iPower Stock Drops 80.5% After Q2 Revenue Decline and Crypto Hardware Expansion
iPower shares plunged 80.5% over three months, underperforming the industry’s 11.8% gain and S&P 500’s 0.5% rise. Fiscal Q2 2026 revenue fell year-over-year due to a strategic shift to U.S. vendors, but gross margin held steady and operating expenses dropped as management cut costs during supply chain restructuring.
1. Stock Underperformance and Price Decline
iPower’s stock slumped 80.5% over the past three months, ceding an 11.8% gain by industry peers and underperforming the S&P 500’s 0.5% rise. Shares also lagged Central Garden & Pet’s 10.3% gain and Hydrofarm’s 38.5% loss over the same period.
2. Fiscal Q2 2026 Financial Results
In fiscal second quarter 2026 ended December 31, 2025, revenue declined year-over-year as inventory availability was reduced by a strategic vendor shift to U.S. sources. Gross margin remained stable while operating expenses fell through personnel reductions, tighter expense controls and operational efficiencies.
3. Supply Chain Restructuring Impact
Management has pivoted from legacy international vendors to predominantly U.S. sourcing to enhance transparency and reduce logistics risks. This adjustment has temporarily curtailed inventory levels and sales volumes, creating short-term operational disruptions.
4. Crypto Hardware Expansion and Valuation
iPower announced a collaboration to commercialize crypto infrastructure hardware alongside its Digital Treasury Strategy initiative. The stock trades at a 0.1X trailing P/B ratio versus an industry average of 18.2X and peer multiples of 1.3X and 0.03X respectively.