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Ispire Technology, Inc. (ISPR)
NASDAQ:ISPR
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Ispire Technology, Inc.
(NASDAQ:ISPR)
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Rating:52Neutral
Price Target:
$3.50
▼(-4.89% Downside)
The score is held back primarily by weak financial performance—declining revenue, persistent losses, ongoing cash burn, and elevated balance-sheet risk from negative equity and large debt. Technical indicators are a meaningful offset (price above key moving averages with positive MACD), while valuation is constrained by the negative P/E. The latest earnings call adds modest support via improved cost control and profitability metrics, but near-term revenue and margin decline remain key risks.
Positive Factors
Manufacturing Scale Expansion
Expanding Malaysian production from 6 to 80 lines materially increases manufacturing scale and unit economics. That durable capacity growth supports longer-term B2B contracts, reduces reliance on third-party capacity, and enables margin improvement and faster fulfillment as demand normalizes.
Sustained Cost Reduction
A 39% cut in operating expenses and positive non-GAAP EBITDA indicate structural tightening of the cost base. Persistently lower Opex improves break-even economics and extends cash runway, making profitability more attainable even if top-line growth remains uneven over the next several quarters.
Strategic JV & Tech
Progress with IKE Tech’s age-verification blockchain and licensing talks across multiple regions creates a potential recurring revenue and regulatory-moat opportunity. This structural tech advantage can differentiate the company and enable B2B licensing as vape regulatory regimes tighten.
Negative Factors
Falling Revenue
A meaningful revenue decline tied to the strategic exit from cannabis customers reduces scale and recurring device sales. Lower top-line levels impair fixed-cost absorption and lengthen the timeline to sustainable profitability absent new, durable customer wins or faster market recovery.
Balance-Sheet Strain
Negative shareholders' equity and high absolute debt create persistent financial fragility, limiting the firm's ability to invest, pursue M&A, or absorb shocks. Over a multi-month horizon this elevates refinancing and covenant risk and constrains strategic flexibility.
Ongoing Cash Burn
Continued negative operating and free cash flow implies the business requires external financing or asset sales to fund operations. This structural cash deficit restricts reinvestment in product, marketing, and capacity, and raises execution risk if capital markets tighten in the next several quarters.
Ispire Technology, Inc. (ISPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$210.83M
Dividend YieldN/A
Average Volume (3M)44.30K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth-20.13%
EPS Growth-88.66%
CountryUS
Employees98
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)-0.06
Shares Outstanding57,289,864
10 Day Avg. Volume39,789
30 Day Avg. Volume44,298
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 Cap-84.50
Enterprise Value/Revenue-150.32
Enterprise Value/Gross Profit-885.30
Enterprise Value/Ebitda1.59K
Forecast
1Y Price Target
$6.50Price Target Upside76.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.1
Revenue Forecast (FY)$139.75M
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 generates revenue through a multifaceted business model that includes the sale of software licenses, subscription-based services, and hardware products. Key revenue streams consist of recurring subscriptions for cloud services and cybersecurity solutions, along with one-time fees from software licensing. Additionally, the company has established significant partnerships with major cloud service providers and enterprise resource planning (ERP) systems, allowing for bundled offerings that enhance its market reach. This strategic positioning, combined with ongoing investments in research and development, helps Ispire Technology capitalize on emerging market trends and client needs, contributing to its overall profitability.
Ispire Technology, Inc. Key Performance Indicators (KPIs)
Ispire Technology, Inc. Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant improvements in cost control and profitability metrics. Strategic shifts have led to a reduction in revenue, but the company is focused on long-term growth through new technologies and market expansions. Overall, the emphasis on profitability and strategic initiatives suggests cautious optimism.Q1-2026 Updates
Positive Updates
Significant Reduction in Operating Expenses
Total operating expenses were reduced by approximately 39% year-over-year in Q1 from $12.9 million in Q1 last year to $7.8 million in Q1 this year.
Improvement in Net Loss
Net loss improved from $5.6 million in fiscal Q1 2025 to $3.3 million for Q1 fiscal 2026.
Positive Non-GAAP EBITDA
Non-GAAP EBITDA improved to $600,000 for the quarter ended September 30, 2025.
Progress in IKE Tech Joint Venture
IKE Tech joint venture is gaining traction with blockchain-based age verification technology, and efforts are ongoing with regulators across Europe, Southeast Asia, and the Middle East.
Manufacturing Expansion in Malaysia
Build-out of the manufacturing facility in Malaysia is progressing well, with plans to increase from 6 to 80 production lines, significantly increasing capacity.
Focus on High-Quality Customers
Shifted strategic focus to higher-quality customers and the higher-value nicotine sector, strengthening cash flow and accounts receivable.
Negative Updates
Revenue Decline
Total revenue for the first quarter of fiscal 2026 was $30.4 million, a reduction of $9 million from $39.3 million compared to the first quarter of fiscal 2025.
Decrease in Gross Profit and Margins
Gross profit reduced to $5.1 million from $7.7 million the quarter prior, with gross margins declining from 19.5% to 17%.
Decline in Product Sales
Reduction in sales due to strategic shift away from cannabis customers, impacting short-term revenue.
Company Guidance
During the earnings conference call for Ispire Technology's first fiscal quarter of 2026, several key financial metrics and strategic initiatives were highlighted. The company reported a significant reduction in operating expenses, down 39% year-over-year from $12.9 million to $7.8 million. Net accounts receivable decreased from $62.4 million to $44.5 million over the same period. Net loss improved from $5.6 million in fiscal Q1 2025 to $3.3 million in fiscal Q1 2026, attributed to aggressive cost controls and a focus on higher-quality customers. Despite a year-over-year revenue decline to $30.4 million due to a strategic shift away from the cannabis sector, the company achieved a non-GAAP EBITDA of $600,000. The ongoing expansion of the Malaysian manufacturing facility is expected to enhance production capacity significantly. Additionally, the company is making strides with its IKE Tech joint venture and G-Mesh technology, aiming to establish partnerships and licensing agreements in the nicotine sector. The overall guidance suggests a continued focus on sustainable growth and profitability throughout fiscal 2026.Ispire Technology, Inc. Financial Statement Overview
Summary
Weak fundamentals: TTM revenue fell (-7%), profitability is deeply negative (EBIT margin ~-18%, net margin ~-19%), and cash generation remains negative (operating cash flow and free cash flow both below zero). Balance-sheet risk is elevated with negative stockholders’ equity and large debt, reducing financial flexibility.Income Statement
TTM (Trailing-Twelve-Months) revenue declined (-7.0%) and profitability remains weak, with a ~21% gross margin but deeply negative operating results (EBIT margin ~-18%) and a sizable net loss (net margin ~-19%). The company showed stronger growth earlier (2022–2024), but the latest annual period (2025) reflects both slowing/negative top-line momentum and widening losses versus prior years, which materially pressures the score.22
Negative
Balance Sheet
Balance-sheet risk is elevated. In TTM (Trailing-Twelve-Months), stockholders’ equity is negative, which implies a thin/strained capital base, and total debt is very large in absolute terms. While some leverage ratios are less informative with negative equity, the overall picture points to high financial risk and reduced flexibility versus earlier annual periods when equity was positive.9
Very Negative
Cash Flow
Cash generation is a key weakness: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, indicating the business is consuming cash rather than funding itself. Free cash flow improved versus the prior period (strong growth rate off a low base), but cash flow still does not cover current losses in a healthy way, keeping near-term funding and liquidity pressure elevated.18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 118.51M | 127.49M | 151.91M | 115.61M | 88.10M | 63.41M |
| Gross Profit | 20.12M | 22.65M | 29.78M | 20.78M | 13.31M | 10.42M |
| EBITDA | -11.24M | -35.76M | -12.18M | -3.40M | -843.13K | 3.96M |
| Net Income | -36.90M | -39.24M | -14.77M | -6.00M | -1.87M | 2.94M |
Balance Sheet | ||||||
| Total Assets | 96.45B | 102.22M | 122.64M | 90.40M | 100.74M | 93.86M |
| Cash, Cash Equivalents and Short-Term Investments | 22.66B | 24.35M | 35.07M | 49.43M | 74.48M | 85.25M |
| Total Debt | 4.63B | 7.06M | 3.40M | 3.91M | 347.54K | 478.11K |
| Total Liabilities | 98.22B | 101.61M | 88.18M | 58.93M | 88.97M | 80.11M |
| Stockholders Equity | -1.77B | 604.69K | 34.46M | 31.47M | 11.77M | 13.76M |
Cash Flow | ||||||
| Free Cash Flow | -24.41M | -8.47M | -21.45M | -8.60M | -7.68M | 5.02M |
| Operating Cash Flow | -23.48M | -7.37M | -18.30M | -7.58M | -7.56M | 5.02M |
| Investing Cash Flow | -4.86M | -5.20M | 2.99M | -10.15M | -121.52K | -798.00 |
| Financing Cash Flow | 4.13M | 1.85M | 10.08M | -16.44M | -3.09M | -227.85K |
Ispire Technology, Inc. Technical Analysis
Positive
3.68
Price Trends
2.69
Positive
2.54
Positive
2.67
Positive
Market Momentum
0.21
Negative
69.36
Neutral
84.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISPR, the sentiment is Positive. The current price of 3.68 is above the 20-day moving average (MA) of 2.93, above the 50-day MA of 2.69, and above the 200-day MA of 2.67, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 69.36 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.41B | 12.75 | 7.72% | 6.15% | 3.01% | -7.14% | |
69 Neutral | $2.31B | 42.66 | 22.54% | 0.28% | 6.71% | 8.16% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | $210.83M | -5.69 | -254.99% | ― | -20.13% | -88.66% | |
44 Neutral | $3.92M | >-0.01 | -133.50% | ― | -34.81% | 99.30% | |
44 Neutral | $2.22M | ― | -240.32% | ― | -78.46% | 83.71% | |
39 Underperform | $247.77K | -0.01 | -68.63% | ― | -88.85% | 68.28% |
* Consumer Defensive Sector Average
ISPR
Ispire Technology, Inc.
3.68
-0.92
-20.00%
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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.