iPower Inc. reported a significant decline in financial performance for the fiscal year ending June 30, 2026, with total revenues dropping 68.4% to $19.96 million from $63.22 million in the previous year. This decline was attributed primarily to reduced orders from Amazon and supply chain disruptions, exacerbated by uncertainties surrounding tariffs. The company's gross profit also fell sharply, decreasing by 85.2% to $4.04 million, resulting in a gross profit margin of 20.2%, down from 43.3% in the prior year. The operating loss widened to $14.43 million compared to $6.33 million in the previous year, reflecting a 127.9% increase in losses.
In terms of operational changes, iPower underwent a strategic shift by selling its subsidiary, Global Product Marketing Inc. (GPM), on February 1, 2026, for a $2.3 million promissory note. This divestiture was part of a broader restructuring effort aimed at focusing on core operations and reducing costs. The company also implemented a Digital Asset Treasury strategy, acquiring Bitcoin and Ethereum, although it has since prioritized direct investments in AI infrastructure over further digital asset accumulation.
The company’s customer base saw a notable shift, with Amazon accounting for 38% of total revenues in 2026, down from 82% in 2025. This change reflects a broader trend of decreased reliance on a single customer, although it also highlights the risks associated with customer concentration. iPower's accounts receivable from Amazon represented 62% of total accounts receivable as of June 30, 2026, indicating ongoing dependency on this major client.
Looking ahead, iPower's management expressed cautious optimism regarding liquidity, citing approximately $4.7 million in financing proceeds raised after the fiscal year-end and an additional $15 million in financing capacity under existing arrangements. However, the company acknowledged that its future financial performance remains contingent on various external factors, including economic conditions and market demand. The management is focused on implementing cost-cutting measures and restructuring efforts to stabilize operations and improve financial health in the coming year.
About iPower Inc.
iPower Inc. is an online retailer and supplier of home, pet, garden, outdoor, and consumer electronics products. It offers proprietary and third-party brands through e-commerce platforms like Amazon, Walmart, and its own websites. The company leverages data-driven marketing, a robust distribution network, and international supply chains to serve consumers and cultivators, competing on product variety, pricing, and customer service in a large, growing industry.
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