Key Highlights

● Fiscal 2026 revenue fell to $19.96 million from $63.22 million.

● The net loss widened to $11.62 million for the year ended June 30.

● iPower committed up to $3 million from a $30 million financing facility to sUSDai.

● iPower filed a shelf registration statement of up to $50 million.

iPower Inc (NASDAQ:IPW) is worth a closer look because the California company is no longer the online hydroponics and garden supplier many investors remember. Across fiscal 2026, which ended on June 30, it sold a major subsidiary, slashed costs and began repositioning as a provider of capital to AI computing projects.

Based in Rancho Cucamonga, iPower built its name selling indoor-growing and home-and-garden products online. Revenue for fiscal 2026 was $19.96 million, down from $63.22 million a year earlier, while the net loss widened to $11.62 million. The annual report was published on October 2, 2026.

What the last full set of results showed

The clearest detail comes from the fiscal third quarter, to March 31, 2026, which the company reported on May 20. Revenue from continuing operations was $3.5 million, against $16.0 million a year earlier, with gross margin of 21.6%. Operating expenses fell to $1.9 million from $5.6 million in the previous quarter.

The reported net loss attributable to iPower was $3.5 million, or $2.38 per share, largely because of a $3.0 million non-cash goodwill impairment that removed the remaining goodwill. On the company's non-GAAP measure, the loss narrowed to $0.3 million from $0.7 million. Chief executive Lawrence Tan said at the time that the fiscal third quarter showed the operating reset was taking hold, and that strategy was focused on lower fixed costs and disciplined capital allocation. The release carried no guidance.

The pivot to AI infrastructure

The company divested Global Product Marketing, receiving a $2.3 million promissory note, and now supplies that business as a vendor. It also signed a sublease on part of its Rancho Cucamonga facility, which it expects to deliver more than $2.6 million of contracted income through May 2028.

The new direction centers on AI hardware. iPower said it would commit up to $3 million, drawn from a $30 million financing facility, to sUSDai, a yield-bearing instrument backed by GPU-collateralized loans. Further steps followed over the summer: a plan to evaluate AI hardware leasing on July 21, a non-binding letter of intent for a $6 million GPU deployment on July 23, and a $2.0 million growth-capital raise on July 6.

Capital structure and risks

The financing backdrop is the main concern. At March 31, iPower held about $0.7 million of cash plus $2.2 million of restricted cash at BitGo, and carried $4.5 million of convertible notes. Interest expense rose sharply as a result. Its crypto holdings, bought for $2.2 million, were worth $1.7 million at that date.

Shareholder dilution has followed. The company announced a one-for-nine reverse share split on August 5, and shareholders approved a larger share issuance and a flexible further reverse split at a meeting in September. Around October 9 to 10 it filed a registration statement for a mixed securities shelf of up to $50 million.

The AI strategy is also unproven. Commitments to GPU-linked credit products and hardware leasing are new for a company whose expertise was consumer products, and no revenue from them has been reported.

Audited Numbers and Pivot Proof Points

iPower's fiscal 2026 revenue fell to $19.96 million from $63.22 million and the net loss widened to $11.62 million, as the company sold Global Product Marketing, cut costs and committed up to $3 million of a $30 million financing facility to sUSDai, a yield-bearing instrument backed by GPU-collateralized loans. It also filed a registration statement for a mixed securities shelf of up to $50 million around October 9 to 10.

The full annual report filed with the US Securities and Exchange Commission will carry audited fiscal 2026 numbers, going-concern language and detail on the shelf. Further updates on the proposed $6 million GPU deployment, the sublease income and any use of the $30 million facility will show whether the pivot is generating cash or simply spending it.