Liquidity is under extreme pressure, highlighted by a capital expenditure-to-revenue ratio of 58% in 2026Q3 despite a rapidly declining top-line.
| Cash from Operations | 351.43K | -579.19K | 6.16M | 9.21M | -16.6M | -12.76M | 1.11M | 706.9K |
| Operating CF Margin % | - | -0.88% | 7.16% | 10.36% | -20.91% | -23.59% | 2.78% | 3.09% |
| Operating CF Growth % | -3380.92% | -109.4% | -33.08% | 155.48% | -30.15% | -1250.27% | 56.89% | - |
| Net Income | -8M | -4.97M | -1.54M | -11.98M | 1.52M | -775.75K | 1.99M | 528.4K |
| Depreciation & Amortization | 2.09M | 2.55M | 2.51M | 828.99K | 277.92K | 12.09K | 0 | 0 |
| Stock-Based Compensation | 1.46M | -13K | 512.54K | 512.8K | 372.35K | 110.68K | 0 | 0 |
| Deferred Taxes | -1.28M | -1.28M | 0 | 0 | -450B | 1.18M | 0 | 0 |
| Other Non-Cash Items | 3.11M | 1.35M | 613.44K | 237.59K | 450B | 1.69M | 95.57K | 1.27M |
| Working Capital Changes | 4.07M | 1.76M | 4.07M | 19.61M | -19.55M | -14.98M | -973.49K | 178.5K |
| Change in Receivables | 3.07M | 7.05M | -953.94K | 3.33M | -9.54M | -1.83M | -2.43M | -3.37M |
| Change in Inventory | 7.8M | 2.75M | 9.96M | 9.6M | -17.59M | -7.32M | -2.72M | -21.44K |
| Change in Payables | -4.91M | -4.08M | -2.02M | 4.12M | 5.59M | -279.38K | 1.96M | 2.12M |
| Cash from Investing | -6.19M | -2.04M | 0 | -140.81K | -139.39K | -61.5K | -6.25K | 0 |
| Capital Expenditures | -1.07M | -1.68M | 0 | -140.81K | -484.17K | -61.5K | -6.25K | 0 |
| CapEx % of Revenue | 3.12% | 2.55% | 0% | 0.16% | 0.61% | 0.11% | 0.02% | - |
| Acquisitions | -332K | 13.18K | 0 | 0 | 344.79K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -5.13K | 0 | 0 | 0 | 50K | 0 | 0 | 0 |
| Cash from Financing | 4.11M | -3M | -2.4M | -7.15M | 11.91M | 18.49M | -596.61K | -235.54K |
| Debt Issued (Net) | 3.78M | -3M | -5.97M | -5.71M | 12.76M | 1.82M | 1.61M | 0 |
| Equity Issued (Net) | 325K | 0 | 4.54M | 0 | 0 | 19.68M | 427.01K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -974.49K | -1.45M | -847.8K | -3.01M | -2.64M | -235.54K |
| Net Change in Cash | 730.43K | -5.37M | 3.64M | 1.91M | -4.83M | 5.67M | 506.18K | 471.36K |
| Free Cash Flow | 430.4B | -742.78K | 6.16M | 9.07M | -17.09M | -12.82M | 1.1M | 706.9K |
| FCF Margin % | 1260622.68% | -1.12% | 7.16% | 10.2% | -21.52% | -23.7% | 2.76% | 3.09% |
| FCF Growth % | 99999900% | -112.05% | -32.04% | 153.08% | -33.3% | -1262.36% | 56% | - |
| FCF per Share | 3124491.89 | -5.67 | 49.51 | 73.26 | -147.61 | -116.32 | 9.35 | 5.99 |
| FCF Conversion (FCF/Net Income) | -53799.62x | 0.12x | -4.03x | -0.77x | -10.94x | 16.44x | 0.56x | 1.34x |
| Interest Paid | 72.3M | 0 | 308.59K | 0 | 0 | 153.78K | 56.95K | 0 |
| Taxes Paid | 0 | 0 | 0 | 55K | 1.85M | 696.12K | 247.72K | 0 |
Liquidity and solvency constraints
As reported in recent financial statements, the relationship between net income and operating cash flow for IPW appears erratic, with the OCF/NI ratio fluctuating wildly between -3.16 and 0.10, suggesting that reported earnings provide little insight into the company's actual ability to generate cash from operations.
The persistent gap between net losses and operating cash flow suggests that accounting accruals and non-cash adjustments are masking the underlying cash burn. Investors should monitor whether this divergence reflects aggressive revenue recognition or simply the volatility inherent in managing high-volume, low-margin e-commerce inventory.
Based on the provided quarterly data, IPW's free cash flow trajectory remains highly unstable, with the company frequently oscillating between negative cash generation and marginal inflows, as evidenced by the -12.9% FCF margin recorded in 2026Q2, highlighting the difficulty in sustaining positive cash flow amidst revenue contraction.
The inability to maintain consistent positive free cash flow suggests that the business model is currently unable to self-fund its operations. This trend warrants further investigation into whether the company can achieve a sustainable cash-flow-positive state without further dilutive capital raises.
According to historical cash flow filings, IPW's working capital changes have been highly inconsistent, swinging from a $3.9 million inflow in 2025Q4 to a $1.4 million outflow in 2025Q1, which suggests significant challenges in balancing inventory procurement with the timing of marketplace sales and customer collections.
These fluctuations indicate that the company may be struggling to optimize its inventory turnover, potentially leading to cash being trapped in slow-moving hardware. The lack of a predictable working capital cycle appears to be a primary driver of the company's current liquidity pressures.
As indicated by the financial data, IPW's capital expenditure reached 58% of revenue in 2026Q3, a significant spike that suggests the company is forced to invest heavily in infrastructure or inventory systems despite a contracting top-line, further straining its already limited cash position of approximately $2 million.
The high capital intensity relative to revenue may indicate that the company is attempting to modernize its logistics or e-commerce platform to remain competitive. However, such high spending levels appear unsustainable given the current negative operating margins and the broader downturn in the indoor gardening sector.
Quick answers to the most common questions about buying IPW stock.
iPower Inc. (IPW) generated $-0.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
iPower Inc. (IPW) reported negative free cash flow of $0.7M in 2025, indicating capital requirements exceeded cash from operations.
iPower Inc. (IPW) spent $1.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.