iPower Inc. Q2 2025: Contradictions Unveiled on SuperSuite Growth, Amazon Changes, and Seasonal Sales Dynamics

These are the key contradictions discussed in iPower Inc.'s latest 2025 Q2 earnings call, specifically including: SuperSuite growth expectations and impact, the impact of Amazon's 1P platform changes, seasonality of product sales, and SuperSuite partner onboarding and growth:



Revenue and SuperSuite Growth:
- iPower Inc. reported a 14% increase in total revenue for fiscal Q2 2025, with $19.1 million compared to $16.8 million in the previous year.
- Growth was driven primarily by the expansion of the SuperSuite supply chain business and increased product sales to its largest channel partner.

Gross Margin Improvement:
- Gross profit in fiscal Q2 2025 increased by 15% to $8.4 million, representing a 40 basis point increase in gross margin.
- Improved pricing due to key supplier negotiations and a healthier supply chain contributed to the growth.

Operational Efficiency and Cost Reduction:
- Total operating expenses for fiscal Q2 decreased by 22% to $7.7 million.
- The reduction was attributed to lower selling and fulfillment expenses related to the largest channel partner and ongoing cost structure optimization efforts.

Debt Reduction and Cash Management:
- Cash and cash equivalents were $2.9 million as of December 31, 2024, a decrease from $7.4 million in June 2024.
- The company reduced its total debt by 31% to $4.4 million, reflecting its commitment to strengthening the balance sheet.

SuperSuite's Market Penetration and Partner Expansion:
- SuperSuite now contributes about 20% of the company's sales, with a run rate of approximately $16 million a year, indicating significant growth from the previous year.
- The platform's expansion is supported by a healthy pipeline of prospective partners and continuous onboarding of new partners.