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Ispire Technology, Inc. (ISPR)
NASDAQ:ISPR
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Ispire Technology, Inc.
(NASDAQ:ISPR)
49Neutral
Ispire Technology, Inc. (ISPR) vs. S&P 500 (SPY)
Market Cap
$158.71M
Dividend YieldN/A
Average Volume (3M)58.81K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth5.10%
EPS Growth-137.46%
CountryUS
Employees98
SectorTechnology
Sector Strength65
IndustryTobacco
Share Statistics
EPS (TTM)-0.41
Shares Outstanding57,090,973
10 Day Avg. Volume31,461
30 Day Avg. Volume58,806
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.60
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.51
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside226.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Ispire Technology, Inc. Business Overview & Revenue Model
Company DescriptionIspire Technology Inc. manufactures e-cigarettes and cannabis vaping products. 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
How the Company Makes MoneyIspire Technology, Inc. generates revenue through the sale of its proprietary hardware and software products. The company develops cutting-edge consumer electronics that are sold directly to consumers and through retail partnerships. Additionally, ISPR offers software solutions that are licensed to businesses, providing subscription-based services that create a recurring revenue stream. Key revenue streams include direct product sales, software licensing fees, and strategic partnerships that expand distribution channels and enhance market reach.
Ispire Technology, Inc. Financial Statement Overview
Summary
Ispire Technology, Inc. faces challenges with profitability and cash flow generation. The income statement shows ongoing losses and operational inefficiencies, while the balance sheet indicates a high level of liabilities. However, a strong cash position provides resilience.Income Statement
Ispire Technology, Inc.'s income statement shows challenges with profitability. The gross profit margin remains positive, but the company faces a negative net profit margin, indicating significant losses. Revenue growth has been positive from 2021 to 2023, but recent figures suggest instability in achieving sustainable profitability. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a relatively stable equity ratio, but the company has a high level of total liabilities compared to its stockholders' equity, resulting in a moderate debt-to-equity ratio. The return on equity is negative due to net losses, indicating inefficiency in generating returns for shareholders. Nevertheless, the company maintains a strong cash position, which provides some resilience.60
Neutral
Cash Flow
The cash flow statement indicates volatility in cash flow generation. Operating cash flow has been negative, but the company has managed to keep free cash flow slightly positive in the TTM period. The operating and free cash flow to net income ratios are concerning, suggesting challenges in converting earnings to cash effectively.50
Neutral
| Breakdown | |||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 151.91M | 115.61M | 88.10M | 63.41M | Gross Profit |
| 29.78M | 21.08M | 13.31M | 10.42M | EBIT |
| -13.89M | -4.57M | -988.67K | 3.64M | EBITDA |
| -11.76M | -3.68M | -843.13K | 3.65M | Net Income Common Stockholders |
| -14.77M | -6.10M | -1.87M | 2.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 35.07M | 49.43M | 74.48M | 85.25M | Total Assets |
| 122.64M | 90.69M | 100.74M | 93.86M | Total Debt |
| 3.40M | 4.30M | 347.54K | 478.11K | Net Debt |
| -31.67M | -36.00M | -74.13M | -84.77M | Total Liabilities |
| 88.18M | 59.32M | 88.97M | 80.11M | Stockholders Equity |
| 34.46M | 31.37M | 11.77M | 13.76M |
| Cash Flow | Free Cash Flow | ||
| -21.45M | -8.60M | -7.68M | 5.02M | Operating Cash Flow |
| -18.30M | -7.58M | -7.56M | 5.02M | Investing Cash Flow |
| 2.99M | -10.15M | -121.52K | -798.00 | Financing Cash Flow |
| 10.08M | -16.44M | -3.09M | -227.85K |
Ispire Technology, Inc. Technical Analysis
Negative
2.76
Price Trends
3.49
Negative
4.26
Negative
5.51
Negative
Market Momentum
-0.16
Negative
39.35
Neutral
15.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISPR, the sentiment is Negative. The current price of 2.76 is below the 20-day moving average (MA) of 3.06, below the 50-day MA of 3.49, and below the 200-day MA of 5.51, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISPR.
Ispire Technology, Inc. Risk Analysis
Ispire Technology, Inc. disclosed 47 risk factors in its most recent earnings report. Ispire Technology, Inc. reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ispire Technology, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $2.27B | 29.90 | 3.49% | 0.43% | 106.83% | 10.27% | |
59 Neutral | $10.75B | 10.37 | -6.64% | 3.00% | 7.30% | -12.02% | |
59 Neutral | $1.09B | 28.70 | 27.80% | 0.47% | -0.13% | 2.92% | |
49 Neutral | $158.71M | ― | -86.30% | ― | 5.10% | -137.46% | |
43 Neutral | $94.21K | ― | -200.95% | ― | -79.69% | 89.11% | |
36 Underperform | $2.13M | ― | -385.90% | ― | -65.44% | 96.80% | |
31 Underperform | $5.66M | ― | -70.92% | ― | -71.85% | 59.22% |
* Technology Sector Average
Performance Comparison
ISPR
Ispire Technology, Inc.
2.78
-2.93
-51.31%
XXII
22nd Century
0.90
-225.90
-99.60%
TPB
Turning Point Brands
62.10
29.74
91.90%
GNLN
Greenlane Holdings
0.01
-6.70
-99.85%
KAVL
Kaival Brands Innovations Group
0.49
-4.28
-89.73%
RLX
RLX Technology
1.84
-0.14
-7.07%
Ispire Technology, Inc. Earnings Call Summary
Earnings Call Date:Feb 10, 2025
(Q2-2025)
| % Change Since: -40.90%|
Next Earnings Date:May 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of Ispire Technology's performance. While there were significant achievements in gross margin improvement, international expansion, and strategic initiatives like the stock repurchase program and PMTA strategy, the company also faced challenges with declining revenues in key regions and increased operating expenses leading to a higher net loss.Q2-2025 Updates
Positive Updates
Gross Margin and Profit Increase
Gross margin for Q2 increased to 18.5% from 15%, with gross profit rising to $7.7 million from $6.3 million in the same quarter of fiscal 2024.
Nicotine Business Performance
Nicotine business accounted for $31 million of overall revenue, marking strong performance and expansion into new international markets, particularly in Africa.
Successful Product Launch in Africa
Launch of BrkFst nicotine product in South Africa and Nigeria, with a presence in over 500 retail locations, expected to expand to over 2,000 stores in six months.
Regulatory Approvals in Malaysia
Obtained nicotine import and export licenses from the Malaysian government, nearing completion of manufacturers license, enhancing operational capabilities.
Stock Repurchase Program
Board authorized a $10 million stock repurchase program through January 2027, reflecting confidence in Ispire's long-term vision.
Positive Cash Flow from Operations
Net cash provided by operating activities was $0.4 million, a significant improvement from $20.2 million used in the same period last year.
Component PMTA Strategy
Successful pre-PMTA meeting with FDA for age-gating technology, with potential to enter a $7 billion market opportunity in the U.S.
Negative Updates
Revenue Decline in North America
Revenue from North America decreased by $9 million or 45.3%, primarily due to lower sales of cannabis vaping products.
Revenue Decline in Asia Pacific
Asia Pacific revenues declined by $2.4 million or 39.6% compared to the prior comparable period.
Increased Operating Expenses
Total operating expenses rose to $15.11 million from $10.2 million, driven by investments in Malaysian production facilities and product development.
Net Loss Increase
Net loss increased to $8 million or $0.14 per share compared to a net loss of $4 million or $0.07 per share in the prior period.
Company Guidance
During the Ispire Technology earnings call for the fiscal second quarter of 2025, several key metrics and strategic initiatives were highlighted. The company reported a slight revenue increase to $41.8 million, a 0.3% rise from the previous year's $41.7 million, and an improvement in gross margin to 18.5% from 15%, resulting in a gross profit of $7.7 million. The nicotine business generated $31 million of total revenue, with significant contributions from new international markets, notably Africa. The launch of the BrkFst nicotine product in South Africa and Nigeria marked a milestone, expanding to over 500 retail locations. The company's stock repurchase program of up to $10 million was authorized, reflecting confidence in long-term growth. Despite a net loss of $8 million, the cash position was strong at $34.4 million. Additionally, Ispire is advancing with regulatory approvals in Malaysia and preparing for the UK market launch, positioning itself strategically in the global nicotine market.Ispire Technology, Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Ispire Technology Sees Profit Growth Amid Revenue Drop
Positive
Nov 12, 2024
Ispire Technology Inc. reported a 13.2% increase in gross profit for the first fiscal quarter of 2025, reaching $7.7 million, despite an 8.2% drop in revenue compared to last year. The company attributes this growth to strategic shifts focusing on high-quality customers and improving payment terms. Ispire is expanding its global reach with a new distribution agreement in the MENA region and advancing its innovative vaping technologies, positioning itself for continued success amid a challenging economic landscape.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.