Fumatech (ISPR.US) released its financial performance for fiscal year 2025: revenue reached $127.5 million with a gross profit margin of 17.8%.

Ispire Technology (ISPR.US) announced its financial performance for the fiscal year 2025 ending June 30, 2025. Financial Performance for Fiscal Year 2025 -Revenue reached $127.5 million, compared to $151.9 million for the same period in fiscal year 2024. -Gross profit was $22.6 million, compared to $29.8 million for the same period in fiscal year 2024. -Gross margin was 17.8%, compared to 19.6% for the same period in fiscal year 2024. -Total operating expenses were $60.5 million, compared to $43.7 million for the same period in fiscal year 2024; and -Accounts receivable, net was $47 million, a 21% decrease from $59.7 million in fiscal year 2024. -Net loss was $39.2 million, compared to a net loss of $14.8 million for the same period in fiscal year 2024. Co-CEO Michael Wang commented, "The 2025 fiscal year marks an important milestone in Ispire's strategic transformation. The company continues to shift its focus from the CBD vaporizer industry to the higher value nicotine sector, making clear strategic choices to prioritize quality over quantity expansion, emphasizing the consolidation of long-term partnerships to lay the foundation for sustainable growth. At the same time, Ispire's continued investment in groundbreaking technologies, including IKE Tech LLC's age verification technology and self-developed G-Mesh technology, has made significant progress as these innovations enter the regulatory approval process, garnering widespread attention from leading tobacco companies globally." Michael Wang added, "As we continue to advance our own PMTA application work, we are also eagerly awaiting the latest developments in the groundbreaking component PMTA application from our strategic joint venture, IKE Tech LLC. This application, based on blockchain-based age verification technology, has the potential to reshape the regulatory landscape for Electronic Nicotine Delivery Systems (ENDS). We are also actively progressing with comprehensive PMTA preparation for flavored ENDS products. These products will feature IKE Tech's integrated age verification technology, with the initial application strategy focusing on four different flavors of products, aiming to fill a key gap in today's market. These strategic initiatives enable Ispire to meet the growing global demand for precise vaporization technology while remaining committed to responsible product development." Chief Financial Officer Jay Yu commented, "Ispire has streamlined operations and controlled expenses comprehensively, with optimization measures expected to save approximately $10.2 million in annual compensation costs. Administrative expenses declined year-on-year, from $31.1 million ending June 30, 2024, to $30 million ending June 30, 2025. However, the company's annual net loss widened by $24.5 million year-on-year. We remain focused on strengthening accounts receivable recovery and improving customer quality. Management firmly believes that these prudent measures will establish a solid foundation for Ispire to achieve sustainable long-term growth." Financial Performance Ending June 30, 2025 For the fiscal year ending June 30, 2025, Ispire achieved revenues of $127.5 million, compared to $151.9 million in fiscal year 2024. The decrease in revenue is primarily attributed to the company's strategic business adjustments, shifting focus from CBD vaporizers to the nicotine sector. The company believes that this strategic transformation will help improve the quality of accounts receivable and drive more sustainable long-term growth. For the fiscal year ending June 30, 2025, the company's gross profit was $22.6 million, compared to $29.8 million for the same period in fiscal year 2024. The gross margin for fiscal year 2025 decreased to 17.8%, from 19.6% in the previous fiscal year. The decline in gross profit and gross margin is primarily attributed to the company's strategic shift from CBD vaporizers to the nicotine sector, leading to a decrease in current period revenue. For the fiscal year ending June 30, 2025, the company's total operating expenses were $60.5 million, compared to $43.7 million for the same period in fiscal year 2024. The increase in expenses mainly came from higher sales and marketing expenses due to expanded marketing activities, and an increase in bad debt reserves; this increase was partially offset by cost reductions in personnel expenses resulting from the streamlining of the North American business, reduced stock-based compensation, and decreased research and development investments. The net loss for the fiscal year ending June 30, 2025, was $39.2 million, or a net loss of $0.69 per share, compared to a net loss of $14.8 million, or a net loss of $0.27 per share, in fiscal year 2024. As of June 30, 2025, Ispire Technology had cash of $24.4 million and working capital of $0.4 million. Earnings Call The company will host an earnings conference call at 21:10 on Tuesday, September 16, 2025, to discuss its financial performance. Ispire Technology management will host the conference call followed by a Q&A session. Date: Tuesday, September 16, 2025 Time: 21:10 Beijing Time Meeting details are as follows: [Meeting details] It is recommended to join the call 15 minutes before the start of the meeting for registration. About Ispire Technology Inc. Ispire Technology is engaged in the research, development, design, commercialization, sales, marketing, and distribution of branded vaporization products. The company holds licenses for over 200 patents/inventions globally. Ispire Technology's products are sold under the Aspire brand primarily through its distribution network worldwide (excluding the United States, China, and Russia). Ispire Technology currently sells its vaporization hardware in the United States, Canada, Germany, and South Africa. Please visit www.ispiretechnology.com and follow us on Facebook, Twitter, Instagram, Linkedin, Pinterest, and YouTube. The information contained on the company's website, any other websites, or any social media accessed through these websites, is not part of this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are protected by the safe harbor provisions created by those sections. Forward-looking statements are based on certain assumptions and describe the company's future plans, strategies, and expectations, and can generally be identified by using words such as "believe," "expect," "may," "will," "should," "seek," "intend," "plan," "objective," "project," "estimate," "anticipate," "strategic," "future," "potential," and other similar terms, although not all forward-looking statements contain these identifying words. All statements, other than historical facts, including statements about the company's strategies, prospects, financial condition, operations, costs, plans, and objectives, are forward-looking statements. Important factors that could cause the company's actual results to differ materially from the results indicated in the forward-looking statements include but are not limited to the following risks and uncertainties: whether the company can successfully re-enter the U.S. transmission system market; whether the company's PMTA applications will be approved or denied; the ability of the company's joint venture with Touch Point Worldwide Inc. and Chemular Inc. to achieve its expected goals; the joint venture's innovation capabilities in the e-cigarette technology field or the ability to develop age verification technology for vaporization devices; the company's ability to recover accounts receivable in a timely manner; the company's business strategy; the company's ability to introduce Ispire ONE to the market; whether Ispire ONE can successfully achieve its goals; whether customers can derive the expected benefits from Ispire ONE and its success in the market; the safety verification of Ispire ONE; and the risks and uncertainties described in the "Risk Factors," "Management Discussion and Analysis of Financial Condition and Results of Operations," and "Cautionary Note on Forward-Looking Statements" sections of the company's 10-K annual report for the fiscal year ending June 30, 2023, as well as in other documents submitted by the company to the U.S. Securities and Exchange Commission. You should not rely solely on forward-looking statements as predictors of future events. The forward-looking statements in this press release are only relevant to the events or information on the date of the press release. We are not obligated to update or revise any forward-looking statements after the date of the press release, whether due to new information, future events, or other circumstances, or to reflect unforeseen events, unless required by law. You should understand that our actual future results may differ significantly from what we currently anticipate, and therefore should read this press release in conjunction with comprehensive information. Contact IR Contact: KCSA Strategic Communications Phil Carlson 212-896-1233 ispire@kcsa.com PR Contact: Ellen Mellody 570-209-2947 EMellody@kcsa.com