Revenue contraction and margin compression are evident, with gross margins falling sharply to 21.6% in 2026Q3 from historical levels of 43-47%.
| Sales/Revenue | 34.14M | 66.14M | 86.07M | 88.9M | 79.42M | 54.08M | 39.94M | 22.84M |
| Revenue Growth % | -53.93% | -23.15% | -3.18% | 11.94% | 46.86% | 35.4% | 74.84% | - |
| Cost of Goods Sold | 20.5M | 37.15M | 46.82M | 54.1M | 46.22M | 31.26M | 24.81M | 14.97M |
| COGS % of Revenue | - | 56.16% | 54.39% | 60.86% | 58.2% | 57.8% | 62.12% | 65.52% |
| Gross Profit | 13.64M | 28.99M | 39.25M | 34.8M | 33.2M | 22.82M | 15.13M | 7.88M |
| Gross Margin % | 39.95% | 43.84% | 45.61% | 39.14% | 41.8% | 42.2% | 37.88% | 34.48% |
| Gross Profit Growth % | - | -26.14% | 12.8% | 4.81% | 45.5% | 50.84% | 92.08% | - |
| Operating Expenses | 22.45M | 34.86M | 40.22M | 48.28M | 30.89M | 19.86M | 12.22M | 7.04M |
| OpEx % of Revenue | - | 52.7% | 46.72% | 54.31% | 38.89% | 36.72% | 30.6% | 30.82% |
| Selling, General & Admin | 22.45M | 34.86M | 39.08M | 45.22M | 30.89M | 19.86M | 12.22M | 7.04M |
| SG&A % of Revenue | - | 52.7% | 45.41% | 50.87% | 38.89% | 36.72% | 30.6% | 30.82% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 1.13M | 3.06M | 0 | 0 | 0 | 0 |
| Operating Income | -8.81M | -5.87M | -962.89K | -13.48M | 2.31M | 2.96M | 2.91M | 834.67K |
| Operating Margin % | -25.81% | -8.87% | -1.12% | -15.17% | 2.91% | 5.47% | 7.28% | 3.65% |
| Operating Income Growth % | - | -509.18% | 92.86% | -683.19% | -21.91% | 1.81% | 248.39% | - |
| EBITDA | -6.72M | -3.31M | 1.55M | -10.07M | 2.91M | 2.97M | 2.91M | 834.67K |
| EBITDA Margin % | -19.69% | -5.01% | 1.8% | -11.33% | 3.67% | 5.5% | 7.28% | 3.65% |
| EBITDA Growth % | -337.56% | -314.11% | 115.36% | -445.63% | -1.98% | 2.23% | 248.39% | - |
| D&A (Non-Cash Add-back) | 2.09M | 2.55M | 2.51M | 3.41M | 601.83K | 12.09K | 0 | 0 |
| EBIT | -11.47M | -5.8M | -1M | -13.6M | 2.6M | 292.94K | 2.91M | 834.67K |
| Net Interest Income | -734.49K | -436.2K | -788.42K | -1.07M | -538.17K | -301.92K | -168.28K | -109.83K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 734.71K | 436.2K | 788.42K | 1.07M | 538.17K | 301.92K | 168.28K | 109.83K |
| Other Income/Expense | -3.39M | -366.27K | -829.92K | -1.18M | -248.42K | -2.97M | -147.55K | -110.78K |
| Pretax Income | -12.2M | -6.23M | -1.79M | -14.67M | 2.06M | -8.99K | 2.76M | 723.89K |
| Pretax Margin % | -35.74% | -9.42% | -2.08% | -16.5% | 2.6% | -0.02% | 6.91% | 3.17% |
| Income Tax | -2.38M | -1.25M | -251.37K | -2.69M | 558.98K | 766.76K | 773.44K | 195.5K |
| Effective Tax Rate % | 19.46% | 20.13% | 14.02% | 18.34% | 27.09% | -8531.9% | 28.02% | 27.01% |
| Net Income | -8M | -4.97M | -1.53M | -11.97M | 1.52M | -775.75K | 1.99M | 528.4K |
| Net Margin % | -23.43% | -7.51% | -1.78% | -13.46% | 1.91% | -1.43% | 4.98% | 2.31% |
| Net Income Growth % | -435.85% | -225.12% | 87.23% | -888.3% | 295.67% | -139.04% | 276.04% | - |
| Net Income (Continuing) | -9.83M | -4.98M | -1.54M | -11.98M | 1.5M | -775.75K | 1.99M | 528.4K |
| Discontinued Operations | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -47.46K | -47.46K | -38.2K | -24.91K | -13.23K | 0 | 0 | 0 |
| EPS (Diluted) | -58.08 | -37.92 | -12.24 | -96.64 | 13.12 | -7.04 | 16.88 | 4.49 |
| EPS Growth % | -458% | -209.8% | 87.33% | -836.59% | 286.36% | -141.71% | 276.11% | - |
| EPS (Basic) | - | -37.92 | -12.24 | -96.64 | 13.12 | -7.04 | 16.88 | 4.49 |
| Diluted Shares Outstanding | 137.75K | 131.03K | 124.49K | 123.81K | 115.76K | 110.2K | 117.92K | 117.92K |
| Basic Shares Outstanding | 137.75K | 131.03K | 124.49K | 123.81K | 115.76K | 110.2K | 117.92K | 117.92K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Liquidity and demand contraction
As reported in recent quarterly filings, iPower's revenue has experienced a severe decline, plummeting to $3.5 million in 2026Q3 from $23.3 million in 2024Q3, representing a significant contraction that suggests the company is struggling to maintain its competitive positioning within the volatile indoor gardening hardware market.
The consistent quarter-over-quarter revenue decay indicates that the company's reliance on third-party marketplace algorithms may be failing to drive sufficient traffic. This trend suggests that the initial growth phase of the business has exhausted its momentum, leaving the firm exposed to a shrinking addressable market.
Based on the provided financial data, iPower's gross margin experienced a sharp compression to 21.6% in 2026Q3, down from a more stable historical range of 43-47%, which indicates that the company's pricing power is rapidly eroding amidst intensifying competition and potential inventory obsolescence pressures.
The sudden drop in gross margin suggests that the company may be forced into aggressive discounting to clear stagnant inventory. Investors should monitor whether this margin degradation is a temporary reaction to market conditions or a permanent shift in the company's ability to command premium pricing.
According to the income statement history, iPower has failed to achieve positive operating leverage, with operating margins deteriorating to -32.7% in 2026Q3, as the company's fixed SG&A costs continue to outpace the rapidly declining gross profit generated by its core e-commerce operations.
The inability to scale SG&A downward in proportion to revenue suggests a rigid cost structure that is ill-suited for a period of declining demand. This lack of operational flexibility implies that the company may struggle to reach break-even status without a fundamental restructuring of its overhead expenses.
Financial statements indicate that with net losses reaching $3.5 million in 2026Q3 and cash reserves at minimal levels, the company faces a precarious liquidity position that may necessitate dilutive financing, potentially undermining the long-term value proposition for existing shareholders in the current high-interest rate environment.
Short-sellers would likely focus on the widening gap between cash burn and revenue generation, which suggests that the current business model may be unsustainable without external capital. The reliance on marketplace platforms for revenue creates a dependency that leaves the company vulnerable to sudden changes in platform fee structures.
Quick answers to the most common questions about buying IPW stock.
For fiscal year 2025, iPower Inc. (IPW) reported total revenue of $66.1M. This represents a 189.6% increase compared to $22.8M in 2019.
iPower Inc. (IPW) reported a net loss of $5.0M for the fiscal year ending 2025.
iPower Inc. (IPW) reported an operating income of $-5.9M, resulting in an operating profit margin of -8.9%. This margin reflects the operational efficiency of the business before interest and taxes.
iPower Inc. (IPW) generated $29.0M in gross profit for the year, representing a gross profit margin of 43.8%. This demonstrates the company's core pricing power and production efficiency.