iPower Inc. Reports 62.6% Revenue Decline and $1.2 Million Net Loss in Latest Quarter

iPower Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending December 31, 2025. The company recorded total revenues of $7.1 million, a substantial decline of 62.6% compared to $19.1 million in the same quarter of the previous year. This drop was attributed to decreased orders from Amazon and disruptions in product supply, alongside a complete loss of service income, which had previously contributed $1.5 million. The gross profit for the quarter fell to $3.1 million, down from $8.4 million, reflecting a gross profit margin of 44% for product sales, slightly lower than the 46.3% margin reported a year earlier.

In terms of operational performance, iPower's total operating expenses decreased by 27.6% to $5.6 million, primarily due to reduced selling and fulfillment costs as well as general and administrative expenses. However, the company still reported an operating loss of $2.4 million, a stark contrast to the income of $683,607 recorded in the same quarter of 2024. The net loss attributable to iPower Inc. was $1.2 million, compared to a net income of $218,819 in the prior year, marking a significant deterioration in profitability.

The company also experienced notable changes in its balance sheet. As of December 31, 2025, total assets decreased to $34.0 million from $35.6 million in June 2025, driven by a reduction in inventories and accounts receivable. Current liabilities also saw a decline, dropping from $14.5 million to $8.0 million, largely due to a decrease in accounts payable and the repayment of short-term loans. The company’s cash and cash equivalents remained relatively stable at $2.0 million, reflecting a slight increase from $2.0 million at the end of the previous fiscal period.

Strategically, iPower has been restructuring its operations, including the formation of new joint ventures and the implementation of a Digital Treasury Strategy aimed at integrating digital assets into its business model. The company has also engaged in a reverse stock split, effective October 27, 2025, to enhance its stock price and maintain compliance with Nasdaq listing requirements. Furthermore, iPower has entered into a convertible note facility, raising $9 million to support its operations and growth initiatives.

Looking ahead, iPower's management expressed cautious optimism regarding future performance, citing expectations for improved cash flow as supply chain operations normalize and new supplier relationships develop. However, the company remains vigilant about external economic factors, including inflation and potential recession risks, which could impact its financial stability and operational capabilities.