iPower 2025 Q3 Earnings Misses Targets with Net Income Plummeting 133.8%

iPower (IPW) reported its fiscal 2025 Q3 earnings on May 15th, 2025. The company experienced a significant decline in revenue and net income compared to the same quarter last year. Results missed expectations, with total revenues falling to $16.57 million and a net loss of $0.01 per share. iPower's guidance remains cautious due to ongoing market volatility, focusing on supply chain diversification and strategic initiatives to improve operational efficiency. The company aims to deliver long-term value to shareholders.

Revenue
iPower reported a total revenue decrease of 28.9% to $16.57 million in Q3 2025, compared to $23.31 million in Q3 2024. Product sales accounted for $15.55 million, while service income contributed $1.02 million, composing the overall revenue figure.

Earnings/Net Income
In Q3 2025, iPower reported a net loss of $0.01 per share, a stark decline from a profit of $0.03 per share in Q3 2024, marking a 133.3% negative change. This resulted in a net loss of $342,373 compared to a net income of $1.01 million in the same period last year, underscoring a challenging financial performance.

Price Action
The stock price of iPower remained stable on the latest trading day but showed a positive trend over the past month, surging 15.07%. This indicates some investor optimism despite the poor quarterly results.

Post-Earnings Price Action Review
The strategy of purchasing iPower shares following revenue announcements and holding them for 30 days proved unsuccessful, delivering an annualized return of -48.7% over the past five years. This significantly underperforms the US market's average return of 8.1%. The strategy's failure is attributed to the persistent decline in iPower's stock price during this period, indicating substantial losses rather than profits. Investors following this approach experienced notable financial setbacks, highlighting the company's challenges in maintaining stock value despite its strategic initiatives.

CEO Commentary
Chenlong Tan, CEO of iPower, emphasized the company's commitment to strengthening its operational foundation amidst cautious demand. He highlighted the diversification of the supply chain through expanded U.S. manufacturing and onboarding more U.S.-based suppliers. Tan noted the Super Suite business has reached a significant milestone, now accounting for approximately 20% of total revenue due to growing demand for integrated solutions. He expressed optimism for long-term growth through strategic initiatives aimed at enhancing efficiency and reducing reliance on single regions.

Guidance
iPower anticipates that ongoing diversification across suppliers and sales channels will help manage near-term volatility. Although specific revenue targets were not disclosed, the company remains committed to disciplined capital allocation, aiming to navigate the current market environment successfully and deliver long-term value to customers and shareholders.

Additional News
In recent weeks, iPower has focused on expanding its manufacturing capabilities within the U.S., adding new suppliers to enhance its supply chain resilience. The company participated in the 37th Annual Roth Conference, where it highlighted its strategic pivots, including the discontinuation of its hydroponics business to concentrate on its core ecommerce services. Additionally, iPower announced a partnership with AliExpress, expanding its SuperSuite's U.S. sales channels and enhancing its presence in the competitive ecommerce landscape. These developments aim to strengthen iPower's operational foundation and diversify its market presence.