Roth Capital has revised its price target for Ispire Technology (ISPR, Financial), lowering it to $7.50 from the previous $9, while maintaining its Buy rating on the stock. The adjustment follows the company's second-quarter performance, which was impacted by delays in shipment schedules related to its U.K. supply agreement, now expected to occur in the fiscal fourth quarter. Additionally, the timing of orders has been affected by the Chinese New Year and tariffs.
Moreover, an upcoming decision from the FDA could enhance future prospects by providing clearer insights into licensing opportunities, according to the research note. Roth Capital anticipates this decision will offer more stability and predictability in the company's operations moving forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Ispire Technology Inc (ISPR, Financial) is $7.50 with a high estimate of $7.50 and a low estimate of $7.50. The average target implies an upside of 162.24% from the current price of $2.86. More detailed estimate data can be found on the Ispire Technology Inc (ISPR) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Ispire Technology Inc's (ISPR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ISPR Key Business Developments
Release Date: May 12, 2025
- Revenue: $26.2 million for Q3 fiscal 2025, down from $30 million in Q3 fiscal 2024.
- European Revenue: $13.2 million, a decline of 2.9% from $13.6 million in the previous year.
- North America Revenue: $8.8 million, a decline of 28.9% from $12.4 million in the previous year.
- Asia Pacific Revenue: $3 million, a decline of 21.4% from $3.8 million in the previous year.
- Gross Profit: $4.8 million for Q3 fiscal 2025, down from $6.1 million in Q3 fiscal 2024.
- Gross Margin: 18.2% for Q3 fiscal 2025, down from 20.4% in the previous year.
- Operating Expenses: $15.4 million for Q3 fiscal 2025, up from $11.8 million in the previous year.
- Net Loss: $10.9 million or $0.19 per share for Q3 fiscal 2025, compared to a net loss of $5.9 million or $0.11 per share in the previous year.
- Cash and Cash Equivalents: $23.5 million as of March 31, 2025, a reduction of $10.9 million from the previous quarter.
- Accounts Receivable: Reduced by approximately $7.3 million to $60.4 million.
- Net Cash Flow from Operating Activities: Used $12.1 million for the nine months ended March 31, 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ispire Technology Inc (ISPR, Financial) successfully reduced its accounts receivable by approximately $7.3 million, demonstrating improved financial management.
- The company secured an interim nicotine product manufacturing license in Malaysia, expanding its manufacturing capabilities and reducing geopolitical risks.
- Ispire Technology Inc (ISPR) filed a PMPA for its blockchain-based age gating system with the FDA, positioning itself as an innovator in regulatory compliance.
- The company launched the 'Spout' cannabis vapor device, highlighting its commitment to product innovation and consumer safety.
- Ispire Technology Inc (ISPR) is transitioning its pricing strategy to FOB factory pricing, enhancing flexibility and market position amidst tariff challenges.
Negative Points
- Total revenue for the third quarter of fiscal 2025 decreased by 12.7% compared to the same period last year, indicating a decline in sales.
- Revenues from North America fell by 28.9%, largely due to new tariffs on Chinese-made products and a shift in manufacturing activities.
- Operating expenses increased significantly to $15.4 million in Q3 2025 from $11.8 million in the same period last year, impacting profitability.
- The company reported a net loss of $10.9 million for the third fiscal quarter of 2025, compared to a net loss of $5.9 million in the previous year.
- Ispire Technology Inc (ISPR) experienced a reduction in cash and cash equivalents, with a negative working capital balance of $2.1 million as of March 31, 2025.
