NASDAQ$ISPR

Ispire Technology Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Ispire Technology Inc. reported a decrease in revenue and net loss for Q3 2025 compared to the previous year, with a notable increase in gross profit margin for the nine-month period.

Ispire Technology Inc. experienced a decrease in revenue and an increased net loss for the three months ended March 31, 2025, primarily due to reduced sales of vaping products in North America and Asia Pacific, despite an increase in sales in South America. The company's gross profit margin decreased for the quarter but improved for the nine-month period.

  • Revenue decreased by $3.8 million, or 12.7%, for the three months ended March 31, 2025, compared to the same period last year.
  • Net loss increased to $(10,856,495) for the three months ended March 31, 2025, from $(5,925,123) in the prior year.
  • Gross profit decreased by $1.3 million for the three months ended March 31, 2025, with gross margin decreasing from 20.4% to 18.2%.
  • Operating expenses increased by $3.58 million, or 23.3%, for the three months ended March 31, 2025, driven by higher credit loss expenses and professional fees.

Headline financials

Total Revenue

$26.2M

Previous: $30M-12.7%
EPS (adj)

-$0.19

Previous: -$0.11-72.7%
Gross Margin

18.2%

No prior period
Operating Expenses

$15.4M

No prior period
Sales & Marketing

$1.66M

No prior period
General & Administrative

$13.7M

No prior period
Net Interest Income

-$32.2K

No prior period
FX Gain/Loss

$24.3K

No prior period
Other Income

-$86.2K

No prior period
Income Taxes

$177K

No prior period
FX Translation Adj.

-$2.86K

No prior period
Weighted Avg Shares

57.0M

No prior period
Capital Expenditures

-$141K

Previous: -$1.21M+88.3%
Net Income

-$10.9M

Previous: -$5.95M-82.5%
Operating Income

-$10.6M

Previous: -$5.68M-86.4%
Gross Profit

$4.78M

Previous: $6.12M-22.0%

Revenue & EPS history

Ispire · Revenue · Quarterly

$26.2M

Q3 2025-12.7%vs Q3 2024
Beat estimate in 2 of 11 quarters(18%)
ActualEstimate

Revenue by segment

Ispire · $20.1M total across 1 segment · Q4 2025

  • Vaping Products
    $20.1M

Forward guidance

The company anticipates continued challenges and opportunities, including navigating regulatory changes, expanding into new markets, and managing supply chain dynamics.

Tailwinds

  • Ability to manufacture cannabis hardware in Malaysia offers a substantial discount compared to China, providing a competitive advantage.
  • Customers are seeking to diversify production supply chains out of China and into Malaysia, potentially increasing demand for Ispire's Malaysian operations.
  • Submission of PMTA application for a disposable ENDS product signals re-entry into the US ENDS market.
  • Plans to amend or resubmit PMTA application with age-gating technology, and submit additional PMTA applications for pod-based ENDS systems.
  • Current cash and future cash flows from operations and bank loan are believed to be sufficient to meet working capital needs for the next 12 months.

Headwinds

  • Changes in regulatory environment for e-cigarettes and vaping products could severely disrupt business.
  • Imposition of new laws or regulations in major customer countries could adversely affect business.
  • Increased excise taxes on products could negatively impact pricing and value proposition.
  • Greater price gap between legal and illicit vaping products could incentivize consumers to buy illicit products.
  • Tariffs on Chinese-made products, which constitute a significant portion of cost of revenue, could increase costs and affect gross profit margins.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

-0.2%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-9.1%

Avg return

30 days after

31%

5 / 16 earnings

Positive

+27.2%

Q1 2024

Best reaction

-12.7%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-5.7%+1.2%+1.2%
Q2 2026+9.5%+14.4%-20.9%
Q1 2026-9.0%-11.0%+26.4%
Q4 2025-1.8%-19.0%-28.9%
Q3 2025-3.7%+6.6%-9.5%
Q2 2025-8.4%-6.6%-14.6%
Q1 2025-4.0%+4.2%-2.6%
Q4 2024+13.4%+7.6%+6.7%
Q3 2024+5.9%+20.2%+18.6%
Q2 2024-12.7%-16.7%-32.4%
Q1 2024+27.2%+2.1%-19.9%
Q4 2023+7.7%+6.0%+0.7%
Q1 2023-9.9%+0.5%-15.6%
Q4 2022-3.9%-1.7%-18.2%
Q3 2023-3.9%-1.7%-18.2%
Q3 2022-3.9%-1.7%-18.2%
Q2 2023
Q2 2021
Q1 2022

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