Revenue growth has contracted significantly, with a 28.7% year-over-year decline in 2026Q3 alongside a compressed gross margin of only 10.7%.
| Sales/Revenue | 89.46M | 127.49M | 151.91M | 115.61M | 88.1M | 63.41M |
| Revenue Growth % | -38.18% | -16.07% | 31.4% | 31.23% | 38.92% | - |
| Cost of Goods Sold | 76.37M | 104.84M | 122.13M | 94.83M | 74.79M | 53M |
| COGS % of Revenue | - | 82.23% | 80.39% | 82.03% | 84.9% | 83.58% |
| Gross Profit | 13.09M | 22.65M | 29.78M | 20.78M | 13.31M | 10.42M |
| Gross Margin % | 14.63% | 17.77% | 19.61% | 17.97% | 15.1% | 16.43% |
| Gross Profit Growth % | - | -23.95% | 43.34% | 56.15% | 27.75% | - |
| Operating Expenses | 46.78M | 60.5M | 43.68M | 25.25M | 14.29M | 6.77M |
| OpEx % of Revenue | - | 47.45% | 28.75% | 21.84% | 16.23% | 10.68% |
| Selling, General & Admin | 13.21M | 38.46M | 37.66M | 25.25M | 14.29M | 6.77M |
| SG&A % of Revenue | - | 30.17% | 24.79% | 21.84% | 16.23% | 10.68% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 22.03M | 6.02M | 0 | 0 | 0 |
| Operating Income | -33.7M | -37.85M | -13.89M | -4.47M | -988.67K | 3.64M |
| Operating Margin % | -37.67% | -29.69% | -9.15% | -3.87% | -1.12% | 5.75% |
| Operating Income Growth % | - | -172.42% | -210.54% | -352.54% | -127.14% | - |
| EBITDA | -31.46M | -35.58M | -12.17M | -3.4M | -842.09K | 3.96M |
| EBITDA Margin % | -35.17% | -27.91% | -8.01% | -2.94% | -0.96% | 6.25% |
| EBITDA Growth % | -34.51% | -192.26% | -258.31% | -303.45% | -121.24% | - |
| D&A (Non-Cash Add-back) | 2.24M | 2.27M | 1.72M | 1.08M | 146.58K | 320.62K |
| EBIT | -11.15M | -38.04M | -13.89M | -4.47M | -988.67K | 3.64M |
| Net Interest Income | 37.64K | 87K | 365.25K | 195.21K | 5.08K | 882 |
| Interest Income | 337.22K | 87K | 365.25K | 195.21K | 5.08K | 882 |
| Interest Expense | 299.58K | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 400.57K | -186.66K | 408.36K | -284.17K | 185.62K | -19.77K |
| Pretax Income | -33.29M | -38.04M | -13.49M | -4.76M | -803.06K | 3.62M |
| Pretax Margin % | -37.22% | -29.83% | -8.88% | -4.12% | -0.91% | 5.71% |
| Income Tax | 879.99K | 1.2M | 1.28M | 1.25M | 1.07M | 685.82K |
| Effective Tax Rate % | -2.64% | -3.16% | -9.51% | -26.17% | -133.38% | 18.93% |
| Net Income | -34.17M | -39.24M | -14.77M | -6M | -1.87M | 2.94M |
| Net Margin % | -38.2% | -30.78% | -9.72% | -5.19% | -2.13% | 4.63% |
| Net Income Growth % | -22.62% | -165.71% | -145.98% | -220.34% | -163.79% | - |
| Net Income (Continuing) | -34.17M | -39.24M | -14.77M | -6M | -1.87M | 2.94M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.60 | -0.69 | -0.27 | -0.11 | -0.04 | 0.06 |
| EPS Growth % | -24.01% | -155.56% | -145.45% | -208.99% | -163.8% | - |
| EPS (Basic) | - | -0.69 | -0.27 | -0.11 | -0.04 | 0.06 |
| Diluted Shares Outstanding | 57.29M | 56.85M | 54.81M | 54.22M | 52.7M | 52.7M |
| Basic Shares Outstanding | 57.29M | 56.85M | 54.81M | 54.22M | 52.7M | 52.7M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Persistent Operating Cash Burn
As reported in recent financial filings, Ispire Technology's quarterly revenue has experienced a consistent downward trend, culminating in a 28.7% year-over-year decline in 2026Q3, which suggests that the company is struggling to maintain its market share within the competitive cannabis hardware and nicotine distribution landscape.
The persistent revenue decay across the last ten quarters indicates that the company's specialized hardware offerings may be facing significant pricing pressure or reduced demand from key MSO partners. Investors should monitor whether this contraction reflects a broader industry slowdown or a specific loss of competitive advantage for the Ducore technology platform.
Based on the company's reported income statements, gross margins have fluctuated significantly, reaching a low of 10.7% in 2026Q3, which indicates that Ispire currently lacks the pricing power necessary to offset the rising costs of component sourcing and third-party manufacturing in a highly commoditized hardware market.
The inability to sustain gross margins above 20% suggests that the company operates more as a low-margin distributor than a high-value IP licensor. This structural limitation implies that any future path to profitability will require a fundamental shift in the product mix toward higher-margin proprietary consumables.
According to the provided quarterly data, Ispire's operating margins have remained consistently negative, reaching -50.8% in 2026Q3, which demonstrates that the company's fixed overhead and administrative expenses are currently scaling at a rate that far outpaces the gross profit generated by its core hardware sales.
The lack of positive operating leverage suggests that the current business model is not yet optimized for scale, as SG&A expenses continue to weigh heavily on the bottom line. Without a significant reduction in operating costs or a sharp revenue inflection, the company appears to be trapped in a cycle of persistent losses.
While management emphasizes the proprietary nature of its Ducore technology, the financial data suggests that the company's reliance on outsourced manufacturing and its inability to achieve positive net income may indicate that its hardware is increasingly viewed as a disposable commodity by price-sensitive cannabis brand owners.
Short-sellers would likely focus on the disconnect between the company's technological claims and its deteriorating financial performance. The risk remains that if major clients shift toward generic, lower-cost hardware alternatives, Ispire's specialized value proposition could face structural obsolescence, further pressuring its already thin margins.
Quick answers to the most common questions about buying ISPR stock.
For fiscal year 2025, Ispire Technology Inc. (ISPR) reported total revenue of $127.5M. This represents a 101.0% increase compared to $63.4M in 2021.
Ispire Technology Inc. (ISPR) reported a net loss of $39.2M for the fiscal year ending 2025.
Ispire Technology Inc. (ISPR) reported an operating income of $-37.8M, resulting in an operating profit margin of -29.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Ispire Technology Inc. (ISPR) generated $22.6M in gross profit for the year, representing a gross profit margin of 17.8%. This demonstrates the company's core pricing power and production efficiency.