Ispire Technology Inc. Reports Financial Results for the Fiscal Year 2025

LOS ANGELES,Sept. 16, 2025/PRNewswire/ -- Ispire Technology Inc.(NASDAQ: ISPR) ("Ispire,"the"Company,""we,""us,"or"our"), an innovator in vaping technology and precision dosing, today reported results for the fiscal year 2025, which ended onJune 30, 2025.

Fiscal Year 2025 Financial Results

• Revenuedecreased to$127.5 million, compared to$151.9 millionin the 2024 fiscal year.
• Gross profitdeclined to$22.6 million, as compared to$29.8 millionin the 2024 fiscal year.
• Gross margindecreased to 17.8%, as compared to 19.6% in the 2024 fiscal year.
• Total operating expensesincreased to$60.5 million, compared to$43.7 millionin the 2024 fiscal year.
• Accounts receivable, netdecreased by 21% from$59.7 millionin fiscal 2024 to$47.0 millionin fiscal 2025.
• Net lossof$39.2 million, compared to net loss of$14.8 millionin the 2024 fiscal year.

Michael Wang, Co-Chief Executive Officer of Ispire, commented,"Fiscal year 2025 marked a pivotal period in Ispire's strategic transformation, as we continued to shift away from the cannabis industry toward the higher-value nicotine sector. We made the intentional strategic decision to focus on quality customers versus quantity, prioritizing long-term partnerships as we repositioned our business for sustainable growth. Our investments in breakthrough technologies including IKE Tech LLC and our G-Mesh technology, are gaining significant traction with major tobacco companies as these innovations move through the regulatory approval process."

"We continued advancing our PMTA activities while awaiting updates on the groundbreaking component PMTA submission filed by our strategic joint venture, IKE Tech LLC, which represents blockchain-based age verification technology that could fundamentally transform the regulatory landscape for nicotine delivery systems. We are also progressing preparations for comprehensive PMTA submissions for flavored ENDS products. These products will feature integrated IKE Tech age-verification technology, with our initial filing strategy focusing on four distinct flavored offerings, addressing a critical gap in today's marketplace. Lastly, our international nicotine ODM business represents a key growth opportunity that is now gaining significant momentum after a slower than expected start. Coming into fiscal Q1 2026, we were at$18Min backlog orders. These strategic initiatives have positioned Ispire to capitalize on the growing global demand for precision vaping technology, while maintaining our commitment to responsible product development,"Mr. Wang concluded.

Jay Yu, Chief Financial Officer of Ispire, added,"Ispire has focused on streamlining our operations and cut expenses across the business, with optimization measures reducing annual payroll by a total estimated annual savings of$10.2 million. General and administrative expenses declined year over year, from$31.1 millionfor the year endedJune 30, 2024, to$30.0 millionfor the year endedJune 30, 2025, while net loss was widened by $24.5million year-over-year. We remain focused on strengthening collections and enhancing customer quality. Management believes these disciplined actions position Ispire for sustainable, long-term growth."

Financial Results for the Fiscal Year EndedJune 30, 2025

For the fiscal year endedJune 30, 2025, Ispire reported revenue of$127.5 millioncompared to$151.9 millionduring fiscal 2024. The decrease in revenue was primarily due to realignment of our business towards nicotine, while moving away from cannabis customers, which the Company believes will deliver improved accounts receivable and more sustainable long-term growth.

Gross profit for the fiscal year endedJune 30, 2025, was$22.6 million compared to$29.8 millionfor the same period in fiscal year 2024. Over fiscal 2025, gross margin decreased to 17.8%, from 19.6%. The decrease in gross profit and gross margin was primarily due to the strategic repositioning away from cannabis which led to the revenue reduction for this period.

Total operating expenses for the fiscal year endedJune 30, 2025were$60.5 millionas compared to$43.7 millionin the same period in fiscal year 2024. This increase was largely due to a rise in sales and marketing expenses with a ramp up of marketing activities, as well as an increase in expected credit loss on accounts receivables, offset by a decrease in stock based compensation expenses due to cutting headcount in streamlining North American operations and a reduction in R&D expenses.

For the fiscal year endedJune 30, 2025, net loss was$39.2 million or$0.69per share, compared to a net loss of$14.8 million, or$0.27per share for fiscal year 2024.

As ofJune 30, 2025, Ispire had$24.4 millionin cash and cash equivalents and working capital of$0.4 million.

Conference Call

The Company will conduct a conference call at 8:00 am Eastern Time onTuesday, September 16, 2025, to discuss the results. Ispire management will host the conference call, followed by a question-and-answer period.

Please call the conference call dial-in 5-10 minutes prior to the start time and ask for the"Ispire Technology Call."An operator will register your name and organization.

• Date: Tuesday, September 16, 2025
• Time: 8:00 am ET
• Dial-In Numbers: North America 877-451-6152 or International +1 201-389-0879

This conference call will be broadcast live on the Internet and can be accessed by all interested parties athttps://viavid.webcasts.com/starthere.jsp?ei=1730055&tp_key=20c725b587.

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 12:00midnight Eastern Time on Tuesday, September 30, 2025. To listen, please dial 844-512-2921 or +1 412-317-6671. Use the passcode 13755309 to access the replay.

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 ChinaandRussia) 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 mainly in the U.S., and it recently commenced its marketing activities inCanadaandEurope. For more information, visitwww.ispiretechnology.com or follow Ispire onInstagram, LinkedIn,Twitterand YouTube. Any information contained on, or that can be accessed through, the Company's website, any other website or any social media, is not a part 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 to the Ispire ONE™; Ispire ONE™'s success in meeting its goals; the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of its products on the markets; the Ispire ONE™ proving to be safe; 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, 2024 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.

For more information, kindly contact:

IR Contact:

KCSA Strategic Communications

Phil Carlson

212-896-1233

ispire@kcsa.com



PR Contact:

Ellen Mellody

570-209-2947

EMellody@kcsa.com

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SOURCE Ispire Technology Inc.