Ispire Technology Inc (ISPR) Q3 2023: Ispr

Executive Summary

Ispire Technology Inc (ISPR) reported Q3 2023 results featuring a 24.4% year-over-year revenue increase to $30.0 million, alongside a continued EBITDA and net loss trajectory. Despite top-line growth, the company posted a negative operating margin of -18.9% and a net loss of -$5.95 million (-$0.11 per share). Operating cash flow was positive at $3.35 million and free cash flow reached $3.03 million, underscoring improving cash generation even as profitability remains elusive in the near term. The balance sheet displays a robust cash position (approximately $39.5 million) and a substantial intangible asset base, with net debt effectively negative (net cash ~-$35.45 million), but also a concerning concentration of intangibles and an unusual goodwill presentation that warrants careful disclosure review.

Key Performance Indicators

Revenue

30.02M

QoQ: -28.00% | YoY:24.36%

Gross Profit

6.11M

20.36% margin

QoQ: -4.14% | YoY:35.22%

Operating Income

-5.68M

QoQ: -43.77% | YoY:-64.06%

Net Income

-5.95M

QoQ: -47.92% | YoY:-91.50%

EPS

-0.11

QoQ: -48.45% | YoY:-88.03%

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Revenue: $30.01 million in Q3 2023, up 24.36% YoY, down 28.00% QoQ. Gross Profit: $6.11 million; Gross Margin: 20.36%. Operating Income: -$5.68 million; Operating Margin: -18.92%. EBITDA: -$5.63 million; EBITDA Margin: -18.75%. Net Income: -$5.95 million; Net Margin: -19.82%. EPS: -$0.11 (diluted). Weighted Avg Shares: 54.35 million. Cash Flow: Operating Cash Flow $3.35 million; Capex -$0.323 million; Free Cash Flow $3.03 million. Balance Sheet: Cash & Equivalents $39.45 million; Total Assets $108.15 million; Total Liabilities $72.47 million; Shareholders’ Equity $35.68 million. Intangibles: $968.03 million; Goodwill: -$967.06 million. Net Debt: -$35.45 million (net cash). Valuation/Multiples: P/S ~10.85x; P/B ~9.13x; P/FCF ~107x; EV Multiple: -51.68x (notably negative/ambiguous signaling in this issuer). Liquidity/Leverage: Debt to capitalization ~0.101; Debt to Equity ~0.112; Interest Coverage: 0 (negative EBITDA). Efficiency: Asset Turnover ~0.278; DSO ~144 days; DIO ~37 days; CCC ~-62 days. Shareholder actions: Common Stock Issued ~$10.8 million in financing; Net Cash from Financing ~$10.8 million.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	30.02M	24.36%	-28.00%
Gross Profit	6.11M	35.22%	-4.14%
Operating Income	-5.68M	-64.06%	-43.77%
Net Income	-5.95M	-91.50%	-47.92%
EPS	-0.11	-88.03%	-48.45%

Key Financial Ratios

currentRatio

1.42

grossProfitMargin

20.4%

operatingProfitMargin

-18.9%

netProfitMargin

-19.8%

returnOnAssets

-5.5%

returnOnEquity

-16.7%

debtEquityRatio

0.11

operatingCashFlowPerShare

$0.06

freeCashFlowPerShare

$0.06

priceToBookRatio

9.13

priceEarningsRatio

-13.68

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
ISPR Focus	20.36%	-18.90%	-16.70%	-13.68%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q3 2024	26,190.73	-0.19	+87.0%	View
Q2 2024	41.83	-0.14	+0.3%	View
Q1 2024	39,338.31	-98.85	+91.0%	View
Q4 2023	37.34	-0.06	+14.5%	View
Q3 2023	30.02	-0.11	+24.4%	View

Ispire Technology Inc (ISPR) Q3 2023 Earnings Report

Earnings Highlights

Ispire Technology Inc (ISPR) QQ3 2023 Results Analysis

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

Ispire Technology Inc (ISPR) Q3 2023 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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