Ispire Q2 FY2026 revenue falls to $20.3M as it trims lower-quality customers; A/R down nearly 20%

Feb.09

Ispire reported a sharp year-on-year revenue decline in Q2 FY2026 as it shifted away from lower-quality customers, while cutting operating expenses and narrowing its net loss. The company also highlighted improved collections, with net accounts receivable down nearly one-fifth since June 30, 2025, alongside ongoing manufacturing and technology initiatives.

Key Points

Q2 FY2026 revenue: $20.3M vs $41.8M a year ago.
Gross profit: $3.5M vs $7.7M; gross margin 17.1% vs 18.5%.
Operating expenses: $10.3M vs $15.1M.
Net loss: $6.6M vs $8.0M.
Cash at quarter-end: $17.6M; working capital $3.5M.
Net accounts receivable fell 19.5% to $37.9M from $47.0M at June 30, 2025.

2Firsts, Feb 9, 2026

According to Ispire Technology Inc., the company reported financial results for Q2 of fiscal 2026 (three months ended Dec. 31, 2025). Revenue was $20.3 million, down from $41.8 million in the prior-year quarter, which the company attributed to a strategic shift away from lower-quality cannabis customers.

Gross profit totaled $3.5 million versus $7.7 million a year ago, with gross margin at 17.1% compared with 18.5% in Q2 FY2025. Ispire said the margin decline was driven primarily by product-mix changes, with fewer higher-margin products sold during the quarter.

Operating expenses were $10.3 million, down from $15.1 million in the year-ago period. Net loss narrowed to $6.6 million (loss of $0.12 per share) from $8.0 million (loss of $0.14 per share).

Ispire said its collections focus reduced net accounts receivable by 19.5% to $37.9 million at Dec. 31, 2025, compared with $47.0 million at June 30, 2025. The company reported $17.6 million in cash and $3.5 million in working capital at quarter-end.

Management also pointed to ongoing initiatives, including the ramp-up of manufacturing capabilities in Malaysia, discussions with nicotine manufacturers to evaluate its proprietary G-Mesh technology, and IKE Tech’s work with regulators in Europe, Southeast Asia, and the Middle East to support broader adoption of age-gating technology.

Image source: Ispire Technology Inc.

References:

[1] Ongoing Focus on Collections Drives 19% Reduction in Net Accounts Receivable since June 30, 2025

Also Read:

[1] Congress Calls on FDA to Allocate at Least $200 Million for ENDS Enforcement, Multi-Agency Task Force to Target Illegal e-Cigarette Imports. IKE Tech and Ispire Utilize Blockchain and Age Verification Technology to Support Regulation, Submit Chips as Part

[2] Ispire Releases 2025 Financial Results: Revenue of $127.5 Million, Net Loss Widens to $39.2 Million

[3] Ispire Clarifies: Malaysia Plant Does Not Involve Nicotine or Cannabis Products, All Production for Export Only

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