Ispire Technology Inc. today (February 10) reported results for its fiscal second quarter 2025, which included a 0.3% YoY revenue increase to $41.8 million, a 23.5% gross profit increase to $7.7 million, and a 23% gross margin increase to 18.5%. Its fiscal second quarter ended December 31, 2024.
“Despite challenging macroeconomic conditions, we had strong results for the quarter given the strategic advances we made in becoming a leading global innovative vaping technology and precision dosing solutions company,” said Co-Chief Executive Officer Michael Wang. “This is particularly evident as we further expanded into international markets. Our BrkFst brand recently launched in Africa, marking our first international nicotine license arrangement and product launch. The BrkFst brand has seen early success as we have quickly established a presence in over 500 retail locations across South Africa and Nigeria, including major chains like Pick n Pay and Forecourts.”
Total operating expenses for the second fiscal quarter increased from $10.2 million in 2024 to $15.1 million in 2025. The increase in operating expenses was primarily due to increased expenses associated with our increased revenue generation, continued investment in Malaysia, and increased expenses related to our product development function, the company said. It also reported a net loss of $8 million for the fiscal second quarter of 2025, double the $4 million from 2024.
“Our financial performance this quarter demonstrates our ability to execute our strategic priorities for growth and financial management,” Chief Financial Officer Jim McCormick said. “[Our] balanced approach allows us to simultaneously invest in our growth strategies and return value to our shareholders, which we believe positions us for continued success in the evolving global nicotine product market.”
On December 31, 2024, Ispire had a cash position of $34.4 million, as well as working capital of $6.1 million.
“We’ve implemented a sweeping market activation strategy with brand ambassadors conducting daily events in major metropolitan areas, which has been instrumental in building strong relationships with both retailers and consumers,” Wang said. “We now plan to accelerate our expansion strategy to reach more than 2,000 stores in the next six months through additional strategic partnerships.
“Furthermore, our IKE Tech joint venture’s component PMTA strategy represents a groundbreaking opportunity. We’ve completed a successful pre-PMTA meeting with the FDA, who indicated they would accept our component PMTA submission and consider our priority review. The legal U.S. market for electronic nicotine delivery systems is approximately $11 billion, with an additional $7 billion potential in alternative markets. This is a significant opportunity for our potentially industry-changing blockchain-based age verification technology which could help prevent youth access.”
