iPower Inc. reported fiscal Q2 2026 results reflecting a strategic operational reset focused on supply chain restructuring and a shift to U.S.-based sourcing. This transition temporarily reduced revenue but is expected to improve long-term reliability and margin stability. The company also initiated a Digital Asset Treasury strategy and divested a cost center, positioning for future infrastructure-driven growth.
Gross profit remained strong at $3.1 million, with gross margin stable at 44.0% despite lower revenue.
positiveTotal operating expenses declined 28% year-over-year to $5.6 million, driven by personnel reductions and expense controls.
positiveCompleted divestiture of Global Product Marketing Inc. (GPM) for approximately $2.3 million, reducing forward expense requirements.
positiveAuthorized first-ever $2 million share repurchase program, reflecting confidence in the strengthened balance sheet.
positiveRevenue declined significantly to $7.1 million, down from $19.1 million in the prior year's quarter, due to a deliberate supply chain restructuring and transition to U.S.-based sourcing.
negativeNet loss attributable to iPower was $1.2 million, or $(1.08) per share, compared to a net income of $0.22 million, or $0.21 per share, in the prior year's quarter.
negativeInventories decreased significantly to $3.6 million from $8.1 million in the prior quarter, indicating reduced sales volume during the transition.
attentionTotal liabilities increased to $16.0 billion from $14.5 billion in the prior quarter, primarily due to new convertible notes and derivative liabilities.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our fiscal second quarter reflects a deliberate strategic transition.
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.
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