Ispire Technology Inc. Reports Financial Results for Fiscal Third Quarter 2026

Published: 2026-05-07 07:01:17 ET ISPR

Published on 05/07/2026 at 07:01 am EDT

Cash Increased Sequentially by $468,000 to $18 Million

Plans to Achieve Cash Flow Positive in Second Half of Calendar Year 2026

Business Stabilized Following Strategic Repositioning

Phased Roadmap Targets Billions in Addressable Market, Including ~$73B Global Vape, ~$50–70B U.S. Flavored Vape, and $24B+ Global G-Mesh Glass Technology

LOS ANGELES, May 7, 2026 /PRNewswire/ -- Ispire Technology Inc. (Nasdaq: ISPR) ("Ispire," the "Company," "we," "us," or "our"), an innovator in vaping technology and precision dosing, today reported financial results for the third quarter of fiscal 2026, for the three months ended March 31, 2026.

Michael Wang, Co-Chief Executive Officer of Ispire, commented, "This quarter reflects the successful stabilization of our business and with cash growing sequentially by $468,000 to $18 million, we are now executing against a phased roadmap, with near-term revenue drivers already in production and transformative technology opportunities on the horizon:

"With cash generation this quarter and proprietary technologies in age-gating and G-Mesh that no competitor can replicate, we have multiple shots on goal across billion-dollar markets, and we believe Ispire is uniquely positioned to deliver outsized value for shareholders."

Multiple Growth Catalysts, Each Backed by a Massive Addressable Market

Catalyst

Timeline

Opportunity

Malaysia Manufacturing

Now

~$73B global vape market; 25% tariff advantage over China

Vapor ODM

July 2026 / 2027

Mid-sized brands in 2026; large brand partnerships in 2027

Age-Gating (IKE Tech)

2027+

~$50-70B US flavored vape market currently locked; ~6B devices/year US TAM

G-Mesh Technology

2027+

$24B+ legal global vape market; licensing discussions with big tobacco underway

Financial Results for the Fiscal Third Quarter Ended March 31, 2026

Conference Call

The Company will conduct a conference call at 8 am ET on Friday, May 7, 2026, to discuss the results, followed by a Q&A session.

To listen to the conference call, please dial in using the information below. When prompted upon dialing-in, please ask for the "Ispire Technology Call."

This conference call will be webcast live and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1761477&tp_key=3958311007

Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.

A playback will be available until 11:59 pm ET on Friday, May 21, 2026. To listen, please dial 1-844-512-2921 or 1-412-317-6671. Use the passcode 10208863 to access the replay.

About Ispire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 400 patents worldwide. Ispire's branded e-cigarette products are marketed under the Aspire name and are sold worldwide (except in the U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company also engages in original design manufacture (ODM) relationships with e-cigarette brands and retailers worldwide. The Company's cannabis products are marketed under the Ispire brand name primarily on an ODM basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware in the US, Europe and South Africa and it recently commenced marketing activities and customer engagement in Canada and Latin America. For more information visit www.ispiretechnology.com or follow Inspire on Instagram, LinkedIn, Twitter and YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: whether the Company may be successful in re-entering the U.S. ENDS market; the approval or rejection of any PMTA submitted by the Company; whether the Company will be successful in its plans to further expand into the African market; whether the Company's joint venture with Touch Point Worldwide Inc. d/b/a/ Berify and Chemular Inc. (the "Joint Venture") may be successful in achieving its goals as currently contemplated, with different terms, or at all; the Joint Venture's ability to innovate in the e-cigarette technology space or develop age gating or age verification technologies for nicotine vaping devices; the Company's ability to collect its accounts receivable in a timely manner; the Company's business strategies; the ability of the Company to market to the Ispire ONE™; Ispire ONE™'s success in meeting its goals; the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of its products on the markets; the Ispire ONE™ proving to be safe; and the risk and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" and the additional risk described in Ispire's Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequent filings which Ispire makes with the SEC. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by applicable law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:

HAYDEN IR:James Carbonara(646)[email protected]

Brett Maas(646) [email protected]

-- Tables Follow –

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In $USD, except share and per share data)

March 31,2026

June 30,2025

Assets

Current assets:

Cash

18,033,652

24,351,765

Restricted cash

50,000

Accounts receivable, net

28,651,558

39,664,145

Inventories

5,480,044

6,647,970

Prepaid expenses and other current assets

3,523,741

2,244,505

Total current assets

55,738,995

72,908,385

Non-current assets:

Accounts receivable, net of current portion

7,367,158

Property, plant and equipment, net

2,665,534

2,952,800

Intangible assets, net

2,601,408

2,232,620

Right-of-use assets – operating leases

3,855,373

5,030,005

Other investment

2,000,000

Equity method investment

8,839,130

9,515,546

Other non-current assets

210,617

Total non-current assets

20,172,062

29,308,746

Total assets

75,911,057

102,217,131

Liabilities and stockholders' (deficit)/equity

Current liabilities

Accounts payable

5,005,033

4,172,476

Accounts payable – related party

38,159,288

52,420,256

Contract liabilities

3,043,470

4,861,250

Accrued liabilities and other payables

6,003,509

8,099,991

Borrowing – current portion

1,092,052

1,146,766

Operating lease liabilities – current portion

1,546,770

1,838,815

Total current liabilities

54,850,122

72,539,554

Non-current liabilities:

Amount due to a related party

35,000,000

25,000,000

Borrowing – net of current portion

805,361

Operating lease liabilities – net of current portion

2,265,347

3,267,522

Total non-current liabilities

37,265,347

29,072,883

Total liabilities

92,115,469

101,612,437

Commitments and contingencies

Stockholders' (deficit)/equity:

Common stock, par value $0.0001 per share; 140,000,000 shares authorized; 57,399,396 and 57,193,734 shares issued and outstanding as of March 31, 2026 and June 30, 2025

5,740

5,719

Treasury stock, at cost

(60,488)

Additional paid-in capital

51,541,046

48,833,601

Accumulated deficit

(67,450,024)

(48,065,267)

Accumulated other comprehensive loss

(240,686)

(108,871)

Total stockholders' (deficit)/equity

(16,204,412)

604,694

Total liabilities and stockholders' (deficit)/equity

75,911,057

102,217,131

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS

(In $USD, except share and per share data)

Three Months EndedMarch 31,

Nine Months EndedMarch 31,

2026

2025

2026

2025

Revenue

18,685,501

26,190,725

69,322,941

107,356,898

Cost of revenue

16,694,576

21,414,820

58,710,643

87,184,044

Gross profit

1,990,925

4,775,905

10,612,298

20,172,854

Operating expenses:

Sales and marketing expenses

1,091,907

1,656,527

4,133,079

6,710,438

Credit loss expenses

5,564,497

6,103,688

11,537,950

13,389,767

General and administrative expenses

4,818,256

7,601,131

13,995,180

23,281,014

Total Operating expenses

11,474,660

15,361,346

29,666,209

43,381,219

Loss from operations

(9,483,735)

(10,585,441)

(19,053,911)

(23,208,365)

Other income (expense):

Interest income

52,971

3,480

253,365

63,321

Interest expense

(87,215)

(35,646)

(299,582)

(60,183)

Exchange (loss) gain, net

(30,294)

24,341

269,745

(103,247)

Other income (expense), net

202,697

(86,239)

215,688

(47,906)

Total Other income (expense), net

138,159

(94,064)

439,216

(148,015)

Loss before income taxes

(9,345,576)

(10,679,505)

(18,614,695)

(23,356,380)

Income taxes

(177,407)

(176,990)

(770,062)

(1,093,774)

Net loss

(9,522,983)

(10,856,495)

(19,384,757)

(24,450,154)

Other comprehensive loss

Foreign currency translation adjustments

(10,490)

(2,860)

(131,815)

(84,327)

Comprehensive loss

(9,533,473)

(10,859,355)

(19,516,572)

(24,534,481)

Net loss per share

Basic and diluted

(0.17)

(0.19)

(0.34)

(0.43)

Weighted average shares outstanding:

Basic and diluted

57,293,826

57,003,488

57,269,726

56,752,454

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In $USD, except share and per share data)

Nine Months EndedMarch 31,

2026

2025

Net loss

(19,384,757)

(24,450,154)

Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:

Depreciation and amortization

691,894

592,280

Credit loss expenses

11,537,950

13,389,767

Right-of-use assets amortization

1,172,118

1,001,101

Stock-based compensation expenses

2,752,467

4,923,751

Inventory impairment

2,386,751

73,692

Loss from equity method investment

676,416

407,028

Debt issuance cost amortization

96,937

Changes in operating assets and liabilities:

Accounts receivable

6,841,795

(14,080,837)

Inventories

(1,218,825)

(1,485,433)

Prepaid expenses and other current assets

(1,332,448)

(715,969)

Accounts payable and accounts payable – related party

(3,428,411)

10,962,439

Contract liabilities

(1,817,780)

(756,872)

Accrued liabilities and other payables

(876,774)

(969,068)

Operating lease liabilities

(1,291,706)

(961,244)

Net cash used in operating activities

(3,194,373)

(12,069,519)

Cash flows from investing activities:

Purchase of property, plant and equipment

(324,225)

(140,956)

Capitalized costs for patents

(449,191)

(781,254)

Investment in joint venture

(1,298,311)

(767,285)

Net cash used in investing activities

(2,071,727)

(1,689,495)

Cash flows from financing activities:

Common stock repurchase

(45,001)

(60,488)

Proceeds from long term debt

2,339,362

Repayment of borrowing

(957,012)

Net cash (used in)/provided by financing activities

(1,002,013)

2,278,874

Net decrease in cash

(6,268,113)

(11,480,140)

Cash – beginning of period

24,351,765

35,071,294

Cash and restricted cash– end of period

18,083,652

23,591,154

Reconciliation of cash and restricted cash

Cash

18,033,652

23,518,560

Restricted cash

50,000

72,594

Total cash and restricted cash

18,083,652

23,591,154

Supplemental non-cash investing and financing activities

Reclassification of accounts receivable – noncurrent to accounts receivable

6,934,364

Reclassification of accounts payable – related party to amount due to a related party

10,000,000

Leased assets obtained in exchange for operating lease liabilities

2,771,082

Unpaid long term investment in accrued liabilities and other payables

8,232,715

Supplemental disclosures

Cash paid for income taxes

1,614,273

1,413,533

Cash paid for interest

299,582

60,183

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In $USD, except share and per share data)

Three Months Ended

March 31,

2026

2025

Net loss

$ (9,522,983)

$ (10,856,495)

Adjustments to reconcile net loss to net cash -used in/provided by operating activities:

$ -

Depreciation and amortization

$ 210,652

$ 198,955

Credit loss expenses

$ 5,564,497

$ 6,103,688

Right-of-use assets amortization

$ 479,982

$ 371,717

Stock-based compensation expenses

$ 992,478

$ 1,470,877

Inventory impairment

$ 849,313

$ -

Loss from equity method investment

$ 290,083

$ 230,360

Debt issuance cost amortization

$ 32,312

$ -

Changes in operating assets and liabilities:

$ -

Accounts receivable

$ 3,662,298

$ 1,170,940

Inventories

$ (1,291,943)

$ 181,075

Prepaid expenses and other current assets

$ (363,641)

$ 139,686

Accounts payable and accounts payable – related party

$ 3,582,462

$ (9,743,313)

Contract liabilities

$ (1,927,665)

$ (549,992)

Accrued liabilities and other payables

$ (99,500)

$ (838,174)

Operating lease liabilities

$ (489,737)

$ (376,953)

Income tax payable

$ (12,590)

$ -

Net cash provided by operating activities

$ 1,956,018

$ (12,497,629)

$ -

Cash flows from investing activities:

$ -

Purchase of property, plant and equipment

$ (247,347)

$ 181,808

Capitalized costs for patents

$ (156,349)

$ -

Investment in joint venture

$ (765,000)

$ (767,285)

Net cash used in investing activities

$ (1,168,696)

$ (585,477)

$ -

Cash flows from financing activities:

$ -

Common stock repurchase

$ -

$ (60,488)

Proceeds from long term debt

$ -

$ 2,339,362

Repayment of borrowing

$ (319,004)

$ -

Net cash used in financing activities

$ (319,004)

$ 2,278,874

$ -

Net increase in cash

$ 468,318

$ (10,804,232)

Cash – beginning of period

$ 17,615,334

$ 34,395,386

Cash and restricted cash– end of period

$ 18,083,652

$ 23,591,154

Reconciliation of cash and restricted cash

Cash

$ 18,033,652

$ 23,518,560

Restricted cash

$ 50,000

$ 72,594

Total cash and restricted cash

$ 18,083,652

$ 23,591,154

Supplemental non-cash investing and financing activities

Reclassification of accounts receivable – noncurrent to accounts receivable

$ -

Reclassification of accounts payable – related party to amount due to a related party

$ 6,000,000

$ -

Leased assets obtained in exchange for operating lease liabilities

$ -

$ 2,771,082

Unpaid long term investment in accrued liabilities and other payables

$ -

$ 8,232,715

Supplemental disclosures

$ -

Cash paid for income taxes

$ 3,081 -

$ -

Cash paid for interest

$ 87,215

$ 35,646

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SOURCE Ispire Technology Inc.