Ispire Technology NASDAQ: ISPR said it is entering fiscal 2027 with higher quarterly revenue, a reduced operating cost base and new manufacturing licenses in Malaysia, while continuing to work through legacy receivables and pursue commercialization opportunities for its nicotine technology platforms.
President Steven Przybyla described the company’s recent performance as an “important inflection point” in a turnaround effort that began more than a year ago. He said management has focused on cleaning up the balance sheet, cutting costs, addressing legacy issues and developing growth initiatives.
“We are seeing improving revenue momentum against a much leaner cost structure and a stronger balance sheet,” Przybyla said. He added that Ispire expects its remaining legacy accounts-receivable write-offs to be “substantially addressed” during fiscal 2027, with little or no carryover into subsequent years.
Quarterly Revenue Rises, Though Losses Continue
Chief Financial Officer Jay Yu said revenue for the quarter ended June 30, 2026, was $26.7 million, up 33% from $20.1 million in the comparable year-earlier period and 43% from $18.7 million in the prior quarter.
Gross profit was $1.7 million, producing a gross margin of 6.3%, compared with gross profit of $2.5 million and a 12.3% margin a year earlier. Yu said the margin decline reflected an inventory impairment recognized during the quarter.
Operating expenses excluding credit losses totaled $6 million, down 28.6% from $8.5 million a year earlier and up 2.3% sequentially. Credit losses were $9.2 million, down about 6.2% year over year, as the company continued to resolve legacy receivables.
Net loss was $13.8 million, compared with a $14.8 million loss a year earlier and a $9.5 million loss in the preceding quarter. Adjusted EBITDA was a loss of $2.3 million, improving from a $4.4 million adjusted EBITDA loss in the year-earlier period.
For fiscal 2026, revenue fell to $96 million from $127.5 million in fiscal 2025. Yu attributed the decline primarily to lower U.S. cannabis-vaping hardware sales, lower European vaping-product sales and a modest decline in the Asia-Pacific business excluding China.
- Fiscal 2026 gross profit was $12.3 million, compared with $22.6 million in fiscal 2025.
- Gross margin declined to 12.8% from 17.8%, reflecting product-mix changes and a one-time increase in inventory provisions.
- Operating expenses excluding credit losses declined 37% to $24.2 million.
- Net loss improved to $33.2 million from $39.2 million.
- Adjusted EBITDA loss narrowed to $4 million from $8.8 million.
Ispire ended fiscal 2026 with $19.3 million in cash, down from $24.4 million at the end of fiscal 2025. However, cash used in operating activities improved to $569,000 from $7.4 million in the prior fiscal year.
Malaysia Manufacturing Moves Into Production
Management identified Malaysia as a central component of its fiscal 2027 strategy. Ispire received a nicotine manufacturing license for vapor products in March 2026 and a license to produce nicotine pouches in May 2026. Przybyla said fiscal 2027 will be the company’s first full fiscal year of vapor and nicotine-pouch production at company-owned Malaysian facilities.
The company has completed pilot runs for several customers, delivered initial orders and received reorders from certain original equipment manufacturing and original design manufacturing customers on the vapor side, according to Przybyla. Nicotine-pouch production began in June, and the company has also received pouch reorders.
Przybyla said Ispire will make planned investments in automation, infrastructure and workforce at the Malaysia facility. A second factory can accommodate up to 73 production lines, he said, adding that automated lines running multiple shifts could provide capacity in the hundreds of millions of units.
Management did not provide a revenue forecast for Malaysian production. Przybyla said order activity should mature over the next two quarters and that the company expects better visibility into the fiscal-year revenue opportunity in the next three to six months.
He said global tobacco companies have shown particular interest in nicotine pouches, while Chinese vapor brands and manufacturers are exploring offshore production options. Management said it has received visits from major global tobacco companies and expects several commercial opportunities to develop during fiscal 2027.
IKE Technology Pursues Age-Gating Partnerships
Ispire also highlighted IKE Tech, its technology joint venture focused on point-of-use age verification, product authentication and compliance tools for regulated nicotine markets. The company expects to launch IKE 2.0, which includes user-experience enhancements, in the fall.
Przybyla said he participated in four meetings with the Food and Drug Administration and Department of Health and Human Services during the prior six months, including a June 15 meeting with the FDA’s acting commissioner. He said agency feedback on point-of-use age gating had been positive.
During the question-and-answer session, Przybyla said IKE has spoken with every company that has an authorized electronic nicotine-delivery-system device. Some discussions have advanced to potential pilot evaluations, and the company sees interest from companies considering supplemental premarket tobacco product applications that could incorporate IKE’s modular age-gating technology.
Ispire’s component PMTA remains under review. Przybyla said the company believes it could see favorable developments in the process “in the next several months,” while emphasizing that IKE’s strategy extends beyond a single regulatory pathway.
The company also said it sees a potential liquidity event involving IKE during fiscal 2027 that would be separate from regulatory authorization, though management did not provide further details.
Looking ahead, Przybyla said the company’s priorities are bringing Malaysian manufacturing capacity online, converting commercial discussions into revenue and advancing IKE and GMASH technology platforms toward commercialization. He cautioned that significant planned payments for the Malaysia manufacturing facility could make it difficult to provide a specific timeline for becoming cash-flow positive.
About Ispire Technology (NASDAQ:ISPR)
Ispire Technology Inc researches, develops, designs, commercializes, sales, markets, and distributes e-cigarettes and cannabis vaping products worldwide. The company was founded in 2019 and is based in Los Angeles, California. Ispire Technology Inc operates as a subsidiary of Pride Worldwide Investment Limited.
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