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iPower Stock Declines Post Q3 Earnings Amid Strategic Reset
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Shares of iPower Inc. (IPW - Free Report) have lost 32.9% since the company reported earnings for the quarter ended March 31, 2026, underperforming the S&P 500 Index’s 1.4% gain over the same period. Over the past month, the stock plunged 45.8% against the S&P 500’s 4.5% increase.
iPower’s Earnings Snapshot
iPower’s third-quarter fiscal 2026 revenue from continuing operations fell sharply to $3.5 million from $16 million in the prior-year quarter, reflecting the company’s transition to a leaner operating structure following the divestiture of Global Product Marketing (GPM). Gross profit declined to $0.8 million from $6.9 million a year earlier, while gross margin narrowed to 21.6% from roughly 42.7%.
GAAP net loss attributable to iPower widened to $3.5 million, or $2.38 per share, from a loss of $0.3 million, or $0.33 per share, in the year-ago quarter. However, non-GAAP net loss attributable to iPower improved to $0.3 million, or $0.18 per share, from $0.7 million, or $0.70 per share, a year earlier, aided by lower operating expenses.
IPW’s Cost Reduction Efforts Gain Traction
Management highlighted substantial progress in reducing IPW’s operating cost structure during the quarter. Total operating expenses dropped to $1.9 million from $7.2 million in the prior-year quarter and declined 66% sequentially from the second quarter of fiscal 2026. Selling and fulfillment expenses fell to $0.9 million from $5.4 million, while general and administrative expenses declined to $0.9 million from $1.8 million.
Chief Executive Officer Lawrence Tan said the quarter demonstrated that iPower’s operating reset is taking hold, citing improved working-capital discipline and a leaner operating model. Management said the company is focusing on lower fixed costs, disciplined capital allocation and higher-quality revenue opportunities as it transitions toward an asset-light structure.
iPower’s Goodwill Impairment and Digital Asset Losses
The quarter’s GAAP loss was primarily driven by a $3 million non-cash goodwill impairment charge that fully eliminated IPW’s remaining goodwill balance. Management said the impairment did not affect cash position or operating cash flows. The company stated in its filing that the impairment analysis was triggered mainly by a sustained decline in iPower’s share price and market capitalization.
Results were also affected by unrealized losses tied to digital asset holdings. During the quarter, iPower recorded a $549,932 unrealized loss on Bitcoin and Ethereum investments. The company disclosed that it purchased 15.12 Bitcoin and 301.10 Ethereum during the fiscal year for a combined cost basis of $2.2 million, with fair value declining to $1.7 million as of March 31, 2026.
Interest expense also increased significantly to $432,167 from $81,968 in the year-earlier quarter, reflecting the impact of convertible notes issued during the period.
IPW’s Liquidity and Balance Sheet Position
As of March 31, 2026, iPower reported current assets of $14.5 million and current liabilities of $6.6 million, resulting in a current ratio of 2.2x. Accounts payable decreased to $3 million from $7.2 million, while inventory fell to $2.5 million from $8.1 million, reflecting reduced inventory commitments under the company’s leaner operating model. Current liabilities decreased to $6.6 million from $14.5 million at the end of fiscal 2025.
Cash and cash equivalents totaled $713,685 at quarter-end, down from $1.7 million as of June 30, 2025. Operating activities generated cash flow of $430,399 during the first nine months of fiscal 2026, against cash used of $500,214 in the prior-year period.
iPower’s AI Infrastructure and Strategic Initiatives
Following quarter-end, iPower entered into a sublease agreement for a portion of its Rancho Cucamonga facility that is expected to generate more than $2.6 million in contracted income through May 2028.
IPW also launched an AI infrastructure strategy, initially utilizing part of its existing $30 million financing facility to pursue investments tied to GPU clusters and AI infrastructure assets. As part of this initiative, iPower committed up to $3 million toward purchasing sUSDai, a yield-bearing instrument backed by GPU-collateralized loans. Management said these initiatives are intended to improve financial flexibility and support a more scalable business platform.
IPW’s Other Developments
During the quarter, iPower completed the sale of its equity interest in GPM and related entities to ETTS AI Investment LLC in exchange for a $2.3 million promissory note. The company said the divestiture represented a strategic shift and allowed it to continue acting as a supplier to GPM while removing the cost burden associated with GPM’s sales operations. The transaction resulted in GPM being classified as discontinued operations in the financial statements.
IPW also formed new subsidiaries, including iPower Smart LLC for digital treasury activities and iPower Nexus Inc. for supply chain management operations.
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iPower Stock Declines Post Q3 Earnings Amid Strategic Reset
Shares of iPower Inc. (IPW - Free Report) have lost 32.9% since the company reported earnings for the quarter ended March 31, 2026, underperforming the S&P 500 Index’s 1.4% gain over the same period. Over the past month, the stock plunged 45.8% against the S&P 500’s 4.5% increase.
iPower’s Earnings Snapshot
iPower’s third-quarter fiscal 2026 revenue from continuing operations fell sharply to $3.5 million from $16 million in the prior-year quarter, reflecting the company’s transition to a leaner operating structure following the divestiture of Global Product Marketing (GPM). Gross profit declined to $0.8 million from $6.9 million a year earlier, while gross margin narrowed to 21.6% from roughly 42.7%.
GAAP net loss attributable to iPower widened to $3.5 million, or $2.38 per share, from a loss of $0.3 million, or $0.33 per share, in the year-ago quarter. However, non-GAAP net loss attributable to iPower improved to $0.3 million, or $0.18 per share, from $0.7 million, or $0.70 per share, a year earlier, aided by lower operating expenses.
IPW’s Cost Reduction Efforts Gain Traction
Management highlighted substantial progress in reducing IPW’s operating cost structure during the quarter. Total operating expenses dropped to $1.9 million from $7.2 million in the prior-year quarter and declined 66% sequentially from the second quarter of fiscal 2026. Selling and fulfillment expenses fell to $0.9 million from $5.4 million, while general and administrative expenses declined to $0.9 million from $1.8 million.
Chief Executive Officer Lawrence Tan said the quarter demonstrated that iPower’s operating reset is taking hold, citing improved working-capital discipline and a leaner operating model. Management said the company is focusing on lower fixed costs, disciplined capital allocation and higher-quality revenue opportunities as it transitions toward an asset-light structure.
iPower Inc. Price, Consensus and EPS Surprise
iPower Inc. price-consensus-eps-surprise-chart | iPower Inc. Quote
iPower’s Goodwill Impairment and Digital Asset Losses
The quarter’s GAAP loss was primarily driven by a $3 million non-cash goodwill impairment charge that fully eliminated IPW’s remaining goodwill balance. Management said the impairment did not affect cash position or operating cash flows. The company stated in its filing that the impairment analysis was triggered mainly by a sustained decline in iPower’s share price and market capitalization.
Results were also affected by unrealized losses tied to digital asset holdings. During the quarter, iPower recorded a $549,932 unrealized loss on Bitcoin and Ethereum investments. The company disclosed that it purchased 15.12 Bitcoin and 301.10 Ethereum during the fiscal year for a combined cost basis of $2.2 million, with fair value declining to $1.7 million as of March 31, 2026.
Interest expense also increased significantly to $432,167 from $81,968 in the year-earlier quarter, reflecting the impact of convertible notes issued during the period.
IPW’s Liquidity and Balance Sheet Position
As of March 31, 2026, iPower reported current assets of $14.5 million and current liabilities of $6.6 million, resulting in a current ratio of 2.2x. Accounts payable decreased to $3 million from $7.2 million, while inventory fell to $2.5 million from $8.1 million, reflecting reduced inventory commitments under the company’s leaner operating model. Current liabilities decreased to $6.6 million from $14.5 million at the end of fiscal 2025.
Cash and cash equivalents totaled $713,685 at quarter-end, down from $1.7 million as of June 30, 2025. Operating activities generated cash flow of $430,399 during the first nine months of fiscal 2026, against cash used of $500,214 in the prior-year period.
iPower’s AI Infrastructure and Strategic Initiatives
Following quarter-end, iPower entered into a sublease agreement for a portion of its Rancho Cucamonga facility that is expected to generate more than $2.6 million in contracted income through May 2028.
IPW also launched an AI infrastructure strategy, initially utilizing part of its existing $30 million financing facility to pursue investments tied to GPU clusters and AI infrastructure assets. As part of this initiative, iPower committed up to $3 million toward purchasing sUSDai, a yield-bearing instrument backed by GPU-collateralized loans. Management said these initiatives are intended to improve financial flexibility and support a more scalable business platform.
IPW’s Other Developments
During the quarter, iPower completed the sale of its equity interest in GPM and related entities to ETTS AI Investment LLC in exchange for a $2.3 million promissory note. The company said the divestiture represented a strategic shift and allowed it to continue acting as a supplier to GPM while removing the cost burden associated with GPM’s sales operations. The transaction resulted in GPM being classified as discontinued operations in the financial statements.
IPW also formed new subsidiaries, including iPower Smart LLC for digital treasury activities and iPower Nexus Inc. for supply chain management operations.