Ispire Technology Inc. Reports Financial Results for Fiscal Third Quarter 2025

Ispire Technology Inc., an innovator in vaping technology and precision dosing, has released its financial results for the third quarter of fiscal 2025, ending March 31, 2025. The company has reported a decrease in revenue and gross profit compared to the same period last year, alongside an increase in operating expenses and net loss.

Financial Highlights

For the third quarter of fiscal 2025, Ispire reported:

• Revenue of $26.2 million, down from $30.0 million in the third quarter of fiscal 2024.
• Gross profit of $4.8 million, compared to $6.1 million in the same period last year.
• Gross margin of 18.2%, a decrease from 20.4% in the third quarter of fiscal 2024.
• Total operating expenses of $15.4 million, up from $11.8 million in the third quarter of fiscal 2024.
• Net loss of ($10.9) million, compared to a net loss of ($5.9) million in the third quarter of fiscal 2024.

Business and Operational Highlights

During the third quarter, Ispire made significant strides in its operational strategy:

• Transitioned manufacturing to Malaysia, aiming to reduce operating expenses by $8 million annually.
• Reduced accounts receivable from $67.7 million to $60.4 million, improving the company's financial position.
• Launched SproutTM, an advanced all-in-one cannabis vapor device, in collaboration with Raw Garden.

Strategic Initiatives and Corporate Developments

Key strategic initiatives and corporate developments include:

• Filed a PMTA with the FDA for a blockchain-based point-of-use age-gating technology for ENDS products in collaboration with IKE Tech.
• Received an interim license for manufacturing nicotine products in Malaysia, with the final license expected in the coming months.

Management's Perspective

Michael Wang, Co-Chief Executive Officer of Ispire, commented on the company's progress, highlighting the transition to Malaysian manufacturing and the focus on higher quality customers to bolster financial stability. Jim McCormick, Chief Financial Officer, emphasized the company's efforts to reduce accounts receivable and improve financial stability.

Future Outlook

The company anticipates receiving the final nicotine manufacturing license in Malaysia soon, which will position Ispire as a leading international vaping hardware provider. The company remains focused on revenue generation, margin expansion, and further reduction in accounts receivable.

SEC Filing: Ispire Technology Inc. [ ISPR ] - 8-K - May. 12, 2025