe Ispire is uniquely positioned to deliver outsized value for shareholders."
Multiple Growth Catalysts, Each Backed by a Massive Addressable Market
Catalyst | Timeline | Opportunity |
| Now | |
Vapor ODM | July 2026 / | Mid-sized brands in 2026; large brand partnerships in |
Age-Gating (IKE | 2027+ |
|
G-Mesh Technology | 2027+ |
|
Financial Results for the Fiscal Third Quarter Ended March 31, 2026
- Revenue was
$18.7 million $26.2 million $20.3 million $1.6 million 8% , represents the smallest second-to-third quarter decline in the Company's history, reflecting the typical seasonal impact of Chinese New Year-related factory shutdowns. The year-over-year decline reflects the Company's continued strategic shift away from lower-quality cannabis revenue toward regulated nicotine delivery and compliance technologies. Overall, the business continues to stabilize. - Gross profit of
$2.0 million $4.8 million $3.5 million $2.2 million 10.7% compared to18.2% for the third quarter of fiscal 2025, is primarily attributable to the approximately$2.2 million - Total operating expenses excluding bad debt expense of
$5.9 million 36% reduction when compared to operating expenses of$9.3 million 3.7% reduction when compared to operating expenses of$6.1 million $5.6 million $0.5 million $1.4 million - Net loss of
$9.5 million $0.17 12.3% decrease, compared to net loss of$10.9 million $0.19 44.4% increase compared a net loss of$6.6 million - Cash: At March 31, 2026, the Company held cash of
$18.0 million $0.9 million
Conference Call
The Company will conduct a conference call at 8 am ET on Friday, May 7, 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: Thursday, May 7, 2026
- Time: 8:00 am ET
- Dial-In Numbers: United States 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=1761477&tp_key=3958311007
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, May 21, 2026. To listen, please dial 1-844-512-2921 or 1-412-317-6671. Use the passcode 10208863 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
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
Contact:
HAYDEN IR:
James Carbonara
(646)-755-7412
james@haydenir.com
Brett Maas
(646) 536-7331
brett@haydenir.com
-- Tables Follow –
ISPIRE TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In $USD, except share and per share data) | ||||||||
March 31, | June 30, | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 18,033,652 | $ | 24,351,765 | ||||
Restricted cash | 50,000 | - | ||||||
Accounts receivable, net | 28,651,558 | 39,664,145 | ||||||
Inventories | 5,480,044 | 6,647,970 | ||||||
Prepaid expenses and other current assets | 3,523,741 | 2,244,505 | ||||||
Total current assets | 55,738,995 | 72,908,385 | ||||||
Non-current assets: | ||||||||
Accounts receivable, net of current portion | - | 7,367,158 | ||||||
Property, plant and equipment, net | 2,665,534 | 2,952,800 | ||||||
Intangible assets, net | 2,601,408 | 2,232,620 | ||||||
Right-of-use assets – operating leases | 3,855,373 | 5,030,005 | ||||||
Other investment | 2,000,000 | 2,000,000 | ||||||
Equity method investment | 8,839,130 | 9,515,546 | ||||||
Other non-current assets | 210,617 | 210,617 | ||||||
Total non-current assets | 20,172,062 | 29,308,746 | ||||||
Total assets | $ | 75,911,057 | $ | 102,217,131 | ||||
Liabilities and stockholders' (deficit)/equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 5,005,033 | $ | 4,172,476 | ||||
Accounts payable – related party | 38,159,288 | 52,420,256 | ||||||
Contract liabilities | 3,043,470 | 4,861,250 | ||||||
Accrued liabilities and other payables | 6,003,509 | 8,099,991 | ||||||
Borrowing – current portion | 1,092,052 | 1,146,766 | ||||||
Operating lease liabilities – current portion | 1,546,770 | 1,838,815 | ||||||
Total current liabilities | 54,850,122 | 72,539,554 | ||||||
Non-current liabilities: | ||||||||
Amount due to a related party | 35,000,000 | 25,000,000 | ||||||
Borrowing – net of current portion | - | 805,361 | ||||||
Operating lease liabilities – net of current portion | 2,265,347 | 3,267,522 | ||||||
Total non-current liabilities | 37,265,347 | 29,072,883 | ||||||
Total liabilities | 92,115,469 | 101,612,437 | ||||||
Commitments and contingencies | ||||||||
Stockholders' (deficit)/equity: | ||||||||
Common stock, par value | 5,740 | 5,719 | ||||||
Treasury stock, at cost | (60,488) | (60,488) | ||||||
Additional paid-in capital | 51,541,046 | 48,833,601 | ||||||
Accumulated deficit | (67,450,024) | (48,065,267) | ||||||
Accumulated other comprehensive loss | (240,686) | (108,871) | ||||||
Total stockholders' (deficit)/equity | (16,204,412) | 604,694 | ||||||
Total liabilities and stockholders' (deficit)/equity | $ | 75,911,057 | $ | 102,217,131 | ||||
ISPIRE TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND (In $USD, except share and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue | $ | 18,685,501 | $ | 26,190,725 | $ | 69,322,941 | $ | 107,356,898 | ||||||||
Cost of revenue | 16,694,576 | 21,414,820 | 58,710,643 | 87,184,044 | ||||||||||||
Gross profit | 1,990,925 | 4,775,905 | 10,612,298 | 20,172,854 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | 1,091,907 | 1,656,527 | 4,133,079 | 6,710,438 | ||||||||||||
Credit loss expenses | 5,564,497 | 6,103,688 | 11,537,950 | 13,389,767 | ||||||||||||
General and administrative expenses | 4,818,256 | 7,601,131 | 13,995,180 | 23,281,014 | ||||||||||||
Total Operating expenses | 11,474,660 | 15,361,346 | 29,666,209 | 43,381,219 | ||||||||||||
Loss from operations | (9,483,735) | (10,585,441) | (19,053,911) | (23,208,365) | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 52,971 | 3,480 | 253,365 | 63,321 | ||||||||||||
Interest expense | (87,215) | (35,646) | (299,582) | (60,183) | ||||||||||||
Exchange (loss) gain, net | (30,294) | 24,341 | 269,745 | (103,247) | ||||||||||||
Other income (expense), net | 202,697 | (86,239) | 215,688 | (47,906) | ||||||||||||
Total Other income (expense), net | 138,159 | (94,064) | 439,216 | (148,015) | ||||||||||||
Loss before income taxes | (9,345,576) | (10,679,505) | (18,614,695) | (23,356,380) | ||||||||||||
Income taxes | (177,407) | (176,990) | (770,062) | (1,093,774) | ||||||||||||
Net loss | $ | (9,522,983) | $ | (10,856,495) | $ | (19,384,757) | $ | (24,450,154) | ||||||||
Other comprehensive loss | ||||||||||||||||
Foreign currency translation adjustments | (10,490) | (2,860) | (131,815) | (84,327) | ||||||||||||
Comprehensive loss | $ | (9,533,473) | $ | (10,859,355) | $ | (19,516,572) | $ | (24,534,481) | ||||||||
Net loss per share | ||||||||||||||||
Basic and diluted | $ | (0.17) | $ | (0.19) | $ | (0.34) | $ | (0.43) | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic and diluted | 57,293,826 | 57,003,488 | 57,269,726 | 56,752,454 | ||||||||||||
ISPIRE TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In $USD, except share and per share data) | ||||||||
Nine Months Ended | ||||||||
2026 | 2025 | |||||||
Net loss | $ | (19,384,757) | $ | (24,450,154) | ||||
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||||||||
Depreciation and amortization | 691,894 | 592,280 | ||||||
Credit loss expenses | 11,537,950 | 13,389,767 | ||||||
Right-of-use assets amortization | 1,172,118 | 1,001,101 | ||||||
Stock-based compensation expenses | 2,752,467 | 4,923,751 | ||||||
Inventory impairment | 2,386,751 | 73,692 | ||||||
Loss from equity method investment | 676,416 | 407,028 | ||||||
Debt issuance cost amortization | 96,937 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 6,841,795 | (14,080,837) | ||||||
Inventories | (1,218,825) | (1,485,433) | ||||||
Prepaid expenses and other current assets | (1,332,448) | (715,969) | ||||||
Accounts payable and accounts payable – related party | (3,428,411) | 10,962,439 | ||||||
Contract liabilities | (1,817,780) | (756,872) | ||||||
Accrued liabilities and other payables | (876,774) | (969,068) | ||||||
Operating lease liabilities | (1,291,706) | (961,244) | ||||||
Net cash used in operating activities | (3,194,373) | (12,069,519) | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (324,225) | (140,956) | ||||||
Capitalized costs for patents | (449,191) | (781,254) | ||||||
Investment in joint venture | (1,298,311) | (767,285) | ||||||
Net cash used in investing activities | (2,071,727) | (1,689,495) | ||||||
Cash flows from financing activities: | ||||||||
Common stock repurchase | (45,001) | (60,488) | ||||||
Proceeds from long term debt | - | 2,339,362 | ||||||
Repayment of borrowing | (957,012) | - | ||||||
Net cash (used in)/provided by financing activities | (1,002,013) | 2,278,874 | ||||||
Net decrease in cash | (6,268,113) | (11,480,140) | ||||||
Cash – beginning of period | 24,351,765 | 35,071,294 | ||||||
Cash and restricted cash– end of period | $ | 18,083,652 | $ | 23,591,154 | ||||
Reconciliation of cash and restricted cash | ||||||||
Cash | 18,033,652 | 23,518,560 | ||||||
Restricted cash | 50,000 | 72,594 | ||||||
Total cash and restricted cash | $ | 18,083,652 | $ | 23,591,154 | ||||
Supplemental non-cash investing and financing activities | ||||||||
Reclassification of accounts receivable – noncurrent to accounts receivable | $ | 6,934,364 | $ | - | ||||
Reclassification of accounts payable – related party to amount due to a related party | $ | 10,000,000 | $ | - | ||||
Leased assets obtained in exchange for operating lease liabilities | $ | - | $ | 2,771,082 | ||||
Unpaid long term investment in accrued liabilities and other payables | $ | - | $ | 8,232,715 | ||||
Supplemental disclosures | ||||||||
Cash paid for income taxes | $ | 1,614,273 | $ | 1,413,533 | ||||
Cash paid for interest | $ | 299,582 | $ | 60,183 | ||||
ISPIRE TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In $USD, except share and per share data) | ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
Net loss | $ (9,522,983) | $ (10,856,495) | ||
Adjustments to reconcile net loss to net cash -used in/provided by operating | $ - | $ - | ||
Depreciation and amortization | $ 210,652 | $ 198,955 | ||
Credit loss expenses | $ 5,564,497 | $ 6,103,688 | ||
Right-of-use assets amortization | $ 479,982 | $ 371,717 | ||
Stock-based compensation expenses | $ 992,478 | $ 1,470,877 | ||
Inventory impairment | $ 849,313 | $ - | ||
Loss from equity method investment | $ 290,083 | $ 230,360 | ||
Debt issuance cost amortization | $ 32,312 | $ - | ||
Changes in operating assets and liabilities: | $ - | $ - | ||
Accounts receivable | $ 3,662,298 | $ 1,170,940 | ||
Inventories | $ (1,291,943) | $ 181,075 | ||
Prepaid expenses and other current assets | $ (363,641) | $ 139,686 | ||
Accounts payable and accounts payable – related party | $ 3,582,462 | $ (9,743,313) | ||
Contract liabilities | $ (1,927,665) | $ (549,992) | ||
Accrued liabilities and other payables | $ (99,500) | $ (838,174) | ||
Operating lease liabilities | $ (489,737) | $ (376,953) | ||
Income tax payable | $ (12,590) | $ - | ||
Net cash provided by operating activities | $ 1,956,018 | $ (12,497,629) | ||
$ - | ||||
Cash flows from investing activities: | $ - | |||
Purchase of property, plant and equipment | $ (247,347) | $ 181,808 | ||
Capitalized costs for patents | $ (156,349) | $ - | ||
Investment in joint venture | $ (765,000) | $ (767,285) | ||
Net cash used in investing activities | $ (1,168,696) | $ (585,477) | ||
$ - | ||||
Cash flows from financing activities: | $ - | |||
Common stock repurchase | $ - | $ (60,488) | ||
Proceeds from long term debt | $ - | $ 2,339,362 | ||
Repayment of borrowing | $ (319,004) | $ - | ||
Net cash used in financing activities | $ (319,004) | $ 2,278,874 | ||
$ - | ||||
Net increase in cash | $ 468,318 | $ (10,804,232) | ||
Cash – beginning of period | $ 17,615,334 | $ 34,395,386 | ||
Cash and restricted cash– end of period | $ 18,083,652 | $ 23,591,154 | ||
Reconciliation of cash and restricted cash | ||||
Cash | $ 18,033,652 | $ 23,518,560 | ||
Restricted cash | $ 50,000 | $ 72,594 | ||
Total cash and restricted cash | $ 18,083,652 | $ 23,591,154 | ||
Supplemental non-cash investing and financing activities | ||||
Reclassification of accounts receivable – noncurrent to accounts receivable | $ - | $ - | ||
Reclassification of accounts payable – related party to amount due to a | $ 6,000,000 | $ - | ||
Leased assets obtained in exchange for operating lease liabilities | $ - | $ 2,771,082 | ||
Unpaid long term investment in accrued liabilities and other payables | $ - | $ 8,232,715 | ||
Supplemental disclosures | $ - | $ - | ||
Cash paid for income taxes | $ 3,081 - | $ - | ||
Cash paid for interest | $ 87,215 | $ 35,646 | ||
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SOURCE Ispire Technology Inc.