iPower Inc. (IPW) Stock Plunges -87% in 30 Days Amid Dilution and Restructuring

Key Takeaways

• iPower Inc. (IPW) shares have fallen roughly 87% over the last 30 days and approximately 97% over the trailing quarter on an adjusted basis.
• The decline has been driven primarily by severe equity dilution from a deep-discount convertible note facility and related resale registration filings.
• Fiscal 2026 results showed revenue down 68% to $19.96 million and a net loss of about $11.6 million, alongside disclosed material weaknesses in internal controls.
• The company completed a 1-for-12 reverse stock split in late October, its third reverse split of 2026, as it works to maintain Nasdaq listing compliance.
• A non-binding AI services letter of intent announced in October remains subject to a definitive agreement, with only a portion of the headline unit count confirmed.

Company Background and Strategic Direction

iPower Inc. is a technology- and data-driven supply chain and infrastructure company listed on the Nasdaq. Historically known as an online retailer and supplier of hydroponic and gardening equipment, the company has repositioned itself around a broader platform spanning e-commerce supply chain operations, logistics, and software-enabled services. More recently, management has emphasized a strategic pivot toward AI infrastructure and digital assets, describing the business as operating at the intersection of supply chain, infrastructure, and digital assets.

The company has undergone a significant restructuring, including the divestiture of its Global Product Marketing (GPM) subsidiary in early 2026 and a transition to a leaner, more asset-light operating model. It has also launched an AI infrastructure strategy intended to position iPower as a capital provider for GPU clusters and AI-related assets. Investors follow IPW closely for its restructuring progress, financing activity, and the credibility of its AI pivot, given the company's small scale and limited operating resources. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.

Recent Stock Price Moves: 30 Days and the Quarter

Over the last 30 days, IPW shares have declined approximately 87% on an adjusted basis, falling from a closing level near $13.92 to roughly $1.77. The move was not a single-session event but a persistent slide punctuated by sharp multi-day drops tied to financing and filing developments.

The quarterly picture is even steeper. From roughly $54.71 at the end of July to about $1.77, the stock has lost approximately 97% over the trailing three months. This extended decline reflects repeated rounds of dilution, successive reverse stock splits, and deteriorating reported fundamentals rather than a brief bout of volatility.

Drivers Behind the 30-Day Decline

The dominant driver of the recent decline was extreme equity dilution. iPower relies on a senior secured convertible note facility with ATW Partners that converts at 95% of the lowest seven-day volume-weighted average price, creating a persistent incentive for the holder to convert and sell shares. In late October, the company filed a registration amendment covering up to roughly 8.09 million shares for resale upon conversion of a $3.0 million Series A note, with the potential to increase the share count by more than 1,350%.

Fundamentals added to the pressure. The fiscal 2026 annual report, filed in early October, showed revenue declining 68% to $19.96 million and a net loss of approximately $11.6 million, while disclosing material weaknesses in internal control over financial reporting. The company also delayed its 10-K filing and registered a $50 million shelf prospectus, which further weighed on sentiment. A 1-for-12 reverse stock split effective in late October—the company's third reverse split of the year—underscored its effort to remain above Nasdaq's minimum bid price requirement. A non-binding AI services letter of intent announced in mid-October did little to offset the selling pressure.

Factors Behind the Quarterly Performance

Over the trailing quarter, the stock's decline reflected a compounding series of structural developments rather than a single catalyst. The company completed multiple reverse splits, continued drawing on its convertible facility, and shifted its strategic narrative from digital asset accumulation toward AI infrastructure, selling its Ethereum and sUSDai positions during the period.

Reported results weakened as the company transitioned to a leaner operating model. Third-quarter fiscal 2026 revenue from continuing operations fell sharply, and the company recorded a $3.0 million non-cash goodwill impairment. Meanwhile, the combined effect of three reverse splits across 2026 and a split-adjusted share count that has risen substantially since late 2025 reflects the scale of ongoing dilution. These factors collectively explain the roughly 97% decline over the quarter.

Key Areas to Monitor Going Forward

Looking ahead, several factors are likely to shape IPW's trajectory. The pace and terms of further conversions under the convertible facility remain the most direct influence on the share count and price, along with any additional resale registration or shelf offerings. Investors should monitor Nasdaq continued-listing compliance and the potential for further reverse splits.

On the operational side, the ability to convert the AI services letter of intent into a definitive agreement—and then deploy billable units—will be a key test of the company's pivot. Upcoming quarterly results, cash and collateral positions, digital asset exposure, and progress on remediating internal control weaknesses also warrant attention. These are risk factors to monitor, not forecasts, and they do not constitute investment advice. From what I see, one thing that stands out is how quickly the share structure can shift with these facilities in place.

AI Tools in My Research Process

When analyzing names like this, I sometimes cross-reference momentum signals and pattern data through Tickeron platforms to get a broader view beyond the filings. One resource I find useful is the Trending AI Robots section, which highlights automated strategies across various tickers and timeframes. It helps put the dilution and restructuring dynamics into context without replacing fundamental review.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.

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