Ispire Technology Inc. (NASDAQ:ISPR), a company with a focus on innovations in vaping technology and precision dosing, reported its first quarter 2025 results Monday for the period ended on Sept. 30, 2024.

Co-CEO Michael Wang said despite challenges the company remained focused on long-term growth, with promising advancements in vaping technology and strategic global partnerships.

"While our financial results were slightly impacted due to the strategic shifts we have made in our US business to focus on high-quality customers and to improve payment terms and gross profit, I am pleased with our team's overall performance given the challenging macroeconomic environment and look forward to the remainder of fiscal 2025 and the opportunities that lay ahead," Wang said.

Q1 2025 Financial Highlights

• Revenue totaled $39.3 million, representing a decrease of 8.2% year-over-year to $42.9 million due to lower U.S. product sales (by $8.1 million year-over-year), partially offset by growth in Europe and other regions (notably South Africa).
• Gross profit increased by 13.2% to $7.7 million from $6.8 million, with gross margin improving to 19.5% from 16%, driven by a shift toward higher-margin products.
• Operating expenses rose by 67% year-over-year to $12.9 million, due to increased marketing expenses, stock-based compensation, payroll costs, and higher bad debt provisions.
• Net loss amounted to $5.6 million ($0.10 per share), compared to a net loss of $1.3 million ($0.02 per share) in the prior year's period.
• As of Sept. 30, 2024, the company had $37.7 million in cash and a working capital of $16.6 million.

Read Also: Cannabis Vape Tech Producer Ispire Enters South African Market Via Exclusive Deal With Dank Pack

Recent Strategic Developments

• Continued progress on point-of-use age-gating technology and initial commercialization globally.
• The company recently launched the I-80 machine, designed to revolutionize the cannabis industry with cost-effective production.
• Secured a 5-year distribution agreement with ANDS for the Middle East, North Africa, and Global Duty-Free markets, expanding the company's reach and portfolio.

Earlier Wang said the previous fiscal 2024 was "a foundational year for Ispire." The company reported record revenue and substantial margin expansion in Sept. while "strategically positioning us for faster growth in our global nicotine business and intentionally focusing our cannabis vaping hardware on high-quality multi-state operator (MSO) customers."

During an interview on Benzinga's Cannabis Insider podcast earlier this year Wang said that "vaping will become the number one way for using cannabis within the next 2 or 3 years."

• EXCLUSIVE: What It Takes To Thrive In Cannabis Vape Space – Lessons Learned From Industry Trailblazers

ISPR Price Action

Ispire's shares traded 5.91% lower at $5.89 per share at Monday's closing.