Quarterly sales rose 33%, but Ispire's full

Ispire Technology Inc. Reports Fourth Quarter and Fiscal Year 2026 Financial Results

Ispire’s revenue and losses improved in Q4, but full-year sales fell sharply and the company finished fiscal 2026 with a stockholders’ deficit.

Ispire Technology (ISPR) reported Q4 2026 revenue of $26.7 million, up 32.5% year-over-year and 43% sequentially, for the quarter ended June 30, 2026.

Q4 gross profit was $1.7 million with gross margin of 6.3%, down from 12.3% a year earlier, due in part to inventory impairments. Q4 operating expenses fell 11.1% to $15.2 million, and net loss narrowed to $13.8 million, or $(0.24) per share. Full-year 2026 revenue declined 24.7% to $96.0 million, with lower cannabis vaping hardware sales in the U.S. and reduced vaping product sales in Europe and Asia-Pacific.

For fiscal 2026, gross margin decreased to 12.8%, while total operating expenses fell 26% to $44.9 million, driving an improved net loss of $33.2 million and Adjusted EBITDA loss of $4.0 million. Net cash used in operating activities improved to $0.6 million. As of June 30, 2026, cash was $19.3 million and stockholders’ equity stood at a deficit of $29.2 million. Management no longer gives a firm timeframe for achieving cash-flow-positive performance, citing ongoing Malaysia facility investments.

At June 30, 2026, Ispire reported $93.5 million of liabilities against $19.3 million of cash and $29.2 million of negative equity.

The company reports completed fiscal 2026 results, with its June 30, 2026 balance sheet showing $19.3 million of cash against $93.5 million of liabilities and $29.2 million of negative stockholders’ equity.

The balance sheet separately lists $47.0 million due to a related party, $29.3 million in related-party accounts payable, and $803,000 of working capital.

It also reports 57,609,396 shares issued and outstanding at June 30, 2026, compared with 57,193,734 at June 30, 2025.

These balance-sheet figures are year-end amounts dated June 30, 2026, rather than a measurement of the company’s position on the release date.

On May 07, 2026, the prior fiscal Q3 earnings release was followed by a 10.12% 24-hour move; the current report likewise showed quarterly operating improvement, but also annual revenue and margin contraction.

Revenue declined, but losses narrowed and cash increased sequentially

Revenue fell while operating expenses declined and customer quality improved

Annual revenue and gross profit declined while the net loss widened

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Q4 Revenue Increased 33% Year-over-year and 43% Sequentially to $26.7 Million

Full Year Operating Cash Burn Improves by $6.8 Million, Signaling Progress Toward Cash Flow Positive

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

LOS ANGELES, CA / ACCESS Newswire / September 16, 2026 / Ispire Technology Inc. (NASDAQ:ISPR) ("Ispire," the "Company," "we," "us," or "our"), an innovator in vaping technology and precision dosing, today reported financial results for the fourth quarter and fiscal year ended June 30, 2026.

Steven Przybyla, President of Ispire, commented, "We believe fourth quarter results mark an important inflection point for the company and the turnaround we began more than a year ago. Fourth quarter revenue increased 33% year-over-year and 43% sequentially to $26.7 million, while operating cash flow also increased sequentially. In our view, these results demonstrate that the restructuring and investments we have made are beginning to translate into improved operating performance and position us for a fundamentally improved fiscal 2027. Our Malaysia manufacturing facility is now fully operational, our Vapor ODM platform is entering the market, and we continue to advance IKE Tech's proprietary age-gating technology toward commercialization. We have also begun to expand beyond vaping through our joint venture with Jincheng Pharma, giving us a platform to enter the rapidly growing nicotine pouch market.

"These initiatives span different stages of development and create a diversified set of possible growth drivers. In the near term, we believe our Malaysia manufacturing and ODM platforms are positioned to expand our addressable customer base, strengthen our competitive position and generate new revenue opportunities. Over the longer term, IKE Tech's age-gating technology is showing the potential to address significant unmet needs in not just the U.S. market, but globally, while our G-Mesh continues to generate interest from leading global tobacco companies and major international brands.

"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 Malaysia, a year of major commercial developments and contracts within our IKE Tech joint venture and a year of continued investment in cutting-edge technologies that we believe can be highly accretive to the balance sheet and long-term value of the business.

Multiple Growth Catalysts, Each Backed by a Massive Addressable Market

Summary Financial Results for the Three Months Ended June 30, 2026

Revenue was $26.7 million, compared to $20.1 million in the fourth quarter of fiscal year 2025. The increase of $6.6 million, or 32.5%.

Gross profit was $1.7 million compared to $2.5 million for the fourth quarter of fiscal year 2025. Gross margin was 6.3% compared to 12.3% for the year ago period. Gross margin was impacted by inventory impairments in Q4.

Total operating expenses were $15.2 million, a 11.1% reduction compared to $17.1 million for the fourth quarter of fiscal year 2025. Credit loss expense was $9.2 million, an increase of $533,000 compared to $8.6 million in the year ago period.

Net loss was $13.8 million, or ($0.24) per share, an improvement of $971,000 compared to a net loss of $14.8 million, or ($0.26) per share, in the fourth quarter of fiscal year 2025.

Adjusted EBITDA loss was ($2.3) million, an improvement of $2.1 million, compared to an Adjusted EBITDA loss of ($4.4) million in the year ago period.

Cash: At June 30, 2026, the Company held cash of $19.3 million and working capital of $803,000. An increase of $1.3 million in cash and decrease of $86,000 in working capital from the quarter ended March 31, 2026.

Summary Financial Results for the Fiscal Year Ended June 30, 2026

Revenue was $96.0 million, compared to $127.5 million in fiscal 2025. The decrease of $31.5 million, or 24.7%, was primarily driven by lower cannabis vaping hardware sales in the United States, which decreased by $17.4 million to $15.1 million, and lower vaping product sales in Europe, which decreased by $12.7 million to $61.4 million. Product sales in Asia Pacific, excluding China, also decreased by $1.4 million to $10.9 million.

Gross profit was $12.3 million compared to $22.6 million for fiscal 2025. Gross margin was 12.8% compared to 17.8% for fiscal 2025. Gross margin was impacted by changes in product mix and a one-time increase in inventory provision accrued during the year ended June 30, 2026.

Total operating expenses were $44.9 million, a 26% reduction compared to $60.5 million for fiscal 2025. Credit loss expense was $20.7 million, a decrease of $1.3 million compared to $22.0 million in fiscal 2025.

Net loss was $33.2 million, or ($0.58) per share, an improvement of $6.0 million, compared to a net loss of $39.2 million, or ($0.69), in fiscal 2025.

Adjusted EBITDA loss was ($4.0) million, an improvement of $4.8 million, compared to an Adjusted EBITDA loss of ($8.8) million in fiscal 2025.

Net cash used in operating activities was $569,000, and improvement of $6.8 million, compared to Net cash used in operating activities of $7.4 million in fiscal 2025,

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 Malaysia manufacturing facility during the first quarter of fiscal year 2027, which makes the timing of achieving cash-flow positive less certain. Management remains focused on reaching positive cash flow as the benefits of the Company's new manufacturing and commercial programs begin to scale.

The Company will conduct a conference call at 8 am ET on Wednesday, September 16, 2026, to discuss the results, followed by a Q&A session.

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."

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 11:59 pm ET on Wednesday, September 30, 2026. To listen, please dial 1-844-512-2921 or +1-412-317-6671. Use the passcode 13762496 to access the replay.

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.

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.

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.

HAYDEN IR:James Carbonara(646)-755-7412james@haydenir.com

Brett Maas(646) 536-7331brett@haydenir.com

ISPIRE TECHNOLOGY INC.CONSOLIDATED BALANCE SHEETS(In $USD, except share and per share data)

ISPIRE TECHNOLOGY INC.CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS(In $USD, except share and per share data)

ISPIRE TECHNOLOGY INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In $USD, except share and per share data)

ISPIRE TECHNOLOGY INC.UNAUDITED ADJUSTED EBITDA RECONCILIATION (GAAP to non-GAAP)(In $USD)

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

The 24.7% revenue decrease to $96.0 million was primarily due to lower cannabis vaping hardware sales in the United States, which fell by $17.4 million to $15.1 million, and lower vaping product sales in Europe, which decreased by $12.7 million to $61.4 million. Product sales in Asia Pacific, excluding China, also decreased by $1.4 million to $10.9 million.

For fiscal 2026, gross margin declined to 12.8% from 17.8%, impacted by changes in product mix and a one-time increase in inventory provision. In Q4 2026, gross margin fell to 6.3% from 12.3% in the prior-year quarter, with gross margin impacted by inventory impairments recorded in the quarter.

As of June 30, 2026, Ispire held cash of $19.3 million and reported working capital of $803,000. Cash increased by $1.3 million and working capital decreased by $86,000 compared with the quarter ended March 31, 2026.

The company previously expected to reach cash-flow-positive performance in the second half of calendar 2026. Management now indicates that investments related to the Malaysia manufacturing facility made in the first quarter of fiscal 2027 make the timing of achieving cash-flow positive less certain, though the company remains focused on reaching positive cash flow as new manufacturing and commercial programs scale.

Ispire uses non-GAAP measures such as EBITDA and Adjusted EBITDA as supplemental metrics to assess operating and financial performance. Management states these measures exclude unusual or non-recurring items and certain non-cash items that may not reflect ongoing results, and reconciliations to comparable GAAP metrics are provided in the financial statements.

The conference call is scheduled for Wednesday, September 16, 2026, at 8:00 a.m. ET. Participants can dial 1-877-451-6152 (United States) or 1-201-389-0879 (international) and ask for the "Ispire Technology Call." A webcast link is available for online access. A replay is available until 11:59 p.m. ET on Wednesday, September 30, 2026, by dialing 1-844-512-2921 or +1-412-317-6671 and entering passcode 13762496.