Ispire Technology Inc. (ISPR.US) announced on September 16 its financial results for fiscal year 2025 ended June 30, 2025. Fiscal 2025 revenue reached $127.5 million, compared to $151.9 million in the same period of fiscal 2024. Gross profit was $22.6 million, compared to $29.8 million in the same period of fiscal 2024. Gross margin was 17.8%, compared to 19.6% in the same period of fiscal 2024. Total operating expenses were $60.5 million, compared to $43.7 million in the same period of fiscal 2024; and accounts receivable, net was $47.0 million, down 21% from $59.7 million in fiscal 2024. Net loss was $39.2 million, compared to net loss of $14.8 million in the same period of fiscal 2024.
Ispire Technology Co-CEO Michael Wang commented, "Fiscal 2025 marked a significant milestone in Ispire's strategic transformation. The company continued to advance its business focus shift from the CBD vaporizer industry to the higher-value nicotine sector, making clear strategic choices to replace 'quantity expansion' with 'quality first,' emphasizing the consolidation of long-term partnerships to lay the foundation for sustainable growth. Meanwhile, Ispire's continued investment in breakthrough technologies, including IKE Tech LLC's age verification technology and our proprietary G-Mesh technology, is showing significant progress as these innovations enter the regulatory approval process and are gaining widespread attention from major global tobacco companies."
Michael Wang added: "While we continue to advance our own PMTA application work, we are also awaiting the latest developments in the breakthrough component PMTA application from our strategic joint venture IKE Tech LLC. This application, based on blockchain age verification technology, has the potential to reshape the regulatory landscape for nicotine delivery systems ('ENDS'). We are also actively advancing comprehensive PMTA filing preparation work for flavored ENDS products. These products will be equipped with IKE Tech's integrated age verification technology, with the initial filing strategy focusing on four different flavored products, aimed at filling key gaps in today's market. This series of strategic initiatives enables Ispire to capitalize on the growing global demand for precision vaporization technology while maintaining our commitment to responsible product development."
Ispire Technology CFO Jay Yu commented: "Ispire streamlined operations and comprehensively controlled expenses, with optimization measures expected to save approximately $10.2 million in annual compensation costs. The company's administrative expenses decreased year-over-year, from $31.1 million as of June 30, 2024, to $30.0 million as of June 30, 2025. However, the company's annual net loss expanded by $24.5 million year-over-year. We continue to focus on strengthening accounts receivable collection and improving customer quality. Management firmly believes these prudent measures will establish a solid foundation for Ispire to achieve sustainable long-term growth."
**Financial Results for Fiscal Year Ended June 30, 2025**
For the fiscal year ended June 30, 2025, Ispire achieved revenue of $127.5 million, compared to $151.9 million in fiscal 2024. The revenue decline was primarily due to the company's business strategy adjustment, shifting focus from CBD vaporizers to the nicotine sector. The company believes this strategic transformation will help improve accounts receivable quality and drive more sustainable long-term growth.
For the fiscal year ended June 30, 2025, the company's gross profit was $22.6 million, compared to $29.8 million in the same period of fiscal 2024. Gross margin for fiscal 2025 declined to 17.8%, compared to 19.6% in the previous fiscal year. The decrease in gross profit and gross margin was primarily attributed to the company's strategic shift from CBD vaporizers to focus on the nicotine sector, resulting in reduced revenue for the period.
For the fiscal year ended June 30, 2025, the company's total operating expenses were $60.5 million, compared to $43.7 million in the same period of fiscal 2024. The expense increase was mainly due to increased sales and marketing expenses from expanded market activities, as well as increased bad debt provisions; this increase was partially offset by reduced share-based payment expenses from headcount reductions in North American business streamlining, and decreased research and development investment.
Net loss for the fiscal year ended June 30, 2025, was $39.2 million, or $0.69 net loss per share, compared to net loss of $14.8 million, or $0.27 net loss per share in fiscal 2024.
As of June 30, 2025, Ispire Technology's cash was $24.4 million, with working capital of $400,000.
**Earnings Conference Call**
The company will hold a conference call on Tuesday, September 16, 2025, at 9:10 PM Beijing Time to discuss financial results. Ispire Technology management will host the conference call, followed by a Q&A session.
Date: Tuesday, September 16, 2025 Time: 9:10 PM Beijing Time
Participants are advised to dial in 15 minutes before the conference call starts for registration convenience.
**About Ispire Technology Inc.**
Ispire Technology Inc. engages in the research and development, design, commercialization, sales, marketing, and distribution of branded vaporization products. The company owns or has licensed more than 200 invention/design patents globally from affiliates. Ispire Technology's products are sold under the Aspire brand, primarily through its distribution network globally (except in the United States, China, and Russia). Ispire Technology currently sells its vaporization hardware in the United States, Canada, Germany, and South Africa. Please visit www.ispiretechnology.com and follow us on Facebook, Twitter, Instagram, LinkedIn, Pinterest, and YouTube. Information contained on or accessible through the company's website, any other website, or any social media is not 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, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are intended to be covered by the safe harbor provisions created by such sections. Forward-looking statements are based on certain assumptions and describe the company's future plans, strategies, and expectations, and can generally be identified by the use of forward-looking words such as "believe," "expect," "may," "will," "should," "would," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely," although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact, including statements regarding the company's strategy, prospects, financial condition, operations, costs, plans, and objectives, are forward-looking statements. Important factors that could cause the company's actual results to differ materially from those indicated in forward-looking statements include, but are not limited to, the following risks and uncertainties: whether the company can successfully re-enter the U.S. delivery system market; whether the company's PMTA applications will be approved or denied; whether the company's joint venture with Touch Point Worldwide Inc. and Chemular Inc. ("Joint Venture") can successfully achieve its intended objectives; the Joint Venture's innovation capabilities in electronic cigarette technology or ability to develop age verification technology for vaporization devices; whether the company can collect accounts receivable in a timely manner; the company's business strategy; the company's ability to bring Ispire ONE™ to market; whether Ispire ONE™ can successfully achieve its objectives; whether customers can obtain expected benefits from Ispire ONE™ and its products' market success; safety validation of Ispire ONE™; and the risks and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note Regarding Forward-Looking Statements" in the company's Annual Report on Form 10-K for the year ended June 30, 2023, and other filings the company makes with the Securities and Exchange Commission. You should not rely solely on forward-looking statements as predictions of future events. The forward-looking statements in this press release relate only to events or information as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements after the date of this press release, whether as a result of new information, future events, or otherwise, or to reflect unanticipated events, unless required by law. You should understand that our actual future results may be materially different from what we expect, and therefore this press release should be read in conjunction with comprehensive information.
**Contact Information**
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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