Key Takeaways
- Ispire reported fiscal third-quarter revenue of $18.7 million, compared with $26.2 million a year earlier and $20.3 million in the prior quarter.
- Gross profit was $2.0 million, compared with $4.8 million a year earlier and $3.5 million in the prior quarter.
- Gross margin was 10.7%, which the company said was mainly attributable to about $2.2 million in one-time product returns from legacy cannabis customers.
- Net loss was $9.5 million, or $0.17 per share, compared with a net loss of $10.9 million a year earlier.
- As of March 31, 2026, the company held $18.0 million in cash and had working capital of $0.9 million.
2Firsts, May 8, 2026
According to Ispire Technology Inc.’s financial results release, the company reported fiscal third-quarter 2026 results for the three months ended March 31, 2026. Revenue was $18.7 million, compared with $26.2 million in the third quarter of fiscal 2025 and $20.3 million in the prior sequential quarter.
Revenue declined year on year and sequentially
Ispire said revenue fell to $18.7 million from $26.2 million in the same period last year. Compared with the prior quarter, revenue declined by $1.6 million, or 8%. The company said this was the smallest second-to-third-quarter decline in its history and reflected the typical seasonal impact of Chinese New Year-related factory shutdowns.
Company said year-over-year decline reflected business shift
Ispire said the year-over-year decline reflected its continued strategic shift away from lower-quality cannabis revenue toward regulated nicotine delivery and compliance technologies. The company said the overall business continues to stabilize.
Gross profit was $2.0 million
Gross profit was $2.0 million, compared with $4.8 million in the third quarter of fiscal 2025 and $3.5 million in the prior sequential quarter.
Gross margin was 10.7%, compared with 18.2% in the third quarter of fiscal 2025. Ispire said gross margin was primarily affected by about $2.2 million in one-time product returns from legacy cannabis customers with whom the company has ceased doing business.
Operating expenses declined year on year
Total operating expenses excluding bad debt expense were $5.9 million, down 36% from $9.3 million in the third quarter of fiscal 2025 and down 3.7% from $6.1 million in the prior sequential quarter.
The company reported bad debt expense of $5.6 million, which was $0.5 million less than in the third quarter of fiscal 2025 and $1.4 million more than in the prior quarter.
Net loss was $9.5 million
Ispire reported a net loss of $9.5 million, or $0.17 per share. This compared with a net loss of $10.9 million, or $0.19 per share, in the third quarter of fiscal 2025, and a net loss of $6.6 million in the prior sequential quarter. The company said net loss decreased 12.3% year on year and increased 44.4% sequentially.
Cash rose to $18.0 million
As of March 31, 2026, Ispire held $18.0 million in cash and had working capital of $0.9 million. Co-Chief Executive Officer Michael Wang said cash increased sequentially by $468,000 during the quarter.
Malaysia manufacturing is live
Michael Wang said Ispire’s Malaysia manufacturing is live. The company said this gives it a 25% tariff advantage over China in a global vape market estimated at about $73 billion.
Ispire said supply of nicotine pouches to global customers commenced in April 2026.
Vapor ODM is planned for July
The company said vapor ODM launches are planned for July 2026 for mid-sized brands, with large brand partnerships targeted for 2027.
Ispire said that in 2027 and beyond, age-gating technology through IKE Tech has the potential to address the U.S. flavored vape market.
The company also said its G-Mesh glass technology is drawing interest from big tobacco, with licensing discussions underway.
Company will hold earnings call
Ispire said it will hold a conference call at 8 a.m. ET on May 7, 2026, to discuss the results, followed by a question-and-answer session. A replay will be available until 11:59 p.m. ET on May 21, 2026.
Company said subsidiaries own or license more than 400 patents
Ispire said it is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products.
The company said its operating subsidiaries own or license more than 400 patents worldwide.
Its branded e-cigarette products are marketed under the Aspire name and are sold worldwide, except in the United States, China and Russia, primarily through its global distribution network.
Image Source: Ispire
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