iPower Cuts Q3 Costs 66%, Narrows Loss to $0.3M, Secures $2.6M Sublease
iPower posted Q3 revenue of $3.5 million, 21.6% gross margin and cut operating expenses 66% to $1.9 million, trimming non-GAAP loss to $0.3 million from $0.7 million after a $3 million non-cash goodwill impairment. The company secured $2.6 million in sublease income through May 2028 and launched an AI infrastructure strategy with a $3 million commitment.
1. Q3 Financial Results
iPower reported Q3 revenue of $3.5 million with gross profit of $0.8 million and a 21.6% margin. Operating expenses declined 66% sequentially to $1.9 million, resulting in a GAAP net loss of $3.5 million due to a $3 million non-cash goodwill impairment and a non-GAAP loss of $0.3 million versus $0.7 million a year earlier.
2. Balance Sheet and Sublease Income
As of March 31, iPower held $14.5 million of current assets against $6.6 million of current liabilities, yielding a current ratio of 2.2x, with accounts payable down to $3.0 million and inventory at $2.5 million. Subsequent to quarter end, the company entered a sublease agreement expected to generate $2.6 million of contracted, non-dilutive income through May 2028.
3. AI Infrastructure Strategy Launch
Following the quarter, iPower deployed part of its $30 million financing facility to launch an AI infrastructure strategy aimed at capital provision for GPU clusters and related assets. The initial commitment includes a $3 million investment in a GPU-collateralized yield instrument, strengthening its platform in AI infrastructure financing.