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Ispire Technology, Inc. (ISPR)
:ISPR
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Ispire Technology, Inc.
(NASDAQ:ISPR)
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Select Model
Rating:42Neutral
Price Target:
$2.50
▲(3.31% Upside)
Ispire Technology, Inc. faces significant financial challenges, with negative profitability and cash flow issues being the most critical factors. The technical analysis indicates a bearish trend, and the valuation is unattractive due to the negative P/E ratio. The strategic shift towards the nicotine sector and cost optimization measures are positive but are overshadowed by short-term financial setbacks.
Ispire Technology, Inc. (ISPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$140.90M
Dividend YieldN/A
Average Volume (3M)50.31K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-16.07%
EPS Growth-155.70%
CountryUS
Employees98
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)-0.26
Shares Outstanding57,277,874
10 Day Avg. Volume48,190
30 Day Avg. Volume50,309
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)240.69
Price to Sales (P/S)1.14
P/FCF Ratio-17.17
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit4.20
Enterprise Value/Ebitda-5.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Ispire Technology, Inc. Business Overview & Revenue Model
Company DescriptionIspire Technology, Inc. (ISPR) is a cutting-edge technology company focused on developing innovative consumer electronics and software solutions. Operating primarily in the sectors of smart home technology and IoT (Internet of Things), Ispire offers a range of products including smart appliances, home automation systems, and cloud-based services that enhance connectivity and user experience. The company is committed to delivering high-quality, user-friendly technology that integrates seamlessly into everyday life.
How the Company Makes MoneyIspire Technology generates revenue through multiple streams including the sale of its smart home devices and appliances, subscription services for its cloud-based software, and partnerships with retailers and online marketplaces for distribution. Additionally, the company may earn income through licensing agreements for its technology and software solutions. Strategic alliances with other tech firms and service providers help expand its market reach and enhance its product offerings, contributing significantly to its revenue growth.
Ispire Technology, Inc. Earnings Call Summary
Earnings Call Date:Sep 16, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strategic transformation for Ispire, highlighting significant steps toward focusing on the nicotine sector and cost optimization. While there were notable achievements in reducing accounts receivable and expanding in Europe and Malaysia, the company faced challenges with a decline in revenue, particularly in North America, and increased operating expenses. Overall, the company positions itself for future growth despite short-term financial setbacks.Q4-2025 Updates
Positive Updates
Strategic Shift Towards Nicotine Sector
Ispire strategically pivoted away from cannabis to focus on the higher-value nicotine sector, investing in nicotine manufacturing capabilities and scaling production in Malaysia.
Reduction in Net Accounts Receivable
The company reduced net accounts receivable by over 21% year-over-year and reduced quarter-over-quarter gross accounts receivable by $6.9 million or 9.1%.
Cost Optimization Measures
Annual expenses were reduced by a total estimated savings of $10.2 million, contributing to a more focused and agile organization.
European Revenue Growth
European revenue increased by $8.8 million or 13.6% compared to the previous year.
Advancements in Regulatory Initiatives
Progress in PMTA activities for their devices and the groundbreaking component PMTA submission by IKE Tech LLC, with potential significant regulatory impacts.
Malaysian Manufacturing Expansion
Plans to expand Malaysian operations to have capacity for up to 80 production lines, enhancing manufacturing capabilities for future growth.
Negative Updates
Revenue Decline
Total revenue for fiscal year 2025 declined from $151.9 million to $127.5 million, a decrease of $24.4 million due to the strategic shift.
North American Revenue Drop
North American revenue fell to $32.6 million from $63.1 million, mainly due to the strategic pivot away from cannabis.
Gross Profit and Margin Decrease
Gross profit declined to $22.7 million from $29.8 million, with gross margins decreasing from 19.6% to 17.8%.
Increased Operating Expenses
Operating expenses increased to $60.5 million from $43.7 million, primarily due to higher sales and marketing expenses and a rise in bad debt expense.
Company Guidance
During the Ispire Technologies earnings call for the fiscal fourth quarter and full year 2025, the company provided detailed guidance on its strategic shift and financial performance. Despite a revenue decline from $151.9 million in fiscal 2024 to $127.5 million in fiscal 2025, the company made a deliberate pivot away from the cannabis sector towards the higher-value nicotine market. This strategic move led to a 21% reduction in net accounts receivable year-over-year and a quarter-over-quarter reduction in gross accounts receivable by $6.9 million or 9.1%. Additionally, general and administrative expenses decreased from $7.6 million in Q3 2025 to $6.7 million in Q4 2025, resulting in an estimated annual savings of $10.2 million. The company also highlighted its investments in expanding Malaysian manufacturing capabilities, planning to increase production lines from 6 to 80, and emphasized its ongoing regulatory efforts with the FDA regarding its age verification technology. Looking to the future, Ispire anticipates that its international nicotine business, particularly its Original Design Manufacturer (ODM) partnerships, will drive significant revenue growth, supported by its innovative technologies like IKE Tech and G-Mesh.Ispire Technology, Inc. Financial Statement Overview
Summary
Ispire Technology, Inc. is experiencing rapid revenue growth but faces significant profitability and cash flow challenges. The high leverage and negative equity returns pose financial risks, while negative cash flows highlight operational inefficiencies. The company needs to address these issues to improve its financial health.Income Statement
Ispire Technology, Inc. has shown significant revenue growth, with a remarkable increase of 384.6% in the latest year. However, the company is struggling with profitability, as indicated by negative EBIT and net profit margins. The substantial losses in EBIT and net income highlight ongoing operational challenges.35
Negative
Balance Sheet
The company's balance sheet shows a high debt-to-equity ratio, indicating potential leverage risks. The return on equity is negative, reflecting the company's inability to generate profit from its equity base. The equity ratio is relatively low, suggesting limited financial stability.40
Negative
Cash Flow
Cash flow analysis reveals negative operating and free cash flows, indicating cash management issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash.30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 144.70M | 127.49M | 151.91M | 115.61M | 88.10M | 63.41M |
| Gross Profit | 30.74M | 22.65M | 29.78M | 21.08M | 13.31M | 10.42M |
| EBITDA | -23.45M | -35.76M | -12.18M | -3.40M | -843.13K | 3.96M |
| Net Income | -27.87M | -39.24M | -14.77M | -6.00M | -1.87M | 2.94M |
Balance Sheet | ||||||
| Total Assets | 115.73M | 102.22M | 122.64M | 90.69M | 100.74M | 93.86M |
| Cash, Cash Equivalents and Short-Term Investments | 23.59M | 24.35M | 35.07M | 49.43M | 74.48M | 85.25M |
| Total Debt | 7.56M | 7.06M | 3.40M | 3.91M | 347.54K | 478.11K |
| Total Liabilities | 100.94M | 101.61M | 88.18M | 59.32M | 88.97M | 80.11M |
| Stockholders Equity | 14.79M | 604.69K | 34.46M | 31.37M | 11.77M | 13.76M |
Cash Flow | ||||||
| Free Cash Flow | -14.72M | -8.47M | -21.45M | -8.60M | -7.68M | 5.02M |
| Operating Cash Flow | -13.49M | -7.37M | -18.30M | -7.58M | -7.56M | 5.02M |
| Investing Cash Flow | -4.65M | -5.20M | 2.99M | -10.15M | -121.52K | -798.00 |
| Financing Cash Flow | 2.28M | 1.85M | 10.08M | -16.44M | -3.09M | -227.85K |
Ispire Technology, Inc. Technical Analysis
Negative
2.42
Price Trends
2.78
Negative
2.74
Negative
3.20
Negative
Market Momentum
-0.11
Negative
42.10
Neutral
60.45
Neutral
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 2.42 is below the 20-day moving average (MA) of 2.43, below the 50-day MA of 2.78, and below the 200-day MA of 3.20, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of 60.45 is Neutral, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.33B | 13.01 | 7.20% | 6.09% | 4.11% | -15.50% | |
64 Neutral | $1.58B | 36.69 | 26.05% | 0.34% | 4.44% | -5.94% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
43 Neutral | $4.62M | ― | -149.74% | ― | -72.92% | 85.19% | |
42 Neutral | $140.90M | ― | -223.84% | ― | -16.07% | -155.70% | |
40 Underperform | $5.60M | ― | -616.13% | ― | -49.46% | 99.12% | |
31 Underperform | $7.25M | ― | -68.63% | ― | -88.85% | 68.28% |
* Consumer Defensive Sector Average
ISPR
Ispire Technology, Inc.
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Ispire Technology, Inc. Corporate Events
Ispire Technology Reports Shift in Market Dynamics
Sep 17, 2025
Ispire Technology, Inc. is a company engaged in the research, development, design, commercialization, sales, marketing, and distribution of vaping hardware products in both the nicotine and cannabis sectors, with a focus on delivering innovative and superior products to enhance consumer experience. The company recently released its annual earnings report for the fiscal year ending June 30, 2025, highlighting its strategic initiatives and financial performance. The report indicates a shift in revenue distribution, with Europe becoming the largest market, accounting for 58.1% of total revenue, while North America saw a significant decline. The company also reported a total revenue of $127.5 million, a decrease from the previous year’s $151.9 million. Ispire Technology is focusing on expanding its market presence by increasing the number of distributors and regions for its e-cigarette and cannabis products, as well as enhancing its research and development efforts to maintain technological leadership. Looking ahead, Ispire Technology aims to continue its growth strategy by expanding its product offerings and market reach, while navigating regulatory challenges in the vaping industry.
Ispire Technology’s Strategic Shift in Earnings Call
Sep 17, 2025
In the latest earnings call, Ispire Technology, Inc. conveyed a sentiment of strategic transformation, focusing on the nicotine sector and cost optimization. The company highlighted achievements in reducing accounts receivable and expanding operations in Europe and Malaysia. However, the call also acknowledged challenges, such as a decline in revenue, particularly in North America, and increased operating expenses. Despite these short-term financial setbacks, Ispire positions itself for future growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.