IPW Plunges 80.5% in 3 Months: Should You Still Hold the Stock or Sell?

iPower Inc.’s IPW investors have been experiencing some short-term losses lately. The Rancho Cucamonga, CA-based technology- and data-driven online retailer and supplier of consumer goods has lost 80.5% against the industry’s 11.8% gain in the past three months. It has also underperformed the sector and the S&P 500’s losses of 1.5% and 0.5%, respectively, in the same time frame.

Two major recent developments of IPW are the announcement of a strategic expansion into crypto infrastructure hardware and second-quarter fiscal 2026 results (both in February).

In fiscal second-quarter 2026 ended Dec. 31, 2025, iPower reported lower year-over-year revenue, primarily reflecting a deliberate supply chain restructuring and a transition toward predominantly U.S.-based sourcing, which temporarily reduced inventory availability and sales volumes. Despite the revenue decline, gross margin remained stable, while operating expenses decreased due to personnel reductions, tighter expense controls and operational efficiencies implemented during the restructuring.

Management emphasized that the restructuring and vendor consolidation are intended to strengthen IPW’s long-term supply chain reliability, improve operational control and support a more resilient operating model going forward.

IPW Three Months Price Comparison

Image Source: Zacks Investment Research

Over the past three months, the stock’s performance has remained weak, underperforming its peers like Central Garden & Pet Company CENTA and Hydrofarm Holdings Group, Inc. HYFM. Central Garden & Pet and Hydrofarm’s shares have gained 10.3% and lost 38.5%, respectively, in the same time frame.

iPower operates as a technology- and data-driven online retailer and supply chain infrastructure provider for consumer goods and third-party brands. The company sells both in-house and partner products across categories such as home goods, gardening equipment, pet products and consumer electronics through major e-commerce marketplaces and its own platforms, supported by a nationwide fulfillment network, logistics partnerships and proprietary data-driven tools that facilitate product distribution and sales optimization.

iPower’s Supply Chain Transition and Operational Disruptions

One of the key factors weighing on iPower stock is its ongoing restructuring of its supply chain. Management has intentionally reduced purchases from certain legacy international vendors while transitioning toward a predominantly U.S.-based sourcing model. Although the shift is designed to improve long-term supply chain transparency and reduce geopolitical and logistics risks, the transition has temporarily reduced inventory availability and sales volumes. This adjustment period has created short-term operational disruptions that have pressured revenue and investor sentiment.

Another challenge stems from broader supply chain uncertainty and global economic disruptions affecting product sourcing and logistics. IPW sources products from multiple regions, including the United States and China, and has acknowledged that global events and shipping delays can increase procurement costs and extend inventory lead times. These disruptions can reduce profitability and create uncertainty around the pace of inventory replenishment, which in turn affects sales momentum.

iPower operates in a highly competitive and fragmented market that includes numerous online retailers, hydroponic equipment suppliers and home and garden product distributors. Many competitors possess greater financial resources, larger product portfolios and stronger distribution capabilities. The ability of manufacturers to sell directly to consumers through online marketplaces further intensifies competitive pressures, potentially limiting pricing power and market share growth.

IPW’s Business Model Evolution and Strategic Risks

The company’s evolving business strategy also introduces new risks that may be weighing on investor confidence. iPower is expanding beyond its traditional e-commerce retail model into broader supply-chain services and infrastructure offerings for third-party brands. While this strategy could create long-term growth opportunities, the transition requires operational adjustments and investment, which may temporarily affect profitability and create uncertainty about execution.

Additionally, iPower has initiated a Digital Treasury Strategy aimed at integrating digital assets into its broader operational framework. As this initiative is still in the early stages, its long-term impact on the company’s business model and financial performance remains uncertain. Investors may view this strategic shift cautiously, particularly given the evolving regulatory and market environment surrounding digital assets.

Fundamentals to Drive iPower

iPower’s ongoing transition toward a predominantly U.S.-based supply chain and vendor consolidation is expected to enhance supply chain transparency, reduce logistics risks and improve long-term operational control. Alongside these initiatives, IPW has implemented cost-control measures and operational efficiencies that have helped lower operating expenses while maintaining stable gross margins, reflecting resilience in its underlying supply chain platform and supporting a more streamlined operating model.

iPower is also positioning itself at the intersection of digital assets and real-world commerce by leveraging its logistics, procurement and fulfillment capabilities. Its strategic collaboration with Nanopulse to commercialize crypto infrastructure hardware highlights efforts to create new revenue opportunities through hardware distribution and potential recurring income streams tied to digital infrastructure deployment.

IPW’s Stock Valuation

iPower’s trailing 12-month P/B of 0.1X is lower than the industry’s average of 18.2X and its three-year median of 0.9X.

Image Source: Zacks Investment Research

Central Garden & Pet and Hydrofarm’s trailing 12-month P/B currently stand at 1.3X and 0.03X, respectively.

Our Final Take on iPower

There is no denying that iPower remains strategically positioned with its technology-driven e-commerce infrastructure and expanding supply chain capabilities. The company continues to build a broader platform that combines product distribution, logistics and software-enabled services while exploring new opportunities tied to digital infrastructure and supply chain solutions. These initiatives could strengthen the company’s long-term growth prospects as it scales its fulfillment network, expands vendor partnerships and diversifies revenue streams.

However, holding the stock at present may require caution. The sharp decline in share price over the past three months reflects mounting concerns around iPower’s ongoing operational transition and near-term revenue pressure tied to supply-chain restructuring. Competitive intensity in online retail and product distribution, along with execution risks associated with strategic shifts into new initiatives, continues to cloud near-term visibility.

From a valuation perspective, the stock now trades at levels that appear significantly discounted relative to industry peers and its own historical range. While such a discount could attract value-oriented investors if IPW stabilizes operations and executes its strategy effectively, it also signals that the market remains skeptical about the pace and reliability of a turnaround.

Given these uncertainties, investors who already hold the stock may want to adopt a cautious stance rather than rush to exit immediately. The sharp valuation discount suggests that much of the recent pessimism may already be reflected in the share price, which could limit further downside if iPower successfully stabilizes operations and executes its strategic initiatives. However, with near-term visibility still limited, existing investors may consider holding positions selectively while closely monitoring operational progress, trimming exposure if execution risks persist and redeploying capital into more stable opportunities if improvement remains elusive.