iPower (IPW) Q3 2026 earnings summary

Executive summary

• Revenue for the quarter ended March 31, 2026, declined 78.2% year-over-year to $3.5M, mainly due to the sale of subsidiaries and decreased Amazon orders.

• Net loss attributable to shareholders increased to $3.5M for the quarter, driven by higher other expenses, a $3.0M non-cash goodwill impairment, and strategic shifts.

• Operating expenses declined 66% sequentially, reflecting a transition to a leaner, asset-light model after divesting Global Product Marketing Inc.

• The company launched Digital Treasury and AI infrastructure strategies, acquiring Bitcoin, Ethereum, and committing $3M to sUSDai.

• Secured contracted sublease income to enhance financial flexibility.

Financial highlights

• Quarterly revenue: $3.5M (down 78.2% YoY); nine-month revenue: $18.5M (down 64.8% YoY).

• Gross profit margin for the quarter dropped to 21.6% from 42.7% YoY; nine-month margin at 36.9%.

• Net loss for the quarter: $3.5M; non-GAAP net loss narrowed to $0.3M; nine-month net loss: $5.2M (up 141% YoY).

• Operating expenses for the quarter: $1.9M (down 73.6% YoY and 66% sequentially); nine-month operating expenses: $12.0M (down 53.4% YoY).

• Current assets totaled $14.5M, current liabilities at $6.6M, resulting in a current ratio of 2.2x.

Outlook and guidance

• Management expects liquidity to be sufficient for the next 12 months, with plans to improve cash flow as supply chain normalizes and new suppliers transition to better credit terms.

• Focus remains on expanding in-house product catalog, leveraging digital asset and AI infrastructure initiatives, and building a more efficient, financially flexible platform.