iPower Inc. Reports 78.2% Revenue Decline and Increased Net Loss in Latest 10-Q Filing

iPower Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2026. The company recorded total revenues of $3.5 million, a substantial decline of 78.2% compared to $16.0 million in the same quarter of the previous year. This drop was primarily attributed to the sale of its subsidiary, Global Product Marketing, Inc. (GPM), which was completed on February 1, 2026. The company's product sales fell by 76.7% to $3.5 million, while service income was eliminated entirely, down from $1.0 million in the prior year.

The cost of revenues also decreased, falling 70.1% to $2.7 million, reflecting the reduced sales volume. However, the gross profit margin suffered, with gross profit declining to $755,549, representing only 21.6% of product sales, down from 44.7% a year earlier. Operating expenses decreased by 73.6% to $1.9 million, but the company still reported an operating loss of $1.1 million, compared to a loss of $334,504 in the previous year. The net loss attributable to iPower Inc. was $3.5 million, a significant increase from a loss of $339,599 in the prior year.

Operationally, iPower's total assets decreased to $31.3 million from $35.6 million as of June 30, 2025. Current assets also fell sharply, primarily due to a reduction in cash and inventory levels. The company reported cash and cash equivalents of $713,685, down from $1.7 million, and inventories decreased to $2.5 million from $8.1 million. The company’s accounts receivable increased to $7.1 million, indicating a potential rise in credit risk as it continues to extend unsecured credit to customers.

Strategically, iPower has undergone significant organizational changes, including the divestiture of GPM and the formation of new entities such as iPower Smart LLC and iPower Nexus Inc. The company is also focusing on expanding its digital asset strategy, having acquired Bitcoin and Ethereum as part of its Digital Treasury Strategy initiated in June 2025. Despite these efforts, the company faces challenges from global economic disruptions, including supply chain issues exacerbated by geopolitical tensions, which have impacted its ability to source products and manage costs effectively.

Looking ahead, iPower's management expressed cautious optimism about its liquidity, stating that existing cash and cash flows from operations should suffice to meet obligations over the next 12 months. However, the company acknowledged that its future performance is subject to various external factors, including economic conditions and supply chain stability. The outlook remains uncertain as iPower navigates these challenges while attempting to stabilize its operations and explore new growth avenues.