Vape Manufacturer Ispire Expands Malaysia Operations, Negotiates Southeast Asia OEM Deal as Nicotine Pouch and US Age-Gating Businesses Develop
Ispire reported a 9.3% revenue decline and wider net loss while expanding Malaysian production and negotiating a Southeast Asian OEM deal.Summary
Ispire Technology Inc. (Nasdaq: ISPR) reported fiscal Q1 revenue of $27.5 million, down 9.3% year over year, with net loss widening to $6.4 million from $3.3 million, though gross margin recovered sequentially to 16.2%. European regulatory changes reduced distributor purchases. The company is expanding Malaysian vape and nicotine pouch manufacturing, which it estimates offers a 25% US tariff advantage over China-based production, and is negotiating an OEM/ODM agreement with a Southeast Asian vaping brand expected to be announced in January 2027. However, Ispire remains dependent on related-party manufacturer Shenzhen Yi Jia Technology, purchasing about $19.13 million of products during the quarter and reporting $52 million in non-current related-party payables. Its nicotine pouch venture JinWu Health, 49% owned through Aspire Science and partnered with Jincheng-related parties, contributed only about $290 in equity-method earnings. Ispire also holds 40% of Ike Tech Inc., which plans a US PACHA age-gating pilot with Charlie's Holdings before the end of 2026, while its device-component PMTA remains under FDA review with no marketing authorization announced.
(Source：2Firsts)
