Vape maker Ispire misses fiscal 2025 revenue estimates, shifts focus to nicotine sector
Overview
Ispire Technology fiscal 2025 revenue falls to $127.5 mln, missing analyst expectations
Net loss widens to $39.2 mln from $14.8 mln in fiscal 2024
Company shifts focus from cannabis to nicotine sector, prioritizing quality customers
Outlook
Ispire sees $18 mln in backlog orders entering fiscal Q1 2026
Company focuses on nicotine sector for sustainable growth
Ispire progressing preparations for advancing PMTA submissions for flavored ENDS products
Company's international nicotine ODM business gaining momentum
Result Drivers
REVENUE DECLINE - Revenue fell to $127.5 mln from $151.9 mln in FY 2024, attributed to strategic shift from cannabis to nicotine sector
GROSS MARGIN DROP - Gross margin decreased to 17.8% from 19.6% in FY 2024, impacted by strategic repositioning away from cannabis
OPERATING EXPENSES - Operating expenses rose to $60.5 mln due to increased sales and marketing costs, despite cost-cutting measures, according to Co-CEO Michael Wang
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Miss | $127.50 mln | $148.90 mln (1 Analyst) |
FY Net Income |
| -$39.20 mln |
|
FY Gross Margin |
| 17.8% |
|
FY Gross Profit |
| $22.60 mln |
|
FY Operating Expenses |
| $60.50 mln |
|
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 $7.50, about 54.3% above its September 15 closing price of $3.43
Press Release: ID:nPnrjvF1a
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