Vape maker Ispire misses fiscal 2025 revenue estimates, shifts focus to nicotine sector

Ispire Technology

16/09/2025 12:13

Overview

Ispire Technology 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 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/Miss
Actual
Consensus Estimate
FY Revenue
Miss
$127.50 mln
$148.90 mln (1 Analyst)
FY Net Income
-$39.20 mln
FY Gross Margin
17.8%
FY Gross Profit
$22.60 mln
FY Operating Expenses
$60.50 mln


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 is $7.50, about 54.3% above its September 15 closing price of $3.43

Press Release: ID:nPnrjvF1a

(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.)