Ispire Technology (ISPR) investor relations material

Executive summary

• Achieved an inflection point after a year of cost-cutting and customer quality rationalization, focusing on high-quality nicotine sector clients and moving away from lower-value and slower-paying cannabis sector customers.

• Revenue for the quarter ended December 31, 2025, was $20.3 million, down 51.5% year-over-year, with a net loss of $6.6 million, an improvement from a $8.0 million loss in the prior year period.

• Strategic pivot to Malaysia for production aligns with rising costs in China and global nicotine sector trends.

• Innovations in age-gating technology and G-Mesh vaping hardware are gaining traction, with regulatory and industry interest intensifying.

• Operating expenses fell 31.4% year-over-year, reflecting cost reductions in payroll, marketing, and professional fees, especially in North America.

Financial highlights

• Revenue for Q2 2026 was $20.3 million, down from $41.8 million year-over-year due to strategic realignment and lower sales in the U.S. and Europe.

• Gross profit was $3.5 million, with gross margin at 17.1%, down from 18.5% in Q2 2025.

• Net loss reduced to $6.6 million from $8 million year-over-year; six-month net loss improved by $3.7 million.

• Operating expenses dropped to $10.3 million from $15.1 million year-over-year.

• Cash and cash equivalents at quarter-end were $17.6 million.

Outlook and guidance

• Expects continued improvement in cost management, accounts receivable, and net loss through fiscal 2026.

• Anticipates revenue growth and progress toward profitability as new deals and innovations materialize.

• Management expects current cash and cash flows from operations, along with proceeds from recent equity offerings and borrowings, to be sufficient for working capital needs over the next 12 months.

• Additional financing may be required if adverse conditions arise or if growth is accelerated.