Sharp revenue drop but lower costs in iPower (NASDAQ: IPW) fiscal Q3 2026

Rhea-AI Filing Summary

iPower Inc. reported fiscal third quarter 2026 revenue from continuing operations of $3.5 million, down sharply from $16.0 million a year earlier as it shifted to a leaner, asset-light model. Gross profit was $0.8 million, for a 21.6% gross margin.

Operating expenses fell to $1.9 million from $7.2 million in the prior-year quarter, reflecting an aggressive cost reset. GAAP net loss attributable to iPower was $(3.5) million, or $(2.38) per share, mainly due to a $3.0 million non-cash goodwill impairment that eliminated all remaining goodwill. On a non-GAAP basis, net loss narrowed to $(0.3) million, or $(0.18) per share, versus $(0.7) million a year ago.

As of March 31, 2026, current assets were $14.5 million and current liabilities were $6.6 million, a current ratio of about 2.2x. After quarter end, the company signed a sublease expected to generate more than $2.6 million of income through May 2028 and launched an AI infrastructure strategy, including an initial commitment of up to $3 million using an existing $30 million financing facility.

Positive

• Operating expenses declined to $1.9 million in fiscal Q3 2026 from $7.2 million in the prior-year quarter, materially lowering the company’s cost base.
• Non-GAAP net loss attributable to iPower narrowed to $(0.3) million (or $(0.18) per share) from $(0.7) million (or $(0.70) per share) a year earlier, indicating improved underlying performance despite lower revenue.
• Current liabilities fell to $6.6 million from $14.5 million at June 30, 2025, improving the current ratio to approximately 2.2x and strengthening short-term liquidity.
• A new sublease for part of the Rancho Cucamonga facility is expected to generate more than $2.6 million of contracted, non-dilutive income through May 2028.
• The company launched an AI infrastructure strategy using an existing $30 million financing facility, including an initial commitment of up to $3 million to purchase sUSDai backed by GPU-collateralized loans.

Negative

• Revenue from continuing operations declined to $3.5 million in fiscal Q3 2026 from $16.0 million in the prior-year quarter, a steep contraction in the business’s scale.
• GAAP net loss attributable to iPower widened to $(3.5) million for fiscal Q3 2026, compared with $(0.3) million in the prior-year quarter, reflecting significant non-operating charges.
• The quarter included a $3.0 million non-cash goodwill impairment that fully eliminated the company’s remaining goodwill balance and contributed heavily to the GAAP loss.
• Total assets decreased to $31.3 million at March 31, 2026 from $35.6 million at June 30, 2025, alongside a reduction in cash and an increase in convertible notes and derivative liabilities.

Insights

Equity analyst

iPower’s revenue shrank sharply, but costs fell and non-GAAP losses narrowed.

iPower is in the middle of a major transition. Revenue from continuing operations fell to $3.5 million in fiscal Q3 2026 from $16.0 million a year earlier, reflecting divestitures and a move to a leaner, asset-light model. Gross margin was 21.6%, leaving modest gross profit of $0.8 million.

The company aggressively cut expenses: operating costs dropped to $1.9 million from $7.2 million in the prior-year quarter. GAAP net loss of $(3.5) million was dominated by a non-cash goodwill impairment of $3.0 million, while non-GAAP net loss improved to $(0.3) million from $(0.7) million.

On the balance sheet, current assets of $14.5 million versus current liabilities of $6.6 million produced a current ratio near 2.2%. After March 31, 2026, iPower added contracted sublease income of more than $2.6 million through May 2028 and began deploying an existing $30 million facility into AI infrastructure, including up to $3 million in sUSDai. Future filings may clarify how quickly this new strategy scales relative to the reduced core revenue base.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Revenue from continuing operations: $3.5 million Gross profit and margin: $0.8 million; 21.6% margin Operating expenses: $1.9 million +5 more

8 metrics

Revenue from continuing operations $3.5 million Fiscal Q3 2026 vs $16.0 million prior-year quarter

Gross profit and margin $0.8 million; 21.6% margin Fiscal Q3 2026

Operating expenses $1.9 million Fiscal Q3 2026; down from $7.2 million prior-year quarter

GAAP net loss attributable to iPower $(3.5) million Fiscal Q3 2026; includes $3.0 million goodwill impairment

Non-GAAP net loss attributable to iPower $(0.3) million Fiscal Q3 2026 vs $(0.7) million prior-year quarter

Current assets and liabilities $14.5 million assets; $6.6 million liabilities As of March 31, 2026; ~2.2x current ratio

Sublease contracted income More than $2.6 million Expected through May 2028 from facility sublease

AI infrastructure initial commitment Up to $3 million Commitment to purchase sUSDai using $30 million facility

Key Terms

non-GAAP net loss, goodwill impairment, asset-light operating model, AI infrastructure strategy, +2 more

6 terms

non-GAAP net loss financial

"Excluding this impairment and other non-cash or non-operating items, non-GAAP net loss attributable to iPower was $(0.3) million"

Non-GAAP net loss is a company’s reported loss that has been adjusted by removing certain costs or one-time items that the company believes hide its core operating performance. Think of it like looking at a household budget but excluding an unusual repair or sale; it can show a clearer view of everyday results, which helps investors judge ongoing profitability, but it can also omit real expenses so it should be compared with the standard GAAP loss.

goodwill impairment financial

"The GAAP net loss was primarily driven by a $3.0 million non-cash goodwill impairment"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

asset-light operating model financial

"the Company’s transition toward a leaner, more asset-light operating model"

A company strategy that avoids owning heavy physical assets—such as factories, vehicles or property—by leasing, outsourcing or using third-party services instead, like choosing to rent a house rather than buy one. Investors watch this because it usually reduces large upfront spending and can boost reported returns and cash flow, but it also shifts costs into ongoing fees and increases reliance on outside partners, affecting risk, profit margins and valuation.

AI infrastructure strategy technical

"the launch of our AI infrastructure strategy, which is intended to position iPower as a capital provider for GPU clusters"

derivative liability financial

"change in fair value of derivative liability"

A derivative liability is an obligation a company owes because of a derivatives contract—such as an option, future, swap, or forward—that has moved against it and now has negative value. Think of it like a settled bet that turned into a bill: if market moves go the other way, the company may have to pay cash or deliver assets. Investors care because these liabilities can create sudden losses, add leverage or counterparty risk, and change a company’s true financial exposure beyond its everyday operations.

digital assets financial

"Unrealized gain (loss) on digital assets"

Digital assets are electronic files or representations of value stored electronically, such as cryptocurrencies, digital tokens, or digital art. They matter to investors because they can be bought, sold, and used for transactions much like physical assets, but exist entirely in digital form, offering new opportunities for investment and financial innovation.

Earnings Snapshot

Revenue from continuing operations: $3.5 million

Fiscal Q3 2026

Revenue from continuing operations $3.5 million

GAAP net loss attributable to iPower $(3.5) million

Non-GAAP net loss attributable to iPower $(0.3) million

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false 0001830072 0001830072 2026-05-20 2026-05-20 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (date of earliest event reported): May 20, 2026

iPower Inc.

(Exact name of registrant as specified in its charter)

Nevada		001-40391		82-5144171
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

8798 9th Street

Rancho Cucamonga, CA 91730

(Address of Principal Executive Offices) (Zip Code)

(626) 863-7344

(Registrant’s Telephone Number, Including Area Code)

___________________________

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock $0.001 per share		IPW		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On May 20, 2026, iPower Inc., a Nevada corporation (the “Company”), issued a press release announcing its earnings for its third quarter ended March 31, 2026. A copy of the press release is attached hereto and incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general language in such filing, unless it is specifically identified therein as being incorporated therein by reference.

Item 9.01. Financial Statement and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press Release, dated May 20, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	IPOWER, INC.
Dated: May 20, 2026
	By:	/s/ Chenlong Tan
	Name:	Chenlong Tan
	Title:	Chief Executive Officer

3

Exhibit 99.1

iPower Reports Fiscal Third Quarter 2026 Results Highlighted by Lower

Operating Cost Structure, Narrowed Non-GAAP Loss and Advancing

AI Infrastructure Strategy

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 — 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.

1

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

Metric	Fiscal Q3 2026	Key Context
Revenue	$3.5 million	Reflects transition to leaner model
Gross profit	$0.8 million	Gross margin of 21.6%
Operating expenses	$1.9 million	Down 66% sequentially
GAAP net loss attributable to iPower	$(3.5) million	Includes $3.0 million non-cash goodwill impairment
Non-GAAP net loss attributable to iPower	$(0.3) million	Improved from $(0.7) million in prior-year quarter
Current assets	$14.5 million	Current ratio of approximately 2.2x
Current liabilities	$6.6 million	Down 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

2

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

3

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	)

4

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

5

FAQ

How did iPower (IPW) perform in fiscal third quarter 2026?

iPower reported fiscal Q3 2026 revenue from continuing operations of $3.5 million and a GAAP net loss attributable to the company of $(3.5) million. The loss was driven mainly by a $3.0 million non-cash goodwill impairment, while non-GAAP net loss narrowed to $(0.3) million.

What happened to iPower’s operating expenses in fiscal Q3 2026?

Operating expenses declined to $1.9 million in fiscal Q3 2026 from $5.6 million in the prior quarter and $7.2 million a year earlier. This reflects iPower’s strategic operating reset and shift to a leaner, asset-light model, materially reducing its ongoing cost structure.

How did iPower’s non-GAAP results change versus last year?

Non-GAAP net loss attributable to iPower improved to $(0.3) million, or $(0.18) per share, in fiscal Q3 2026 from $(0.7) million, or $(0.70) per share, in the prior-year quarter. The improvement came despite substantially lower revenue as the company cut expenses.

What is iPower’s liquidity position as of March 31, 2026?

As of March 31, 2026, iPower had $14.5 million of current assets and $6.6 million of current liabilities, implying a current ratio of about 2.2x. Accounts payable and inventory both declined significantly compared with June 30, 2025, reflecting a leaner operating model.

What new income does iPower expect from its facility sublease?

After quarter end, iPower entered a sublease for part of its Rancho Cucamonga facility that is expected to generate more than $2.6 million of contracted, non-dilutive income through May 2028. This arrangement supports recurring cash inflows without issuing new equity.

What is iPower’s AI infrastructure strategy and initial commitment?

iPower launched an AI infrastructure strategy using a $30 million financing facility to invest across the AI infrastructure stack. Initially, it committed up to $3 million to purchase sUSDai, a yield-bearing instrument backed by GPU-collateralized loans, aligning with its digital asset focus.

How did divestitures and strategy shifts affect iPower’s revenue mix?

In fiscal Q3 2026, all revenue was product sales of $3.5 million, with no service income reported, versus total revenue of $16.0 million a year earlier. Management attributed results to an operating reset following the divestiture of Global Product Marketing Inc. and a shift to an asset-light model.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 PRESS RELEASE, DATED MAY 20, 2026 187.4 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB