Ispire Technology Inc. reported revenue of $39.3 million for the fiscal first quarter ended September 30, 2024, an 8.2% decrease from $42.9 million in the same period last year. This decline was primarily due to a strategic shift in the U.S. business to focus on higher-quality customers, resulting in an $8.1 million decrease in U.S. product sales.
Despite the revenue decrease, gross profit for the quarter increased by 13.2% year-over-year to $7.7 million, with gross margins improving to 19.5% from 16.0% in the fiscal first quarter of 2024. This margin expansion was attributed to changes in product mix, favoring higher-margin products.
The company reported a net loss of ($5.6) million, or ($0.10) per share, for the quarter, compared to a net loss of ($1.3) million, or ($0.02) per share in the prior year period. Total operating expenses increased to $12.9 million from $7.7 million, driven by increased marketing activities, stock-based compensation, and a $1.9 million increase in the allowance for credit losses. As of September 30, 2024, Ispire had $37.7 million in cash and cash equivalents and working capital of $16.6 million.
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