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

Rhea-AI Summary

Viasat (NASDAQ: VSAT) was selected by the U.S. Government under a sole‑source, multi‑million dollar IDIQ award to develop a next‑generation, high‑assurance, high‑speed Ethernet Data Encryptor (EDE) for classified cloud data centers and transport networks.

Key technical claims include 16× more bandwidth, an estimated 60% power savings, and an advertised encryption density of 3.2 Tbps aggregate per standard rack unit (enough for >100,000 simultaneous 4K streams). The product will build on Viasat’s KG‑142 heritage and use its PSIAM™ reprogrammable architecture for software‑based upgrades.

Positive

• Sole‑source IDIQ award described as multi‑million dollar
• Next‑generation EDE claims 16× more bandwidth versus current generation
• Estimated 60% power savings while maintaining same footprint
• 3.2 Tbps aggregate per rack unit encryption bandwidth density

Negative

• None.

News Market Reaction – VSAT

-6.41%

4 alerts

-6.41% News Effect

+5.7% Peak Tracked

-$329M Valuation Impact

$4.81B Market Cap

1.0x Rel. Volume

On the day this news was published, VSAT declined 6.41%, reflecting a notable negative market reaction. Argus tracked a peak move of +5.7% during that session. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $329M from the company's valuation, bringing the market cap to $4.81B at that time.

Data tracked by StockTitan Argus on the day of publication.

Cost cutting measures instituted in Fiscal 2025 helped cut total operating expenses by approximately 39% to $7.8 Million year-over-year

Net Accounts Receivable Reduced approximately 29% from $62.4 Million to $44.5 Million Year-Over-Year

Cash and Cash Equivalents of $22.7 Million at September 30, 2025  

LOS ANGELES, Nov. 6, 2025 /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 first quarter of fiscal 2026, for the three months ended September 30, 2025.

Fiscal First Quarter 2026 Financial Results

• Revenue of $30.4 million versus $39.3 million for the first quarter of fiscal 2025.
• Gross profit of $5.1 million compared to $7.7 million for the first quarter of fiscal 2025.
• Gross margin of 17.0% compared to 19.5% for the first quarter of fiscal 2025.
• Total operating expenses of $7.8 million compared to $12.9 million for the first quarter of fiscal 2025.
• Net loss of $3.3 million, compared to net loss of $5.6 million in the first quarter of fiscal 2025.

"Our first fiscal quarter 2026 results demonstrate the steps we instituted in fiscal 2025 to strengthen our financial foundation and position Ispire for sustainable, profitable growth are taking effect," commented Michael Wang, Co-Chief Executive Officer of Ispire. "We made a deliberate decision to focus on quality customers over volume, and while revenue of $30.4 million reflects this strategic shift, the operational improvements are substantial. Our total operating expenses decreased significantly to $7.8 million compared to $12.9 million in the same period last year, a reduction of nearly 39% while our net accounts receivable declined approximately 29% from $62.4 million as of September 30, 2024 to $44.5 million as of September 30, 2025. This improvement was a direct result of our focus on aggressive cost controls, disciplined expense management, and higher quality customers, while bringing our non-GAAP EBITDA to $0.6 million for the quarter ended September 30, 2025. We expect this trend to continue through fiscal 2026."

"From an operations standpoint, our IKE Tech joint venture is gaining meaningful traction globally, working with regulators in Europe, Southeast Asia, and the Middle East to adopt age-gating technology as a mandatory standard. We are in deep discussions with numerous large and medium-sized nicotine companies regarding our innovative G-Mesh technology solutions for their next-generation vaping devices, as we aim to secure licensure and/or partnership agreements in the coming months. Lastly, we remain excited about the build-out of our Malaysian manufacturing facility as we look to ramp up production in fiscal 2026," Mr. Wang concluded.

Jay Yu, Chief Financial Officer of Ispire, said, "This quarter represents a significant milestone in our financial transformation. The substantial reduction in operating expenses from $12.9 million to $7.8 million year-over-year demonstrates that our cost optimization initiatives are delivering significant results. We also reduced net accounts receivable to $44.5 million as of Septmber 30, 2025 versus nearly $62.4 million as of September 30, 2024, as we continue to focus on improving working capital and pursuing higher-quality customers. We remain committed to generating shareholder value through sustainable cash flow generation and continued balance sheet strengthening."

Financial Results for the Fiscal First Quarter Ended September 30, 2025

Ispire reported revenue of $30.4 million for the fiscal first quarter ended September 30, 2025, versus $39.3 million for the prior comparable period, a decrease of 22.8%. The decrease in revenue is the combined effect of decreases in product sales in the United States as well as a decrease in vaping product sales across Asia Pacific, Europe and South Africa. 

For the first quarter of fiscal 2026, gross profit was $5.1 million compared to $7.7 million in the year-ago period. Gross margin decreased to 17.0% compared to 19.5% for the first 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 September 30, 2025.

Total operating expenses were $7.8 million for the first fiscal quarter of 2026, compared to $12.9 million for the same period last year.

Net loss was $3.3 million or $0.06 per share for the fiscal first quarter of 2026, versus a net loss of $5.6 million, or $0.10 per share for the fiscal first quarter of 2025.

At September 30, 2025, Ispire held cash and cash equivalents of $22.7 million and working capital of $9.3 million. 

Non-GAAP First Quarter Net Income/loss
		Three Months Ended
		September 30,
		2025				2024
NET LOSS			(3,258,863)				(5,595,016)
Add Credit Loss Expenses			1,764,252				3,102,081
Add Income Tax			486,069				456,753
Add Stock based compensation			938,148				2,007,588
Add Inventory Impairment			423,457				73,692
Add Depreciation and Amortization			253,410				204,807
Add Debt issuance cost amortization			32,312				-
NON-GAAP EBITDA			638,785				249,905

Management's Explanation of Non-GAAP Financial Measures

The Company believes that presenting Non-GAAP financial information provides meaningful supplemental data that assists investors in understanding its operating results. The adjustments to GAAP net loss primarily include non-cash expenses or non-recurring items that management believes are not indicative of ongoing performance. The following non-GAAP financial measures should be considered in addition to, and not as a substitute for, the most directly comparable GAAP financial measures. We believe these non-GAAP financial measures, when used in conjunction with their most directly comparable GAAP financial measures, net income (loss), provide meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods, identify trends affecting our business, and project future performance. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Specifically, the adjustments include:

• Credit loss expenses, a non-cash item, which reflect provisions recorded under the Company's CECL methodology and may vary significantly as the Company develops additional historical experience.
• Income tax expense, which can fluctuate based on jurisdictional mix and timing of taxable income.
• Stock-based compensation, a non-cash expense related to equity awards.
• Inventory impairment, representing non-cash write-downs of certain slow-moving or obsolete inventory.
• Depreciation, which is a non-cash charge related to fixed assets.
• Debt issuance cost amortization, which is a non-cash charge related to the loan payable.

Conference Call

The Company will conduct a conference call at 8:00 am Eastern Time on Thursday, November 6, 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: Thursday, November 6, 2025
• Time: 8:00am ET
• Dial-In Numbers: North America 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=1738889&tp_key=82f919c8ba.

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, November 20, 2025. To listen, please dial 844-512-2921 or +1 412-317-6671. Use the passcode 10203874 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)
		September 30, 2025				June 30, 2025
Assets
Current assets:
Cash		$	22,659,118			$	24,351,765
Restricted cash			50,000				-
Accounts receivable, net			44,522,796				39,664,145
Inventories, net			6,162,118				6,647,970
Prepaid expenses and other current assets			1,733,658				2,244,505
Total current assets			75,127,690				72,908,385
Non-current assets:
Accounts receivable – non current			-				7,367,158
Property, plant and equipment, net			2,731,346				2,952,800
Intangible assets, net			2,340,700				2,232,620
Right-of-use assets – operating leases			4,719,751				5,030,005
Other investment			2,000,000				2,000,000
Equity method investment			9,316,267				9,515,546
Other non-current assets			210,617				210,617
Total non-current assets			21,318,681				29,308,746
Total assets		$	96,446,371			$	102,217,131
Liabilities and stockholders' equity
Current liabilities
Accounts payable		$	4,654,008			$	4,172,476
Accounts payable – related party			47,442,029				52,420,256
Contract liabilities			2,962,299				4,861,250
Accrued liabilities and other payables			7,575,391				8,099,991
Income tax payable			281,856				-
Borrowing – current portion			1,146,766				1,146,766
Operating lease liabilities – current portion			1,750,411				1,838,815
Total current liabilities			65,812,760				72,539,554
Non-current liabilities:
Amount due to a related party			29,000,000				25,000,000
Borrowing – net of current portion			518,669				805,361
Operating lease liabilities – net of current portion			2,883,856				3,267,522
Total non-current liabilities			32,402,525				29,072,883
Total liabilities			98,215,285				101,612,437
Commitments and contingencies
Stockholders' 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 September 30,      2025 and June 30, 2025			5,729				5,719
Treasury stock, at cost			(105,489)				(60,488)
Additional paid-in capital			49,771,739				48,833,601
Accumulated deficit			(51,324,130)				(48,065,267)
Accumulated other comprehensive loss			(116,763)				(108,871)
Total stockholders' (deficit)/equity			(1,768,914)				604,694
Total liabilities and stockholders' equity		$	96,446,371			$	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 September 30,
		2025				2024
Revenue		$	30,350,884			$	39,338,313
Cost of revenue			25,204,112				31,663,935
Gross profit			5,146,772				7,674,378
Operating expenses:
Sales and marketing expenses			1,564,844				2,992,247
Credit loss expenses			1,764,252				3,102,081
General and administrative expenses			4,512,985				6,842,919
Total operating expenses			7,842,081				12,937,247
Loss from operations			(2,695,309)				(5,262,869)
Other (expense) income, net:
Interest income			95,472				86
Interest expense			(112,176)				(11,464)
Exchange gain, net			9,802				117,585
Other (expense) income, net			(70,583)				18,399
Total other (expense) income, net			(77,485)				124,606
Loss before income taxes			(2,772,794)				(5,138,263)
Income taxes			(486,069)				(456,753)
Net loss		$	(3,258,863)			$	(5,595,016)
Other comprehensive loss
Foreign currency translation adjustments			(7,892)				(154,937)
Comprehensive loss			(3,266,755)				(5,749,953)
Net loss per share
Basic and diluted		$	(0.06)			$	(0.10)
Weighted average shares outstanding:
Basic and diluted			57,273,184				56,601,320

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 

 

FAQ

What did Viasat announce on July 30, 2025 about a new EDE contract?

Viasat announced a sole‑source, multi‑million dollar IDIQ award to develop a next‑generation high‑assurance EDE for classified cloud data centers.

How much bandwidth does Viasat claim the next‑generation EDE will provide?

The company states the new EDE will deliver 16× more bandwidth than its current generation and 3.2 Tbps aggregate per rack unit.

What power improvements does Viasat claim for the new EDE (VSAT)?

Viasat estimates the next‑generation EDE will achieve about 60% power savings compared to its current high‑speed EDE products.

What is Viasat’s PSIAM™ architecture and why does it matter for VSAT customers?

PSIAM™ is Viasat’s reprogrammable protection architecture that enables software upgrades and adaptive security without replacing hardware.

What performance example did Viasat give for the new EDE’s capacity?

Viasat said the EDE is designed to encrypt/decrypt processing equivalent to over 100,000 simultaneous 4K video streams per minute.