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

PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
IQOS opened its first global flagship, IQOS Flagship Ginza, in Tokyo on September 4, 2026, replacing the former IQOS Store Ginza after nearly a decade of operation. The new location expands conventional product retail into member lounges, digital experiences, art installations and brand programming. IQOS also launched a Ginza-exclusive IQOS ILUMA i PRIME set limited to 1,814 individually numbered units, priced at JPY11,980, or about US$77. PMI Sales Strategy Consultant Yuji M. later said on LinkedIn that more than 500 people had lined up from the night before the opening.
Sep.07
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
Germany collected €9.789 billion in total tobacco tax revenue from January through August 2026, down 10.8% from a year earlier, according to the Federal Ministry of Finance. Germany's tobacco tax base covers not only cigarettes and fine-cut tobacco but also heated tobacco and vaping liquids taxed as tobacco substitutes. The German Association of the Tobacco Industry and Novel Products, or BVTE, citing federal statistical data, said tax-paid cigarette volume fell 12.6% to 40.6 billion sticks. BVTE is using the latest figures to argue against further tax increases planned from 2027 through 2030, while Germany's parliament is scheduled to hold a first reading of the bill on September 24.
Sep.23
Juul Displays FDA-Authorized JUUL2, Highlights Age Verification at NACS Show 2026
Juul Displays FDA-Authorized JUUL2, Highlights Age Verification at NACS Show 2026
At the 2026 NACS Show in Las Vegas, Juul Labs displayed its JUUL2 e-cigarette system alongside existing products, age-verification messaging and mobile coupons, 2Firsts observed. The JUUL2 device and Virginia Tobacco and Polar Menthol pods received FDA marketing authorization in August 2026. Booth materials highlighted longer battery life, greater e-liquid capacity and connected-device features. A TruAge sign and a mobile coupon presentation also featured at the booth, with weekly offers available to age-verified adult nicotine consumers at participating retailers.
EXPO
Oct.09
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Philip Morris International has published its first report aligned with the Taskforce on Nature-related Financial Disclosures, bringing its electronics supply chain and the use and end-of-life stages of smoke-free devices and consumables into its nature-related assessment. PMI said its smoke-free business accounted for about 42% of total net revenues in the second quarter of 2026. The report says non-circular electronic products, particularly single-use items, can increase consumption of limited natural resources and also details an IQOS repair pilot. A 2040 circularity scenario tests assumptions including a 50% reduction in product waste-related costs, 10% raw-material savings and a 25% substitution rate for refurbished products versus new products.
Sep.23
Special Report|CrossBar's High-Puff Vapes Draw Attention on Pennsylvania's 163-Product Directory as Link Between Earlier 1.3mL PMTA Filings and New 13mL Products Remains Unclear
Special Report|CrossBar's High-Puff Vapes Draw Attention on Pennsylvania's 163-Product Directory as Link Between Earlier 1.3mL PMTA Filings and New 13mL Products Remains Unclear
Pennsylvania began enforcing its electronic nicotine delivery system directory restrictions on October 19, 2026. Among 163 product listings recorded before enforcement, four CrossBar 20K disposables stood out with 13mL capacity, advertised puff counts of up to 20,000 and a flattened design distinct from conventional pod systems and compact disposables. Historical records identify earlier 1.3mL CrossBar products associated with Romo LLC, while newer 13mL products appeared in several state directories beginning in 2025 under entities including Blue Nine LLC. PMTA compliance expert Mr. K identified amendments and application ownership transfers as possible regulatory mechanisms, although neither has been confirmed in this case. Separately, Reynolds' $7.5 million acquisition of 16 PACHA products and related assets illustrates the commercial value of products linked to historic PMTA submissions.
Special Report
Oct.22
2Firsts Interview | Cigarette Sales Fall as Smokeless Alternatives Gain in U.S. Convenience Stores, NACS Says
2Firsts Interview | Cigarette Sales Fall as Smokeless Alternatives Gain in U.S. Convenience Stores, NACS Says
Ahead of the 2026 NACS Show, 2Firsts interviewed Chris Rapanick, NACS managing director of research, on changes reshaping the U.S. convenience-store tobacco and nicotine market. NACS data show cigarette sales declining while smokeless alternatives, including nicotine pouches, continue to grow. The interview also examines higher OTP margins, shifting backbar space, weaker store traffic, regulatory uncertainty and NACS’ outlook for 2027, offering a retailer-side view of one of the world’s largest nicotine markets.
Interview
Oct.03