Q4 Revenue Increased 33% Year-over-year and 43% Sequentially to
Full Year Operating Cash Burn Improves by
Multiple Possible Revenue Catalysts Coming Online as Malaysia Manufacturing and Vapor ODM Scale Up; Joint Venture Proprietary Age-Gating and G-Mesh Technologies Advance Toward Commercialization
"These initiatives span different stages of development and create a diversified set of possible growth drivers. In the near term, we believe our
"We believe fiscal 2027 will be a transformational year of fundamental growth and change for Ispire. We expect it will be the first full year of vapor and nicotine pouch production at our company-owned factories in
Multiple Growth Catalysts, Each Backed by a Massive Addressable Market
| Catalyst | Timeline | Opportunity |
| Malaysia Manufacturing | Now | |
| Vapor ODM | Mid-sized brands in 2026; large brand partnerships in 2027 | |
| Age-Gating (IKE Tech) | 2027+ | |
| G-Mesh Technology | 2027+ | $24B+ legal global vape market; licensing discussions with big tobacco underway |
Summary Financial Results for the Three Months Ended
Revenue was
Gross profit was
Total operating expenses were
Net loss was
Adjusted EBITDA loss was
Cash: At
Summary Financial Results for the Fiscal Year Ended
Revenue was
Gross profit was
Total operating expenses were
Net loss was
Adjusted EBITDA loss was
Net cash used in operating activities was
Outlook
The Company previously expected to achieve cash-flow-positive performance in the second half of calendar year 2026. While operating cash flow has improved substantially year over year, the Company has made investments related to its
Conference Call
The Company will conduct a conference call at
To listen to the conference call, please dial in using the information below. When prompted upon dialing-in, please ask for the "Ispire Technology Call."
- Date:
Wednesday, September 16, 2026 - Time:
8 am ET - Dial-In Numbers:
United States 1-877-451-6152 or International 1-201-389-0879
This conference call will be webcast live and can be accessed by all interested parties at:
Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.
A playback will be available until
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 400 patents worldwide. Ispire's branded e-cigarette products are marketed under the Aspire 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 also engages in original design manufacture (ODM) relationships with e-cigarette brands and retailers worldwide. The Company's cannabis products are marketed under the Ispire brand name primarily on an ODM basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware in the US, Europe and South Africa and it recently commenced marketing activities and customer engagement in Canada and Latin America. For more information visit www.ispiretechnology.com or follow Inspire on Instagram, LinkedIn, Twitter and YouTube.
Non-GAAP Financial Measures
In evaluating its business, the Company uses or may use certain non-GAAP measures as supplemental measures to review and assess its operating and financial performance. These measures are commonly used in the manufacturing industry to provide stockholders and potential investors with additional information that excludes unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of the Company's ongoing operating results. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools when assessing the Company's operating and financial performances, and investors should not consider them in isolation, or as a substitute for any consolidated statement of operations data prepared in accordance with U.S. GAAP. The reconciliations to EBITDA and Adjusted EBITDA from relevant GAAP metrics are included at the end 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 ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: whether the Company may be successful in re-entering the U.S. ENDS market; the approval or rejection of any PMTA submitted by the Company; whether the Company will be successful in its plans to further expand into the African market; whether the Company's joint venture with Touch Point Worldwide Inc. d/b/a/ Berify and Chemular Inc. (the "Joint Venture") may be successful in achieving its goals as currently contemplated, with different terms, or at all; the Joint Venture's ability to innovate in the e-cigarette technology space or develop age gating or age verification technologies for nicotine vaping devices; the Company's ability to collect its accounts receivable in a timely manner; the Company's business strategies; the ability of the Company to market Ispire ONE™ and G-Mesh; G-Mesh and Ispire ONE™'s success in meeting its goals; the ability of its customers to derive the anticipated benefits from G-Mesh or Ispire ONE™ and the success of its products on the markets; Ispire ONE™ proving to be safe; the timing of the Company's ability to achieve positive cash flow, if at all; whether the Company's joint venture with Jincheng Pharma may be successful in achieving its goals as currently contemplated, with different terms, or at all; and the risk and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" and the additional risk described in Ispire's Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequent filings which Ispire makes with the SEC. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by applicable law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.
Contact:
HAYDEN IR:
James Carbonara
(646)-755-7412
james@haydenir.com
Brett Maas
(646) 536-7331
brett@haydenir.com
-- Tables Follow -
ISPIRE TECHNOLOGY INC.
CONSOLIDATED BALANCE SHEETS
(In $USD, except share and per share data)
| 2026 | 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 19,328,650 | $ | 24,351,765 | ||||
Restricted cash | 50,228 | - | ||||||
Accounts receivable, net | 19,819,480 | 39,588,998 | ||||||
Inventories, net | 3,126,252 | 6,647,970 | ||||||
Prepaid expenses and other current assets | 2,519,129 | 2,244,505 | ||||||
Due from a related party | 590,911 | 75,147 | ||||||
Total current assets | 45,434,650 | 72,908,385 | ||||||
Other assets: | ||||||||
Property, plant and equipment, net | 2,423,509 | 2,952,800 | ||||||
Intangible assets, net | 2,572,060 | 2,232,620 | ||||||
Right-of-use assets - operating leases | 3,028,385 | 5,030,005 | ||||||
Other investment | 2,000,000 | 2,000,000 | ||||||
Equity method investment | 8,611,823 | 9,515,546 | ||||||
Other non-current assets | 122,431 | 210,617 | ||||||
Accounts receivable - non current | - | 7,367,158 | ||||||
Deferred tax assets | 85,713 | - | ||||||
Total other assets | 18,843,921 | 29,308,746 | ||||||
Total assets | $ | 64,278,571 | $ | 102,217,131 | ||||
Liabilities and stockholders' (deficit) equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 5,651,330 | $ | 4,172,476 | ||||
Accounts payable - related party | 29,312,960 | 52,420,256 | ||||||
Contract liabilities | 1,886,012 | 4,861,250 | ||||||
Accrued liabilities and other payables | 5,532,103 | 8,099,991 | ||||||
Borrowing - current portion | 805,361 | 1,146,766 | ||||||
Operating lease liabilities - current portion | 1,443,763 | 1,838,815 | ||||||
Total current liabilities | 44,631,529 | 72,539,554 | ||||||
Other liabilities: | ||||||||
Amount due to a related party | 47,000,000 | 25,000,000 | ||||||
Borrowing - net of current portion | - | 805,361 | ||||||
Operating lease liabilities - net of current portion | 1,893,249 | 3,267,522 | ||||||
Total liabilities | 93,524,778 | 101,612,437 | ||||||
Commitments and contingencies | ||||||||
Stockholders' (deficit) equity: | ||||||||
Common stock, par value | 5,760 | 5,719 | ||||||
| (60,488 | ) | (60,488 | ) | |||||
Additional paid-in capital | 52,276,766 | 48,833,601 | ||||||
Accumulated deficit | (81,269,311 | ) | (48,065,267 | ) | ||||
Accumulated other comprehensive loss | (198,934 | ) | (108,871 | ) | ||||
Total stockholders' (deficit) equity | (29,246,207 | ) | 604,694 | |||||
Total liabilities and stockholders' (deficit)/equity | $ | 64,278,571 | $ | 102,217,131 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(In $USD, except share and per share data)
| Years ended | ||||||||
| 2026 | 2025 | |||||||
Revenue | $ | 96,014,610 | $ | 127,494,304 | ||||
Cost of revenue | 83,716,563 | 104,844,633 | ||||||
Gross profit | 12,298,047 | 22,649,671 | ||||||
Operating expenses: | ||||||||
Sales and marketing expenses | 5,022,884 | 8,439,384 | ||||||
Credit loss expenses | 20,715,826 | 22,034,812 | ||||||
General and administrative expenses | 19,151,861 | 30,025,334 | ||||||
Total operating expenses | 44,890,571 | 60,499,530 | ||||||
Loss from operations | (32,592,524 | ) | (37,849,859 | ) | ||||
Other income (expense): | ||||||||
Interest income | 343,497 | 86,996 | ||||||
Interest expense | (374,168 | ) | (188,764 | ) | ||||
Exchange gain (loss), net | 316,441 | (86,570 | ) | |||||
Other income, net | 250,092 | 1,675 | ||||||
Total other income (expense) | 535,862 | (186,663 | ) | |||||
Loss before income taxes | (32,056,662 | ) | (38,036,522 | ) | ||||
Income taxes | (1,147,382 | ) | (1,203,704 | ) | ||||
Net loss | $ | (33,204,044 | ) | $ | (39,240,226 | ) | ||
Other comprehensive loss | ||||||||
Foreign currency translation adjustments | (90,063 | ) | (167,214 | ) | ||||
Comprehensive loss | (33,294,107 | ) | (39,407,440 | ) | ||||
Net loss per share | ||||||||
Basic and diluted | $ | (0.58 | ) | $ | (0.69 | ) | ||
Weighted average shares outstanding: | ||||||||
Basic and diluted | 57,306,470 | 56,853,552 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In $USD, except share and per share data)
| Years ended | ||||||||
| 2026 | 2025 | |||||||
Net loss | $ | (33,204,044 | ) | $ | (39,240,226 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 944,995 | 812,483 | ||||||
Credit loss expenses | 20,715,826 | 22,034,812 | ||||||
Right-of-use assets amortization | 1,806,846 | 1,460,104 | ||||||
Stock-based compensation expenses | 3,488,207 | 5,616,282 | ||||||
Inventory impairment | 2,818,653 | 754,976 | ||||||
Loss from equity method investment | 903,723 | 732,502 | ||||||
Right-of-use assets impairment | 301,067 | 151,516 | ||||||
Debt issuance cost amortization | 129,250 | 38,478 | ||||||
Deferred income taxes | (85,713 | ) | - | |||||
Impairment loss on prepayments | 539,497 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 6,420,850 | (9,331,350 | ) | |||||
Inventories | 703,065 | (1,037,552 | ) | |||||
Prepaid expenses and other current assets | (455,522 | ) | (547,085 | ) | ||||
Accounts payable and accounts payable - related party | 371,558 | 10,766,537 | ||||||
Contract liabilities | (2,975,238 | ) | 2,643,084 | |||||
Accrued liabilities and other payables | (219,699 | ) | (555,383 | ) | ||||
Operating lease liabilities | (1,875,618 | ) | (1,358,074 | ) | ||||
Prepaid income tax/income tax payable | (381,355 | ) | (315,189 | ) | ||||
Advances to a related party | (515,764 | ) | ||||||
Net cash used in operating activities | (569,416 | ) | (7,374,085 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (305,952 | ) | (1,100,704 | ) | ||||
Acquisition of intangible assets | (449,191 | ) | (939,075 | ) | ||||
Joint venture investment payable | (2,327,311 | ) | (3,158,826 | ) | ||||
Net cash used in investing activities | (3,082,454 | ) | (5,198,605 | ) | ||||
Cash flows from financing activities: | ||||||||
Common stock repurchased | (45,001 | ) | (60,488 | ) | ||||
Proceeds from borrowing | - | 2,080,863 | ||||||
Repayment of borrowing | (1,276,016 | ) | (167,214 | ) | ||||
Net cash (used in) provided by financing activities | (1,321,017 | ) | 1,853,161 | |||||
Net decrease in cash and restricted cash | (4,972,887 | ) | (10,719,529 | ) | ||||
Cash and restricted cash - beginning of year | 24,351,765 | 35,071,294 | ||||||
Cash and restricted cash - end of year | $ | 19,378,878 | $ | 24,351,765 | ||||
Reconciliation of cash and restricted cash | ||||||||
Cash | $ | 19,328,650 | $ | 24,351,765 | ||||
Restricted cash | 50,228 | - | ||||||
Total cash, restricted cash and equivalents | 19,378,878 | 24,351,765 | ||||||
Supplemental non-cash investing and financing activities | ||||||||
Leased assets obtained in exchange for operating lease liabilities | $ | - | $ | 3,062,902 | ||||
Reclassification of accounts receivable to accounts receivable - non current | $ | - | $ | 7,367,158 | ||||
Reclassification of accounts payable - related party to amount due to a related party | $ | 22,000,000 | $ | 25,000,000 | ||||
Supplemental disclosures | ||||||||
Cash paid for income taxes | $ | 1,612,851 | $ | 1,531,924 | ||||
Cash paid for interest | $ | 374,168 | $ | 150,285 | ||||
UNAUDITED ADJUSTED EBITDA RECONCILIATION (GAAP to non-GAAP)
(In $USD)
Unaudited and in
Years ended
| Years ended | ||||||||
Net loss | $ | (33,204,044 | ) | $ | (39,240,226 | ) | ||
Adjustments | ||||||||
Credit loss expense | $ | 20,715,826 | $ | 22,034,812 | ||||
Income tax expense | $ | 1,147,382 | $ | 1,203,704 | ||||
Stock-based compensation | $ | 3,488,207 | $ | 5,616,282 | ||||
Inventory impairment | $ | 2,818,653 | $ | 754,976 | ||||
Depreciation and amortization | $ | 944,995 | $ | 812,483 | ||||
Debt issuance cost amortization | $ | 129,250 | $ | 38,478 | ||||
Adjusted EBITDA (Non-GAAP) | $ | (3,959,731 | ) | $ | (8,779,491 | ) | ||
Three months ended
| Three months ended | ||||||||
Net loss | $ | (13,819,287 | ) | $ | (14,790,072 | ) | ||
Adjustments | ||||||||
Credit loss expense | $ | 9,177,876 | $ | 8,645,045 | ||||
Income tax expense | $ | 377,320 | $ | 109,930 | ||||
Stock-based compensation | $ | 735,740 | $ | 692,531 | ||||
Prepaid inventory impairment | $ | 539,497 | $ | - | ||||
Inventory impairment | $ | 431,902 | $ | 681,284 | ||||
Depreciation and amortization | $ | 253,101 | $ | 220,203 | ||||
Debt issuance cost amortization | $ | 32,313 | $ | 38,478 | ||||
Adjusted EBITDA (Non-GAAP) | $ | (2,271,538 | ) | $ | (4,402,601 | ) | ||
SOURCE:
View the original press release on ACCESS Newswire