RANCHO CUCAMONGA, Calif., Feb. 20, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) ("iPower" or the "Company") today reported financial results for the fiscal second quarter ended December 31, 2025. Revenue was $7.1 million, reflecting the Company's deliberate supply chain restructuring and transition to predominantly U.S.-based sourcing during the quarter, while gross profit was $3.1 million and gross margin remained strong at 44.0%. Total operating expenses declined 28% year-over-year to $5.6 million compared to the quarter ended December 31, 2024. Net loss attributable to iPower was $1.2 million, or $(1.08) per share. The Company reported $2.0 million of cash and cash equivalents, $2.2 million of restricted cash, and approximately $2.2 million of digital assets.
During December 2025, the Company implemented a Digital Asset Treasury ("DAT") strategy with an institutional investor after closing on the first tranche of an up to $30 million convertible note offering, receiving $6.5 million in gross proceeds. Subsequent to quarter-end, in February 2026, iPower completed the divestiture of Global Product Marketing Inc. ("GPM") for approximately $2.3 million in total consideration and authorized a $2 million share repurchase program.
Management Commentary
"Our fiscal second quarter reflects a deliberate strategic transition," said Lawrence Tan, CEO of iPower. "In December 2025, we implemented our first institutional Digital Asset Treasury strategy, advancing our crypto infrastructure initiatives while maintaining disciplined execution across our core operations."
"At the same time, we made the active decision to restructure our supply chain, consolidate vendors, and shift toward primarily U.S.-based sourcing. While this transition temporarily reduced revenue levels, we believe this transition will strengthen long-term reliability, margin stability, and operational control. Subsequent to quarter-end, we divested GPM, which historically represented a significant operating cost center, materially lowering our forward expense base."
"Importantly, our Board authorized iPower's first-ever $2 million share repurchase program, reflecting confidence in our strengthened balance sheet and the long-term value of our business.
"The February restructuring was not simply a divestiture -- it marked the beginning of a new chapter for iPower. We streamlined our sourcing, strengthened our financial position, reduced structural costs, and positioned our business to selectively invest in infrastructure-driven growth opportunities."
Fiscal Second Quarter 2026 Financial Summary
Revenue for the fiscal second quarter of 2026 was $7.1 million. The decline from prior-year levels was primarily attributable to the Company's proactive supply chain restructuring. During the quarter, iPower intentionally reduced purchase volumes from certain legacy international vendors and paused selected SKUs while transitioning to a predominantly U.S.-based sourcing model. This deliberate shift temporarily reduced available inventory and sales volume but was undertaken to improve supply chain transparency, reduce geopolitical and logistics risk, and enhance long-term gross margin durability.
Gross profit was $3.1 million, and gross margin remained stable at 44.0%, demonstrating that the core economics of the Company's supply chain platform remained intact despite lower revenue during the transition period.
Total operating expenses declined to $5.6 million, down 28% year-over-year, driven by personnel reductions, tighter expense controls, and operational efficiencies implemented alongside our supply chain restructuring.
Net loss attributable to iPower was $1.2 million, or $(1.08) per share, reflecting lower revenue during the transition period and ongoing strategic investments, including the initial implementation of the Company's Digital Asset Treasury initiative.
During the quarter, iPower continued to reduce traditional borrowings, with short-term debt declining to $2.6 million as of December 31, 2025 from $3.7 million as of June 30, 2025. As of December 31, 2025, the Company reported $2.0 million of cash and cash equivalents, $2.2 million of restricted cash, and approximately $2.2 million of digital assets; total debt was approximately $8.4 million, including $5.8 million of convertible notes.
Post-Quarter Strategic Update
In February 2026, subsequent to the quarter close, iPower completed the divestiture of GPM, eliminating a major operating cost center while retaining iPower's core supply chain, fulfillment, and infrastructure assets. The transaction generated approximately $2.3 million in consideration and reduces forward operating expense requirements.
Because the divestiture was completed after December 31, 2025, the reported Q2 results do not reflect the full impact of the restructuring. Management expects the streamlined operating model and predominantly U.S.-based supply chain to provide a stronger and more resilient operating foundation going forward.
The Company also authorized its first-ever $2 million share repurchase program, under which repurchases may be made from time to time through open market purchases or privately negotiated transactions, subject to market conditions and applicable legal requirements.
About iPower Inc.
iPower Inc. (Nasdaq: IPW) is a technology- and data-driven supply chain and infrastructure provider for online retailers and brands, operating at the intersection of digital assets and real-world commerce. The Company delivers procurement, fulfillment, logistics, and software-enabled services, and is executing a broader crypto strategy through licensed partners and compliant infrastructure. For more information, please visit www.meetipower.com.
Forward-Looking Statements
All statements other than statements of historical fact in this press release are forward-looking statements, including statements regarding the share repurchase program, the anticipated benefits of the financing, the implementation of iPower's digital asset strategy, and iPower's future business plans. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. iPower undertakes no obligation to update forward-looking statements except as may be required by law. Actual results may differ materially from those anticipated. Investors are encouraged to review iPower's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other SEC filings.
Media & Investor Contact
IPW.IR@meetipower.com
iPower Inc. and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2025 and June 30, 2025
December 31, June 30,
2025 2025
------------- ---------------
(Unaudited)
ASSETS
-----------------------------
Current assets
Cash and cash equivalent $ 2,011,738 $ 2,007,890
Accounts receivable, net 5,168,143 6,124,008
Inventories, net 3,611,859 8,131,203
Restricted Cash - BitGo 2,209,000 -
Prepayments and other
current assets, net 1,691,476 3,111,210
Total current assets 14,692,216 19,374,311
----------- -----------
Non-current assets
Right of use - non-current 3,286,752 3,915,539
Property and equipment, net 187,372 390,349
Deferred tax assets, net 4,753,025 3,724,462
Goodwill 3,034,110 3,034,110
Investment in joint venture 678,706 385,180
Intangible assets, net 2,656,643 2,981,328
Digital assets 2,214,759 -
Other non-current assets 2,493,705 1,837,488
-----------
Total non-current assets 19,305,072 16,268,456
----------- -----------
Total assets $ 33,997,288 $ 35,642,767
=========== ===========
LIABILITIES AND EQUITY
-----------------------------
Current liabilities
Accounts payable, net 3,056,935 7,180,009
Other payables and accrued
liabilities 981,832 1,893,921
Lease liability - current 1,418,909 1,361,111
Short-term loan payable 1,500,000 -
Short-term loan payable -
related party 1,063,278 -
Revolving loan payable, net - 3,737,602
Income taxes payable 3,512 280,155
Total current liabilities 8,024,466 14,452,798
----------- -----------
Non-current liabilities
Convertible notes payable 4,381,531 -
Derivative liability -
Conversion option 1,413,100 -
Lease liability -
non-current 2,193,849 2,913,967
Total non-current
liabilities 7,988,480 2,913,967
----------- -----------
Total liabilities 16,012,946 17,366,765
----------- -----------
Commitments and contingency - -
Stockholders' Equity
Preferred stock, $0.001 par
value; 20,000,000 shares
authorized; 0 shares issued
and
outstanding at September
30, 2025 and June 30, 2025 - -
**Common stock, $0.001 par
value; 180,000,000 shares
authorized; 1,081,460 and
1,045,330 shares issued and
outstanding at December 31,
2025 and June 30, 2025 1,082 1,045
Additional paid in capital 34,891,869 33,481,201
Accumulated deficits (16,925,818) (15,198,889)
Non-controlling interest (47,462) (47,462)
Accumulated other
comprehensive loss 64,671 40,107
Total stockholders' equity 17,984,342 18,276,002
----------- -----------
Total liabilities and
stockholders' equity $ 33,997,288 $ 35,642,767
=========== ===========
**all shares of common stock and per share numbers in the unaudited condensed consolidated financial statements have been adjusted retroactively to reflect the 1-for-30 reverse stock split effected on October 27, 2025 for all periods presented.
iPower Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive
Loss
For the Three and Six Months Ended December 31, 2025
and 2024
For the Three Months Ended For the Six Months Ended
December 31, December 31,
2025 2024 2025 2024
--------------- ------------ --------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES
Product sales $ 7,133,602 $17,606,889 $17,618,347 $35,882,301
Service income - 1,465,682 1,532,722 2,198,791
---------- ---------- ----------
Total revenues 7,133,602 19,072,571 19,151,069 38,081,092
---------- ---------- ---------- ----------
COST OF REVENUES
Product costs 3,994,680 9,461,119 9,872,942 19,378,567
Service costs - 1,221,566 1,332,681 1,824,742
---------- ---------- ---------- ----------
Total cost of
revenues 3,994,680 10,682,685 11,205,623 21,203,309
---------- ---------- ---------- ----------
GROSS PROFIT 3,138,922 8,389,886 7,945,446 16,877,783
---------- ---------- ---------- ----------
OPERATING
EXPENSES:
Selling and
fulfillment 3,075,161 4,628,914 8,255,351 10,543,722
General and
administrative 2,501,738 3,077,365 3,823,251 8,396,888
Total operating
expenses 5,576,899 7,706,279 12,078,602 18,940,610
---------- ---------- ---------- ----------
INCOME (LOSS) FROM
OPERATIONS (2,437,977) 683,607 (4,133,156) (2,062,827)
---------- ---------- ---------- ----------
OTHER INCOME
(EXPENSE)
Interest expenses (167,222) (140,672) (228,941) (280,634)
Loss on equity
method
investment - (802) - (1,721)
Loss on
deconsolidation
of VIE - - (39,624) -
Unrealized gain
(loss) on
digital assets 5,759 - 5,759 -
Change in fair
value of
derivative
liability 176,600 - 176,600 -
Loss on
extinguishment
of debt (24,100) - (24,100) -
Other
non-operating
income
(expenses) 433,151 (205,958) 1,232,441 12,728
Total other
income
(expenses), net 424,188 (347,432) 1,122,135 (269,627)
---------- ---------- ---------- ----------
INCOME (LOSS)
BEFORE INCOME
TAXES (2,013,789) 336,175 (3,011,021) (2,332,454)
PROVISION FOR
INCOME TAX
EXPENSE
(BENEFIT) (820,508) 120,511 (1,284,092) (516,001)
NET INCOME (LOSS) (1,193,281) 215,664 (1,726,929) (1,816,453)
Non-controlling
interest - (3,155) - (5,991)
NET INCOME (LOSS)
ATTRIBUTABLE TO
IPOWER INC. $(1,193,281) $ 218,819 $(1,726,929) $(1,810,462)
OTHER
COMPREHENSIVE
INCOME (LOSS)
Foreign currency
translation
adjustments (379) 156,130 24,564 101,076
COMPREHENSIVE
INCOME (LOSS)
ATTRIBUTABLE TO
IPOWER INC. $(1,193,660) $ 374,949 $(1,702,365) $(1,709,386)
========== ========== ========== ==========
WEIGHTED AVERAGE
NUMBER OF COMMON
STOCK
Basic** 1,102,378 1,047,917 1,075,986 1,047,570
========== ========== ========== ==========
Diluted** 1,102,378 1,047,917 1,075,986 1,047,570
========== ========== ========== ==========
EARNINGS (LOSSES)
PER SHARE
Basic $ (1.08) $ 0.21 $ (1.60) $ (1.73)
========== ========== ========== ==========
Diluted $ (1.08) $ 0.21 $ (1.60) $ (1.73)
========== ========== ========== ==========
**all shares of common stock and per share numbers in the unaudited condensed consolidated financial statements have been adjusted retroactively to reflect the 1-for-30 reverse stock split effected on October 27, 2025 for all periods presented.
(END) Dow Jones Newswires
February 20, 2026 16:30 ET (21:30 GMT)
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