Overview

* Ispire Technology ( ISPR ) fiscal 2025 revenue falls to $127.5 mln, missing analyst expectations

* Net loss widens to $39.2 mln from $14.8 mln in fiscal 2024

* Company shifts focus from cannabis to nicotine sector, prioritizing quality customers

Outlook

* Ispire sees $18 mln in backlog orders entering fiscal Q1 2026

* Company focuses on nicotine sector for sustainable growth

* Ispire ( ISPR ) progressing preparations for advancing PMTA submissions for flavored ENDS products

* Company's international nicotine ODM business gaining momentum

Result Drivers

* REVENUE DECLINE - Revenue fell to $127.5 mln from $151.9 mln in FY 2024, attributed to strategic shift from cannabis to nicotine sector

* GROSS MARGIN DROP - Gross margin decreased to 17.8% from 19.6% in FY 2024, impacted by strategic repositioning away from cannabis

* OPERATING EXPENSES - Operating expenses rose to $60.5 mln due to increased sales and marketing costs, despite cost-cutting measures, according to Co-CEO Michael Wang

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

FY Miss $127.50 $148.90

Revenue mln mln (1

Analyst)

FY Net -$39.20

Income mln

FY Gross 17.8%

Margin

FY Gross $22.60

Profit mln

FY $60.50

Operatin mln

g

Expenses

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the tobacco peer group is "buy"

* Wall Street's median 12-month price target for Ispire Technology Inc ( ISPR ) is $7.50, about 54.3% above its September 15 closing price of $3.43

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)