Ispire Technology (US:ISPR) Prnewswireยท2025-11-06 12:00Core Insights - Ispire Technology Inc. reported a significant reduction in operating expenses and net loss for the first quarter of fiscal 2026, indicating effective cost-cutting measures and a strategic shift towards higher-quality customers [2][3][4]. Financial Performance - Revenue for the first quarter of fiscal 2026 was $30.4 million, down 22.8% from $39.3 million in the same period last year [4][6]. - Gross profit decreased to $5.1 million, with a gross margin of 17.0%, down from 19.5% year-over-year [4][6]. - Total operating expenses were reduced to $7.8 million from $12.9 million, marking a 39% decrease [5][6]. - The net loss for the quarter was $3.3 million, an improvement from a net loss of $5.6 million in the prior year [7][6]. Operational Highlights - The company emphasized a focus on quality customers over volume, which contributed to the revenue decline but improved operational metrics [2][3]. - Ispire's joint venture, IKE Tech, is gaining traction globally, working with regulators to adopt age-gating technology [2]. - The company is in discussions with various nicotine companies regarding its G-Mesh technology solutions for next-generation vaping devices [2]. Cash and Working Capital - As of September 30, 2025, Ispire held cash and cash equivalents of $22.7 million and working capital of $9.3 million [7]. - Net accounts receivable decreased approximately 29% from $62.4 million to $44.5 million year-over-year, reflecting improved working capital management [2][3]. Future Outlook - Management expects the trend of reduced operating expenses and improved financial performance to continue throughout fiscal 2026 [2]. - The company is excited about the build-out of its Malaysian manufacturing facility to ramp up production [2].