Key Highlights

  • Shares were down 11.59% to USD 1.45 in pre-market trading on November 4, 2026.
  • The implied Tuesday close was about USD 1.64 (calculated), so the drop equals USD 0.1901.
  • A 1-for-12 reverse split took effect on October 26, 2026, cutting shares from 6,394,999 to about 532,917.
  • A non-binding letter of intent dated October 15, 2026 cited up to USD 21.90 million in annualized fees at full build-out.
  • Fiscal third quarter 2026 Revenue was USD 3.50 million versus USD 16.04 million a year earlier.

What Moved iPower Before the Open (down USD 0.1901, 11.59%)

iPower (NASDAQ:IPW) was down 11.59% to USD 1.45 in pre-market trading on November 4, 2026, compared with the Tuesday November 3, 2026 close. The screen figures imply a prior close of about USD 1.64 (calculated).

No company announcement dated November 2, 3 or 4, 2026 was identified. The decline follows a reverse split that took effect on October 26, 2026, and post-split trading in a very small share base is often volatile, though that is an inference and not a confirmed cause.

The Reverse Split and AI Letter of Intent

According to a company press release dated October 22, 2026, the 1-for-12 reverse split became effective at 12:01 a.m. Eastern Time on October 26, 2026 to maintain compliance with Nasdaq's minimum bid price requirement. Shares outstanding fell from 6,394,999 to about 532,917, and the ticker stayed IPW.

In a release dated October 15, 2026, iPower AI LLC, a subsidiary, announced a customer-signed, non-binding five-year letter of intent at USD 4,608 per unit per month. The initial 48 units equal about USD 2.65 million annualized, and about 396 units planned during 2027 would reach up to USD 21.90 million annualized. The company said these are not committed revenue, Backlog or guidance.

Business Background and Recent Results

iPower describes itself as a technology and data driven infrastructure company, now prioritizing AI infrastructure acquisition, financing and equipment leasing over passive digital asset accumulation. It was formerly an online hydroponics and home goods supplier and has divested units, including a sale of its GPM Subsidiary for a USD 2.3 million promissory note.

For the fiscal third quarter ended March 31, 2026, revenue was USD 3.50 million versus USD 16.04 million, with gross Margin of 21.6% versus about 42.7% (calculated). The GAAP net loss was USD 3.45 million, or USD 2.38 per share, including a USD 3.03 million Goodwill impairment, versus a loss of USD 0.34 million a year earlier.

Balance Sheet and Risks

At March 31, 2026, cash was USD 0.71 million, with restricted cash of USD 2.21 million and convertible notes payable of USD 4.47 million. The Annual Report for the year ended June 30, 2026 said the company had sold about USD 15.18 million of Series A notes under a USD 30 million facility, and that USD 9.36 million had been converted into 849,697 shares as of October 2, 2026.

Digital Assets of about USD 6.10 million, including 15.1 BTC, were pledged to noteholders as of October 1, 2026. Conversions add dilution, the company reported only 2 full-time employees at June 30, 2026, and, as a penny stock, shares can be volatile and thinly traded.

What to Watch Next

Watch for a definitive services agreement replacing the letter of intent, which the company said is not assured. Further note conversions, any additional reverse split or listing notice, and the first quarter fiscal 2027 report would also shape sentiment.

Whether the stock holds the post-split range during regular hours on November 4, 2026 will show if the pre-market weakness persists.