Key Points
- FY2026 revenue fell 24.7% to about $96 million, while Q4 revenue rose 32.5% to $26.7 million.
- U.S. cannabis-vapor hardware revenue declined by $17.4 million to $15.1 million, while European e-cigarette revenue fell by $12.7 million to $61.4 million.
- FY2026 gross margin declined to 12.8% from 17.8%, while Q4 gross margin fell to 6.3% from 12.3%; full-year net loss narrowed to $33.2 million.
- Ispire has made Malaysia manufacturing and ODM near-term FY2027 priorities while continuing to develop nicotine pouches, IKE Tech and G-Mesh, but it has not separately disclosed revenue or profit contributions from those businesses.
2Firsts
September 17, 2026
According to Ispire Technology’s fourth-quarter and fiscal 2026 results released on September 16, 2026, full-year revenue fell 24.7% to about $96 million, while fourth-quarter revenue rose 32.5% year over year to $26.7 million. As U.S. cannabis-vapor hardware and European e-cigarette sales contracted during the year, the company is making Malaysia manufacturing and vapor ODM its near-term FY2027 growth priorities while continuing to develop nicotine pouches, IKE Tech age-verification technology and G-Mesh licensing.
Q4 Revenue Rebounds as Full-Year Sales Fall 24.7%
Ispire reported FY2026 revenue of about $96 million, compared with approximately $127.5 million in the prior fiscal year.
Fourth-quarter revenue reached $26.7 million, up 32.5% year over year and about 43% sequentially.
Quarterly revenue was about $30.4 million in the first quarter, $20.3 million in the second quarter and $18.7 million in the third quarter before recovering to $26.7 million in the fourth.
Despite the Q4 rebound, FY2026 revenue remained down 24.7% year over year.
The largest declines came from U.S. cannabis-vapor hardware and European e-cigarettes.
U.S. cannabis-vapor hardware sales fell by $17.4 million to about $15.1 million, while European e-cigarette sales declined by $12.7 million to about $61.4 million. Asia-Pacific sales excluding China fell by about $1.4 million to $10.9 million.
The U.S. cannabis and European e-cigarette declines together totaled about $30.1 million, close to the company’s overall annual revenue decrease.
Ispire has previously attributed part of the U.S. cannabis decline to its decision to reduce exposure to what it described as lower-quality customers. European e-cigarette sales also declined materially, showing that FY2026 revenue pressure extended beyond changes in the U.S. customer base.
Margins Fall as Receivables Decline
Ispire reported fourth-quarter gross profit of about $1.7 million, with gross margin falling to 6.3% from 12.3% a year earlier.
For the full year, gross profit was $12.3 million and gross margin declined to 12.8% from 17.8%.
The company attributed margin pressure in part to product mix, inventory write-downs and product returns recorded during earlier quarters.
Full-year net loss narrowed to $33.2 million from about $39.2 million, while adjusted EBITDA loss improved to about $4.0 million from $8.8 million.
Operating cash flow also improved. FY2026 operating cash outflow was about $0.6 million, compared with roughly $7.4 million in the prior year.
Cash at June 30 stood at about $19.3 million, down from roughly $24.3 million a year earlier.
Net accounts receivable fell to about $19.8 million from roughly $39.6 million a year earlier. However, FY2026 credit-loss expense remained about $20.7 million.
Ispire has not separately disclosed the revenue or profit contribution of Malaysia manufacturing, ODM or nicotine pouches, making it difficult to isolate the scale of those businesses from FY2026 financial results.
Malaysia Manufacturing Becomes a Near-Term Priority
Ispire is expanding its Malaysia manufacturing operations.
The company previously disclosed that Ispire Malaysia received a full manufacturing license from Malaysia’s Ministry of Investment, Trade and Industry in March 2026 for nicotine vapor products. The company subsequently moved ahead with customer orders and production planning.
Its latest results say the Malaysia facility is now operational and identify Malaysia manufacturing as one of the company’s near-term FY2027 growth priorities.
Ispire also said Malaysia production could provide an approximately 25% tariff advantage for U.S.-bound products compared with manufacturing in China.
The Malaysia facility is also expected to support nicotine-pouch production.
ODM Takes a Larger Role in FY2027
Ispire has also made vapor ODM a near-term FY2027 priority.
The company said it began working with mid-sized brands in 2026 and plans to pursue larger brand relationships in 2027.
Because the ODM rollout primarily begins in FY2027, it does not explain the company’s FY2026 fourth-quarter revenue rebound.
Malaysia manufacturing and ODM are therefore the two initiatives on the company’s current timeline that are closest to near-term revenue expansion.
Nicotine-Pouch Business Begins Shipments
Ispire said it began supplying nicotine pouches to global customers in April 2026 and announced a joint venture with Shandong Jincheng Pharmaceutical Group Co., Ltd. in May to manufacture and commercialize nicotine-pouch products.
The latest results describe FY2027 as the first full fiscal year in which the Malaysia facility will support production of both vapor products and nicotine pouches.
Ispire has not separately disclosed nicotine-pouch revenue, shipment volumes, customer counts or margins.
IKE Tech and G-Mesh Timelines Point to 2027 and Beyond
Beyond manufacturing and ODM, Ispire is continuing to develop IKE Tech age-verification technology and G-Mesh licensing opportunities.
The company places IKE Tech commercialization in 2027 and beyond and links the technology to age-verification needs in the U.S. vaping market.
For G-Mesh, Ispire said licensing discussions with large tobacco companies are underway, but it has not disclosed major signed licensing agreements, named customers or recognized revenue.
The company lists both IKE Tech and G-Mesh on a 2027-and-beyond timeline and has not disclosed that either business has reached meaningful revenue scale.
Cash-Flow Timing Becomes Less Certain
Ispire had previously said it planned to achieve positive cash flow in the second half of calendar 2026.
In its latest results, however, the company said continued investment in its Malaysia manufacturing facility during the first quarter of FY2027 had made the timing of cash-flow breakeven less certain.
The company did not provide a new timetable for positive cash flow.
Entering FY2027, Ispire has identified Malaysia manufacturing and ODM as near-term growth priorities while continuing to develop nicotine pouches, IKE Tech and G-Mesh. The revenue and profitability contribution of those initiatives remains to be shown in future results.
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Cover Image: Ispire Technology
