Ispire Technology Inc. Reports Financial Results for the Fiscal Year 2025

Rhea-AI Summary

Ispire Technology Inc. (NASDAQ: ISPR) reported challenging financial results for fiscal year 2025, with revenue declining to $127.5 million from $151.9 million in FY2024. The company's strategic shift from cannabis to nicotine sectors led to decreased gross profit of $22.6 million and widened net loss to $39.2 million.

Key developments include progress in PMTA activities through IKE Tech LLC joint venture, featuring blockchain-based age verification technology. The company reported $18M in backlog orders entering Q1 2026 and implemented cost-cutting measures resulting in $10.2 million in annual payroll savings. As of June 30, 2025, Ispire maintained $24.4 million in cash and cash equivalents with working capital of $0.4 million.

Positive

• Strategic shift towards higher-value nicotine sector from cannabis
• $18M in backlog orders entering Q1 2026
• $10.2M annual payroll savings from optimization measures
• Progress in PMTA submissions with innovative age-verification technology
• 21% reduction in accounts receivable from $59.7M to $47.0M

Negative

• Revenue declined 16% to $127.5M from $151.9M in FY2024
• Net loss widened to $39.2M from $14.8M year-over-year
• Gross margin decreased to 17.8% from 19.6%
• Operating expenses increased 38.4% to $60.5M from $43.7M
• Working capital decreased significantly to $0.4M

Insights

Financial Analyst

Ispire reports concerning FY2025 results with revenue down 16%, widening losses, and strategic pivot from cannabis to nicotine facing execution challenges.

The financial performance of Ispire Technology shows significant deterioration across all key metrics. Revenue dropped 16% to $127.5 million, while gross profit fell 24% to $22.6 million. More concerning is the gross margin compression to 17.8% from 19.6%, indicating potential pricing pressure or inefficiencies during this transition period.

The company's strategic pivot away from cannabis toward nicotine appears to be creating substantial near-term pain without clear evidence of imminent recovery. Operating expenses ballooned 38% to $60.5 million, contributing to a dramatically wider net loss of $39.2 million—more than doubling last year's $14.8 million loss.

While management highlighted cost-cutting measures with an estimated $10.2 million in annual payroll savings, these haven't yet materialized in the bottom line. The 21% reduction in accounts receivable (from $59.7 million to $47.0 million) is one positive sign that the company is focusing on customer quality over quantity.

The company's liquidity position is concerning, with just $24.4 million in cash and a razor-thin working capital of $0.4 million. This leaves minimal financial flexibility as they pursue regulatory approvals for new technologies like IKE Tech and G-Mesh. The $18 million backlog mentioned for Q1 2026 provides some revenue visibility but falls far short of offsetting the overall negative trajectory.

Investors should closely monitor whether Ispire's strategic gamble on transitioning to the nicotine sector pays off, as current results show a company in a precarious financial position with diminishing resources to fund its ambitious regulatory and product development roadmap.

LOS ANGELES, Sept. 16, 2025 /PRNewswire/ -- Ispire Technology Inc. (NASDAQ: ISPR) ("Ispire," the "Company," "we," "us," or "our"), an innovator in vaping technology and precision dosing, today reported results for the fiscal year 2025, which ended on June 30, 2025.

Fiscal Year 2025 Financial Results

• Revenue decreased to $127.5 million, compared to $151.9 million in the 2024 fiscal year.
• Gross profit declined to $22.6 million, as compared to $29.8 million in the 2024 fiscal year.
• Gross margin decreased to 17.8%, as compared to 19.6% in the 2024 fiscal year.
• Total operating expenses increased to $60.5 million, compared to $43.7 million in the 2024 fiscal year.
• Accounts receivable, net decreased by 21% from $59.7 million in fiscal 2024 to $47.0 million in fiscal 2025.
• Net loss of $39.2 million, compared to net loss of $14.8 million in the 2024 fiscal year.

Michael Wang, Co-Chief Executive Officer of Ispire, commented, "Fiscal year 2025 marked a pivotal period in Ispire's strategic transformation, as we continued to shift away from the cannabis industry toward the higher-value nicotine sector. We made the intentional strategic decision to focus on quality customers versus quantity, prioritizing long-term partnerships as we repositioned our business for sustainable growth. Our investments in breakthrough technologies including IKE Tech LLC and our G-Mesh technology, are gaining significant traction with major tobacco companies as these innovations move through the regulatory approval process."

"We continued advancing our PMTA activities while awaiting updates on the groundbreaking component PMTA submission filed by our strategic joint venture, IKE Tech LLC, which represents blockchain-based age verification technology that could fundamentally transform the regulatory landscape for nicotine delivery systems. We are also progressing preparations for comprehensive PMTA submissions for flavored ENDS products. These products will feature integrated IKE Tech age-verification technology, with our initial filing strategy focusing on four distinct flavored offerings, addressing a critical gap in today's marketplace. Lastly, our international nicotine ODM business represents a key growth opportunity that is now gaining significant momentum after a slower than expected start. Coming into fiscal Q1 2026, we were at $18M in backlog orders. These strategic initiatives have positioned Ispire to capitalize on the growing global demand for precision vaping technology, while maintaining our commitment to responsible product development," Mr. Wang concluded.

Jay Yu, Chief Financial Officer of Ispire, added, "Ispire has focused on streamlining our operations and cut expenses across the business, with optimization measures reducing annual payroll by a total estimated annual savings of $10.2 million. General and administrative expenses declined year over year, from $31.1 million for the year ended June 30, 2024, to $30.0 million for the year ended June 30, 2025, while net loss was widened by $24.5 million year-over-year. We remain focused on strengthening collections and enhancing customer quality. Management believes these disciplined actions position Ispire for sustainable, long-term growth."

Financial Results for the Fiscal Year Ended June 30, 2025

For the fiscal year ended June 30, 2025, Ispire reported revenue of $127.5 million compared to $151.9 million during fiscal 2024. The decrease in revenue was primarily due to realignment of our business towards nicotine, while moving away from cannabis customers, which the Company believes will deliver improved accounts receivable and more sustainable long-term growth.

Gross profit for the fiscal year ended June 30, 2025, was $22.6 million compared to $29.8 million for the same period in fiscal year 2024. Over fiscal 2025, gross margin decreased to 17.8%, from 19.6%. The decrease in gross profit and gross margin was primarily due to the strategic repositioning away from cannabis which led to the revenue reduction for this period.

Total operating expenses for the fiscal year ended June 30, 2025 were $60.5 million as compared to $43.7 million in the same period in fiscal year 2024. This increase was largely due to a rise in sales and marketing expenses with a ramp up of marketing activities, as well as an increase in expected credit loss on accounts receivables, offset by a decrease in stock based compensation expenses due to cutting headcount in streamlining North American operations and a reduction in R&D expenses.

For the fiscal year ended June 30, 2025, net loss was $39.2 million or $0.69 per share, compared to a net loss of $14.8 million, or $0.27 per share for fiscal year 2024.

As of June 30, 2025, Ispire had $24.4 million in cash and cash equivalents and working capital of $0.4 million.

Conference Call

The Company will conduct a conference call at 8:00 am Eastern Time on Tuesday, September 16, 2025, to discuss the results. Ispire management will host the conference call, followed by a question-and-answer period.

Please call the conference call dial-in 5-10 minutes prior to the start time and ask for the "Ispire Technology Call." An operator will register your name and organization.

• Date: Tuesday, September 16, 2025
• Time: 8:00 am ET
• Dial-In Numbers: North America 877-451-6152 or International +1 201-389-0879

This conference call will be broadcast live on the Internet and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1730055&tp_key=20c725b587.

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 Tuesday, September 30, 2025. To listen, please dial 844-512-2921 or +1 412-317-6671. Use the passcode 13755309 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 U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company's cannabis products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware mainly in the U.S., and it recently commenced its marketing activities in Canada and Europe. For more information, visit www.ispiretechnology.com or follow Ispire on Instagram, LinkedIn, Twitter and YouTube. Any information contained on, or that can be accessed through, the Company's website, any other website or any social media, is not a part of this press release.

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, 2024 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. CONSOLIDATED BALANCE SHEETS (In $USD, except share and per share data)
‌
		June 30,
		2025				2024
Assets
Current assets:
Cash		$	24,351,765			$	35,071,294
Accounts receivable, net			39,664,145				59,734,765
Inventories, net			6,647,970				6,365,394
Prepaid expenses and other current assets			2,244,505				1,400,152
Total current assets			72,908,385				102,571,605
Other assets:
Accounts receivable – non current			7,367,158				-
Property, plant and equipment, net			2,952,800				2,582,457
Intangible assets, net			2,232,620				1,375,666
Right-of-use assets – operating leases			5,030,005				3,579,140
Other investment			2,000,000				2,000,000
Equity method investment			9,515,546				10,248,048
Other non-current assets			210,617				284,050
Total other assets			29,308,746				20,069,361
Total assets		$	102,217,131			$	122,640,966
Liabilities and stockholders' equity
Current liabilities
Accounts payable		$	4,172,476			$	3,779,723
Accounts payable – related party			52,420,256				67,046,472
Contract liabilities			4,861,250				2,218,166
Accrued liabilities and other payables			8,099,991				11,738,339
Borrowing – current portion			1,146,766				-
Operating lease liabilities – current portion			1,838,815				1,207,832
Total current liabilities			72,539,554				85,990,532
‌
Other liabilities:
Amount due to a related party			25,000,000				-
Borrowing – net of current portion			805,361				-
Operating lease liabilities – net of current portion			3,267,522				2,194,094
Total liabilities			101,612,437				88,184,626
‌
Commitments and contingencies
‌
Stockholders' equity:
Common stock, par value $0.0001 per share; 140,000,000 shares authorized;   57,193,734 and 56,470,636 shares issued and outstanding as of June 30, 2025   and June 30, 2024			5,719				5,647
Treasury stock, at cost			(60,488)				-
Additional paid-in capital			48,833,601				43,217,391
Accumulated deficit			(48,065,267)				(8,825,041)
Accumulated other comprehensive (loss)/income			(108,871)				58,343
Total stockholders' equity			604,694				34,456,340
Total liabilities and stockholders' equity		$	102,217,131			$	122,640,966

 

ISPIRE TECHNOLOGY INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In $USD, except share and per share data)
‌
		Years ended June 30,
		2025				2024
		‌
Revenue		$	127,494,304			$	151,908,691
Cost of revenue			104,844,633				122,126,245
Gross profit			22,649,671				29,782,446
Operating expenses:
Sales and marketing expenses			8,439,384				6,608,724
Credit loss expenses			22,034,812				6,015,752
General and administrative expenses			30,025,334				31,052,109
Total operating expenses			60,499,530				43,676,585
Loss from operations			(37,849,859)				(13,894,139)
Other income (expense):
Interest income, net			86,996				365,251
Exchange loss, net			(86,570)				(70,293)
Other (expense) income, net			(187,089)				113,405
Total other (expense) income, net			(186,663)				408,363
Loss before income taxes			(38,036,522)				(13,485,776)
Income taxes – current			(1,203,704)				(1,282,046)
Net loss		$	(39,240,226)			$	(14,767,822)
Other comprehensive (loss) income
Foreign currency translation adjustments			(167,214)				222,111
Comprehensive loss			(39,407,440)				(14,545,711)
Net loss per share
Basic and diluted		$	(0.69)			$	(0.27)
Weighted average shares outstanding:
Basic and diluted			56,853,552				54,812,900

 

For more information, kindly contact:

IR Contact:
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 Technology's (ISPR) key financial results for fiscal year 2025?

Ispire reported revenue of $127.5M (down from $151.9M), gross profit of $22.6M, and a net loss of $39.2M. The company ended with $24.4M in cash and $0.4M in working capital.

Why did Ispire Technology's revenue decline in fiscal year 2025?

The revenue decline was primarily due to Ispire's strategic realignment away from cannabis towards nicotine customers, which the company believes will lead to improved accounts receivable and more sustainable long-term growth.

What cost-cutting measures did Ispire implement in FY 2025?

Ispire implemented optimization measures that reduced annual payroll by $10.2 million and decreased general and administrative expenses from $31.1M to $30.0M year-over-year.

What is Ispire's strategy for future growth in the nicotine sector?

Ispire is advancing PMTA activities through IKE Tech LLC, developing blockchain-based age verification technology, preparing PMTA submissions for flavored ENDS products, and expanding its international nicotine ODM business.

How much did Ispire's operating expenses increase in FY 2025?

Operating expenses increased to $60.5 million from $43.7 million in FY2024, primarily due to increased marketing activities and higher expected credit loss on accounts receivables.