Operating expenses declined 66% sequentially
GAAP net loss primarily reflected non-cash goodwill impairment; non-GAAP net loss narrowed to $0.3 million
Company strengthens platform through asset-light operations, contracted sublease income and recently launched AI infrastructure strategy
RANCHO CUCAMONGA, Calif., May 20, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) ("iPower" or the "Company"), a technology- and data-driven company operating at the intersection of supply chain, infrastructure and digital assets, today reported financial results for its fiscal third quarter ended March 31, 2026.
Fiscal third quarter results reflected continued progress in iPower's strategic operating reset following the divestiture of Global Product Marketing Inc. and the Company's transition toward a leaner, more asset-light operating model.
For the fiscal third quarter of 2026, revenue from continuing operations was $3.5 million, gross profit was $0.8 million, and gross margin was 21.6%. Total operating expenses declined to $1.9 million, compared with $5.6 million in the fiscal second quarter of 2026 and $7.2 million in the prior-year quarter.
GAAP net loss attributable to iPower was $(3.5) million, or $(2.38) per basic share for the quarter. The GAAP net loss was primarily driven by a $3.0 million non-cash goodwill impairment, which fully eliminated the Company's remaining goodwill balance. The impairment did not impact the Company's cash position or operating cash flows. Excluding this impairment and other non-cash or non-operating items, non-GAAP net loss attributable to iPower was $(0.3) million, or $(0.18) per share, compared with non-GAAP net loss of $(0.7) million, or $(0.70) per share, in the prior-year quarter.
"Fiscal Q3 demonstrates that our operating reset is taking hold," said Lawrence Tan, Chief Executive Officer of iPower. "We significantly reduced our operating cost structure, improved working-capital discipline, and narrowed our non-GAAP loss, despite a smaller revenue base during this transition period. Importantly, the goodwill impairment recorded in the quarter was non-cash and cleared the remaining goodwill from our balance sheet."
Tan continued, "We are building iPower into a more efficient and financially flexible platform. Our strategy is focused on lower fixed costs, higher-quality revenue opportunities, and disciplined capital allocation into areas where we see long-term value creation. Following quarter end, we strengthened this strategy through contracted sublease income and the launch of our AI infrastructure strategy, which is intended to position iPower as a capital provider for GPU clusters and AI infrastructure assets."
As of March 31, 2026, iPower had $14.5 million of current assets and $6.6 million of current liabilities, resulting in a current ratio of approximately 2.2x. Current liabilities decreased approximately 54% from $14.5 million at June 30, 2025. Accounts payable declined to $3.0 million from $7.2 million at June 30, 2025, while inventory declined to $2.5 million from $8.1 million, reflecting the Company's leaner operating model.
Subsequent to quarter end, iPower entered into a sublease agreement for a portion of its Rancho Cucamonga facility, expected to generate more than $2.6 million of contracted, non-dilutive income through May 2028. The Company also launched its AI infrastructure strategy, initially utilizing a portion of its existing $30 million financing facility to pursue investments across the AI infrastructure stack, including an initial commitment of up to $3 million to purchase sUSDai, a yield-bearing instrument backed by GPU-collateralized loans. The Company believes these initiatives enhance financial flexibility and support its transition toward a more scalable platform.
Fiscal Third Quarter 2026 Highlights
Metric Fiscal Q3 2026 Key Context
Revenue $3.5 million Reflects transition to
leaner model
Gross profit $0.8 million Gross margin of 21.6%
Operating expenses $1.9 million Down 66% sequentially
GAAP net loss attributable $(3.5) million Includes $3.0 million
to iPower non-cash goodwill
impairment
Non-GAAP net loss $(0.3) million Improved from $(0.7)
attributable to iPower million in prior-year
quarter
Current assets $14.5 million Current ratio of
approximately 2.2x
Current liabilities $6.6 million Down 54% from June 30, 2025
About iPower Inc.
iPower Inc. (Nasdaq: IPW) is a technology- and data-driven company executing a focused strategy at the intersection of AI infrastructure, digital assets and real-world commerce. The Company's platform includes established e-commerce supply chain operations, logistics and software-enabled services, as well as a growing AI infrastructure investment strategy designed to support long-term stockholder value creation.
Non-GAAP Financial Measures
Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's financial performance. This press release includes non-GAAP net loss attributable to iPower and non-GAAP loss per share. The Company uses these measures to evaluate operating performance by excluding certain non-cash, non-recurring or non-operating items, including stock-based compensation, debt-related non-cash financing costs, change in fair value of derivative liability, unrealized loss on digital assets, loss on extinguishment of debt, goodwill impairment and related tax adjustments. These measures should not be considered a substitute for GAAP results. A reconciliation to the most directly comparable GAAP measure is included in the financial tables accompanying this release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "believe," "may," "might," "potential," "anticipate," "plan" or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include statements regarding iPower's operating strategy, cost structure, liquidity, balance sheet flexibility, anticipated sublease income, AI infrastructure strategy, digital asset strategy and future growth opportunities. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Additional risks are described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. iPower undertakes no obligation to update forward-looking statements except as required by law.
Media & Investor Contact
IPW.IR@meetipower.com
iPower Inc. and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2026 and June 30, 2025
March 31, June 30,
2026 2025
------------ ------------
ASSETS
---------------------------
Current assets
Cash and cash equivalent $ 713,685 $ 1,677,879
Accounts receivable, net 7,064,189 6,124,008
Inventories, net 2,536,961 8,131,203
Restricted Cash - BitGo 2,209,000 -
Prepayments and other
current assets, net 1,973,215 2,567,706
Current assets held for
sale - 873,515
Total current assets 14,497,050 19,374,311
----------- -----------
Non-current assets
Right of use - non-current 2,966,202 3,915,539
Property and equipment,
net 166,441 390,349
Deferred tax assets, net 4,990,836 3,724,462
Goodwill - 3,034,110
Investment in joint
venture 13,264 385,180
Note Receivable 2,300,000 -
Intangible assets, net 2,494,300 2,981,328
Digital assets 1,664,827 -
Other non-current assets 2,213,668 1,837,488
-----------
Total non-current assets 16,809,538 16,268,456
----------- -----------
Total assets $ 31,306,588 $ 35,642,767
=========== ===========
LIABILITIES AND EQUITY
---------------------------
Current liabilities
Accounts payable, net 3,016,663 7,180,009
Other payables and accrued
liabilities 2,136,690 1,769,421
Lease liability - current 1,450,340 1,361,111
Revolving loan payable,
net - 3,737,602
Income taxes payable - 183,195
Current liabilities held
for sale - 221,460
Total current liabilities 6,603,693 14,452,798
----------- -----------
Non-current liabilities
Convertible notes payable 4,470,518 -
Derivative liability -
Conversion option 1,264,600 -
Lease liability -
non-current 1,817,153 2,913,967
Total non-current
liabilities 7,552,271 2,913,967
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