iPower Inc. (NASDAQ:IPW), an online retailer and supplier of hydroponic equipment, is undergoing a significant strategic change. The company is shifting its focus toward the technology sector by providing capital for artificial intelligence (AI) infrastructure. This pivot occurs as the company takes major steps to restructure its finances and stock.
On May 22, 2026, iPower executed an 8-for-1 reverse stock split. A reverse stock split consolidates the number of existing shares into fewer, but more valuable, shares. In this case, every eight shares of the company's common stock were combined into one share, increasing the stock's price per share.
This action coincides with a broader strategic reset for the company. As highlighted by GlobeNewswire, iPower is transitioning to a leaner operating model. This is reflected in its fiscal third-quarter 2026 results, which show a 66% sequential decline in operating expenses and a narrowed non-GAAP net loss of $0.3 million.
As part of its new direction, iPower has launched an AI infrastructure strategy. The company plans to use its existing $30 million facility to build a portfolio of GPU clusters and other AI assets. This move aims to capitalize on the high demand for computing power within the growing AI market.
For its fiscal third quarter, the company reported revenue from continuing operations of $3.5 million and a gross profit of $0.8 million. While it recorded a GAAP net loss, this was mainly due to a non-cash goodwill impairment, which is an accounting charge that does not affect cash flow.
