Operating expenses declined 66% sequentially

GAAP net loss primarily reflected non-cash goodwill impairment; non-GAAP net loss narrowed to $0.3 million

Company strengthens platform through asset-light operations, contracted sublease income and recently launched AI infrastructure strategy

RANCHO CUCAMONGA, Calif., May 20, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a technology- and data-driven company operating at the intersection of supply chain, infrastructure and digital assets, today reported financial results for its fiscal third quarter ended March 31, 2026.

Fiscal third quarter results reflected continued progress in iPower’s strategic operating reset following the divestiture of Global Product Marketing Inc. and the Company’s transition toward a leaner, more asset-light operating model.

For the fiscal third quarter of 2026, revenue from continuing operations was $3.5 million, gross profit was $0.8 million, and gross margin was 21.6%. Total operating expenses declined to $1.9 million, compared with $5.6 million in the fiscal second quarter of 2026 and $7.2 million in the prior-year quarter.

GAAP net loss attributable to iPower was $(3.5) million, or $(2.38) per basic share for the quarter. The GAAP net loss was primarily driven by a $3.0 million non-cash goodwill impairment, which fully eliminated the Company’s remaining goodwill balance. The impairment did not impact the Company’s cash position or operating cash flows. Excluding this impairment and other non-cash or non-operating items, non-GAAP net loss attributable to iPower was $(0.3) million, or $(0.18) per share, compared with non-GAAP net loss of $(0.7) million, or $(0.70) per share, in the prior-year quarter.

“Fiscal Q3 demonstrates that our operating reset is taking hold,” said Lawrence Tan, Chief Executive Officer of iPower. “We significantly reduced our operating cost structure, improved working-capital discipline, and narrowed our non-GAAP loss, despite a smaller revenue base during this transition period. Importantly, the goodwill impairment recorded in the quarter was non-cash and cleared the remaining goodwill from our balance sheet.”

Tan continued, “We are building iPower into a more efficient and financially flexible platform. Our strategy is focused on lower fixed costs, higher-quality revenue opportunities, and disciplined capital allocation into areas where we see long-term value creation. Following quarter end, we strengthened this strategy through contracted sublease income and the launch of our AI infrastructure strategy, which is intended to position iPower as a capital provider for GPU clusters and AI infrastructure assets.”

As of March 31, 2026, iPower had $14.5 million of current assets and $6.6 million of current liabilities, resulting in a current ratio of approximately 2.2x. Current liabilities decreased approximately 54% from $14.5 million at June 30, 2025. Accounts payable declined to $3.0 million from $7.2 million at June 30, 2025, while inventory declined to $2.5 million from $8.1 million, reflecting the Company’s leaner operating model.

Subsequent to quarter end, iPower entered into a sublease agreement for a portion of its Rancho Cucamonga facility, expected to generate more than $2.6 million of contracted, non-dilutive income through May 2028. The Company also launched its AI infrastructure strategy, initially utilizing a portion of its existing $30 million financing facility to pursue investments across the AI infrastructure stack, including an initial commitment of up to $3 million to purchase sUSDai, a yield-bearing instrument backed by GPU-collateralized loans. The Company believes these initiatives enhance financial flexibility and support its transition toward a more scalable platform.

Fiscal Third Quarter 2026 Highlights

Metric	Fiscal Q3 2026	Key Context
Revenue	$3.5 million	Reflects transition to leaner model
Gross profit	$0.8 million	Gross margin of 21.6%
Operating expenses	$1.9 million	Down 66% sequentially
GAAP net loss attributable to iPower	$(3.5) million	Includes $3.0 million non-cash goodwill impairment
Non-GAAP net loss attributable to iPower	$(0.3) million	Improved from $(0.7) million in prior-year quarter
Current assets	$14.5 million	Current ratio of approximately 2.2x
Current liabilities	$6.6 million	Down 54% from June 30, 2025

About iPower Inc.

iPower Inc. (Nasdaq: IPW) is a technology- and data-driven company executing a focused strategy at the intersection of AI infrastructure, digital assets and real-world commerce. The Company’s platform includes established e-commerce supply chain operations, logistics and software-enabled services, as well as a growing AI infrastructure investment strategy designed to support long-term stockholder value creation.

Non-GAAP Financial Measures

Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader’s overall understanding of the Company’s financial performance. This press release includes non-GAAP net loss attributable to iPower and non-GAAP loss per share. The Company uses these measures to evaluate operating performance by excluding certain non-cash, non-recurring or non-operating items, including stock-based compensation, debt-related non-cash financing costs, change in fair value of derivative liability, unrealized loss on digital assets, loss on extinguishment of debt, goodwill impairment and related tax adjustments. These measures should not be considered a substitute for GAAP results. A reconciliation to the most directly comparable GAAP measure is included in the financial tables accompanying this release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Certain statements made herein that use words such as “estimate,” “project,” “intend,” “expect,” “believe,” “may,” “might,” “potential,” “anticipate,” “plan” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include statements regarding iPower’s operating strategy, cost structure, liquidity, balance sheet flexibility, anticipated sublease income, AI infrastructure strategy, digital asset strategy and future growth opportunities. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Additional risks are described in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. iPower undertakes no obligation to update forward-looking statements except as required by law.

Media & Investor Contact

IPW.IR@meetipower.com

iPower Inc. and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2026 and June 30, 2025

				March 31,			June 30,
				2026			2025

ASSETS
Current assets
	Cash and cash equivalent			$	713,685		$	1,677,879
	Accounts receivable, net				7,064,189			6,124,008
	Inventories, net				2,536,961			8,131,203
	Restricted Cash - BitGo				2,209,000			-
	Prepayments and other current assets, net				1,973,215			2,567,706
	Current assets held for sale				-			873,515
			Total current assets		14,497,050			19,374,311

Non-current assets
	Right of use - non-current				2,966,202			3,915,539
	Property and equipment, net				166,441			390,349
	Deferred tax assets, net				4,990,836			3,724,462
	Goodwill				-			3,034,110
	Investment in joint venture				13,264			385,180
	Note Receivable				2,300,000			-
	Intangible assets, net				2,494,300			2,981,328
	Digital assets				1,664,827			-
	Other non-current assets				2,213,668			1,837,488
			Total non-current assets		16,809,538			16,268,456

			Total assets	$	31,306,588		$	35,642,767

LIABILITIES AND EQUITY
Current liabilities
	Accounts payable, net				3,016,663			7,180,009
	Other payables and accrued liabilities				2,136,690			1,769,421
	Lease liability - current				1,450,340			1,361,111
	Revolving loan payable, net				-			3,737,602
	Income taxes payable				-			183,195
	Current liabilities held for sale				-			221,460
			Total current liabilities		6,603,693			14,452,798

Non-current liabilities
	Convertible notes payable				4,470,518			-
	Derivative liability - Conversion option				1,264,600			-
	Lease liability - non-current				1,817,153			2,913,967
			Total non-current liabilities		7,552,271			2,913,967

			Total liabilities		14,155,964			17,366,765

Commitments and contingency					-			-

Stockholders' Equity
	Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and
		outstanding at March 31, 2026 and June 30, 2025			-			-
	Common stock, $0.001 par value; 180,000,000 shares authorized; 1,773,999 and
		1,045,330 shares issued and outstanding at March 31, 2026 and June 30, 2025			1,774			1,045
	Additional paid in capital				37,528,080			33,481,201
	Accumulated deficits				(20,380,696	)		(15,198,889	)
	Non-controlling interest				(47,462	)		(47,462	)
	Accumulated other comprehensive loss				48,928			40,107
			Total stockholders' equity		17,150,624			18,276,002

			Total liabilities and stockholders' equity	$	31,306,588		$	35,642,767

iPower Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Loss
For the Three and Nine Months Ended March 31, 2026 and 2025

			For the Three Months Ended March 31,						For the Nine Months Ended March 31,
			2026			2025			2026			2025
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
REVENUES
	Product sales		$	3,498,681		$	15,018,227		$	16,990,959		$	49,422,823
	Service income			-			1,023,445			1,532,722			3,222,236
		Total revenues		3,498,681			16,041,672			18,523,681			52,645,059

COST OF REVENUES
	Product costs			2,743,132			8,306,217			10,353,516			27,043,417
	Service costs			-			879,995			1,332,681			2,704,737
		Total cost of revenues		2,743,132			9,186,212			11,686,197			29,748,154

GROSS PROFIT				755,549			6,855,460			6,837,484			22,896,905

OPERATING EXPENSES:
	Selling and fulfillment			991,037			5,373,932			7,348,039			15,687,013
	General and administrative			908,773			1,816,032			4,630,041			10,033,958
		Total operating expenses		1,899,810			7,189,964			11,978,080			25,720,971

LOSS FROM OPERATIONS				(1,144,261	)		(334,504	)		(5,140,596	)		(2,824,066	)

OTHER INCOME (EXPENSE)
	Interest expenses			(432,167	)		(81,968	)		(611,108	)		(362,602	)
	Loss on equity method investment			-			(986	)		-			(2,707	)
	Loss on deconsolidation of VIE			(1,269	)		-			(40,893	)		-
	Impairment loss -goodwill			(3,034,110	)		-			(3,034,110	)		-
	Unrealized gain (loss) on digital assets			(549,932	)		-			(544,173	)		-
	Change in fair value of derivative liability			89,600			-			266,200			-
	Gain (Loss) on extinguishment of debt			(539,634	)		-			(563,734	)		-
	Other non-operating income (expenses)			3,897			35,241			1,236,219			47,521
		Total other income (expenses), net		(4,463,615	)		(47,713	)		(3,291,599	)		(317,788	)

LOSS BEFORE INCOME TAXES				(5,607,876	)		(382,217	)		(8,432,195	)		(3,141,854	)

PROVISION FOR INCOME TAX EXPENSE (BENEFIT)				(326,502	)		6,364			(1,839,874	)		(637,108	)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS				(5,281,374	)		(388,581	)		(6,592,321	)		(2,504,746	)
DISCONTINUED OPERATIONS, NET OF TAX				1,826,496			46,208			1,410,514			345,920
NET LOSS				(3,454,878	)		(342,373	)		(5,181,807	)		(2,158,826	)

	Non-controlling interest			-			(2,774	)		-			(8,765	)

NET LOSS ATTRIBUTABLE TO IPOWER INC.			$	(3,454,878	)	$	(339,599	)	$	(5,181,807	)	$	(2,150,061	)

OTHER COMPREHENSIVE INCOME (LOSS)
	Foreign currency translation adjustments			(15,743	)		(97,556	)		8,821			3,520

COMPREHENSIVE LOSS ATTRIBUTABLE TO IPOWER INC.			$	(3,470,621	)	$	(437,155	)	$	(5,172,986	)	$	(2,146,541	)

WEIGHTED AVERAGE NUMBER OF COMMON STOCK
	Basic			1,453,875			1,048,508			1,200,110			1,047,816

	Diluted			1,453,875			1,048,508			1,200,110			1,047,816

EARNINGS (LOSSES) PER SHARE
	Basic - continuing operations		$	(3.63	)	$	(0.37	)	$	(5.49	)	$	(2.39	)
	Basic - discontinued operations			1.25			0.04			1.17			0.33
		Total basic earnings (loss) per share	$	(2.38	)	$	(0.33	)	$	(4.32	)	$	(2.06	)

	Diluted - continuing operations		$	(3.63	)	$	(0.37	)	$	(5.49	)	$	(2.39	)
	Diluted - discontinued operations			1.26			0.04			1.18			0.33
		Total diluted earnings (loss) per share	$	(2.38	)	$	(0.33	)	$	(4.32	)	$	(2.06	)

iPower Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures


		For the Three Months Ended March 31,						For the Nine Months Ended March 31,
		2026			2025			2026			2025
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP OPERATING EXPENSES		$	1,899,810		$	7,189,964		$	11,978,080		$	25,720,971
Stock-based compensation			(150,203	)		546,053.00			(1,450,608	)		142,780

NON-GAAP OPERATING EXPENSES		$	1,749,607		$	7,189,964		$	11,978,080		$	25,720,971


GAAP LOSS FROM OPERATIONS		$	(1,144,261	)	$	(334,504	)	$	(5,140,596	)	$	(2,824,066	)
Stock-based compensation			150,203			(546,053	)		1,450,608			142,780

NON-GAAP LOSS FROM OPERATIONS		$	(994,058	)	$	(880,557	)	$	(3,689,988	)	$	(2,681,286	)


GAAP OTHER INCOME (EXPENSE)		$	(4,463,615	)	$	(47,713	)	$	(3,291,599	)	$	(317,788	)
Amortization of debt discount and non-cash financing costs			247,551			-			269,782			125,906
Loss on extinguishment of debt			539,634			-			563,734			-
change in fair value of derivative liability			(89,600	)		-			(266,200	)		-
Unrealized gain (loss) on digital assets			549,932			-			544,173			-
Impairment loss - goodwill			3,034,110			-			3,034,110			-

NON-GAAP OTHER INCOME (EXPENSE)		$	(181,988	)	$	(47,713	)	$	854,000		$	(191,882	)


GAAP NET LOSS ATTRIBUTABLE TO IPOWER INC.		$	(3,454,878	)	$	(339,599	)	$	(5,181,807	)	$	(2,150,061	)
Stock-based compensation			150,203			(546,053	)		1,450,608			142,780
Amortization of debt discount and non-cash financing costs			247,551			-			269,782			125,906
Loss on extinguishment of debt			539,634			-			563,734			-
change in fair value of derivative liability			(89,600	)		-			(266,200	)		-
Unrealized gain (loss) on digital assets			549,932			-			544,173			-
Impairment loss - goodwill			3,034,110			-			3,034,110			-
Tax adjustment			(1,240,186	)		152,805			(1,566,020	)		(75,188	)
NON-GAAP NET LOSS ATTRIBUTABLE TO IPOWER INC.		$	(263,234	)	$	(732,847	)	$	(1,151,620	)	$	(1,956,563	)

GAAP EARNINGS (LOSSES) PER SHARE
Basic and diluted		$	(2.38	)	$	(0.33	)	$	(4.32	)	$	(2.06	)
Impact of Non-GAAP adjustments			2.20			(0.37	)		3.36			0.19
NON-GAAP LOSSES PER SHARE		$	(0.18	)	$	(0.70	)	$	(0.96	)	$	(1.87	)


WEIGHTED AVERAGE NUMBER OF COMMON STOCK
	Basic and diluted - GAAP and NON-GAAP		1,453,875			1,048,508			1,200,110			1,047,816

iPower Reports Fiscal Third Quarter 2026 Results Highlighted by Lower Operating Cost Structure, Narrowed Non-GAAP Loss and Advancing AI Infrastructure Strategy