Ispire Technology reported a sharp improvement in fourth-quarter revenue as the vaping technology and precision-dosing company begins scaling new manufacturing and original-design-manufacturing initiatives.
Fourth-quarter revenue increased 32.5% year over year to $26.7 million from $20.1 million and was up approximately 43% sequentially.
Management views the quarter as an inflection point following more than a year of restructuring and investment.
Ispire’s Malaysia manufacturing facility is now fully operational, while its vapor ODM platform is moving into the market. The company is also advancing proprietary age-gating technology through IKE Tech and expanding into nicotine pouches through its joint venture with Jincheng Pharma.
The Malaysia manufacturing operation could provide Ispire with additional production capacity and a cost advantage for products exported to the U.S. compared with manufacturing in China.
Management expects fiscal 2027 to represent the first full year of vapor and nicotine-pouch production at company-owned factories in Malaysia.
Fourth-quarter adjusted EBITDA loss improved to $2.3 million from $4.4 million a year earlier, while total operating expenses fell 11.1% to $15.2 million.
Net loss narrowed to $13.8 million, or $0.24 per share, from $14.8 million, or $0.26 per share, in the prior-year quarter.
Gross margin declined to 6.3% from 12.3%, with inventory impairments affecting the quarter.
For the full fiscal year, revenue declined 24.7% to $96 million from $127.5 million, primarily because of lower cannabis vaping hardware sales in the U.S. and weaker vaping-product sales in Europe.
The company’s full-year net loss improved by $6 million to $33.2 million, while adjusted EBITDA loss narrowed to $4 million from $8.8 million.
Operating cash burn improved substantially.
Net cash used in operating activities fell to approximately $569,000 for fiscal 2026 from $7.4 million a year earlier, an improvement of about $6.8 million.
Ispire ended June with $19.3 million in cash.
The company had previously expected to reach positive cash flow during the second half of calendar 2026. However, investments associated with the Malaysia facility during the first quarter of fiscal 2027 have made the precise timing less certain.
Management remains focused on reaching positive cash flow as the new manufacturing and commercial programs begin contributing at greater scale.
Longer-term potential catalysts include commercialization of IKE Tech’s age-verification system and licensing opportunities for Ispire’s G-Mesh technology with major global tobacco companies and international brands.
KEY QUOTES:
“We believe fourth quarter results mark an important inflection point for the company and the turnaround we began more than a year ago.”
“Our Malaysia manufacturing facility is now fully operational, our Vapor ODM platform is entering the market, and we continue to advance IKE Tech’s proprietary age-gating technology toward commercialization.”
“We believe fiscal 2027 will be a transformational year of fundamental growth and change for Ispire.”
Steven Przybyla, President of Ispire Technology
