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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>IPW reported revenue of $16.6 million in 3QFY25 (quarter ended March 31, 2025), down from $23.3 million in the year- ago period, with the decline primarily due to (1) a cautious consumer demand environment,</li><li>(2) market uncertainty leading to slower order flow from retail partners such as Amazon, and</li><li>(3) elevated purchasing volumes from IPW’s largest channel partner, Amazon, in the year-ago period, which presented a tough comp.</li></ul>

IPW reported revenue of $16.6 million in 3QFY25 (quarter ended March 31, 2025), down from $23.3 million in the year- ago period, with the decline primarily due to (1) a cautious consumer demand environment,(2) market uncertainty leading to slower order flow from retail partners such as Amazon, and(3) elevated purchasing volumes from IPW’s largest channel partner, Amazon, in the year-ago period, which presented a tough comp.

IPower, Inc: 3QFY25 Review; Super Sizes SuperSuite With "Made in USA"

<ul><li>We are assuming coverage of iPower (IPW). The company sells consumer products on multiple online marketplaces, but primarily on Amazon (AMZN), where it is both a vendor (i.e., AMZN purchases inventory directly under its “Vendor Central” program and labels it as “Sold by Amazon”, which represents 80- 90% of IPW’s sales to AMZN) as well as a third-party (3P) seller.</li><li>The company has also started leveraging its AMZN relationship and experience to support other sellers in an initiative called “SuperSuite”, where it reports revenue as a mix of product sales and services.</li><li>Hydroponics, which was once dominant, is now &lt;10% of sales.</li></ul>

We are assuming coverage of iPower (IPW). The company sells consumer products on multiple online marketplaces, but primarily on Amazon (AMZN), where it is both a vendor (i.e., AMZN purchases inventory directly under its “Vendor Central” program and labels it as “Sold by Amazon”, which represents 80- 90% of IPW’s sales to AMZN) as well as a third-party (3P) seller.The company has also started leveraging its AMZN relationship and experience to support other sellers in an initiative called “SuperSuite”, where it reports revenue as a mix of product sales and services.Hydroponics, which was once dominant, is now &lt;10% of sales.

IPower, Inc. - Assuming Coverage: Diving into the Puts and Takes of Tariffs; We See a Silver Lining!

<ul><li>iPower reported 3QFY24 results, showing strong growth, positive operating leverage, and a return to profitability.</li><li>Revenue of $23.3 million was up 15%, reflecting a return to a normal ordering pattern from the company’s largest online market partner as well as a strong contribution from the company’s SuperSuite business, now accounting for 10% of overall revenue.</li><li>iPower continues to expand its sales channels, having just launched on Temu in April, with encouraging initial results.</li></ul>

iPower reported 3QFY24 results, showing strong growth, positive operating leverage, and a return to profitability.Revenue of $23.3 million was up 15%, reflecting a return to a normal ordering pattern from the company’s largest online market partner as well as a strong contribution from the company’s SuperSuite business, now accounting for 10% of overall revenue.iPower continues to expand its sales channels, having just launched on Temu in April, with encouraging initial results.

IPower, Inc. - Strong Top- And Bottom-Line 3QFY24 Results

<ul><li>iPower reported 2QFY24 revenue of $16.8 million versus $19.3 million a year ago, driven primarily by continued inventory tightening at its main online retail partner.</li><li>Nevertheless, gross margin improved to 43.6% from 41.4% Y/Y, driven by a favorable product mix, lower warehouse costs, and service revenue.</li><li>The secular inventory tightening, following the supply disruptions of 2022, has now run its course, and might have been exacerbated this quarter by iPower’s main retail online partner end of the year considerations.</li></ul>

iPower reported 2QFY24 revenue of $16.8 million versus $19.3 million a year ago, driven primarily by continued inventory tightening at its main online retail partner.Nevertheless, gross margin improved to 43.6% from 41.4% Y/Y, driven by a favorable product mix, lower warehouse costs, and service revenue.The secular inventory tightening, following the supply disruptions of 2022, has now run its course, and might have been exacerbated this quarter by iPower’s main retail online partner end of the year considerations.

IPower, Inc. - 2QFY24 Review - Lean and Toward Profitability?

<ul><li>iPower is expected to report its 2QFY24 results in mid-February. Investors will continue to focus on the company’s progress on key initiatives.</li><li>While continuing to grow its key Amazon relationship, iPower is also expanding its distribution channels.</li><li>We look for an update on the growth of its TikTok Shop business as well as developments with physical retailers.</li></ul>

iPower is expected to report its 2QFY24 results in mid-February. Investors will continue to focus on the company’s progress on key initiatives.While continuing to grow its key Amazon relationship, iPower is also expanding its distribution channels.We look for an update on the growth of its TikTok Shop business as well as developments with physical retailers.

IPower, Inc.-  2QFY24 Preview: Looking for Updates on Key Initiatives

United States

iPower, Inc. operates as an online hydroponic equipment supplier. The Company offers products to grow vegetables, fruits and flowers, and other plants. iPower serves customers worldwide.

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iPower (IPW US)

IPower, Inc: 3QFY25 Review; Super Sizes SuperSuite With "Made in USA"

IPW reported revenue of $16.6 million in 3QFY25 (quarter ended March 31, 2025), down from $23.3 million in the year- ago period

Water Tower Research

IPower, Inc. - Assuming Coverage: Diving into the Puts and Takes of Tariffs; We See a Silver Lining!

The company has also started leveraging its AMZN relationship and experience to support other sellers in an initiative called “SuperSuite”, where...

Water Tower Research

IPower, Inc. - Strong Top- And Bottom-Line 3QFY24 Results

iPower reported 3QFY24 results, showing strong growth, positive operating leverage, and a return to profitability. Revenue of $23.3 million was up 15%

Water Tower Research

IPower, Inc. - 2QFY24 Review - Lean and Toward Profitability?

iPower reported 2QFY24 revenue of $16.8 million versus $19.3 million a year ago, driven primarily by continued inventory tightening at its main...

Water Tower Research

IPower, Inc.- 2QFY24 Preview: Looking for Updates on Key Initiatives

iPower is expected to report its 2QFY24 results in mid-February. Investors will continue to focus on the company’s progress on key initiatives.

Water Tower Research

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