Ispire Technology Inc. Reports Financial Results for Fiscal Third Quarter 2025
- Reduction in accounts receivable from $67.7M to $60.4M improving financial stability
- Expected $8M annual operating expense reduction from Malaysian operations transition
- Received interim license for nicotine manufacturing in Malaysia
- Strategic shift to focus on larger, higher-quality customers including MSOs
- Filed first-ever component PMTA for age verification technology with FDA
- Revenue declined 12.7% YoY to $26.2M from $30.0M
- Net loss increased to $10.9M from $5.9M in Q3 FY2024
- Gross margin decreased to 18.2% from 20.4% YoY
- Operating expenses increased to $15.4M from $11.8M YoY
- Negative working capital of ($2.1M) as of March 31, 2025
Insights
Ispire's Q3 shows deteriorating financials amid strategic restructuring; revenue down 12.7% while net losses widened significantly.
Ispire Technology's Q3 FY2025 results reveal concerning financial deterioration across multiple metrics. Revenue declined to
The gross margin compression to
While management highlights positive accounts receivable reduction from
The Malaysian manufacturing transition appears to be a defensive move to reduce geopolitical risk and operating expenses, with projected annual savings of
The regulatory developments with IKE Tech's component PMTA filing and Malaysian nicotine manufacturing license progress represent potential competitive advantages, but these remain speculative until final approvals. Meanwhile, the core business continues to experience revenue declines in North America and Asia Pacific markets.
The SproutTM cannabis device launch with Raw Garden demonstrates product innovation capabilities but hasn't translated to financial improvement yet.
Accounts Receivable Decreased from
Post-Quarter End, IKE Tech Filed PMTA with the FDA for its Age-Gating Joint Venture Component with IKE
Launched SproutTM in Collaboration with Raw Garden, an Advanced All-In-One Cannabis Vapor Device Ensuring Purity and Safety
Fiscal Third Quarter 2025 Financial Results
- Revenue of
$26.2 million $30.0 million - Gross profit of
$4.8 million $6.1 million - Gross margin of
18.2% compared to20.4% for the third quarter of fiscal 2024. - Total operating expenses of
$15.4 million $11.8 million - Net loss of
( , compared to net loss of$10.9) million ( in the third quarter of fiscal 2024.$5.9) million
"The progress the Company made during the third fiscal quarter demonstrates that we are delivering on our promises and executing on our strategic priorities to become a leading global provider of precision dosing vape technology," commented Michael Wang, Co-Chief Executive Officer of Ispire. "We have made significant strides as we are transitioning our manufacturing to
"We also received an interim license for manufacturing nicotine products in
Jim McCormick, Chief Financial Officer of Ispire, said, "Over recent quarters, Ispire has made a concerted effort to decrease our accounts receivable and improve our financial stability. In order to do so, we became laser focused on pursuing larger and higher-quality customers. The success we had in executing this strategy resulted in the Company reducing accounts receivable to
Financial Results for the Three and Nine-Month Periods Ended March 31, 2025
Ispire reported revenue of
For the third quarter of fiscal 2025, gross profit was
Gross profit for the nine-month period ended March 31, 2025, was
Total operating expenses were
Net loss was
At March 31, 2025, Ispire held cash and cash equivalents of
Conference Call
The Company will conduct a conference call at 8:00am Eastern Time on Monday, May 12, 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: Monday, May 12, 2025
- Time: 8:00am ET
- Dial-In Numbers: North America 888-880-3330 or International +1 646-357-8766
This conference call will be webcast live and can be accessed by all interested parties at https://app.webinar.net/z9kqo2ro81l.
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, May 15, 2025. To listen, please dial 800-770-2030 (Toll Free) or 609-800-9909 (Toll). Use the passcode 9733287 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 200 patents received or filed globally. Ispire's tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the
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
ISPIRE TECHNOLOGY INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In $USD, except share and per share data) | ||||||||
March 31, | June 30, | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 23,518,560 | $ | 35,071,294 | ||||
Restricted cash | 72,594 | - | ||||||
Accounts receivable, net | 60,425,835 | 59,734,765 | ||||||
Inventories | 7,825,109 | 6,365,394 | ||||||
Prepaid expenses and other current assets | 2,184,559 | 1,400,152 | ||||||
Total current assets | 94,026,657 | 102,571,605 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 2,189,313 | 2,582,457 | ||||||
Intangible assets, net | 2,098,740 | 1,375,666 | ||||||
Right-of-use assets – operating leases | 5,356,384 | 3,579,140 | ||||||
Other investment | 2,000,000 | 2,000,000 | ||||||
Equity method investment | 9,841,020 | 10,248,048 | ||||||
Other non-current assets | 215,612 | 284,050 | ||||||
Total non-current assets | 21,701,069 | 20,069,361 | ||||||
Total assets | $ | 115,727,726 | $ | 122,640,966 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 4,666,784 | $ | 3,779,723 | ||||
Accounts payable – related party | 77,121,850 | 67,046,472 | ||||||
Contract liabilities | 1,561,842 | 2,218,166 | ||||||
Accrued liabilities and other payables | 10,033,739 | 11,738,339 | ||||||
Bank loan – current portion | 1,124,226 | - | ||||||
Operating lease liabilities – current portion | 1,667,641 | 1,207,832 | ||||||
Total current liabilities | 96,176,082 | 85,990,532 | ||||||
Non-current liabilities: | ||||||||
Bank loan – net of current portion | 1,215,136 | - | ||||||
Operating lease liabilities – net of current portion | 3,551,386 | 2,194,094 | ||||||
Total liabilities | 100,942,604 | 88,184,626 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock, par value | 5,714 | 5,647 | ||||||
Preferred stock, par value | - | - | ||||||
Treasury stock, at cost | (60,488) | - | ||||||
Additional paid-in capital | 48,141,075 | 43,217,391 | ||||||
Accumulated deficit | (33,275,195) | (8,825,041) | ||||||
Accumulated other comprehensive (loss) income | (25,984) | 58,343 | ||||||
Total stockholders' equity | 14,785,122 | 34,456,340 | ||||||
Total liabilities and stockholders' equity | $ | 115,727,726 | $ | 122,640,966 | ||||
ISPIRE TECHNOLOGY INC. | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||||||||||||||||
(In $USD, except share and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue | $ | 26,190,725 | $ | 30,015,036 | $ | 107,356,898 | $ | 114,565,244 | ||||||||
Cost of revenue | 21,414,820 | 23,893,083 | 87,184,044 | 95,345,545 | ||||||||||||
Gross profit | 4,775,905 | 6,121,953 | 20,172,854 | 19,219,699 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | 1,656,527 | 1,754,760 | 6,710,438 | 4,174,386 | ||||||||||||
General and administrative expenses | 13,704,819 | 10,022,488 | 36,670,781 | 25,499,077 | ||||||||||||
Total Operating expenses | 15,361,346 | 11,777,248 | 43,381,219 | 29,673,463 | ||||||||||||
Loss from operations | (10,585,441) | (5,655,295) | (23,208,365) | (10,453,764) | ||||||||||||
Other (expense) income: | ||||||||||||||||
Interest (expense) income, net | (32,166) | 27,296 | 3,138 | 298,161 | ||||||||||||
Exchange gain (loss), net | 24,341 | (53,904) | (103,247) | (19,387) | ||||||||||||
Other (expense) income, net | (86,239) | 12,265 | (47,906) | 20,078 | ||||||||||||
Total Other (expense) income, net | (94,064) | (14,343) | (148,015) | 298,852 | ||||||||||||
Loss before income taxes | (10,679,505) | (5,669,638) | (23,356,380) | (10,154,912) | ||||||||||||
Income taxes | (176,990) | (255,485) | (1,093,774) | (1,103,710) | ||||||||||||
Net loss | $ | (10,856,495) | $ | (5,925,123) | $ | (24,450,154) | $ | (11,258,622) | ||||||||
Other comprehensive loss | ||||||||||||||||
Foreign currency translation adjustments | (2,860) | 10,788 | (84,327) | 169,578 | ||||||||||||
Comprehensive loss | $ | (10,859,355) | $ | (5,914,335) | $ | (24,534,481) | $ | (11,089,044) | ||||||||
Net loss per share | ||||||||||||||||
Basic and diluted | $ | (0.19) | $ | (0.11) | $ | (0.43) | $ | (0.21) | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic and diluted | 57,003,488 | 54,347,729 | 56,752,454 | 54,287,624 | ||||||||||||
For more information, kindly contact:
IR Contacts:
Investor Relations
Sherry Zheng
718-213-7386
ir@ispiretechnology.com
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
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