Zacks Investment Research has recently initiated coverage of iPower Inc. IPW, assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has been making notable strides in the e-commerce space despite industry challenges.
iPower, currently operating from Rancho Cucamonga, CA, is a technology- and data-driven online retailer and supplier of consumer goods, offering home goods, pet products, gardening and hydroponics equipment, outdoor products and consumer electronics, along with value-added e-commerce services for third-party brands. IPW sells via multiple online channels, including Amazon, Walmart.com, TikTok, Temu, eBay and its own websites such as simpledeluxe.com.
iPower’s first-quarter fiscal 2026 revenue fell 36.8% year over year, primarily due to weakness in Amazon order volumes and supply disruptions. However, the revenue mix is beginning to shift. Service revenue more than doubled from the prior year as IPW expanded its supply-chain and logistics platform, onboarding new partners and last-mile providers. Management views this services expansion as a path toward diversifying away from retail channel dependence and improving margin stability over time.
The research report highlights several key factors that could drive iPower’s future growth. A material reset of the cost structure has improved operating leverage, with sharply lower expenses narrowing losses despite revenue pressure. Balance-sheet actions, including debt repayment and new financing capacity, have reduced near-term risk while providing flexibility to support strategic initiatives. At the same time, IPW’s domestic sourcing efforts and a disciplined digital asset treasury strategy are intended to strengthen supply-chain resilience and capital deployment.
However, potential investors should consider certain risks outlined in the report. iPower’s revenue remains highly concentrated with a single major channel partner, leaving results vulnerable to demand volatility and limited near-term visibility. Liquidity, while improved through new financing, remains constrained by low cash levels and potential dilution from equity-linked capital. IPW’s execution risk around scaling its services platform, ongoing restructuring efforts and exposure to digital asset price fluctuations could further pressure operating consistency, while governance and internal-control weaknesses may continue to weigh on market confidence.
iPower’s stock has significantly underperformed its industry peers and the broader market over the past year. The valuation indicates that investors remain cautious about IPW’s near-term recovery and execution, while also signaling that expectations are already depressed and shares could respond sharply to sustained improvements in operations or financial stability.
For a comprehensive analysis of iPower’s financial health, strategic initiatives, and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.
Read the full Research Report on iPower here>>>
Note: Our initiation of coverage on iPower, which has a modest market capitalization of $5 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.
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iPower Inc. (IPW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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