iPower (IPW) investor relations material

Executive summary

• Revenue for the quarter ended September 30, 2025, was $12.0 million, down 36.8% year-over-year, mainly due to lower Amazon orders and reduced product sales to the largest channel partner, partially offset by growth in SuperSuite supply chain services.

• Net loss attributable to shareholders narrowed to $0.5 million ($0.51 per share) from $2.1 million ($1.94 per share) in the prior year, driven by cost optimization, operational efficiencies, and higher other income.

• Gross profit margin declined to 40.0% from 44.7% year-over-year, with gross profit at $4.8 million and product sales margin at 43.9%.

• Operating expenses dropped 42% to $6.5 million, mainly from personnel reductions and streamlined operations.

• The company deconsolidated its VIE in China during the quarter, resulting in a $39,624 loss.

Financial highlights

• Product sales revenue fell 42.6% to $10.5 million, while service income more than doubled to $1.5 million year-over-year.

• Cost of revenues decreased 31.5% to $7.2 million; operating loss improved to $1.7 million from $2.7 million year-over-year.

• Other income rose to $698,000, mainly from settlement discounts and write-offs.

• Cash and cash equivalents at quarter-end were $0.9 million, down from $2.0 million at June 30, 2025.

• Total debt was reduced by 48% to $1.9 million as of September 30, 2025.

Outlook and guidance

• Management expects working capital to remain near current levels and continued benefits from cost management and supply chain diversification.

• Plans to expand in-house product catalog, improve margins as supply chain normalizes, and leverage digital asset strategy for long-term value.

• Existing cash, cash flow, and credit line believed sufficient for the next 12 months.