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Ispire Technology Inc. Reports Fiscal Year 2025 Results

On September 16, 2025, Ispire Technology Inc. (NASDAQ: ISPR) announced its financial performance for the fiscal year ending June 30, 2025. The company, known for its innovations in vaping technology and precision dosing, experienced notable changes as it transitioned its focus from cannabis to the nicotine sector.

Financial Highlights

For fiscal 2025, Ispire's revenue totaled $127.5 million, a decrease from $151.9 million reported in fiscal 2024. This decline was primarily attributed to the company's strategic pivot away from cannabis-centered operations towards higher-value nicotine products. Gross profit also dropped to $22.6 million, down from $29.8 million a year prior, resulting in a reduced gross margin of 17.8% compared to 19.6% in the previous year.

Total operating expenses increased significantly to $60.5 million, up from $43.7 million in fiscal 2024. The major contributors to this hike were rising sales and marketing costs as well as increased credit loss expenses. Nevertheless, Ispire has successfully optimized its operations, realizing estimated annual payroll savings of $10.2 million.

Perhaps most sobering is the net loss, which widened to $39.2 million for the year—up from $14.8 million the year before, translating to a loss of $0.69 per share.

Strategic Transformation

Michael Wang, Co-CEO of Ispire, indicated that the fiscal year marked a crucial phase of transformation for the company. By prioritizing quality partnerships over quantitative customer acquisition, Ispire aims to position itself for sustainable long-term growth. The strategic shift emphasizes consistent alliances with major players in the nicotine sector.

As part of this transformation, Ispire is investing in breakthrough technologies, notably through its joint venture with IKE Tech LLC, which is notable for its blockchain-based age verification technology. This innovation is expected to significantly enhance the regulatory landscape for nicotine delivery systems, aligning with the company's goal to establish itself as a responsible provider in the vaping market.

Future Plans

Ispire is also advancing its Premarket Tobacco Product Application (PMTA) activities, awaiting updates on component PMTA submissions that would involve innovative age-verification methods for flavored electronic nicotine delivery systems (ENDS). The market for these products is seen as a significant opportunity, and Ispire is committed to filing comprehensive applications.

The fiscal quarter following June 30, 2025, projected a backlog of $18 million in orders, indicating a positive outlook for Ispire’s nicotine manufacturing operations.

Looking Ahead

Jay Yu, Chief Financial Officer, commented on the steps taken to bolster the company's financial health, particularly focusing on debt collection and enhancing customer relationships. These steps are integral to strengthen Ispire's operational efficiency and revenue generation.

The company plans to host a conference call at 8 AM ET on September 16, 2025, where management will discuss these results further and respond to questions from analysts and stakeholders.

Summary

Ispire Technology Inc.'s financial results reflect both challenges and opportunities as the company pivots to a new strategic focus on the nicotine industry. Despite losses and a decrease in revenue for fiscal 2025, initiatives in technological innovation and market repositioning aim to secure a more sustainable future for the company. With a commitment to responsible product development and alignment with regulatory standards, Ispire appears poised to adapt to the evolving landscape of the vaping industry.

For more information, please visit Ispire Technology's website or follow them on social media.