Ongoing Focus on Collections Drives 19% Reduction in Net Accounts Receivable since June 30, 2025

Cash of $17.6 Million at December 31, 2025

LOS ANGELES, Feb. 6, 2026 /PRNewswire/ -- Ispire Technology Inc. (NASDAQ:ISPR) ("Ispire," the "Company," "we," "us," or "our"), an innovator in vaping technology and precision dosing, today reported financial results for the second quarter of fiscal 2026, for the three months ended December 31, 2025.

Fiscal Second Quarter 2026 Financial Results

Revenue of $20.3 million versus $41.8 million for the second quarter of fiscal 2025.
Gross profit of $3.5 million compared to $7.7 million for the second quarter of fiscal 2025.
Gross margin of 17.1% compared to 18.5% for the second quarter of fiscal 2025.
Total operating expenses of $10.3 million compared to $15.1 million for the second quarter of fiscal 2025.
Net loss of $6.6 million, compared to net loss of $8.0 million in the second quarter of fiscal 2025.

"This quarter represented an inflection point for Ispire during its yearlong cost cutting and customer quality rationalization efforts and we believe future quarters will see top line growth, consistent cash flows and bottom-line improvement. We are confident we have laid a solid foundation for future success," commented Michael Wang, Co-Chief Executive Officer of Ispire. "During the second quarter of fiscal 2026, we maintained our focus on prioritizing high-quality revenue, and reinforcing our disciplined and intentional approach to sustainable growth. This was particularly evident in our efforts to reduce net accounts receivable, which continues to have strong success. Over the second fiscal quarter we reduced net accounts receivable by 19.5% to $37.9 million, compared to $47.0 million at the end of fiscal year 2025."

"We continue to lay important groundwork across core areas of the business, including the ramp up of our manufacturing capabilities in Malaysia as we prepare to increase production throughout fiscal 2026. Momentum continues to build for our proprietary G-Mesh technology, with several large and mid-sized nicotine manufacturers engaged in discussions to evaluate its use in next-generation vaping devices, as we work toward potential licensing and partnership opportunities. In addition, our IKE Tech joint venture is making steady global progress, collaborating with regulators across Europe, Southeast Asia, and the Middle East to support the broader adoption of age-gating technology as a safer industry standard. In the US, although most adult consumers want flavored e-cigarettes, nearly all of the flavored e-cigarettes are both unauthorized by the FDA and sold through illicit channels. While we welcome the US Federal Government's strengthened enforcement mandate of the illicit trade of vapes, we believe that such enforcement can only be truly effective by pairing it with the creation of a robust, legal market of FDA authorized flavored e-cigarette products. Ispire, with IKE, is a key player in the creation of this market of legal, approved products, using its technologies to both prevent youth-access, ensure product authenticity and provide solutions to secure devices before misuse occurs. This is where we are seeing macro tailwinds in our favor relating to the US FDA's stated position on flavored ENDS products and age-gating. Since October 2025, the FDA's explicit position is that you must have age gating technology if you want flavored products approved. Ispire, through its IKE joint venture, has one of the leading and most low friction technologies in this space, and we look forward to capitalizing on this opportunity in due time", Mr. Wang concluded.

Jay Yu, Chief Financial Officer of Ispire, said, "The second quarter of fiscal 2026 reflects continued progress as we focused on strengthening the Company's financial foundation. Disciplined cost controls drove a year-over-year decline in operating expenses, which decreased from $15.1 million to $10.3 million over the second fiscal quarter, highlighting the impact of our efficiency initiatives. Our net accounts receivable also declined to $37.9 million as of December 31, 2025, compared with $47.0 million as of June 30, 2025, reflecting our ongoing focus on higher-quality customers. These actions position the Company for enhanced financial flexibility and support sustained value creation over the long term."

Financial Results for the Fiscal Second Quarter Ended December 31, 2025

Ispire reported revenue of $20.3 million for the fiscal second quarter ended December 31, 2025, versus $41.8 million for the prior comparable period. The decrease in revenue is due to the strategic shift away from lower quality cannabis customers, resulting in a decrease of overall product sales.

For the second quarter of fiscal 2026, gross profit was $3.5 million compared to $7.7 million in the prior comparable quarter. Gross margin was 17.1% compared to 18.5% for the second quarter of fiscal 2025. The decrease in gross margin was primarily due to changes in product mix with less higher margin products being sold during the three months ended December 31, 2025.

Total operating expenses were $10.3 million for the second fiscal quarter of 2026, compared to $15.1 million for the same period last year.

Net loss was $6.6 million or $0.12 per share for the fiscal second quarter of 2026, versus a net loss of $8.0 million, or $0.14 per share for the fiscal second quarter of 2025.

At December 31, 2025, Ispire held cash of $17.6 million and working capital of $3.5 million.

Conference Call

The Company will conduct a conference call at 8:00 am ET on Friday, February 6, 2026, to discuss the results, followed by a Q&A session.

To listen to the conference call, please dial in using the information below. When prompted upon dialing-in, please ask for the "Ispire Technology Call."

Date: Friday, February 6, 2026
Time: 8:00 am ET
Dial-In Numbers: United States 877-451-6152 or International +1 201-389-0879

This conference call will be webcast live and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1749224&tp_key=1ec45fe266.

Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.

A playback will be available until 11:59 pm ET on Friday, February 20, 2026. To listen, please dial 1-844-512-2921 or 1-412-317-6671. Use the passcode 13758138 to access the replay.

About Ispire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 400 patents worldwide. Ispire's branded e-cigarette products are marketed under the Aspire name and are sold worldwide (except in the U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company also engages in original design manufacture (ODM) relationships with e-cigarette brands and retailers worldwide. The Company's cannabis products are marketed under the Ispire brand name primarily on an ODM basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware in the US, Europe and South Africa and it recently commenced marketing activities and customer engagement in Canada and Latin America. For more information, visit www.ispiretechnology.com or follow Ispire on Instagram, LinkedIn, Twitter and YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: whether the Company may be successful in re-entering the U.S. ENDS market; the approval or rejection of any PMTA submitted by the Company; whether the Company will be successful in its plans to further expand into the African market; whether the Company's joint venture with Touch Point Worldwide Inc. d/b/a/ Berify and Chemular Inc. (the "Joint Venture") may be successful in achieving its goals as currently contemplated, with different terms, or at all; the Joint Venture's ability to innovate in the e-cigarette technology space or develop age gating or age verification technologies for nicotine vaping devices; the Company's ability to collect its accounts receivable in a timely manner; the Company's business strategies; the ability of the Company to market to the Ispire ONE™; Ispire ONE™'s success in meeting its goals; the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of its products on the markets; the Ispire ONE™ proving to be safe; and the risk and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" and the additional risk described in Ispire's Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequent filings which Ispire makes with the SEC. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by applicable law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

ISPIRE TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In $USD, except share and per share data)
	December 31, 2025		June 30, 2025
Assets
Current assets:
Cash	$	17,565,334	$	24,351,765
Restricted cash		50,000		-
Accounts receivable, net		37,878,353		39,664,145
Inventories		5,037,414		6,647,970
Prepaid expenses and other current assets		3,120,978		2,244,505
Total current assets		63,652,079		72,908,385
Non-current assets:
Accounts receivable, net of current portion		-		7,367,158
Property, plant and equipment, net		2,599,861		2,952,800
Intangible assets, net		2,474,037		2,232,620
Right-of-use assets – operating leases		4,335,355		5,030,005
Other investment		2,000,000		2,000,000
Equity method investment		9,129,213		9,515,546
Other non-current assets		210,617		210,617
Total non-current assets		20,749,083		29,308,746
Total assets	$	84,401,162	$	102,217,131
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	3,137,235	$	4,172,476
Accounts payable – related party		42,444,624		52,420,256
Contract liabilities		4,971,135		4,861,250
Accrued liabilities and other payables		6,818,397		8,099,991
Income tax payable		12,590		-
Borrowing – current portion		1,146,766		1,146,766
Operating lease liabilities – current portion		1,659,698		1,838,815
Total current liabilities		60,190,445		72,539,554

Non-current liabilities:
Amount due to a related party		29,000,000		25,000,000
Borrowing – net of current portion		231,978		805,361
Operating lease liabilities – net of current portion		2,642,156		3,267,522
Total non-current liabilities		31,874,134		29,072,883
Total liabilities		92,064,579		101,612,437

Commitments and contingencies

Stockholders' (deficit)/equity:
Common stock, par value $0.0001 per share; 140,000,000 shares authorized; 57,289,864 and 57,193,734 shares issued and outstanding as of December 31, 2025 and June 30, 2025		5,729		5,719
Treasury stock, at cost		(105,489)		(60,488)
Additional paid-in capital		50,593,580		48,833,601
Accumulated deficit		(57,927,041)		(48,065,267)
Accumulated other comprehensive loss		(230,196)		(108,871)
Total stockholders' (deficit)/equity		(7,663,417)		604,694
Total liabilities and stockholders' (deficit)/equity	$	84,401,162	$	102,217,131

ISPIRE TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In $USD, except share and per share data)
	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024

Revenue	$	20,286,556	$	41,827,860	$	50,637,440	$	81,166,173

Cost of revenue		16,811,955		34,105,289		42,016,067		65,769,224

Gross profit		3,474,601		7,722,571		8,621,373		15,396,949

Operating expenses:
Sales and marketing expenses		1,476,328		2,061,664		3,041,172		5,053,911
Credit loss expenses		4,209,201		4,183,998		5,973,453		7,286,079
General and administrative expenses		4,663,939		8,836,964		9,176,924		15,679,883

Total Operating expenses		10,349,468		15,082,626		18,191,549		28,019,873

Loss from operations		(6,874,867)		(7,360,055)		(9,570,176)		(12,622,924)

Other income (expense):
Interest income		104,922		59,755		200,394		59,841
Interest expense		(100,191)		(13,073)		(212,367)		(24,537)
Exchange gain (loss), net		290,237		(245,173)		300,039		(127,588)
Other income, net		83,574		19,934		12,991		38,333

Total Other income (expense), net		378,542		(178,557)		301,057		(53,951)

Loss before income taxes		(6,496,325)		(7,538,612)		(9,269,119)		(12,676,875)

Income taxes		(106,586)		(460,031)		(592,655)		(916,784)

Net loss	$	(6,602,911)	$	(7,998,643)	$	(9,861,774)	$	(13,593,659)

Other comprehensive income (loss)
Foreign currency translation adjustments		(113,433)		73,470		(121,325)		(81,467)
Comprehensive loss	$	(6,716,344)	$	(7,925,173)	$	(9,983,099)	$	(13,675,126)

Net loss per share
Basic and diluted	$	(0.12)	$	(0.14)	$	(0.17)	$	(0.24)

Weighted average shares outstanding:
Basic and diluted		57,258,218		56,658,012		57,257,938		56,629,666

For more information, kindly contact:

IR Contacts:

KCSA Strategic Communications

Phil Carlson

212-896-1233

ispire@kcsa.com

PR Contact:

Ellen Mellody

570-209-2947

EMellody@kcsa.com

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SOURCE Ispire Technology Inc.

Ispire Technology Inc. Reports Financial Results for Fiscal Second Quarter 2026