Key Highlights

  • Ispire Technology reported fourth quarter Revenue of 26.7 million dollars, up 33 percent year over year and 43 percent sequentially, though gross Margin declined to 6.3 percent due to an inventory impairment.
  • Full fiscal year 2026 revenue was 96 million dollars, down from 127.5 million dollars in fiscal 2025, while adjusted EBITDA loss narrowed to 4 million dollars from 8.8 million dollars.
  • The company obtained its Malaysia nicotine Manufacturing licenses for vapor products and nicotine pouches in March and May of 2026, setting up its first full year of company-owned production.
  • Operating cash used improved to 569,000 dollars for the full year, compared with 7.4 million dollars in fiscal 2025, reflecting substantial progress in resolving legacy receivables.

A turnaround defined by cost discipline

Ispire Technology Inc. (NASDAQ:ISPR), a Los Angeles-based vaping technology company, reported fiscal fourth quarter 2026 revenue of 26.7 million dollars, an increase of 33 percent year over year and 43 percent sequentially. Gross margin declined to 6.3 percent from 12.3 percent in the prior year period, a result management attributed to an inventory Impairment recognized during the quarter rather than a deterioration in underlying demand.

For the full fiscal year, revenue totaled 96 million dollars, down from 127.5 million dollars in fiscal 2025, reflecting declines in cannabis vaping hardware sales in the United States and softer vaping product sales in Europe. Despite the lower top line, total operating expenses excluding Credit loss fell 37 percent year over year to 24.2 million dollars, and adjusted EBITDA loss narrowed to 4 million dollars from 8.8 million dollars, evidence of the cost restructuring management has pursued over the past year.

Malaysia manufacturing and the IKE Tech regulatory push

The company's strategic emphasis is increasingly centered on its company-owned manufacturing facilities in Malaysia, where it secured a nicotine manufacturing license for vapor products in March 2026 and a license to produce nicotine pouches in May 2026. Fiscal 2027 will mark the company's first full year of production from these facilities, which management said are attracting interest from Chinese brands seeking to diversify manufacturing outside of China as well as visits from major global tobacco companies.

Separately, the company's IKE Tech joint venture, focused on age verification and product authentication technology for regulated nicotine markets, has held four meetings with the FDA and Department of Health and Human Services over the past six months, including a June meeting with the FDA's Acting Commissioner. Management described the regulatory feedback as positive, noting discussions with multiple authorized device manufacturers about incorporating IKE's age-gating technology into supplemental premarket tobacco product applications, while also disclosing the company is evaluating a potential Liquidity event involving IKE during fiscal 2027.

Balancing growth catalysts against near-term uncertainty

If Malaysia production orders mature as management expects, with reorders already received from OEM and ODM customers on both the vapor and pouch sides of the business, fiscal 2027 could mark a meaningful inflection point in revenue Diversification away from legacy hardware sales. Management indicated it expects better visibility into the scale of this opportunity over the next two to three quarters as commercial orders continue to develop.

At the same time, the company acknowledged that significant planned payments related to the Malaysia manufacturing Facility could complicate its path to Cash Flow breakeven, even as underlying operating cash performance has improved substantially. The component premarket tobacco product application for the company's core device also remains under FDA review with no confirmed timeline, and legacy Accounts Receivable write-offs, while expected to be substantially resolved during fiscal 2027, still represent a lingering item from the company's earlier financial cleanup.

An inflection point still dependent on execution

Ispire Technology's fourth quarter results reflect meaningful progress in a multi-year turnaround centered on cost discipline, Balance Sheet cleanup, and a strategic pivot toward Malaysia-based manufacturing and regulatory technology. Revenue growth alongside a leaner cost structure suggests the foundational work of the past year is beginning to show through in the financials. Whether new manufacturing capacity and IKE Tech's regulatory momentum translate into sustained profitability will likely depend on how quickly commercial orders mature over the next several quarters.