LOS ANGELES — Ispire Technology Inc. reported financial results for the third quarter of fiscal 2025, for the three months ending March 31, 2025.
Fiscal Third Quarter 2025 Financial Results
- Revenue of $26.2 million versus $30.0 million for the third quarter of fiscal 2024.
- Gross profit of $4.8 million compared to $6.1 million for the third quarter of fiscal 2024.
- Gross margin of 18.2% compared to 20.4% for the third quarter of fiscal 2024.
- Total operating expenses of $15.4 million compared to $11.8 million for the third quarter of fiscal 2024.
- Net loss of ($10.9) million, compared to net loss of ($5.9) million in the third quarter of fiscal 2024.
“The progress the Company made during the third fiscal quarter demonstrates that we are delivering on our promises and executing on our strategic priorities to become a leading global provider of precision dosing vape technology,” commented Michael Wang, Co-Chief Executive Officer. “We have made significant strides as we are transitioning our manufacturing to Malaysia, effectively de-risking our production strategy for the current geopolitical climate. During the third fiscal quarter, in an effort to further streamline our operations and increase margins, we moved a number of our daily functions to our Malaysian campus which we anticipate will reduce our operating expenses by $8 million annually. During this restructuring and manufacturing transitional period, we took a measured approach to revenue so that customers are not adversely affected by our internal change-over. Another milestone also was our reduction in accounts receivable which happened for the first time in Ispire’s history. We took the necessary steps this quarter to focus on higher quality customers, including larger MSOs which helped bolster our overall financial position.”
“We also received an interim license for manufacturing nicotine products in Malaysia, and we anticipate the final license to be received over the coming few months. Once received, Ispire will have the first federal nicotine manufacturing license in Malaysia and will further position the Company as a leading international vaping hardware provider. Also, in conjunction with our joint venture partner, IKE Tech, we recently filed a component PMTA with the FDA for IKE’s innovative, blockchain-based point-of-use age-gating technology for ENDS products. If approved, this would mark the first component PMTA in FDA history for age verification technology and shows we are leading the way in preventing youth access. During the third quarter we were also excited to launch SproutTM in collaboration with Raw Garden. This advanced all-in-one cannabis vapor device was designed with purity and safety in mind, underscoring our commitment to consumer wellbeing,” Mr. Wang concluded.
Jim McCormick, Chief Financial Officer of Ispire, said, “Over recent quarters, Ispire has made a concerted effort to decrease our accounts receivable and improve our financial stability. In order to do so, we became laser focused on pursuing larger and higher-quality customers. The success we had in executing this strategy resulted in the Company reducing accounts receivable to $60.4 million vs. $67.7 million for the third fiscal quarter of the prior year. We remain steadfast in our commitment to driving shareholder value as we continue to focus on revenue generation, margin expansion and further reduction in our accounts receivable.”
Financial Results for the Three and Nine-Month Periods Ended March 31, 2025
Ispire reported revenue of $26.2 million for the fiscal third quarter ended March 31, 2025, versus $30.0 million for the prior comparable period, a decrease of 12.7%. Ispire delivered revenue of $107.4 million for the nine-month period ended March 31, 2025, compared to $114.6 million during the same period in fiscal 2024, a decrease of 6.3%. The decline in revenue is largely due to a decrease in sales of vaping products in North America and a decrease in sales to the Asia Pacific region.
For the third quarter of fiscal 2025, gross profit was $4.8 million compared to $6.1 million in the year-ago period. Gross margin decreased to 18.2% compared to 20.4% for the third quarter of fiscal 2024. This was primarily due to changes in product mix with less margin products being sold during the three months ended March 31, 2025.
Gross profit for the nine-month period ended March 31, 2025, was $20.2 million while gross margin was 18.8%, versus $19.2 million and 16.8% respectively for the same period in the prior fiscal year. The growth in gross profit and gross margin for the nine months to March 31, 2025 was primarily due to changes in product mix, with more higher margin products being sold.
Total operating expenses were $15.4 million for the third fiscal quarter of 2025, compared to $11.8 million for the same period last year. For the nine-month period to March 31, 2025, operating expenses were $43.4 million, compared to $29.7 million in the same period in fiscal 2024.
Net loss was $10.9 million or ($0.19) per share for the fiscal third quarter of 2025, versus a net loss of $5.9 million, or ($0.11) per share for the fiscal third quarter of 2024. For the first nine months of fiscal 2025, net loss was approximately $24.5 million or ($0.43) per share, versus a net loss of approximately $11.3 million, or ($0.21) per share in the first nine months of fiscal 2024.
At March 31, 2025, Ispire held cash and cash equivalents of $23.5 million and working capital of ($2.1) million.
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 200 patents received or filed globally. Ispire’s tobacco products are marketed under the Aspire brand 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’s cannabis products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware only in the U.S., and it recently commenced its marketing activities in Canada and Europe.
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