Ispire Announces Q2 2026 Results Revenue Drops to $20.3 Million

Ispire Technology released its Q2 fiscal year 2026 results: revenue of $20.3 million, down from $41.8 million in the same period last year. Gross profit of 3.5 million US dollars (compared to 7.7 million US dollars in the same period last year), with a gross profit margin of 17.1% (compared to 18.5% in the same period last year). The company also emphasizes the progress of Malaysia’s capacity ramp up, G-Mesh atomization core technology authorization negotiations, and age verification technology in global regulatory communication.

Quick overview of key points

• The revenue for the second quarter of fiscal year 2026 (as of December 31, 2025) was $20.3 million, lower than the same period last year’s $41.8 million.
• Gross profit of 3.5 million US dollars (compared to 7.7 million US dollars in the same period last year), with a gross profit margin of 17.1% (compared to 18.5% in the same period last year).
• Operating expenses amounted to 10.3 million US dollars (compared to 15.1 million US dollars in the same period last year). Net loss of $6.6 million (compared to $8 million in the same period last year). Closing cash of $17.6 million and working capital of $3.5 million.
• The company stated that it will continue to strengthen its collection of payments and adjust its customer structure, resulting in a 19.5% decrease in accounts receivable to $37.9 million compared to June 30, 2025.
• The company stated that it is promoting the ramp up of manufacturing capacity in Malaysia, negotiating and evaluating G-Mesh technology with multiple nicotine manufacturers, and promoting global compliance cooperation on “age aging” technology through IKE Tech joint venture.

According to the official website of Ispire Technology, Ispire announced its Q2 2026 financial performance for the fiscal year ending December 31, 2025: the company achieved revenue of $20.3 million, a decrease from $41.8 million in the same period last year.
In terms of profit, the company’s gross profit for the second quarter was 3.5 million US dollars, lower than the 7.7 million US dollars in the same period last year. The gross profit margin was 17.1%, lower than the 18.5% in the same period last year. The company stated that the change in gross profit margin mainly comes from the adjustment of product structure, during which the proportion of high gross profit product sales decreased.

In terms of expenses, the company’s operating expenses for the second quarter were 10.3 million US dollars, a decrease from 15.1 million US dollars in the same period last year. In terms of profit performance, the company had a net loss of $6.6 million ($0.12 per share) in the second quarter, compared to a net loss of $8 million ($0.14 per share) in the same period last year.
In terms of assets and liabilities, as of December 31, 2025, the company had cash of $17.6 million and working capital of $3.5 million. The company stated that the effectiveness of collection and customer structure optimization continues, with a net accounts receivable of $37.9 million at the end of the second quarter, a decrease of 19.5% from $47 million on June 30, 2025.
Michael Wang, co CEO of the company, stated that this quarter marks a turning point in its “one-year cost reduction and customer quality adjustment” process, and stated that revenue growth, more stable cash flow, and improved profit margins are expected in the coming quarters.
The company also stated that it is promoting the ramp up of Malaysia’s manufacturing capacity to support the increase in production in fiscal year 2026. Its proprietary G-Mesh atomization core technology has been evaluated and discussed with multiple large and medium-sized nicotine manufacturers, targeting potential licensing and cooperation opportunities.
In addition, the company stated that its joint venture IKE Tech is in communication with regulatory agencies in Europe, Southeast Asia, and the Middle East to promote age verification technology as a safer industry standard.
The company pointed out that there is a strong demand for flavored vapes in the US market, but “most products are sold through illegal channels without FDA authorization”. The company believes that in order for law enforcement to be more effective, it needs to be matched with “establishing a compliant and FDA authorized market for flavored products”.

Reference: Ispire Technology Inc. Reports Financial Results for Fiscal Second Qua

Ispire is a US listed company controlled by Chinese vape manufacturer Aspire. Aspire is one of the earliest factories in China to produce vapes. Before starting the factory, the owner had a colleague relationship with Smok, another famous vape factory. However, Aspire’s development has been astonishing. So they have achieved their current position as the giant of Chinese vape brands today.