Liquidity remains volatile and dependent on working capital shifts, as demonstrated by the extreme OCF/NI ratio of 3.83 in 2026Q1 and inconsistent free cash flow generation.
| Cash from Operations | -9.81M | -7.37M | -18.3M | -7.58M | -7.56M | 5.02M |
| Operating CF Margin % | - | -5.78% | -12.05% | -6.56% | -8.58% | 7.92% |
| Operating CF Growth % | 48.06% | 59.71% | -141.4% | -0.32% | -250.42% | - |
| Net Income | -34.17M | -39.24M | -14.77M | -6.1M | -1.87M | 2.94M |
| Depreciation & Amortization | 1.17B | 2.31M | 1.72M | 1.11M | 145.54K | 320.63K |
| Stock-Based Compensation | 1.76B | 5.62M | 6.38M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 6.94B | 23.67M | 6.34M | 3.33M | 0 | 272.24K |
| Working Capital Changes | -3.03M | 264.99K | -17.97M | -5.92M | -5.83M | 1.49M |
| Change in Receivables | 12.02M | -9.33M | -41.3M | -19.58M | -3.95M | -3.87M |
| Change in Inventory | -652.26K | -1.04M | 901.12K | 7.11M | -11.53M | -3.05M |
| Change in Payables | -12.87M | 10.77M | 17.89M | 10.57M | 8.88M | 9.39M |
| Cash from Investing | -6.03M | -5.2M | 2.99M | -10.15M | -121.52K | -798 |
| Capital Expenditures | -1.57M | -1.1M | -1.97M | -1.02M | -121.52K | -798 |
| CapEx % of Revenue | 1.75% | 0.86% | 1.3% | 0.88% | 0.14% | 0% |
| Acquisitions | 0 | 0 | -1M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -3.16M | -4.1M | -173.3K | 0 | 0 | 0 |
| Cash from Financing | 1.17M | 1.85M | 10.08M | -16.44M | -3.09M | -227.85K |
| Debt Issued (Net) | 1.28M | 1.91M | 0 | -874.04K | -120.94K | -283.32K |
| Equity Issued (Net) | -105.49K | -60.49K | 12.3M | 29.7M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -3.36M | -469.63K | 0 |
| Share Repurchases | -105.49K | -60.49K | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -2.22M | -41.91M | -2.5M | 55.47K |
| Net Change in Cash | -14.67M | -10.72M | -5.23M | -34.18M | -10.77M | 4.8M |
| Free Cash Flow | -10.91M | -8.47M | -21.45M | -8.6M | -7.68M | 5.02M |
| FCF Margin % | -12.19% | -6.65% | -14.12% | -7.44% | -8.72% | 7.92% |
| FCF Growth % | 26.2% | 60.48% | -149.29% | -12.03% | -252.86% | - |
| FCF per Share | -0.19 | -0.15 | -0.39 | -0.16 | -0.15 | 0.10 |
| FCF Conversion (FCF/Net Income) | 0.32x | 0.19x | 1.24x | 1.26x | 4.03x | 1.71x |
| Interest Paid | 90.1K | 150.28K | 15.23K | 587 | 0 | 0 |
| Taxes Paid | 118.39K | 1.53M | 1.36M | 1.66M | 69.65K | 1.88M |
Persistent Operating Cash Burn
According to the provided quarterly data, Ispire's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching an extreme 3.83 in 2026Q1, suggesting that accruals and working capital shifts are currently driving cash movements rather than core operational profitability or earnings quality.
The persistent gap between net losses and operating cash flow indicates that the company's cash position is highly sensitive to non-cash adjustments and timing differences. Investors should monitor whether this volatility reflects genuine operational efficiency or merely the deferral of cash outflows that may eventually pressure liquidity.
As reported in financial statements, Ispire's free cash flow trajectory is characterized by extreme swings, ranging from a positive $3.7M in 2025Q4 to a significant outflow of $12.3M in 2025Q3, highlighting a lack of consistent cash generation necessary to support long-term operational sustainability.
The inability to maintain positive free cash flow margins suggests that the company's current business model is not yet self-funding. This erratic performance warrants further investigation into whether the underlying hardware demand is sufficient to cover the high fixed costs associated with its current manufacturing and R&D footprint.
Based on reported figures, working capital changes have been the primary determinant of quarterly cash flow, with a notable $8.3M inflow in 2025Q4 followed by a $10.0M outflow in 2025Q1, indicating that inventory and receivables management are currently the most volatile components of the company's cash cycle.
These large swings suggest that Ispire's cash position is heavily dependent on the timing of inventory procurement and client payments. Such reliance on working capital fluctuations may indicate a lack of control over the cash conversion cycle, potentially exposing the firm to liquidity risks during periods of slowing demand.
Data from recent filings indicates that Ispire maintains a low capital intensity, with CapEx/Revenue ratios consistently below 6%, suggesting that the company is not currently burdened by heavy investment in physical manufacturing infrastructure despite its role as a hardware provider in the vaping sector.
While the low capital intensity preserves cash, it also implies that the company may be relying heavily on third-party manufacturing partners. This strategy limits the need for large capital outlays but may also constrain the company's ability to control production quality and unit costs over the long term.
Quick answers to the most common questions about buying ISPR stock.
Ispire Technology Inc. (ISPR) generated $-7.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ispire Technology Inc. (ISPR) reported negative free cash flow of $8.5M in 2025, indicating capital requirements exceeded cash from operations.
Ispire Technology Inc. (ISPR) spent $1.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Ispire Technology Inc. (ISPR) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.