10-Q · May 20, 2026
iPower reported a significant decline in revenue for Q3 2026, with total revenue falling 78.2% to $3.5 million compared to $16.0 million in Q3 2025. Operating losses and net losses increased markedly, indicating…
Earnings analysis · 10-K
IPW earnings analysis
Filed October 2, 2026 · Our reading of the company's report
The latest report
iPower’s 10-K shows a major deterioration in the legacy commerce business, with revenue down 68.4% to $19.96 million, gross margin falling to 20.2%, and a $11.62 million net loss attributable to the company. Management…
Read full summary
iPower’s 10-K shows a major deterioration in the legacy commerce business, with revenue down 68.4% to $19.96 million, gross margin falling to 20.2%, and a $11.62 million net loss attributable to the company. Management is pivoting toward AI infrastructure while reducing its recently launched digital-asset exposure, but the strategy remains early-stage and digital assets are pledged as collateral for convertible notes. Post-year-end financing capacity provides near-term liquidity, yet customer concentration, severe operating losses, dilution-linked financing and material control weaknesses leave the risk/reward profile bearish.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-345.16
- Segment
- One reportable segment; product sales were $18,423,316 and service income was $1,533,622 for fiscal 2026.
What stood out
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Pivot Toward AI Infrastructure
Management is pivoting toward AI infrastructure acquisition, financing, equipment leasing and related operating opportunities. It also formed iPower AI LLC on July 15, 2026 to separate artificial-intelligence operations from e-commerce operations.
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Near-Term Financing Capacity
Liquidity was supported by approximately $4.7 million of financing proceeds raised after June 30, 2026 and approximately $15.0 million of remaining optional capacity under the convertible-note facility. The company also repaid and terminated its ABL, which had a $3,737,602 balance at June 30, 2025.
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Restructuring Generated Cash Benefits
The company completed the sale of GPM and its underlying entities for a $2.3 million promissory note, recognizing a $1,613,936 gain on disposition. The transaction also reduced the operating cost base, including a $12.5 million reduction in selling and fulfillment expenses.
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Cost Reduction Improved Cash Burn
The company reduced operating expenses 45.2% to $18,467,579 from $33,699,897, including a $5.7 million decrease in general and administrative expenses. Operating cash used declined to $163,466 from $579,187.
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Digital-Asset Exposure Being Reduced
The company is reducing digital-asset exposure: it sold all sUSDai for approximately $1,002,381 and all Ethereum for approximately $563,391 on August 14, 2026. At June 30, 2026, digital assets had a fair value of $2,356,644.
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Broader Non-Hydroponic Mix
The company maintains a diversified product mix within its single reportable segment: hydroponic products represented approximately 10.0% of fiscal 2026 sales, while general gardening, home goods and other products represented 90.0%. Sales through Amazon to Canada and other foreign countries were approximately 6.8% of total sales.
What to watch
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Severe Revenue and Margin Contraction
The core business deteriorated sharply: fiscal 2026 revenue fell 68.4% to $19,956,938, gross margin declined to 20.2% from 43.3%, and operating margin worsened to negative 72.3% from negative 10.0%. The filing attributes the revenue decline partly to decreased Amazon orders, tariff uncertainty and product-supply disruption.
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Pledged and Volatile Digital Assets
The new digital-asset treasury strategy creates material volatility and collateral restrictions. The company recorded an $853,856 unrealized digital-asset loss in fiscal 2026; substantially all controlled-account digital assets and cash are pledged to the collateral agent, and the June 30, 2026 balance sheet included $3,252,140 of restricted cash and $2,356,644 of digital assets held with a single custodian.
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Customer and Supplier Concentration
Customer and supplier concentration increased the operating risk profile after the GPM divestiture. Amazon Vendor and Amazon Seller customers represented 38% of fiscal 2026 revenue, GPM represented approximately 37%, and one supplier represented 60.8% of total purchases; GPM also represented approximately 34% of accounts receivable at June 30, 2026.
Management's outlook
The 10-K provides no quantitative revenue or EPS guidance. Management states it expects future cash requirements to decline following cost reductions and restructuring, and believes liquidity is sufficient for at least the next twelve months.
Earlier filings 4
10-Q · February 20, 2026
iPower reported Q2 revenue of $7,133,602 and GAAP net loss attributable to iPower of $(1,193,281) (EPS $(1.08)), with gross margin roughly stable at 44.0% but operating margin deteriorating to -34.2%. The quarter shows…
10-Q · November 14, 2025
iPower reported revenue of $12.02M for the three months ended September 30, 2025, down from $19.01M a year earlier, while net loss narrowed to $533,648 (loss per share $0.51) versus a $2.03M loss a year ago. Gross…
10-K · October 9, 2025
iPower positions itself as a data-driven e-commerce retailer and supplier of home, pet, garden (including hydroponics), outdoor and consumer electronics products, emphasizing proprietary data formulas and a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.