iPower FY2026 10-K: Revenue Collapses 68%, $11.6M Loss, Material Weakness Disclosed
IPW is trading near its 52-week low of $1.04 (2.9% above the low) on light trading volume (0.2× avg).
Summary
iPower's FY2026 10-K shows revenue down 68% to $19.96M, a $11.6M net loss, a material weakness in internal controls, and heavy reliance on a $30M convertible note facility that has already converted 849,697 shares.
Key Events · Earnings and Guidance · IPW
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Revenue Collapses 68%
FY2026 revenue fell to $19.96M from $63.22M, driven by decreased Amazon orders, tariff uncertainty, and the February 2026 sale of GPM subsidiary.
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Net Loss More Than Doubles
Net loss attributable to iPower was $11.62M vs $4.97M prior year, including a full $3.03M goodwill impairment and $2.32M loss on convertible note extinguishments.
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Material Weakness Disclosed
Management concluded internal controls over financial reporting were not effective due to inadequate design of the financial statement closing process.
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Convertible Note Dilution Pipeline
$15.18M of Series A notes sold to date with $15M remaining available; 849,697 shares already issued on conversions at avg $11.02 post-split vs 1.26M shares outstanding.
Analysis · IPW · Trade & Services
The annual report lays bare the depth of iPower's distress. Revenue plunged 68.4% to $19.96M, while the net loss more than doubled to $11.62M, driven by a full $3.03M goodwill impairment and a $2.32M loss on convertible note extinguishments. Adding to the concerns, management disclosed a material weakness in internal controls over the financial closing process — a governance red flag. The company is surviving on toxic convertible financing: $15.18M of Series A notes have been sold, with $15M more available, and 849,697 shares have already been issued on conversions at an average $11.02 post-split. With only 1.26M shares outstanding and the stock at $1.07, the remaining facility represents massive potential dilution. The going-concern assessment is positive only because of this same dilutive financing pipeline.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 36.5% of the 1055 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, IPW was trading at $1.07 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.3M. The 52-week trading range was $1.04 to $2,095.20. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.