Ispire Technology Q2 revenue misses on customer shift

Overview

• Vaping technology firm's fiscal Q2 revenue declined, missing analyst expectations

• Net loss for fiscal Q2 narrowed compared to the previous year

• Company reduced operating expenses due to cost-cutting measures

Outlook

• Ispire plans to increase production in Malaysia throughout fiscal 2026

• Company sees potential licensing opportunities for G-Mesh technology

• Ispire collaborates with regulators to support age-gating technology adoption

Result Drivers

• CUSTOMER SHIFT - Revenue decreased due to strategic shift away from lower quality cannabis customers, impacting overall product sales

• ACCOUNTS RECEIVABLE REDUCTION - Co reduced net accounts receivable by 19.5% to $37.9 mln, enhancing financial flexibility

• MANUFACTURING EXPANSION - Co ramping up manufacturing capabilities in Malaysia to increase production

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the tobacco peer group is "buy"

• Wall Street's median 12-month price target for Ispire Technology Inc is $6.50, about 112.4% above its February 5 closing price of $3.06

Press Release: ID:nPn83JJSma

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