Ispire Technology Inc.

Fiscal Q3 2026 revenue was $18.7 million, compared with $26.2 million in fiscal Q3 2025 and $20.3 million in the prior quarter. Gross profit was $2 million and gross margin was 10.7%; gross profit included about $2.2 million of one-time product returns from a legacy cannabis customer. Operating expenses excluding credit loss were $5.9 million, down 36% year over year from $9.3 million and down 3.7% sequentially from $6.1 million. Credit loss was $5.6 million, down roughly $500,000 year over year, and net loss was $9.5 million versus $10.9 million a year ago and $6.6 million in the prior quarter. Cash ended at $18 million, up about $468,000 sequentially. Management guided to cash flow positive performance in the second half of calendar 2026, but did not give formal next-quarter revenue or EPS guidance.

Michael Wang framed the quarter as a turning point, saying the business has stabilized and the operating model is now sharper and more disciplined. He emphasized Malaysia as a major strategic milestone, citing its live manufacturing platform and an estimated 25% tariff advantage over China. He also pointed to near-term catalysts in Vapor ODM and longer-duration upside from Age-Gating and G-Mesh, while saying the company is focused on moving from a reset into stronger earnings and cash generation.

Jie Yu highlighted the quarter’s numbers: revenue of $18.7 million, gross profit of $2 million, gross margin of 10.7%, and net loss of $9.5 million. He said operating expenses excluding credit loss fell to $5.9 million, down 36% year over year, and that credit loss declined to $5.6 million, down roughly $500,000 year over year. He also noted cash of $18 million, up $468,000 sequentially, and tied that improvement to tighter working capital and the company’s confidence in reaching cash flow positive in the second half of calendar 2026.

Analyst questions focused on the FDA’s flavored vape approval, whether proximity-based restrictions or continuous authentication would become the standard, and whether Ispire can integrate that capability; management said it already has continuous authentication built into its solution. The analyst also asked about partner discussions after the approval, and Michael Wang said conversations accelerated in the last 48 to 72 hours, including some discussions about supplemental PMTAs. On state regulation, management said some states may align with FDA-approved flavors, while Texas’ push to ban China-made devices supports Ispire’s Malaysia strategy.