Download PDF

1. Company Snapshot

1.a. Company Description

iPower Inc.engages in the online retail of hydroponics equipment in the United States.It offers various products, including advanced indoor and greenhouse grow-light systems, ventilation systems, activated carbon filters, nutrients, growing media, hydroponic water-resistant grow tents, trimming machines, pumps, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products under the iPower and Simple Deluxe brands through its Zenhydro.com website and various third-party e-commerce channels.


The company was formerly known as BZRTH Inc.and changed its name to iPower Inc.in September 2020.


iPower Inc.was incorporated in 2018 and is based in Duarte, California.

Show Full description

1.b. Last Insights on IPW

The recent 3 months performance of iPower Inc. was negatively impacted by the lack of significant revenue growth, despite achieving GAAP profitability and positive cash flow from operations in its fiscal second quarter 2025. The company's revenue growth of 14% year-over-year was largely driven by its SuperSuite supply chain business, which accelerated to achieve a record revenue contribution, accounting for approximately 20% of iPower's total revenue mix. However, this growth was not enough to offset the company's relatively flat revenue performance in other segments.

1.c. Company Highlights

2. iPower's Q3 2025 Earnings Reflect Ongoing Transformation Amid Macro Headwinds

iPower reported a mixed bag in its fiscal third quarter 2025, with revenue declining year-over-year but showing progress in its strategic initiatives. Total revenue came in at $16.6 million, down from $23.3 million in the same quarter last year, primarily due to lower sales to the company's largest channel partner. This decline was partially offset by growth in the SuperSuite segment, which now accounts for 20% of total revenue. Gross margin compressed to 43.3% from 47% last year, reflecting higher supply chain costs and lower economies of scale due to reduced volumes. Operating expenses improved 15% to $7.4 million, driven by cost-cutting measures in G&A and selling expenses. The company reported a net loss of $340,000, or $0.01 per share, compared to net income of $1 million, or $0.03 per share, in the prior year. On a positive note, cash and cash equivalents stood at $2.2 million, and total debt was reduced by 43% to $3.6 million, reflecting efforts to strengthen the balance sheet.

Publication Date: May -29

📋 Highlights
  • Revenue Decline:: Total revenue fell to $16.6 million, down from $23.3 million year-over-year, primarily due to lower sales to the largest channel partner.
  • Gross Margin Contraction:: Gross margin decreased to 43.3% from 47%, with gross profit at $7.2 million.
  • Operating Expense Improvement:: Operating expenses dropped 15% to $7.4 million, driven by lower G&A and selling costs.
  • Net Loss:: The company reported a net loss of $340,000, or $0.01 per share, compared to a $1 million profit last year.
  • SuperSuite Growth:: SuperSuite now accounts for 20% of revenue, supported by new initiatives like the "Made in USA" module and a national fulfillment network.

Supply Chain Diversification and SuperSuite Growth

iPower is making strides in diversifying its supply chain, expanding manufacturing into the U.S. and Southeast Asia while onboarding more U.S.-based suppliers. As noted by CEO Lawrence Tan, "We're collaborating with a sales and manufacturing partner to establish a U.S. production line," which underscores the company's commitment to reducing reliance on Chinese suppliers. The "Made in USA" module within SuperSuite is a key enhancement, providing resources for legal compliance, facility setup, and access to sales channels. This initiative not only supports domestic manufacturing but also positions SuperSuite as a global sourcing platform for the U.S. market. While most supplies still come from China, the company is gradually building a more resilient supply chain. U.S. inventory levels are maintained at 2-3 months to balance demand without overstocking.

Valuation and Outlook

From a valuation perspective, iPower's stock is trading at a price-to-sales (P/S) ratio of 0.0 and an EV/EBITDA of -22.46, reflecting the market's cautious stance on the company's near-term profitability. Despite the challenging macro environment, management expressed confidence in its ability to deliver long-term value. Analysts expect revenue growth to rebound sharply, with estimates pointing to a 36.8% increase next year. However, the current earnings miss, with an actual EPS of -0.01 compared to estimates of 0.04, may weigh on investor sentiment in the near term. The company's focus on operational efficiency and supply chain resilience remains critical to navigating these headwinds.

3. NewsRoom

Card image cap

iPower Reports Fiscal First Quarter 2026 Results

Nov -14

Source: globenewswire.com

Card image cap

iPower Regains Compliance with Nasdaq Minimum Bid Price Requirement

Nov -11

Source: globenewswire.com

Card image cap

iPower Actively Pursuing Alternative Funding Solutions to Enhance Capital Flexibility

Oct -22

Source: globenewswire.com

Card image cap

iPower Announces 1-for-30 Reverse Stock Split

Oct -21

Source: globenewswire.com

Card image cap

iPower Reports Fiscal Fourth Quarter and Full Fiscal Year 2025 Results

Oct -09

Source: globenewswire.com

Card image cap

iPower and TCL Announce Partnership to Expand Smart Tech Access via iPower's Authorized Channel

Sep -23

Source: globenewswire.com

Card image cap

iPower Inc. Announces Arrival of U.S. Packaging Production Line and Initial Orders for Domestic Manufacturing Venture

Aug -19

Source: globenewswire.com

Card image cap

iPower Inc. Advances Digital Asset Strategy and E-Commerce Platform Development

Jul -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Online Hydroponic Equipment Suppliers

Expected Growth: 12%

iPower Inc.'s online hydroponic equipment suppliers' 12% growth is driven by increasing demand for indoor gardening, rising popularity of cannabis cultivation, and growing awareness of sustainable agriculture practices. Additionally, the convenience of online shopping, competitive pricing, and expanding product offerings also contribute to the segment's growth.

7. Detailed Products

Web Hosting

Reliable and secure web hosting solutions for individuals and businesses

Domain Registration

Register and manage domain names with ease

VPS Hosting

Virtual private servers for scalable and flexible hosting

Dedicated Servers

High-performance dedicated servers for demanding applications

WordPress Hosting

Optimized WordPress hosting for fast and secure websites

Email Hosting

Customizable email hosting solutions for businesses and individuals

8. iPower Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for iPower Inc. is moderate due to the presence of alternative energy sources.

Bargaining Power Of Customers

The bargaining power of customers is low for iPower Inc. due to the lack of alternative energy providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is high for iPower Inc. due to the limited number of suppliers in the market.

Threat Of New Entrants

The threat of new entrants for iPower Inc. is moderate due to the high barriers to entry in the energy market.

Intensity Of Rivalry

The intensity of rivalry for iPower Inc. is high due to the competitive nature of the energy market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.00%
Debt Cost 6.50%
Equity Weight 51.00%
Equity Cost 17.50%
WACC 12.11%
Leverage 96.10%

11. Quality Control: iPower Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sally Beauty Holdings

A-Score: 4.5/10

Value: 7.7

Growth: 3.3

Quality: 5.1

Yield: 0.0

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Qurate Retail

A-Score: 4.0/10

Value: 9.7

Growth: 1.2

Quality: 5.4

Yield: 5.0

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
ThredUp

A-Score: 3.9/10

Value: 4.4

Growth: 4.9

Quality: 3.3

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Conn's

A-Score: 3.6/10

Value: 10.0

Growth: 1.8

Quality: 4.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
MarineMax

A-Score: 3.3/10

Value: 8.3

Growth: 4.0

Quality: 2.3

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
iPower

A-Score: 2.8/10

Value: 9.6

Growth: 1.6

Quality: 4.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.0$

Current Price

11$

Potential

-0.02%

Expected Cash-Flows