AI-extracted from the 10-K filed 2026-09-15 — FY2026 (year ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Revenue fell 24.7% YoY to $96.0M amid tightened North American sales strategy and European regulatory uncertainty, while net loss improved to $33.2M from $39.2M.
Biggest Revenue Drivers
North America (U.S. and Canada)$15.1M-53.6% YoY
Tightened sales strategy requiring higher upfront deposits and stricter payment terms led to reduced participation from lower-tier accounts.
Asia Pacific (excluding PRC)$10.9M-11.0% YoY
Modest decline from prior year base of $12.3M.
Biggest Revenue Drivers
Total revenue: $96.0M-24.7% YoY
North America (U.S. and Canada)$15.1M-53.6% YoY
Tightened sales strategy requiring higher upfront deposits and stricter payment terms led to reduced participation from lower-tier accounts.
Asia Pacific (excluding PRC)$10.9M-11.0% YoY
Modest decline from prior year base of $12.3M.
Others$8.5M-0.1% YoY
Other geographic regions remained relatively flat.
Largest Expense Items
Cost of revenue$83.7M-20.2% YoY
Decreased due to lower sales volumes, partially offset by $2.0M increase in inventory write-downs (from $0.8M to $2.8M).
Operating expenses$44.9M-25.8% YoY
Reduction across sales/marketing ($3.4M decline), credit loss expenses ($1.3M decline), and general/administrative ($10.9M decline from headcount cuts and cost optimization).
Credit loss expenses$20.7M-6.0% YoY
Slight decrease due to tightened North American payment terms and higher deposit requirements, offset by persistent long-aged customer balance risks.
Watch Items from the Filing
Two customers represent ~53% of revenue: largest distributor (UK/France territory) 27.3%, second-largest (UK) 25.5%. Loss of either could materially harm business.
Allowance for credit losses surged to $26.1M as of June 30, 2026 (vs. $18.0M prior year), signaling deterioration in cannabis operator customer creditworthiness amid federal/state regulatory uncertainty.
Management identified material weakness in IT general controls (cyber security, logical access, service org management) as of June 30, 2026; remediation plan underway but control not yet effective.
IKE joint venture (40% ownership, $8.6M invested) is pre-revenue; FDA submitted 'component' PMTA for age-gating system April 2025, accepted May 2025; success uncertain but Glas PMTA approval (May 2026) provides pathway validation.
Malaysian manufacturing facility licensed March 2026 (full/final from interim May 2025); currently operating 6 of planned 70+ production lines, still in early assembly phase with unproven profitability and scaling risk.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Ispire Technology Inc. (ISPR): stock profile, AI score and financials
Ispire Technology Inc. (ISPR) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Staples sector company. 13F Pro's AI-powered ranking engine scores ISPR at 15.2/100 on a composite quality score built from its SEC filings, placing it at rank #2,817 of 2,925 stocks — the bottom half of the AI-ranked universe. Areas of concern include revenue growth (3.8) and balance sheet strength (5.5), which score below median versus the broader universe. Shareholder dilution risk is elevated at 28.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q4 2026), Ispire Technology Inc. reports quarterly revenue of $26.7M, net income of $-13.8M, an operating margin of -50.7%. Top institutional holders of ISPR by reported 13-F value include Yong Rong (HK) Asset Management Ltd, Potomac Capital Management, BlackRock, based on the most recent SEC filings. ISPR trades on the Nasdaq exchange and files with the SEC under CIK 1948455. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ISPR daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Ispire Technology Inc. directly from SEC EDGAR.