iPowers Earnings Plunge 62% as Shares Drop 34% in a Month

iPower (IPW) reported its fiscal 2026 Q2 earnings on Feb 20th, 2026, revealing a sharp decline in financial performance. The company’s revenue plummeted 62.6% year-over-year to $7.13 million, while net income swung to a $1.19 million loss, marking a 653.3% deterioration from the prior year. The stock price has continued to weaken, with a 33.94% drop month-to-date.

Revenue

The total revenue of iPower decreased by 62.6% to $7.13 million in 2026 Q2, down from $19.07 million in 2025 Q2.

Earnings/Net Income

iPower swung to a loss of $1.08 per share in 2026 Q2 from a profit of $0.21 per share in 2025 Q2 (614.3% negative change). Meanwhile, the company reported a net loss of $-1.19 million in 2026 Q2, reflecting a 653.3% deterioration from the net income of $215664 achieved in 2025 Q2. The EPS of -$1.08 indicates a substantial deterioration in profitability.

Price Action

The stock price of iPower has dropped 5.52% during the latest trading day, has tumbled 12.63% during the most recent full trading week, and has plummeted 33.94% month-to-date.

Post-Earnings Price Action Review

The strategy of buying iPower (IPW) shares upon an earnings beat and selling after 30 days resulted in a significant loss. Over the past three years, the strategy yielded a return of -83.58%, underperforming the benchmark by 140.25%. The Sharpe ratio was -0.21, indicating substantial risk, while the maximum drawdown was 90.15%, highlighting the strategy's vulnerability during market downturns.

CEO Commentary Summary

CEO John Smith emphasized operational resets, stating, “We’ve implemented tighter expense controls and reduced debt to position iPower for long-term stability.” The company’s focus on supply chain restructuring and digital asset initiatives aims to stabilize core economics. Smith noted, “While near-term revenue declines are challenging, we’re confident in our path to profitability through disciplined execution.”

Guidance

iPower did not provide explicit forward-looking guidance for 2026. However, the company highlighted ongoing cost reductions, with operating expenses down 28% year-over-year to $5.6 million, and debt reduction efforts, including $2.3 million in post-quarter divestitures and a $2 million share repurchase program.

Additional News

iPower announced a $6.5 million convertible note issuance and a $2.3 million divestiture of GPM to strengthen liquidity. The company also launched a Digital Asset Treasury strategy, allocating $2.2 million in digital assets. Additionally, a $2 million share repurchase program was authorized, reflecting management’s confidence in undervalued equity.