Ispire Reports Q1 FY2025 Loss as US Market Sales Drop by $8.1 Million

Nov.12.2024
Ispire Reports Q1 FY2025 Loss as US Market Sales Drop by $8.1 Million
Ispire (NASDAQ: ISPR) reports Q1 fiscal results, citing a revenue drop due to US market sales decline.

Ispire Technology (Nasdaq: ISPR) announced its financial results for the first quarter of fiscal year 2025 on November 11, 2024, covering the period ending September 30, 2024. 

 

The company reported a year-over-year revenue decrease of 8.2% to $39.3 million, a gross profit increase of 13.2% to $7.7 million, and a net loss that widened by 330.8% to $5.6 million.

 

Ispire announced that its decrease in revenue was mainly due to a decline in product sales in the US market, which dropped from $17.8 million in the previous period to $9.7 million in the current period, a decrease of $8.1 million. 

 

However, this was partially offset by increased sales of e-cigarette products in the European market and elsewhere. Sales in the European market increased by $2.1 million (from $19.9 million to $22 million), while sales in other regions increased by $3.7 million (from $60,000 to $3.8 million), with the main increase coming from sales in the South African market, which rose by $2.9 million.

 

In this quarter, total operating expenses increased by 67.5% to $12.9 million compared to the same period last year. Aspire attributed the rise in operating expenses to a $700,000 increase in marketing activities, a $1 million increase in stock compensation for sales personnel, and a $100,000 increase in employee salaries and wages at Aspire Science. 

 

Additionally, the company incurred an extra $1 million in stock compensation expenses in the three months ending September 30, 2024, to incentivize management, employees, and service providers. The company also set aside an additional $1.9 million in bad debt expenses as a provision for credit losses on accounts receivable.

 

As of September 30, 2024, Ispire had $37.7 million in cash and cash equivalents, and $16.6 million in operating capital.

 

"We are pleased to expand into the Middle East, North Africa, and the global duty-free market through a milestone five-year exclusive distribution agreement with ANDS. This partnership will allow us to introduce the Hidden Hills Club product line to new markets, offering consumers innovative, harm-reduced alternatives," Inspire's Co-CEO Michael Wang said.

 

"Our performance in the first quarter of our 2025 fiscal year met internal expectations, as we adjusted our US market strategy and also faced some delays in shipments. Despite these obstacles, our financial performance in the first quarter remained strong, with gross profit increasing by 13.2% year-on-year, and gross margin rising from 16.0% in the first quarter of the 2024 fiscal year to 19.5% in the 2025 fiscal year," Ispire's Chief Financial Officer Jim McCormick said.

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

GAO Audit Finds Nearly 132,000 FDA Tobacco Applications Waiting an Average 1,266 Days as Nicotine Pouch Pilot Practices Move Into Vape PMTA Reviews
GAO Audit Finds Nearly 132,000 FDA Tobacco Applications Waiting an Average 1,266 Days as Nicotine Pouch Pilot Practices Move Into Vape PMTA Reviews
A U.S. Government Accountability Office audit found that 131,915 tobacco product applications submitted to the FDA since 2018 remained without a final review as of December 31, 2025, with pending applications waiting an average of 1,266 days. GAO also found FDA lacks the data needed to systematically determine whether scientific reviews meet applicable timelines. HHS agreed to upgrade the agency's tracking systems. At the same time, FDA has begun applying lessons from its nicotine pouch PMTA pilot to e-cigarette reviews, while changes to enforcement policy and electronic submissions are making the specific stage of a PMTA increasingly relevant to market access.
FDA
Oct.03
China Tobacco Zhejiang files patent for pressure-triggered, on-demand oral nicotine release
China Tobacco Zhejiang files patent for pressure-triggered, on-demand oral nicotine release
China Tobacco Zhejiang Industrial Co., Ltd. has filed a patent application for an oral nicotine delivery product designed to let users actively adjust nicotine release. The product embeds two types of nicotine reservoirs with different wall thicknesses and positions inside a deformable matrix. Pressure applied with the tongue or lips can rupture the reservoirs and accelerate nicotine release. In simulated oral tests, several patent examples showed sharply higher peak nicotine release rates as applied force increased from 0 N to 1 N and 3 N. The filing explores a shift from preset release profiles toward user-triggered nicotine delivery.
Sep.01
Australia Extends Illicit Tobacco Crackdown From Tougher Penalties to Customs and Logistics Supply Chains
Australia Extends Illicit Tobacco Crackdown From Tougher Penalties to Customs and Logistics Supply Chains
Australia's federal government introduced a new illicit tobacco enforcement bill on September 10 that would strengthen evidentiary presumptions, representative sampling, seizure and forfeiture procedures, proceeds-of-crime powers and obligations for customs and logistics operators. The proposal follows the Combatting Illicit Tobacco Act 2026, which took effect in August and increased penalties while expanding investigative and asset-recovery tools. Together, the reforms extend Australia's crackdown from tougher criminal sanctions into import, logistics and evidentiary enforcement.
Sep.14
As JUUL2 Wins FDA Authorization, Harm Reduction Journal Highlights the Role of Real-World Evidence in Nicotine Product Regulation
As JUUL2 Wins FDA Authorization, Harm Reduction Journal Highlights the Role of Real-World Evidence in Nicotine Product Regulation
A commentary published in the international open-access, peer-reviewed Harm Reduction Journal argues that randomized controlled trials remain central to evaluating smoking cessation efficacy but cannot alone capture real-world uptake, complete switching, longer-term use and population impact of non-combustible nicotine products such as e-cigarettes, heated tobacco and nicotine pouches. The authors frame impact as “reach × efficacy” and call for real-world evidence to complement RCTs. Three days after publication, the FDA authorized three JUUL2 products and highlighted complete switching among adult smokers in explaining its decision, providing a timely regulatory backdrop to the debate.
Sep.08
GSTHR Estimates 200 Million People Use Non-Combustible Nicotine Products as 28 Countries Show Rising Use Alongside Falling Smoking Rates
GSTHR Estimates 200 Million People Use Non-Combustible Nicotine Products as 28 Countries Show Rising Use Alongside Falling Smoking Rates
The Global State of Tobacco Harm Reduction, a project operated by Knowledge·Action·Change, estimates that about 200 million people worldwide use non-combustible nicotine products including vapes, heated tobacco, nicotine pouches and snus. Its 2026 report says use of these products rose alongside declining smoking rates in 28 countries it analyzed. The data do not establish that all 200 million users have quit smoking, nor do they prove a direct causal relationship. GSTHR also says regulatory restrictions on the products continue to expand in many markets.
Sep.10
How Large Is France’s Off-Channel Tobacco Market? Logista Says It Has Become Structural, While the Official Estimate Is 17.7% and Some Industry Studies Put It Above 50%
How Large Is France’s Off-Channel Tobacco Market? Logista Says It Has Become Structural, While the Official Estimate Is 17.7% and Some Industry Studies Put It Above 50%
Logista France says tobacco consumption outside France’s official tobacconist network has become a large and structural market phenomenon, but official and industry estimates differ sharply. France’s TAFE study estimates that 17.7% of tobacco consumption escaped domestic taxation in 2023, with most of that volume attributed to cross-border purchasing rather than street sales. Some industry studies use broader off-channel definitions and put the figure above 50%. Meanwhile, French Customs seized 547.94 tonnes of tobacco in 2025, up 12%, showing continued pressure from illicit trade.
Sep.04