Fiscal Q2 Revenue up 14% to $19.1 Million

Achieves GAAP Profitability and Positive Cash Flow from Operations

RANCHO CUCAMONGA, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) -- iPower Inc. (NASDAQ:IPW) ("iPower" or the "Company"), a tech and data-driven ecommerce services provider and online retailer, today announced its financial results for the fiscal second quarter ended December 31, 2024.

Fiscal Q2 2025 Results vs. Year-Ago Quarter

Total revenue increased 14% to $19.1 million.
Gross profit increased 15% to $8.4 million, with gross margin up 40 bps to 44.0%.
Net income attributable to iPower improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share.
As of December 31, 2024, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024.

Management Commentary

"We delivered strong results across all key financial metrics in our fiscal second quarter while further enhancing our SuperSuite platform," said Lawrence Tan, CEO of iPower. "Throughout the quarter, we continued to optimize operations and strengthen our presence across both our established and emerging sales channels. We also remain focused on supply chain diversification by exploring new supplier relationships beyond our existing network, reinforcing our commitment to building a more resilient and adaptable infrastructure."

"Our SuperSuite platform is gaining further momentum as we leverage our superior supply chain, warehousing and merchandising expertise to drive sales growth for partners with innovative product catalogs. Additionally, we are making steady progress with our recently launched SaaS platform, refining its capabilities to improve supplier collaboration, streamline operations, and better align partners with evolving market demands. With a strong pipeline of prospective partners, we are well-positioned to capitalize on the growing demand for SuperSuite as we bolster our comprehensive service offerings."

iPower CFO, Kevin Vassily, added, "Our ongoing efforts to optimize our cost structure have delivered meaningful results as we continue to drive gross margin expansion and operating leverage in our business. We have also officially shuttered our legacy commercial hydroponics business, as we are now focused on our core competency as a data-driven, consumer products and services company. We believe these initiatives, coupled with our accelerating growth in our SuperSuite business, will enable us to execute on our goals ahead."

Fiscal Second Quarter 2025 Financial Results

Total revenue in the fiscal second quarter of 2025 increased 14% to $19.1 million compared to $16.8 million for the same period in fiscal 2024. The increase was driven primarily by growth in iPower's SuperSuite supply chain offerings, as well as greater product sales to the Company's largest channel partner.

Gross profit in the fiscal second quarter of 2025 increased 15% to $8.4 million compared to $7.3 million in the same quarter in fiscal 2024. As a percentage of revenue, gross margin increased 40 basis points to 44.0% compared to 43.6% in the year-ago period. The increase in gross margin was primarily driven by improved pricing through key supplier negotiations.

Total operating expenses in the fiscal second quarter of 2025 improved 22% to $7.7 million compared to $9.9 million for the same period in fiscal 2024. The decrease in operating expenses was driven primarily by lower selling and fulfillment expenses related to the Company's largest channel partner.

Net income attributable to iPower in the fiscal second quarter of 2025 improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share for the same period in fiscal 2024.

Cash and cash equivalents were $2.9 million at December 31, 2024, compared to $7.4 million at June 30, 2024. As a result of the Company's debt paydown, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024.

Conference Call

The Company will hold a conference call today, February 13, 2025, at 4:30 p.m. Eastern Time to discuss its results for the fiscal second quarter ended December 31, 2024.

iPower's management will host the conference call, which will be followed by a question-and-answer session.

The conference call details are as follows:

Date: Thursday, February 13, 2025

Time: 4:30 p.m. Eastern time

Dial-in registration link: here

Live webcast registration link: here

Please dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company's investor relations team at IPW@elevate-ir.com.

The conference call will also be broadcast live and available for replay in the Events & Presentations section of the Company's website at www.meetipower.com.

About iPower Inc.

iPower Inc. is a tech and data-driven online retailer, as well as a provider of value-added ecommerce services for third-party products and brands. iPower's capabilities include a full spectrum of online channels, robust fulfillment capacity, a nationwide network of warehouses, competitive last mile delivery partners and a differentiated business intelligence platform. iPower believes that these capabilities will enable it to efficiently move a diverse catalog of SKUs from its supply chain partners to end consumers every day, providing the best value to customers in the U.S. and other countries. For more information, please visit iPower's website at www.meetipower.com.

Forward-Looking Statements

All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower's Annual Report on Form 10-K, as filed with the SEC on September 20, 2024, and in its other SEC filings, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Investor Relations Contact

Sean Mansouri, CFA or Aaron D'Souza

Elevate IR

(720) 330-2829

IPW@elevate-ir.com

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2024 and June 30, 2024

				December 31,			June 30,
				2024			2024
				(Unaudited)
ASSETS
Current assets
	Cash and cash equivalent			$	2,877,457		$	7,377,837
	Accounts receivable, net				13,926,432			14,740,093
	Inventories, net				9,183,631			10,546,273
	Prepayments and other current assets, net				2,292,744			2,346,534
			Total current assets		28,280,264			35,010,737

Non-current assets
	Right of use - non-current				4,757,429			6,124,163
	Property and equipment, net				303,059			370,887
	Deferred tax assets, net				3,001,517			2,445,605
	Goodwill				3,034,110			3,034,110
	Intangible assets, net				3,306,014			3,630,700
	Other non-current assets				1,187,179			679,655
			Total non-current assets		15,589,308			16,285,120

			Total assets	$	43,869,572		$	51,295,857

LIABILITIES AND EQUITY
Current liabilities
	Accounts payable, net				8,853,320			11,227,116
	Other payables and accrued liabilities				3,491,596			3,885,487
	Lease liability - current				1,540,624			2,039,301
	Short-term loan payable				-			491,214
	Short-term loan payable - related party				350,000			350,000
	Revolving loan payable, net				-			5,500,739
	Income taxes payable				274,947			276,158
			Total current liabilities		14,510,487			23,770,015

Non-current liabilities
	Long-term revolving loan payable, net				4,042,400			-
	Lease liability - non-current				3,612,756			4,509,809

			Total non-current liabilities		7,655,156			4,509,809

			Total liabilities		22,165,643			28,279,824

Commitments and contingency					-			-

Stockholders' Equity
	Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and
		outstanding at December 31, 2024 and June 30, 2024			-			-
	Common stock, $0.001 par value; 180,000,000 shares authorized; 31,359,899 and
		31,359,899 shares issued and outstanding at December 31, 2024 and June 30, 2024			31,361			31,361
	Additional paid in capital				33,867,156			33,463,883
	Accumulated deficits				(12,041,063	)		(10,230,601	)
	Non-controlling interest				(44,195	)		(38,204	)
	Accumulated other comprehensive loss				(109,330	)		(210,406	)
			Total stockholders' equity		21,703,929			23,016,033

			Total liabilities and stockholders' equity	$	43,869,572		$	51,295,857

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
For the Three and Six Months Ended December 31, 2024 and 2023

			For the Three Months Ended December 31,						For the Six Months Ended December 31,
			2024			2023			2024			2023
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
REVENUES
	Product sales		$	17,606,889		$	16,800,122		$	35,882,301		$	43,308,496
	Service income			1,465,682			-			2,198,791			-
		Total revenues		19,072,571			16,800,122			38,081,092			43,308,496

COST OF REVENUES
	Product costs			9,461,119			9,481,882			19,378,567			24,231,411
	Service costs			1,221,566			-			1,824,742			-
		Total cost of revenues		10,682,685			9,481,882			21,203,309			24,231,411

GROSS PROFIT				8,389,886			7,318,240			16,877,783			19,077,085

OPERATING EXPENSES:
	Selling and fulfillment			4,628,914			6,936,980			10,543,722			17,000,451
	General and administrative			3,077,365			2,933,607			8,396,888			5,897,658
		Total operating expenses		7,706,279			9,870,587			18,940,610			22,898,109

INCOME (LOSS) FROM OPERATIONS				683,607			(2,552,347	)		(2,062,827	)		(3,821,024	)

OTHER INCOME (EXPENSE)
	Interest expenses			(140,672	)		(182,612	)		(280,634	)		(410,977	)
	Loss on equity method investment			(802	)		(801	)		(1,721	)		(1,826	)
	Other non-operating income (expenses)			(205,958	)		128,838			12,728			61,672
		Total other expenses, net		(347,432	)		(54,575	)		(269,627	)		(351,131	)

INCOME (LOSS) BEFORE INCOME TAXES				336,175			(2,606,922	)		(2,332,454	)		(4,172,155	)

PROVISION FOR INCOME TAX EXPENSE (BENEFIT)				120,511			(688,939	)		(516,001	)		(964,821	)
NET INCOME (LOSS)				215,664			(1,917,983	)		(1,816,453	)		(3,207,334	)

	Non-controlling interest			(3,155	)		(3,155	)		(5,991	)		(5,991	)

NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.			$	218,819		$	(1,914,828	)	$	(1,810,462	)	$	(3,201,343	)

OTHER COMPREHENSIVE INCOME (LOSS)
	Foreign currency translation adjustments			156,130			(160,255	)		101,076			(160,962	)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.			$	374,949		$	(2,075,083	)	$	(1,709,386	)	$	(3,362,305	)

WEIGHTED AVERAGE NUMBER OF COMMON STOCK
	Basic			31,437,517			29,790,242			31,427,360			29,777,378

	Diluted			31,437,517			29,790,242			31,427,360			29,777,378

EARNINGS (LOSSES) PER SHARE
	Basic		$	0.01		$	(0.06	)	$	(0.06	)	$	(0.11	)

	Diluted		$	0.01		$	(0.06	)	$	(0.06	)	$	(0.11	)

iPower Reports Fiscal Second Quarter 2025 Results