Ispire Technology Inc. Reports First Quarter Fiscal Year 2027 Financial Results
Sequential margin recovery accompanied a wider year-over-year net loss and lower cash and working capital.
Sentiment and the balance of points
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Rhea-AI Summary
Ispire Technology (Nasdaq: ISPR) reported fiscal first-quarter revenue of $27.5 million for the three months ended September 30, 2026. Revenue fell 9.3% year over year, primarily from lower European sales amid tighter vaping regulation, but rose 3.2% sequentially. Gross margin was 16.2%, versus 17.0% a year earlier and 6.3% in the prior quarter.
Net loss widened to $6.4 million, or $0.11 per share, from $3.3 million, or $0.06 per share, a year earlier, but narrowed from $13.8 million sequentially. Credit loss expense was $4.8 million. Adjusted EBITDA was positive $136,000, versus $0.6 million a year earlier and a $2.3 million loss sequentially. Cash ended at $15.6 million, down $3.7 million from June 30; working capital declined to $0.4 million. Ispire expects cash flow to improve as manufacturing and commercial programs scale, while continuing investment in Malaysia during fiscal 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointGross margin recovered to 16.2% from 6.3% sequentially, but remained below 17.0% a year earlier.
- Moderate pointAdjusted EBITDA reached $136,000, versus $0.6 million a year earlier and a $2.3 million loss sequentially.
- Minor pointSales and marketing expenses fell to $1,000,123 from $1,564,844 a year earlier.
- Minor pointNet receivables declined approximately 80% from fiscal 2025 peaks, reflecting collections, credit-loss allowances and tighter credit terms.
- Minor pointBorrowing repayments totaled $319,003 during the quarter.
2 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Malaysia production expansion remains planned, with manufacturing investment continuing during fiscal 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.Cash flow is expected to improve as manufacturing and commercial programs scale; cash-flow-positive performance remains a goal.
Negative
- Moderate pointRevenue fell 9.3% year over year to $27.5 million, despite 3.2% sequential growth, amid lower European sales.
- Moderate pointNet loss reached $6.4 million, or $0.11 per share, versus $3.3 million/$0.06 annually and $13.8 million sequentially.
- Moderate pointCredit loss expense rose to $4,752,558 from $1,764,252 a year earlier. 5.3% of market cap
- Moderate pointOperating cash use increased to $1,618,279 from $1,183,607 a year earlier.
- Moderate pointCash declined $3.7 million to $15.6 million from June 30, 2026.
- Moderate pointWorking capital declined $0.4 million to $0.4 million from June 30, 2026.
- Moderate pointStockholders' deficit widened to $34,847,061 from $29,246,207 at June 30, 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Southeast Asian manufacturing relationship remains unsecured; Ispire believes it is close to securing a regional brand.
3 minor points
- Minor pointGross profit declined to $4,454,786 from $5,146,772 a year earlier.
- Minor pointGeneral and administrative expenses increased to $4,851,122 from $4,512,985 a year earlier.
- Minor pointJoint venture investment payable payments consumed $1,552,333 during the quarter.
News Explained
At September 30, 2026, the balance sheet reported $52,000,000 due to a related party alongside $15,636,010 in cash.
For the quarter ended
During the quarter, operating activities used
Key Figures
- Revenue
- $27.5 million
- Q1 FY2027; down 9.3% year over year and up 3.2% sequentially
- Gross margin
- 16.2%
- Q1 FY2027; versus 17.0% a year earlier and 6.3% in the prior quarter
- Net loss
- $6.4 million
- Q1 FY2027; versus $3.3 million a year earlier and $13.8 million in the prior quarter
- Adjusted EBITDA
- $136,000
- Q1 FY2027; positive, versus a $2.3 million loss in the prior quarter
- Credit loss expense
- $4.8 million
- Q1 FY2027; an increase of $3.0 million from the year-ago period
- Cash
- $15.6 million
- As of September 30, 2026
- Working capital
- $0.4 million
- As of September 30, 2026
Previous Earnings Reports
-
Q4 FY2026 revenue was $26.7 million and gross margin was 6.3%, amid inventory impairments.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
adjusted ebitda financial
non-gaap financial
odm technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
LOS ANGELES, CA / ACCESS Newswire / November 9, 2026 / 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 fiscal quarter ended September 30, 2026.
Steven Przybyla, President of Ispire, commented, "Ispire is building the foundation for its next phase of growth, with what we see as a stronger manufacturing platform, expanding customer opportunities and multiple paths to participate in high-growth markets. Our operations in Malaysia, growing Vapor OEM and ODM pipeline, G-Mesh technology, our
"During the first quarter of fiscal 2027, we continued to make measurable progress in strengthening our operating performance. Revenue increased
"As we move through fiscal 2027, our focus is on translating these opportunities into commercial execution and sustained financial improvement. Malaysia is in our view a key near-term catalyst as we expand production capabilities, pursue new OEM and ODM relationships and capitalize on growing customer interest in supply-chain diversification. We believe that the Company is close to securing a significant OEM and ODM relationship with a well-known regional brand in Southeast Asia, and hope to update investors on this deal in the coming months. In parallel, we are advancing our nicotine pouch strategy and IKE Tech is further its commercialization efforts, including the planned U.S. pilot of its IKE 2.0 age-gating platform with Charlie's Holdings. We believe the combination of these initiatives creates meaningful opportunities to expand our market presence and improve our financial performance. Our priorities are to execute with discipline, strengthen our balance sheet and convert our investments into lasting value for shareholders."
Summary Financial Results for the Three Months Ended September 30, 2026
Revenue was
Gross profit was
Total operating expenses were
Net loss was
Cash: At September 30, 2026, the Company held cash of
Adjusted EBITDA was
Outlook
The Company continues to focus on achieving cash-flow-positive performance, while making investments in its Malaysia manufacturing facility during fiscal year 2027. Management expects cash flow to improve as the benefits of the Company's new manufacturing and commercial programs begin to scale.
Webcast and Conference Call
The Company will conduct a conference call at 8 a.m. ET on Monday, November 9, 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: Monday, November 9, 2026
- Time: 8 a.m. ET
- Dial-In Numbers: United States and Canada 1-800-715-9871 or International Toll 1-646-307-1963
- Conference ID / Passcode: 8630253
This conference call will be webcast live and can be accessed by all interested parties at: https://webcast.ir-events.com/x4ABk01m0wM.
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 Monday, November 23, 2026. To listen, please dial 1-844-512-2921 or +1-412-317-6671. Use the passcode 8630253 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.
Non-GAAP Financial Measures
In evaluating its business, the Company uses or may use certain non-GAAP measures as supplemental measures to review and assess its operating and financial performance. These measures are commonly used in the manufacturing industry to provide stockholders and potential investors with additional information that excludes unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of the Company's ongoing operating results. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools when assessing the Company's operating and financial performances, and investors should not consider them in isolation, or as a substitute for any consolidated statement of operations data prepared in accordance with U.S. GAAP. The reconciliations to EBITDA and Adjusted EBITDA from relevant GAAP metrics are included at the end 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, including the planned expansion of Malaysian manufacturing and entry into the nicotine pouch market; the ability of the Company to market Ispire ONE™ and G-Mesh; G-Mesh and Ispire ONE™'s success in meeting its goals; the ability of its customers to derive the anticipated benefits from G-Mesh or Ispire ONE™ and the success of its products on the markets; Ispire ONE™ proving to be safe; the timing of the Company's ability to achieve positive cash flow, if at all; whether the Company's joint venture with Jincheng Pharma may be successful in achieving its goals as currently contemplated, with different terms, or at all; 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, 2026 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.
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)
| September 30, 2026 | June 30, 2026 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 15,636,010 | $ | 19,328,650 | ||||
Restricted cash | 50,228 | 50,228 | ||||||
Accounts receivable, net | 13,487,870 | 19,819,480 | ||||||
Inventories, net | 2,592,583 | 3,126,252 | ||||||
Prepaid expenses and other current assets | 1,840,008 | 2,519,129 | ||||||
Due from a related party | 639,784 | 590,911 | ||||||
Total current assets | 34,246,483 | 45,434,650 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 2,231,365 | 2,423,509 | ||||||
Intangible assets, net | 2,740,200 | 2,572,060 | ||||||
Right-of-use assets - operating leases | 3,150,578 | 3,028,385 | ||||||
Other investment | 2,000,000 | 2,000,000 | ||||||
Equity method investment | 8,350,647 | 8,611,823 | ||||||
Other non-current assets | - | 122,431 | ||||||
Deferred tax assets | 104,609 | 85,713 | ||||||
Total non-current assets | 18,577,399 | 18,843,921 | ||||||
Total assets | $ | 52,823,882 | $ | 64,278,571 | ||||
Liabilities and stockholders' deficit | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,611,444 | $ | 5,651,330 | ||||
Accounts payable - related party | 23,049,913 | 29,312,960 | ||||||
Contract liabilities | 2,188,615 | 1,886,012 | ||||||
Contract liabilities - related party | 48,154 | - | ||||||
Accrued liabilities and other payables | 3,874,084 | 5,532,103 | ||||||
Borrowing - current portion | 518,670 | 805,361 | ||||||
Operating lease liabilities - current portion | 1,534,514 | 1,443,763 | ||||||
Total current liabilities | 33,825,394 | 44,631,529 | ||||||
Non-current liabilities: | ||||||||
Amount due to a related party | 52,000,000 | 47,000,000 | ||||||
Operating lease liabilities - net of current portion | 1,845,549 | 1,893,249 | ||||||
Total non-current liabilities | 53,845,549 | 48,893,249 | ||||||
Total liabilities | 87,670,943 | 93,524,778 | ||||||
Commitments and contingencies | ||||||||
Stockholders' deficit : | ||||||||
Common stock, par value | 5,777 | 5,760 | ||||||
Treasury stock, at cost | (60,488 | ) | (60,488 | ) | ||||
Additional paid-in capital | 53,094,072 | 52,276,766 | ||||||
Accumulated deficit | (87,707,288 | ) | (81,269,311 | ) | ||||
Accumulated other comprehensive loss | (179,134 | ) | (198,934 | ) | ||||
Total stockholders' deficit | (34,847,061 | ) | (29,246,207 | ) | ||||
Total liabilities and stockholders' deficit | $ | 52,823,882 | $ | 64,278,571 | ||||
ISPIRE TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(In $USD, except share and per share data)
| Three Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
Revenue | $ | 27,542,546 | $ | 30,350,884 | ||||
Cost of revenue | 23,087,760 | 25,204,112 | ||||||
Gross profit | 4,454,786 | 5,146,772 | ||||||
Operating expenses: | ||||||||
Sales and marketing expenses | 1,000,123 | 1,564,844 | ||||||
Credit loss expenses | 4,752,558 | 1,764,252 | ||||||
General and administrative expenses | 4,851,122 | 4,512,985 | ||||||
Total operating expenses | 10,603,803 | 7,842,081 | ||||||
Loss from operations | (6,149,017 | ) | (2,695,309 | ) | ||||
Other income (expense): | ||||||||
Interest income | 84,150 | 95,472 | ||||||
Interest expense | (62,423 | ) | (112,176 | ) | ||||
Exchange gain, net | 71,969 | 9,802 | ||||||
Other expense, net | (46,019 | ) | (70,583 | ) | ||||
Total other income (expense) | 47,677 | (77,485 | ) | |||||
Loss before income taxes | (6,101,340 | ) | (2,772,794 | ) | ||||
Income taxes | (336,637 | ) | (486,069 | ) | ||||
Net loss | $ | (6,437,977 | ) | $ | (3,258,863 | ) | ||
Other comprehensive income (loss) | ||||||||
Foreign currency translation adjustments | 19,800 | (7,892 | ) | |||||
Comprehensive loss | (6,418,177 | ) | (3,266,755 | ) | ||||
Net loss per share | ||||||||
Basic and diluted | $ | (0.11 | ) | $ | (0.06 | ) | ||
Weighted average shares outstanding: | ||||||||
Basic and diluted | 57,670,739 | 57,273,184 | ||||||
ISPIRE TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In $USD, except share and per share data)
| Three Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
Net loss | $ | (6,437,977 | ) | $ | (3,258,863 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 216,811 | 253,410 | ||||||
Credit loss expenses | 4,752,558 | 1,764,252 | ||||||
Right-of-use assets amortization | 279,380 | 307,740 | ||||||
Stock-based compensation expenses | 817,323 | 938,148 | ||||||
Inventory impairment | 418,500 | 423,457 | ||||||
Loss from equity method investment | 262,888 | 199,279 | ||||||
Debt issuance cost amortization | 32,312 | 32,312 | ||||||
Deferred income taxes | (18,895 | ) | - | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1,579,052 | 744,255 | ||||||
Inventories | 115,169 | 62,395 | ||||||
Prepaid expenses and other current assets | 493,934 | 509,535 | ||||||
Accounts payable and accounts payable - related party | (4,302,933 | ) | (496,695 | ) | ||||
Contract liabilities | 302,603 | (1,898,951 | ) | |||||
Accrued liabilities and other payables | (125,779 | ) | (576,181 | ) | ||||
Operating lease liabilities | (358,522 | ) | (469,556 | ) | ||||
Prepaid income tax/income tax payable | 356,016 | 281,856 | ||||||
Advances from a related party | 48,154 | - | ||||||
Advances to a related party | (48,873 | ) | - | |||||
Net cash used in operating activities | (1,618,279 | ) | (1,183,607 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (2,206 | ) | (7,502 | ) | ||||
Acquisition of intangible assets | (199,107 | ) | (132,534 | ) | ||||
Investment in joint venture | (1,712 | ) | - | |||||
Payments of Joint venture investment payable | (1,552,333 | ) | - | |||||
Net cash used in investing activities | (1,755,358 | ) | (140,036 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of borrowing | (319,003 | ) | (319,004 | ) | ||||
Net cash used in financing activities | (319,003 | ) | (319,004 | ) | ||||
Net decrease in cash and restricted cash | (3,692,640 | ) | (1,642,647 | ) | ||||
Cash and restricted cash - beginning of period | 19,378,878 | 24,351,765 | ||||||
Cash and restricted cash - end of period | $ | 15,686,238 | $ | 22,709,118 | ||||
Reconciliation of cash and restricted cash | ||||||||
Cash | $ | 15,636,010 | $ | 22,659,118 | ||||
Restricted cash | 50,228 | 50,000 | ||||||
Total cash and restricted cash | 15,686,238 | 22,709,118 | ||||||
Supplemental non-cash investing and financing activities | ||||||||
Leased assets obtained in exchange for operating lease liabilities | $ | 480,182 | $ | - | ||||
Reclassification of accounts receivable - non-current to accounts receivable | $ | - | $ | 6,934,364 | ||||
Reclassification of accounts payable - related party to amount due to a related party | $ | 5,000,000 | $ | 4,000,000 | ||||
Unpaid common stock repurchase | $ | - | $ | 45,001 | ||||
Supplemental disclosures | ||||||||
Cash paid for income taxes | $ | - | $ | - | ||||
Cash paid for interest | $ | 62,423 | $ | 112,176 | ||||
Non-GAAP Financial Measures:
The following tables display certain non-GAAP financial measures we believe are helpful in assessing our performance and interpreting our financial results. We believe these non-GAAP financial measures are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. We may use non-GAAP financial metrics in certain management compensation plans, debt covenants, internal budgetary decision making and other resource allocation decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measurement. We define Adjusted EBITDA as net loss excluding income tax expense, depreciation and amortization, debt issuance cost amortization, stock-based compensation, credit loss expense, and inventory impairment.
ISPIRE TECHNOLOGY INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (NON-GAAP)
(Unaudited)
| Three Months Ended | ||||||||
| September 30, 2026 | June 30, 2026 | |||||||
Net loss | $ | (6,437,977 | ) | $ | (13,819,287 | ) | ||
Add: | ||||||||
Credit loss expense | 4,752,558 | 9,177,876 | ||||||
Income tax expense | 336,637 | 377,320 | ||||||
Stock-based compensation | 817,323 | 735,740 | ||||||
Prepaid inventory impairment | - | 539,497 | ||||||
Inventory impairment | 418,500 | 431,902 | ||||||
Depreciation and amortization | 216,811 | 253,101 | ||||||
Amortization of debt issuance costs | 32,312 | 32,313 | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 136,164 | $ | (2,271,538 | ) | |||
ISPIRE TECHNOLOGY INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (NON-GAAP)
(Unaudited)
| Three Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
Net loss | $ | (6,437,977 | ) | $ | (3,258,863 | ) | ||
Add: | ||||||||
Credit loss expense | 4,752,558 | 1,764,252 | ||||||
Income tax expense | 336,637 | 486,069 | ||||||
Stock-based compensation | 817,323 | 938,148 | ||||||
Inventory impairment | 418,500 | 423,457 | ||||||
Depreciation and amortization | 216,811 | 253,410 | ||||||
Amortization of debt issuance costs | 32,312 | 32,312 | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 136,164 | $ | 638,785 | ||||
SOURCE: Ispire Technology Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Ispire's fiscal first-quarter 2027 revenue and earnings?
Ispire reported $27.5 million in revenue and a net loss of $6.4 million, or $0.11 per share, for the quarter ended September 30, 2026. Revenue decreased 9.3% year over year but increased 3.2% sequentially.
Why did Ispire's gross margin recover sequentially in fiscal first-quarter 2027?
Gross margin recovered to 16.2% from 6.3% following one-time inventory impairments and returns charges recorded in fiscal fourth-quarter 2026. The recovered margin remained below the 17.0% recorded a year earlier.
Why did Ispire's net accounts receivable decline from fiscal 2025 peaks?
The approximately 80% reduction reflected collections, credit-loss allowances recorded against outstanding balances, and improvements in customer credit standards and payment terms. The reduction therefore did not consist solely of cash collections.