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

Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-listed vape company iSpire Technology has restructured its leadership team, with Tuanfang Liu becoming the company’s sole chief executive officer (CEO) and Michael Wang appointed CEO of Aspire North America. The move ends iSpire’s previous co-CEO structure and creates clearer responsibilities between group strategy and regional execution. Separately, BTIG initiated coverage on iSpire Technology with a Buy rating and a $3.50 price target, identifying ODM growth opportunities as a key investment factor.
Jul.27
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
ITC Infotech has expanded its multi-year strategic technology partnership with British American Tobacco (BAT), providing technology services across Poland, Romania and India while continuing to support BAT's newly launched Future Capabilities Centre in India and existing technology hubs in Malaysia and Mexico. The companies said the agreement will focus on AI-enabled innovation, technology capability building and greater operational efficiency. The partnership also aligns with BAT's broader Fit2Win transformation programme, under which the group is expanding the use of external technology and business-services partners to simplify its global operating model.
Aug.13
Reuters: India Seeks to Dismiss Adani Nicotine Pouch Challenge as Mumbai Airport Dispute Moves to Court
Reuters: India Seeks to Dismiss Adani Nicotine Pouch Challenge as Mumbai Airport Dispute Moves to Court
Reuters reported on July 13, 2026, that India is seeking to dismiss Adani Airports’ legal challenge over nicotine pouch sales at Mumbai International Airport’s duty-free shops. Adani denies wrongdoing and argues that existing drug and cosmetics regulations do not apply to duty-free sales or nicotine pouches.
Innovation
Jul.14 by 2Firsts Perspectives
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
China-based China Tobacco Hubei Industrial Co., Ltd. has filed a patent application covering an oral nicotine product and its preparation method. The patent proposes a soft candy-shaped oral nicotine product containing nicotine ingredients, gelling agents, sweeteners and alkaline pH regulators. Through formulation adjustments and homogeneous or dual-layer structures, the technology aims to achieve different nicotine release profiles. The filing reflects exploration of new oral nicotine product formats and controlled nicotine delivery approaches.
Aug.06
BAT's VELO Partners With McLaren F1 Team for Global Fan Campaign to Expand Nicotine Pouch Brand Reach
BAT's VELO Partners With McLaren F1 Team for Global Fan Campaign to Expand Nicotine Pouch Brand Reach
BAT-owned nicotine pouch brand VELO and the McLaren Mastercard Formula 1 Team have launched a global fan engagement campaign offering motorsport enthusiasts opportunities to win exclusive team-related experiences. The initiative aims to connect racing culture, fan interaction and VELO’s brand experience across global markets. The partnership reflects BAT’s broader strategy of expanding modern nicotine product brands beyond traditional tobacco categories through lifestyle and cultural marketing.
Jul.23
PMI Q2 Call: ZYN Growth, IQOS Pricing and a Diverging Global Tobacco Market
PMI Q2 Call: ZYN Growth, IQOS Pricing and a Diverging Global Tobacco Market
Philip Morris International’s second-quarter earnings call offered new detail on its smoke-free strategy. Management said it would increase U.S. investment behind nicotine pouch brand ZYN, keep IQOS focused on volume before stronger pricing, and use SENTIA, DELIA, LEVIA, VEEV and ZYN to manage tax and regulatory pressure across Japan and Europe. Analysts from Goldman Sachs, Morgan Stanley, UBS and other firms also pressed PMI on profitability, market share, cigarette resilience and the durability of its global transformation over coming quarters.
Jul.24