iPower (IPW) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended December 31, 2025, declined 62.6% year-over-year to $7.1 million, mainly due to decreased Amazon orders, supply disruptions, and a strategic shift to U.S.-based sourcing.

• Net loss attributable to shareholders was $1.19 million for the quarter, or $(1.08) per share, compared to net income of $0.22 million in the prior year period.

• Operating expenses declined 28% year-over-year to $5.6 million, reflecting cost controls and personnel reductions.

• For the six months ended December 31, 2025, revenue dropped 49.7% year-over-year to $19.2 million, with a net loss of $1.73 million, slightly improved from a $1.81 million loss in the prior year.

• Completed divestiture of a major cost center (GPM) post-quarter, generating $2.3 million in consideration.

Financial highlights

• Gross profit for the quarter was $3.1 million, with a gross margin of 44%.

• Operating loss for the quarter was $2.44 million, compared to operating income of $0.68 million in the prior year.

• Cash and cash equivalents at December 31, 2025, were $2.0 million, with $2.2 million in restricted cash and $2.2 million in digital assets.

• Working capital improved to $6.7 million from $4.9 million at June 30, 2025.

• Operating expenses were $5.6 million, down from $7.7 million year-over-year.

Outlook and guidance

• Management expects working capital to remain stable and cash flow from operations to improve as supply chain normalizes and new suppliers transition to more favorable credit terms.

• The company is focused on expanding its in-house product catalog and selectively investing in infrastructure-driven growth opportunities.

• The divestiture of GPM is anticipated to materially lower forward operating expenses.