10-Q · May 7, 2026
Ispire Technology Inc. experienced continued financial difficulties in Q3 2026, reporting a revenue decline of 28.7% to $18.7 million and a significant net loss of $9.5 million, resulting in an EPS of -$0.17. While…
Earnings analysis · 10-K
ISPR earnings analysis
Filed September 15, 2026 · Our reading of the company's report
The latest report
Ispire’s fiscal 2026 results show lower losses and materially improved operating cash burn, but the underlying trajectory remains weak: revenue declined 24.7%, gross margin compressed to 12.8% from 17.8%, and quarterly…
Read full summary
Ispire’s fiscal 2026 results show lower losses and materially improved operating cash burn, but the underlying trajectory remains weak: revenue declined 24.7%, gross margin compressed to 12.8% from 17.8%, and quarterly revenue and margins remained volatile. Management is responding with tighter credit terms, cost reductions and a greater emphasis on nicotine products, while pursuing nicotine pouches, age verification and a Malaysia manufacturing plant. However, large credit losses, heavy dependence on a related-party supplier, regulatory uncertainty and an unremediated IT control material weakness keep the outlook bearish.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.58
What stood out
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Loss Narrowed Despite Revenue Contraction
Fiscal 2026 revenue was $96.0 million, down 24.7% from $127.5 million in fiscal 2025, while net loss improved to $33.2 million, or $0.58 per diluted share, from $39.2 million, or $0.69 per share. The improvement largely reflected a $15.6 million reduction in operating expenses, including lower headcount, professional fees and marketing spending.
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Operating Cash Burn Improved
Cash used in operating activities improved to $0.6 million in fiscal 2026 from $7.4 million in fiscal 2025. This was supported by a $6.4 million decrease in accounts receivable, although it included $20.7 million of credit-loss expense and $2.8 million of inventory impairment.
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Shift Toward Nicotine Products
The company is tightening its commercial model by requiring higher upfront deposits and stricter payment terms, particularly in North America, and says it has focused more on nicotine products because of federal cannabis uncertainty. Tobacco vaping revenue was $80.1 million versus cannabis vaping revenue of $15.9 million in fiscal 2026.
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Europe Leads Geographic Mix
Europe remained the largest region at $61.4 million, or 63.9% of revenue, despite declining $12.7 million year over year. North American revenue fell $17.4 million to $15.1 million as lower-tier accounts reduced participation under the tighter payment strategy.
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New Nicotine and Compliance Roadmap
The company is developing a nicotine-pouch business through an August 2026 cooperation agreement for JinWu Health, a 49%-owned joint venture pursuing nicotine-pouch development, production and sales. It also invested in IKE Tech, a 40%-owned venture developing age-verification technology and PMTA applications for U.S. vapor products.
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Measured Investment in Capacity
Capital spending was restrained: fiscal 2026 investing cash outflow was $3.1 million, including $0.3 million for property, plant and equipment and $0.4 million for intangible assets. The Malaysia production plant under construction is expected to be put into use in 2027.
What to watch
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Unremediated IT Control Weakness
Management concluded that internal control over financial reporting was not effective as of June 30, 2026 because of a material weakness involving IT general controls for cybersecurity governance, logical access security and service-organization management. The company has begun remediation with third-party expertise, but the weakness is not considered remediated until controls operate effectively for a sufficient period.
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Receivables and Customer Concentration
Customer collection remains a major liquidity risk: the allowance for credit losses increased to $26.1 million from $18.0 million, while fiscal 2026 credit-loss expense was $20.7 million and write-offs were $12.5 million. Two customers represented 27% and 25% of fiscal 2026 revenue, increasing exposure to customer concentration and payment deterioration.
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Related-Party Supply Dependence
Supplier and related-party concentration remains substantial: Shenzhen Yi Jia, which is 95% owned by the chairman, supplied 91% of purchases in both fiscal 2026 and 2025. The company owed this supplier $29.3 million in accounts payable and an additional $47.0 million classified as amounts due to a related party, while gross margin fell from 17.8% to 12.8% amid pricing pressure and a $2.8 million inventory write-down.
Management's outlook
The 10-K does not provide quantitative annual revenue or EPS guidance; management states that current cash, operating cash flows, equity offering proceeds and borrowings are expected to support working capital needs for the next 12 months, subject to operating conditions and financing availability.
Earlier filings 4
10-Q · February 6, 2026
Ispire Technology Inc. reported a significant decline in revenue and net losses for the second quarter of fiscal 2026, partially driven by reduced sales in key markets. Despite strategic cost management, the company's…
10-Q · November 6, 2025
Ispire Technology Inc. reported a significant decrease in revenue and net loss for Q1 2026 compared to the prior year, although they exceeded revenue expectations slightly. Gross and operating margins also showed…
10-K · September 15, 2025
Ispire Technology Inc. reported a net loss of $39.2 million for the year ended June 30, 2025, an increase from $14.8 million in the prior year. Revenue decreased by 16.1% to $127.5 million, driven by declines in North…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.