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
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