iPower Reports Fiscal Q2 2026 Results and Completes Strategic Operating Reset
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
Market Reaction – IPW
Following this news, IPW has gained 4.00%, reflecting a moderate positive market reaction. Argus tracked a peak move of +15.1% during the session. Our momentum scanner has triggered 17 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $3.37. This price movement has added approximately $143K to the company's valuation. Trading volume is exceptionally heavy at 5.2x the average, suggesting very strong buying interest.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
Momentum data flags a sector-wide downward move, with 2 peers (e.g., WNW, JFBR) also moving down (median about -2.0%) without company-specific news.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 14 | Q1 2026 earnings | Neutral | -2.5% | Revenue drop but margin, opex and debt trends showed mixed overall picture. |
| Oct 09 | Q4/FY 2025 earnings | Neutral | +6.9% | Year-end results with lower revenue, margin stability and significant debt reduction. |
| May 15 | Q3 2025 earnings | Neutral | -11.4% | Revenue decline and swing to loss offset by sizable debt cuts and lower opex. |
| Feb 13 | Q2 2025 earnings | Positive | +4.8% | Revenue growth, margin expansion, positive net income and reduced total debt. |
| Nov 14 | Q1 2025 earnings | Negative | -40.0% | Revenue decline and widening net loss despite slightly better gross margin. |
Earnings releases have tended to trigger volatile and often negative moves, with an average same-day reaction of -8.46% and a mix of aligned and divergent responses.
Over the last five earnings reports, iPower has shown a consistent revenue downtrend from about $26.5M–$23.3M levels toward $12.0M, while generally maintaining gross margins around the low‑to‑mid‑40% range and prioritizing debt reduction. Cost controls lowered operating expenses meaningfully in several quarters, and net results have swung between small profits and losses. The latest fiscal Q2 2026 update continues this pattern of lower revenue with preserved 44.0% gross margin and further cost reductions, alongside higher leverage through convertible notes and a new digital asset strategy.
Historical Comparison
Past earnings updates for IPW produced an average one-day move of -8.46%. The latest fiscal Q2 2026 results fit the pattern of declining revenue but steady margins and active balance-sheet restructuring.
Earnings over the past five quarters show revenue stepping down from the high‑teens/low‑20s millions toward $12.0M, while gross margins hover near 44%. Management has repeatedly emphasized supply chain diversification, domestic sourcing, and debt reduction. The current Q2 2026 report extends this trajectory with further cost cuts, a heavier reliance on convertible notes, and introduction of digital assets on the balance sheet.
Market Pulse Summary
This announcement highlights a transition quarter: revenue fell to $7.1 million, but gross margin held at 44.0% and operating expenses dropped 28% year over year. Management layered on a Digital Asset Treasury strategy and additional convertible note financing, while post‑quarter actions included divesting GPM and authorizing a $2 million buyback. Investors may watch future quarters for revenue recovery, debt trends, digital asset impacts, and whether cost savings translate into sustainable profitability.
Key Terms
digital asset treasury financial
convertible note financial
restricted cash financial
short-term debt financial
AI-generated analysis. Not financial advice.
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
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
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
“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
Gross profit was
Total operating expenses declined to
Net loss attributable to iPower was
During the quarter, iPower continued to reduce traditional borrowings, with short-term debt declining to
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
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
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
| 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, | |||||||||||
| outstanding at September 30, 2025 and June 30, 2025 | - | - | |||||||||
| **Common stock, | |||||||||||
| 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
What drove iPower (IPW) revenue to $7.1M in Q2 2026?
How did iPower (IPW) achieve a 28% decline in operating expenses in Q2 2026?
What is iPower's (IPW) Digital Asset Treasury and how much funding was raised?
What did the divestiture of GPM mean for iPower (IPW) after Q2 2026?
How large is iPower's (IPW) new share repurchase authorization and its expected effect?
What was iPower's (IPW) balance sheet position at Dec 31, 2025 including cash and debt?
