iPower Reports Fiscal Q2 2026 Results and Completes Strategic Operating Reset

iPower (Nasdaq: IPW) reported fiscal Q2 2026 results for the quarter ended Dec 31, 2025, with revenue $7.1M, gross profit $3.1M and gross margin 44.0%.

Rhea-AI Summary

iPower (Nasdaq: IPW) reported fiscal Q2 2026 results for the quarter ended Dec 31, 2025, with revenue $7.1M, gross profit $3.1M and gross margin 44.0%. Operating expenses fell 28% YoY to $5.6M, and net loss was $1.2M or $(1.08) per share.

The company received $6.5M gross from the first tranche of an up to $30M convertible note, implemented a Digital Asset Treasury strategy, completed a post-quarter $2.3M divestiture of GPM, and authorized a $2M share repurchase program.

Positive

• Operating expenses down 28% YoY
• Completed divestiture of GPM for $2.3M, reducing cost base
• Raised $6.5M gross via first tranche of convertible note

Negative

• Revenue declined to $7.1M due to supply chain transition
• Net loss of $1.2M or $(1.08) per share
• Total debt ~$8.4M, including $5.8M convertible notes

Argus Feb 23 session

-31.69% close to close Open Argus

Details

News Market Reaction – IPW

On Feb 23, the first trading day after this news, IPW closed 31.69% below the previous close.

Data tracked by StockTitan Argus for the Feb 23 session.

Key Figures

Revenue: $7.1 million Gross margin: 44.0% Operating expenses: $5.6 million +5 more

Revenue

$7.1 million

Fiscal Q2 2026 revenue during supply chain restructuring

Gross margin

44.0%

Fiscal Q2 2026, stable despite lower revenue

Operating expenses

$5.6 million

Fiscal Q2 2026, down 28% year-over-year

Net loss

$1.2 million

Fiscal Q2 2026 loss attributable to iPower

EPS

$(1.08) per share

Fiscal Q2 2026 net loss per share

Cash & equivalents

$2.0 million

Cash and cash equivalents as of Dec. 31, 2025

Digital assets

Approximately $2.2 million

Digital assets balance as of Dec. 31, 2025

Share repurchase authorization

$2 million

First-ever share repurchase program approved February 2026

Previous Earnings Reports

5 past events · Latest: Nov 14

Same Type 5 events

1. Nov 14

   Q1 2026 earnings

   24h Move

   -2.5%

   Revenue drop but margin, opex and debt trends showed mixed overall picture.

2. Oct 09

   Q4/FY 2025 earnings

   24h Move

   +6.9%

   Year-end results with lower revenue, margin stability and significant debt reduction.

3. May 15

   Q3 2025 earnings

   24h Move

   -11.4%

   Revenue decline and swing to loss offset by sizable debt cuts and lower opex.

4. Feb 13

   Q2 2025 earnings

   24h Move

   +4.8%

   Revenue growth, margin expansion, positive net income and reduced total debt.

5. Nov 14

   Q1 2025 earnings

   24h Move

   -40.0%

   Revenue decline and widening net loss despite slightly better gross margin.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

digital asset treasury, convertible note, share repurchase program, restricted cash, +1 more

5 terms

digital asset treasury financial

"implemented a Digital Asset Treasury (“DAT”) strategy with an institutional investor"

A digital asset treasury is a collection of digital items like cryptocurrencies or tokens that a company or organization owns and manages. It’s important because it helps them store, protect, and use these digital assets for business needs, investments, or future growth, much like a cash reserve but in digital form.

convertible note financial

"first tranche of an up to $30 million convertible note offering, receiving $6.5 million"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

share repurchase program financial

"authorized a $2 million share repurchase program"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

restricted cash financial

"reported $2.0 million of cash and cash equivalents, $2.2 million of restricted cash"

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

short-term debt financial

"short-term debt declining to $2.6 million as of December 31, 2025"

Short-term debt is money a company must pay back within one year, including loans, notes, and commercial paper. It matters to investors because it shows near-term cash demands and how well a company can cover those payments with available cash or regular income; like a household managing a credit card bill, heavy short-term debt can raise the risk of running short of cash or needing costly refinancing, while manageable levels suggest stronger short-term financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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RANCHO CUCAMONGA, Calif., Feb. 20, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”) today reported financial results for the fiscal second quarter ended December 31, 2025. Revenue was $7.1 million, reflecting the Company’s deliberate supply chain restructuring and transition to predominantly U.S.-based sourcing during the quarter, while gross profit was $3.1 million and gross margin remained strong at 44.0%. Total operating expenses declined 28% year-over-year to $5.6 million compared to the quarter ended December 31, 2024. Net loss attributable to iPower was $1.2 million, or $(1.08) per share. The Company reported $2.0 million of cash and cash equivalents, $2.2 million of restricted cash, and approximately $2.2 million of digital assets.

During December 2025, the Company implemented a Digital Asset Treasury (“DAT”) strategy with an institutional investor after closing on the first tranche of an up to $30 million convertible note offering, receiving $6.5 million in gross proceeds. Subsequent to quarter-end, in February 2026, iPower completed the divestiture of Global Product Marketing Inc. (“GPM”) for approximately $2.3 million in total consideration and authorized a $2 million share repurchase program.

Management Commentary

“Our fiscal second quarter reflects a deliberate strategic transition,” said Lawrence Tan, CEO of iPower. “In December 2025, we implemented our first institutional Digital Asset Treasury strategy, advancing our crypto infrastructure initiatives while maintaining disciplined execution across our core operations.”

“At the same time, we made the active decision to restructure our supply chain, consolidate vendors, and shift toward primarily U.S.-based sourcing. While this transition temporarily reduced revenue levels, we believe this transition will strengthen long-term reliability, margin stability, and operational control. Subsequent to quarter-end, we divested GPM, which historically represented a significant operating cost center, materially lowering our forward expense base.”

“Importantly, our Board authorized iPower’s first-ever $2 million share repurchase program, reflecting confidence in our strengthened balance sheet and the long-term value of our business.

“The February restructuring was not simply a divestiture — it marked the beginning of a new chapter for iPower. We streamlined our sourcing, strengthened our financial position, reduced structural costs, and positioned our business to selectively invest in infrastructure-driven growth opportunities.”

Fiscal Second Quarter 2026 Financial Summary

Revenue for the fiscal second quarter of 2026 was $7.1 million. The decline from prior-year levels was primarily attributable to the Company’s proactive supply chain restructuring. During the quarter, iPower intentionally reduced purchase volumes from certain legacy international vendors and paused selected SKUs while transitioning to a predominantly U.S.-based sourcing model. This deliberate shift temporarily reduced available inventory and sales volume but was undertaken to improve supply chain transparency, reduce geopolitical and logistics risk, and enhance long-term gross margin durability.

Gross profit was $3.1 million, and gross margin remained stable at 44.0%, demonstrating that the core economics of the Company’s supply chain platform remained intact despite lower revenue during the transition period.

Total operating expenses declined to $5.6 million, down 28% year-over-year, driven by personnel reductions, tighter expense controls, and operational efficiencies implemented alongside our supply chain restructuring.

Net loss attributable to iPower was $1.2 million, or $(1.08) per share, reflecting lower revenue during the transition period and ongoing strategic investments, including the initial implementation of the Company’s Digital Asset Treasury initiative.

During the quarter, iPower continued to reduce traditional borrowings, with short-term debt declining to $2.6 million as of December 31, 2025 from $3.7 million as of June 30, 2025. As of December 31, 2025, the Company reported $2.0 million of cash and cash equivalents, $2.2 million of restricted cash, and approximately $2.2 million of digital assets; total debt was approximately $8.4 million, including $5.8 million of convertible notes.

Post-Quarter Strategic Update

In February 2026, subsequent to the quarter close, iPower completed the divestiture of GPM, eliminating a major operating cost center while retaining iPower’s core supply chain, fulfillment, and infrastructure assets. The transaction generated approximately $2.3 million in consideration and reduces forward operating expense requirements.

Because the divestiture was completed after December 31, 2025, the reported Q2 results do not reflect the full impact of the restructuring. Management expects the streamlined operating model and predominantly U.S.-based supply chain to provide a stronger and more resilient operating foundation going forward.

The Company also authorized its first-ever $2 million share repurchase program, under which repurchases may be made from time to time through open market purchases or privately negotiated transactions, subject to market conditions and applicable legal requirements.

About iPower Inc.

iPower Inc. (Nasdaq: IPW) is a technology- and data-driven supply chain and infrastructure provider for online retailers and brands, operating at the intersection of digital assets and real-world commerce. The Company delivers procurement, fulfillment, logistics, and software-enabled services, and is executing a broader crypto strategy through licensed partners and compliant infrastructure. For more information, please visit www.meetipower.com.

Forward-Looking Statements

All statements other than statements of historical fact in this press release are forward-looking statements, including statements regarding the share repurchase program, the anticipated benefits of the financing, the implementation of iPower’s digital asset strategy, and iPower’s future business plans. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. iPower undertakes no obligation to update forward-looking statements except as may be required by law. Actual results may differ materially from those anticipated. Investors are encouraged to review iPower’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other SEC filings.

Media & Investor Contact

IPW.IR@meetipower.com

iPower Inc. and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2025 and June 30, 2025
					December 31,				June 30,
					2025				2025
					(Unaudited)
ASSETS
Current assets
	Cash and cash equivalent				$	2,011,738			$	2,007,890
	Accounts receivable, net					5,168,143				6,124,008
	Inventories, net					3,611,859				8,131,203
	Restricted Cash - BitGo					2,209,000				-
	Prepayments and other current assets, net					1,691,476				3,111,210
			Total current assets			14,692,216				19,374,311
Non-current assets
	Right of use - non-current					3,286,752				3,915,539
	Property and equipment, net					187,372				390,349
	Deferred tax assets, net					4,753,025				3,724,462
	Goodwill					3,034,110				3,034,110
	Investment in joint venture					678,706				385,180
	Intangible assets, net					2,656,643				2,981,328
	Digital assets					2,214,759				-
	Other non-current assets					2,493,705				1,837,488
			Total non-current assets			19,305,072				16,268,456
			Total assets		$	33,997,288			$	35,642,767
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable, net					3,056,935				7,180,009
	Other payables and accrued liabilities					981,832				1,893,921
	Lease liability - current					1,418,909				1,361,111
	Short-term loan payable					1,500,000				-
	Short-term loan payable - related party					1,063,278				-
	Revolving loan payable, net					-				3,737,602
	Income taxes payable					3,512				280,155
			Total current liabilities			8,024,466				14,452,798
Non-current liabilities
	Convertible notes payable					4,381,531				-
	Derivative liability - Conversion option					1,413,100				-
	Lease liability - non-current					2,193,849				2,913,967
			Total non-current liabilities			7,988,480				2,913,967
			Total liabilities			16,012,946				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 September 30, 2025 and June 30, 2025				-				-
	**Common stock, $0.001 par value; 180,000,000 shares authorized; 1,081,460 and
		1,045,330 shares issued and outstanding at December 31, 2025 and June 30, 2025				1,082				1,045
	Additional paid in capital					34,891,869				33,481,201
	Accumulated deficits					(16,925,818	)			(15,198,889	)
	Non-controlling interest					(47,462	)			(47,462	)
	Accumulated other comprehensive loss					64,671				40,107
			Total stockholders' equity			17,984,342				18,276,002
			Total liabilities and stockholders' equity		$	33,997,288			$	35,642,767

 **all shares of common stock and per share numbers in the unaudited condensed consolidated financial statements have been adjusted retroactively to reflect the 1-for-30 reverse stock split effected on October 27, 2025 for all periods presented.

iPower Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Loss
For the Three and Six Months Ended December 31, 2025 and 2024
				For the Three Months Ended December 31,								For the Six Months Ended December 31,
				2025				2024				2025				2024
				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
REVENUES
	Product sales			$	7,133,602			$	17,606,889			$	17,618,347			$	35,882,301
	Service income				-				1,465,682				1,532,722				2,198,791
		Total revenues			7,133,602				19,072,571				19,151,069				38,081,092
COST OF REVENUES
	Product costs				3,994,680				9,461,119				9,872,942				19,378,567
	Service costs				-				1,221,566				1,332,681				1,824,742
		Total cost of revenues			3,994,680				10,682,685				11,205,623				21,203,309
GROSS PROFIT					3,138,922				8,389,886				7,945,446				16,877,783
OPERATING EXPENSES:
	Selling and fulfillment				3,075,161				4,628,914				8,255,351				10,543,722
	General and administrative				2,501,738				3,077,365				3,823,251				8,396,888
		Total operating expenses			5,576,899				7,706,279				12,078,602				18,940,610
INCOME (LOSS) FROM OPERATIONS					(2,437,977	)			683,607				(4,133,156	)			(2,062,827	)
OTHER INCOME (EXPENSE)
	Interest expenses				(167,222	)			(140,672	)			(228,941	)			(280,634	)
	Loss on equity method investment				-				(802	)			-				(1,721	)
	Loss on deconsolidation of VIE				-				-				(39,624	)			-
	Unrealized gain (loss) on digital assets				5,759				-				5,759				-
	Change in fair value of derivative liability				176,600				-				176,600				-
	Loss on extinguishment of debt				(24,100	)			-				(24,100	)			-
	Other non-operating income (expenses)				433,151				(205,958	)			1,232,441				12,728
		Total other income (expenses), net			424,188				(347,432	)			1,122,135				(269,627	)
INCOME (LOSS) BEFORE INCOME TAXES					(2,013,789	)			336,175				(3,011,021	)			(2,332,454	)
PROVISION FOR INCOME TAX EXPENSE (BENEFIT)					(820,508	)			120,511				(1,284,092	)			(516,001	)
NET INCOME (LOSS)					(1,193,281	)			215,664				(1,726,929	)			(1,816,453	)
	Non-controlling interest				-				(3,155	)			-				(5,991	)
NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.				$	(1,193,281	)		$	218,819			$	(1,726,929	)		$	(1,810,462	)
OTHER COMPREHENSIVE INCOME (LOSS)
	Foreign currency translation adjustments				(379	)			156,130				24,564				101,076
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.				$	(1,193,660	)		$	374,949			$	(1,702,365	)		$	(1,709,386	)
WEIGHTED AVERAGE NUMBER OF COMMON STOCK
	Basic**				1,102,378				1,047,917				1,075,986				1,047,570
	Diluted**				1,102,378				1,047,917				1,075,986				1,047,570
EARNINGS (LOSSES) PER SHARE
	Basic			$	(1.08	)		$	0.21			$	(1.60	)		$	(1.73	)
	Diluted			$	(1.08	)		$	0.21			$	(1.60	)		$	(1.73	)

**all shares of common stock and per share numbers in the unaudited condensed consolidated financial statements have been adjusted retroactively to reflect the 1-for-30 reverse stock split effected on October 27, 2025 for all periods presented.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What drove iPower (IPW) revenue to $7.1M in Q2 2026?

Revenue fell to $7.1M primarily from a deliberate supply chain restructuring. According to the company, reduced purchases from legacy international vendors and paused SKUs during the shift to U.S.-based sourcing temporarily lowered sales volume.

How did iPower (IPW) achieve a 28% decline in operating expenses in Q2 2026?

Operating expenses declined 28% YoY to $5.6M driven by personnel reductions and tighter expense controls. According to the company, efficiencies implemented alongside supply chain changes materially lowered the forward expense base.

What is iPower's (IPW) Digital Asset Treasury and how much funding was raised?

iPower implemented a Digital Asset Treasury strategy and received $6.5M gross from the first tranche of a convertible note. According to the company, the tranche is part of an up to $30M offering tied to institutional DAT arrangements.

What did the divestiture of GPM mean for iPower (IPW) after Q2 2026?

The post-quarter sale of GPM generated approximately $2.3M and eliminated a major operating cost center. According to the company, the divestiture reduces forward operating expenses and was completed in February 2026.

How large is iPower's (IPW) new share repurchase authorization and its expected effect?

The Board authorized a $2M share repurchase program to be executed over time. According to the company, repurchases may be made via open market or negotiated transactions to reflect confidence in the balance sheet.

What was iPower's (IPW) balance sheet position at Dec 31, 2025 including cash and debt?

As of Dec 31, 2025 iPower reported $2.0M cash, $2.2M restricted cash, and about $2.2M digital assets, with total debt ~ $8.4M. According to the company, short-term debt declined to $2.6M from $3.7M at June 30, 2025.