Key Highlights

● iPower fell roughly 9% in its latest session, sliding just days after executing a 1-for-9 Reverse Stock Split effective August 7, 2026.

● The consolidation was designed to lift the company's share price back above Nasdaq's minimum bid requirement and preserve its listing.

● Trailing-twelve-month Revenue was reported near $32 million, down roughly 56% year over year, alongside a net loss of about $8 million.

● iPower has laid out an AI hardware-leasing pivot through a newly formed dedicated subsidiary, attempting to graft a capital-intensive growth avenue onto a shrinking retail base.

Shares of iPower Inc. (NASDAQ: IPW) fell roughly 9% in their latest session, sliding just days after the company executed a 1-for-9 reverse stock split designed to lift its share price back above Nasdaq's minimum bid requirement and preserve its listing. The consolidation, which took effect on 7 August 2026, sharply reduced the company's share count and reset the stock to a higher nominal price, but reverse splits do nothing to change the underlying business, and iPower's has been shrinking rapidly. The renewed weakness leaves investors focused on whether a fresh pivot toward artificial-intelligence hardware leasing can revive a company whose legacy revenue has more than halved.

What Happened?

On 5 August 2026, iPower announced a 1-for-9 reverse stock split that became effective at 12:01 a.m. Eastern time on 7 August. The company said the move was "intended to increase the per share trading price of the Company's common stock to assist the Company in maintaining compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market." Every nine shares were combined into one, with fractional shares rounded up to the nearest whole share.

The split reduced shares outstanding from roughly 7.03 million to about 781,000. The stock continued to trade under the ticker "IPW" on a split-adjusted basis, received a new CUSIP number, and used VStock Transfer as the exchange agent. On the first split-adjusted trading day, the shares changed hands near $3.71. In the sessions since, that gain has faded, and the roughly 9% drop in the latest session pushed the stock back toward the low end of its post-split range.

Why Is IPW Stock Falling?

The confirmed backdrop is a company under listing pressure that has now resorted to a reverse split, a mechanical fix that raises the per-share price without adding value. As interpretation rather than established fact, reverse splits frequently see early gains fade because they do not address the fundamentals that pushed the stock toward the $1 threshold in the first place. With only about 781,000 shares outstanding, the float is extremely small, which can produce violent percentage moves on light Volume in either direction.

No specific negative disclosure has been tied to the latest session's decline. The most defensible reading is a combination of post-split give-back and thin-float Volatility rather than a reaction to fresh news. Investors should be cautious about attributing the move to any single catalyst; the more durable concern is the steep decline in the company's core revenue, which the split does nothing to reverse.

The Numbers Investors Are Watching

The most striking figure is the top line: trailing-twelve-month revenue was reported near $32 million, down roughly 56% year over year, alongside a net loss of about $8 million. That revenue collapse, not the share price mechanics, is the core issue. The reverse split cut the share count to roughly 781,000 from about 7.03 million, and the resulting nominal price near $3.71 on the first split-adjusted day was engineered to clear Nasdaq's $1.00 minimum bid rule with room to spare.

On the growth side of the story, iPower has laid out an AI-leasing pivot with specific but preliminary numbers. In late July, the company said it had formed a dedicated Subsidiary focused on AI hardware leasing and signed a non-binding letter of intent for an initial GPU deployment valued at approximately $6 million, structured as a Lease of roughly 36 months. The company said the arrangement could expand to an aggregate contract value of about $60 million, though it cautioned that the LOI is non-binding and that equipment specifications, lease payments, Credit support and other commercial terms remain subject to negotiation.

The Bigger Picture

iPower built its Business as an online retailer and supplier of home, garden and hydroponics products, a category that has contracted sharply from its pandemic-era peak. The resulting revenue decline pressured the share price low enough to threaten Nasdaq compliance, prompting the reverse split. Notably, this is not the company's first such action: according to market data, the 1-for-9 consolidation followed an earlier reverse split executed in May 2026, meaning iPower has now compressed its share count twice within a single year, a pattern that typically signals persistent listing pressure rather than a one-time adjustment.

Against that backdrop, the AI hardware-leasing initiative represents an attempt to graft a new, capital-intensive growth avenue onto a shrinking retail base. The strategy taps into strong Demand for GPU compute, but it is early, non-binding and unproven for a company of iPower's size and balance sheet. The market's willingness to fund or reward that pivot will likely depend on whether the preliminary GPU LOI converts into definitive, revenue-generating agreements.

What Could Happen Next?

The near-term watch items are concrete. First, whether the reverse split keeps iPower above Nasdaq's minimum bid price for the required period to regain or maintain compliance. Second, whether the non-binding $6 million GPU LOI, with potential to scale toward $60 million, is converted into a definitive agreement, and on what terms. Third, the company's next quarterly report, which will show whether legacy revenue is stabilizing and how the AI subsidiary is being funded; no date has been announced. Any Nasdaq compliance updates, financing arrangements to support GPU purchases, or additional leasing customers would be the most meaningful catalysts. Given the tiny float, volatility is likely to remain elevated in both directions.

Bottom Line

iPower's roughly 9% slide came just days after a 1-for-9 reverse split aimed at defending its Nasdaq listing, a mechanical maneuver that lifts the share price but leaves the business unchanged. With trailing revenue down about 56% and this the company's second reverse split of the year, the core problem is a shrinking legacy operation, not the share count. The newly announced AI hardware-leasing pivot offers a potential growth path, but it rests on a non-binding LOI and remains unproven. Investors should watch for Nasdaq compliance confirmation, conversion of the GPU deal into definitive terms, and evidence that revenue is stabilizing.