IPW iPower Inc

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iPower Reports Fiscal Third Quarter 2026 Results Highlighted by Lower Operating Cost Structure, Narrowed Non-GAAP Loss and Advancing AI Infrastructure Strategy

Wednesday, May 20, 2026 · 5:00 PM ET GlobeNewswire

Operating expenses declined 66% sequentially

GAAP net loss primarily reflected non-cash goodwill impairment; non-GAAP net loss narrowed to $0.3 million

Company strengthens platform through asset-light operations, contracted sublease income and recently launched AI infrastructure strategy

RANCHO CUCAMONGA, Calif., May 20, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a technology- and data-driven company operating at the intersection of supply chain, infrastructure and digital assets, today reported financial results for its fiscal third quarter ended March 31, 2026.

Fiscal third quarter results reflected continued progress in iPower’s strategic operating reset following the divestiture of Global Product Marketing Inc. and the Company’s transition toward a leaner, more asset-light operating model.

For the fiscal third quarter of 2026, revenue from continuing operations was $3.5 million, gross profit was $0.8 million, and gross margin was 21.6%. Total operating expenses declined to $1.9 million, compared with $5.6 million in the fiscal second quarter of 2026 and $7.2 million in the prior-year quarter.

GAAP net loss attributable to iPower was $(3.5) million, or $(2.38) per basic share for the quarter. The GAAP net loss was primarily driven by a $3.0 million non-cash goodwill impairment, which fully eliminated the Company’s remaining goodwill balance. The impairment did not impact the Company’s cash position or operating cash flows. Excluding this impairment and other non-cash or non-operating items, non-GAAP net loss attributable to iPower was $(0.3) million, or $(0.18) per share, compared with non-GAAP net loss of $(0.7) million, or $(0.70) per share, in the prior-year quarter.

“Fiscal Q3 demonstrates that our operating reset is taking hold,” said Lawrence Tan, Chief Executive Officer of iPower. “We significantly reduced our operating cost structure, improved working-capital discipline, and narrowed our non-GAAP loss, despite a smaller revenue base during this transition period. Importantly, the goodwill impairment recorded in the quarter was non-cash and cleared the remaining goodwill from our balance sheet.”

Tan continued, “We are building iPower into a more efficient and financially flexible platform. Our strategy is focused on lower fixed costs, higher-quality revenue opportunities, and disciplined capital allocation into areas where we see long-term value creation. Following quarter end, we strengthened this strategy through contracted sublease income and the launch of our AI infrastructure strategy, which is intended to position iPower as a capital provider for GPU clusters and AI infrastructure assets.”

As of March 31, 2026, iPower had $14.5 million of current assets and $6.6 million of current liabilities, resulting in a current ratio of approximately 2.2x. Current liabilities decreased approximately 54% from $14.5 million at June 30, 2025. Accounts payable declined to $3.0 million from $7.2 million at June 30, 2025, while inventory declined to $2.5 million from $8.1 million, reflecting the Company’s leaner operating model.

Subsequent to quarter end, iPower entered into a sublease agreement for a portion of its Rancho Cucamonga facility, expected to generate more than $2.6 million of contracted, non-dilutive income through May 2028. The Company also launched its AI infrastructure strategy, initially utilizing a portion of its existing $30 million financing facility to pursue investments across the AI infrastructure stack, including an initial commitment of up to $3 million to purchase sUSDai, a yield-bearing instrument backed by GPU-collateralized loans. The Company believes these initiatives enhance financial flexibility and support its transition toward a more scalable platform.

Fiscal Third Quarter 2026 Highlights

MetricFiscal Q3 2026Key Context
Revenue$3.5 millionReflects transition to leaner model
Gross profit$0.8 millionGross margin of 21.6%
Operating expenses$1.9 millionDown 66% sequentially
GAAP net loss attributable to iPower$(3.5) millionIncludes $3.0 million non-cash goodwill impairment
Non-GAAP net loss attributable to iPower$(0.3) millionImproved from $(0.7) million in prior-year quarter
Current assets$14.5 millionCurrent ratio of approximately 2.2x
Current liabilities$6.6 millionDown 54% from June 30, 2025
   

About iPower Inc.

iPower Inc. (Nasdaq: IPW) is a technology- and data-driven company executing a focused strategy at the intersection of AI infrastructure, digital assets and real-world commerce. The Company’s platform includes established e-commerce supply chain operations, logistics and software-enabled services, as well as a growing AI infrastructure investment strategy designed to support long-term stockholder value creation.

Non-GAAP Financial Measures

Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader’s overall understanding of the Company’s financial performance. This press release includes non-GAAP net loss attributable to iPower and non-GAAP loss per share. The Company uses these measures to evaluate operating performance by excluding certain non-cash, non-recurring or non-operating items, including stock-based compensation, debt-related non-cash financing costs, change in fair value of derivative liability, unrealized loss on digital assets, loss on extinguishment of debt, goodwill impairment and related tax adjustments. These measures should not be considered a substitute for GAAP results. A reconciliation to the most directly comparable GAAP measure is included in the financial tables accompanying this release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Certain statements made herein that use words such as “estimate,” “project,” “intend,” “expect,” “believe,” “may,” “might,” “potential,” “anticipate,” “plan” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include statements regarding iPower’s operating strategy, cost structure, liquidity, balance sheet flexibility, anticipated sublease income, AI infrastructure strategy, digital asset strategy and future growth opportunities. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Additional risks are described in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. iPower undertakes no obligation to update forward-looking statements except as required by law.

Media & Investor Contact

IPW.IR@meetipower.com



iPower Inc. and Subsidiaries 
Consolidated Balance Sheets 
As of March 31, 2026 and June 30, 2025 
  
     March 31, June 30, 
     2026  2025  
          
ASSETS       
Current assets       
 Cash and cash equivalent $713,685  $1,677,879  
 Accounts receivable, net  7,064,189   6,124,008  
 Inventories, net  2,536,961   8,131,203  
 Restricted Cash - BitGo  2,209,000   -  
 Prepayments and other current assets, net  1,973,215   2,567,706  
 Current assets held for sale  -   873,515  
   Total current assets  14,497,050   19,374,311  
           
Non-current assets       
 Right of use - non-current  2,966,202   3,915,539  
 Property and equipment, net  166,441   390,349  
 Deferred tax assets, net  4,990,836   3,724,462  
 Goodwill  -   3,034,110  
 Investment in joint venture  13,264   385,180  
 Note Receivable  2,300,000   -  
 Intangible assets, net  2,494,300   2,981,328  
 Digital assets  1,664,827   -  
 Other non-current assets  2,213,668   1,837,488  
   Total non-current assets  16,809,538   16,268,456  
           
   Total assets $31,306,588  $35,642,767  
           
LIABILITIES AND EQUITY       
Current liabilities       
 Accounts payable, net  3,016,663   7,180,009  
 Other payables and accrued liabilities  2,136,690   1,769,421  
 Lease liability - current  1,450,340   1,361,111  
 Revolving loan payable, net  -   3,737,602  
 Income taxes payable  -   183,195  
 Current liabilities held for sale  -   221,460  
   Total current liabilities  6,603,693   14,452,798  
           
Non-current liabilities       
 Convertible notes payable  4,470,518   -  
 Derivative liability - Conversion option  1,264,600   -  
 Lease liability - non-current  1,817,153   2,913,967  
   Total non-current liabilities  7,552,271   2,913,967  
           
   Total liabilities  14,155,964   17,366,765  
           
Commitments and contingency  -   -  
           
Stockholders' Equity       
 Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and      
  outstanding at March 31, 2026 and June 30, 2025  -   -  
 Common stock, $0.001 par value; 180,000,000 shares authorized; 1,773,999 and       
  1,045,330 shares issued and outstanding at March 31, 2026 and June 30, 2025  1,774   1,045  
 Additional paid in capital  37,528,080   33,481,201  
 Accumulated deficits  (20,380,696)  (15,198,889) 
 Non-controlling interest  (47,462)  (47,462) 
 Accumulated other comprehensive loss  48,928   40,107  
   Total stockholders' equity  17,150,624   18,276,002  
           
   Total liabilities and stockholders' equity $31,306,588  $35,642,767  
           
           
  



iPower Inc. and Subsidiaries 
Consolidated Statements of Operations and Comprehensive Loss 
For the Three and Nine Months Ended March 31, 2026 and 2025 
  
    For the Three Months Ended March 31, For the Nine Months Ended March 31, 
    2026  2025  2026  2025  
    (Unaudited) (Unaudited) (Unaudited) (Unaudited) 
REVENUES           
 Product sales $3,498,681  $15,018,227  $16,990,959  $49,422,823  
 Service income  -   1,023,445   1,532,722   3,222,236  
  Total revenues  3,498,681   16,041,672   18,523,681   52,645,059  
                
COST OF REVENUES             
 Product costs  2,743,132   8,306,217   10,353,516   27,043,417  
 Service costs  -   879,995   1,332,681   2,704,737  
  Total cost of revenues  2,743,132   9,186,212   11,686,197   29,748,154  
                
GROSS PROFIT  755,549   6,855,460   6,837,484   22,896,905  
                
OPERATING EXPENSES:             
 Selling and fulfillment  991,037   5,373,932   7,348,039   15,687,013  
 General and administrative  908,773   1,816,032   4,630,041   10,033,958  
  Total operating expenses  1,899,810   7,189,964   11,978,080   25,720,971  
                
LOSS FROM OPERATIONS  (1,144,261)  (334,504)  (5,140,596)  (2,824,066) 
                
OTHER INCOME (EXPENSE)             
 Interest expenses  (432,167)  (81,968)  (611,108)  (362,602) 
 Loss on equity method investment  -   (986)  -   (2,707) 
 Loss on deconsolidation of VIE  (1,269)  -   (40,893)  -  
 Impairment loss -goodwill  (3,034,110)  -   (3,034,110)  -  
 Unrealized gain (loss) on digital assets  (549,932)  -   (544,173)  -  
 Change in fair value of derivative liability  89,600   -   266,200   -  
 Gain (Loss) on extinguishment of debt  (539,634)  -   (563,734)  -  
 Other non-operating income (expenses)  3,897   35,241   1,236,219   47,521  
  Total other income (expenses), net  (4,463,615)  (47,713)  (3,291,599)  (317,788) 
                
LOSS BEFORE INCOME TAXES  (5,607,876)  (382,217)  (8,432,195)  (3,141,854) 
                
PROVISION FOR INCOME TAX EXPENSE (BENEFIT)  (326,502)  6,364   (1,839,874)  (637,108) 
NET INCOME (LOSS) FROM CONTINUING OPERATIONS  (5,281,374)  (388,581)  (6,592,321)  (2,504,746) 
DISCONTINUED OPERATIONS, NET OF TAX  1,826,496   46,208   1,410,514   345,920  
NET LOSS  (3,454,878)  (342,373)  (5,181,807)  (2,158,826) 
                
 Non-controlling interest  -   (2,774)  -   (8,765) 
                
NET LOSS ATTRIBUTABLE TO IPOWER INC. $(3,454,878) $(339,599) $(5,181,807) $(2,150,061) 
                
OTHER COMPREHENSIVE INCOME (LOSS)             
 Foreign currency translation adjustments  (15,743)  (97,556)  8,821   3,520  
                
COMPREHENSIVE LOSS ATTRIBUTABLE TO IPOWER INC. $(3,470,621) $(437,155) $(5,172,986) $(2,146,541) 
                
WEIGHTED AVERAGE NUMBER OF COMMON STOCK             
 Basic  1,453,875   1,048,508   1,200,110   1,047,816  
                
 Diluted  1,453,875   1,048,508   1,200,110   1,047,816  
                
EARNINGS (LOSSES) PER SHARE             
 Basic - continuing operations $(3.63) $(0.37) $(5.49) $(2.39) 
 Basic - discontinued operations  1.25   0.04   1.17   0.33  
  Total basic earnings (loss) per share $(2.38) $(0.33) $(4.32) $(2.06) 
                
 Diluted - continuing operations $(3.63) $(0.37) $(5.49) $(2.39) 
 Diluted - discontinued operations  1.26   0.04   1.18   0.33  
  Total diluted earnings (loss) per share $(2.38) $(0.33) $(4.32) $(2.06) 
                



iPower Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
 
 
    For the Three Months Ended March 31, For the Nine Months Ended March 31,
    2026  2025  2026  2025 
    (Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP OPERATING EXPENSES $1,899,810  $7,189,964  $11,978,080  $25,720,971 
Stock-based compensation  (150,203)  546,053.00   (1,450,608)  142,780 
               
NON-GAAP OPERATING EXPENSES $1,749,607  $7,189,964  $11,978,080  $25,720,971 
               
               
GAAP LOSS FROM OPERATIONS $(1,144,261) $(334,504) $(5,140,596) $(2,824,066)
Stock-based compensation  150,203   (546,053)  1,450,608   142,780 
               
NON-GAAP LOSS FROM OPERATIONS $(994,058) $(880,557) $(3,689,988) $(2,681,286)
               
               
GAAP OTHER INCOME (EXPENSE) $(4,463,615) $(47,713) $(3,291,599) $(317,788)
Amortization of debt discount and non-cash financing costs  247,551   -   269,782   125,906 
Loss on extinguishment of debt  539,634   -   563,734   - 
change in fair value of derivative liability  (89,600)  -   (266,200)  - 
Unrealized gain (loss) on digital assets  549,932   -   544,173   - 
Impairment loss - goodwill  3,034,110   -   3,034,110   - 
               
NON-GAAP OTHER INCOME (EXPENSE) $(181,988) $(47,713) $854,000  $(191,882)
               
               
GAAP NET LOSS ATTRIBUTABLE TO IPOWER INC. $(3,454,878) $(339,599) $(5,181,807) $(2,150,061)
Stock-based compensation  150,203   (546,053)  1,450,608   142,780 
Amortization of debt discount and non-cash financing costs  247,551   -   269,782   125,906 
Loss on extinguishment of debt  539,634   -   563,734   - 
change in fair value of derivative liability  (89,600)  -   (266,200)  - 
Unrealized gain (loss) on digital assets  549,932   -   544,173   - 
Impairment loss - goodwill  3,034,110   -   3,034,110   - 
Tax adjustment  (1,240,186)  152,805   (1,566,020)  (75,188)
NON-GAAP NET LOSS ATTRIBUTABLE TO IPOWER INC. $(263,234) $(732,847) $(1,151,620) $(1,956,563)
               
GAAP EARNINGS (LOSSES) PER SHARE             
Basic and diluted $(2.38) $(0.33) $(4.32) $(2.06)
Impact of Non-GAAP adjustments  2.20   (0.37)  3.36   0.19 
NON-GAAP LOSSES PER SHARE  $(0.18) $(0.70) $(0.96) $(1.87)
               
               
WEIGHTED AVERAGE NUMBER OF COMMON STOCK             
 Basic and diluted - GAAP and NON-GAAP  1,453,875   1,048,508   1,200,110   1,047,816 
               



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Source: iPower, Inc.
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