Ispire Technology (US:ISPR)2025-11-06 21:31Revenue and Profit - Revenue decreased by $8.99 million, or 22.8%, from $39.34 million in Q3 2024 to $30.35 million in Q3 2025[141] - Gross profit decreased by $2.53 million, or 32.9%, from $7.67 million in Q3 2024 to $5.15 million in Q3 2025, with gross margin declining from 19.5% to 17.0%[144] - Net loss for Q3 2025 was $3.26 million, compared to a net loss of $5.60 million in Q3 2024, representing a reduction in loss[139] - Net loss decreased from $5,595,016 or $(0.10) per share in Q3 2024 to $3,258,863 or $(0.06) per share in Q3 2025, a reduction of $2,336,153[155] Expenses - Operating expenses decreased by $5.10 million, or 39.4%, from $12.94 million in Q3 2024 to $7.84 million in Q3 2025[145] - Sales and marketing expenses decreased by $1.43 million, or 47.7%, from $2.99 million in Q3 2024 to $1.56 million in Q3 2025[146] Assets and Liabilities - Current assets increased by 3.0% from $72,908,000 on June 30, 2025 to $75,128,000 on September 30, 2025, while current liabilities decreased by 9.3% from $72,540,000 to $65,813,000[157] - Working capital surged by 2,431.3% from $368,000 to $9,315,000 between June 30, 2025 and September 30, 2025[157] - Total lease liabilities as of September 30, 2025 amounted to $4,634,267, with future lease payments totaling $5,085,404[168] - As of September 30, 2025, the company had a borrowing balance of $1,665,435, with maturities scheduled for $1,146,766 in the next year[168] - Contract liabilities decreased from $4,861,250 on June 30, 2025 to $2,962,299 on September 30, 2025, indicating a reduction in advance deposits received[165] Cash Flow - Net cash used in operating activities for Q3 2025 was $(1,184,000), a decrease of $4,794,000 compared to $3,610,000 in Q3 2024[159] - Cash flow from investing activities was $(140,000) in Q3 2025, down from $(925,000) in Q3 2024, reflecting a decrease of $785,000[161] Other Financial Metrics - The allowance for credit losses was $17.3 million as of September 30, 2025, down from $18.0 million as of June 30, 2025[135] - Interest income increased to $95,472 in Q3 2025 from $86 in Q3 2024, primarily due to late fees charged to customers[150] - Income taxes increased by $29,316, or 6.4%, from $456,753 in Q3 2024 to $486,069 in Q3 2025, despite a consolidated net loss[154] Capital and Investments - The company raised approximately $10.6 million in March 2024 through a public offering priced at $6.00 per share, aimed at funding operations and R&D[132] - The company recorded an unpaid $5.8 million consideration in accrued liabilities for a committed investment of $9 million into a joint venture named IKE Tech LLC[168] Regulatory Status - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of reduced reporting requirements[172] Geographic Revenue - Revenue from Europe increased to 68.2% of total revenue in Q3 2025, up from 55.8% in Q3 2024[140]