iPower Inc. completed the sale of its subsidiary, Global Product Marketing Inc., on February 1, 2026, and publicly disclosed the transaction on February 2, 2026. The divestiture generated approximately $2.3 million in consideration, primarily in the form of a seven‑year promissory note issued by ETTS AI Investment LLC, giving iPower a clean cash infusion and a more favorable balance‑sheet profile.
The transaction removes a high‑cost retail arm that had been a significant operating expense for iPower. By shedding this cost center, the company expects to cut recurring operating costs, though the exact dollar savings are not disclosed. The move is intended to streamline operations and free management bandwidth to focus on the company’s core supply‑chain and fulfillment platform, SuperSuite, which now accounts for roughly 20 % of iPower’s total revenue.
iPower’s management highlighted that the divestiture positions the company to pursue its digital‑asset strategy with a disciplined capital allocation framework. CEO Lawrence Tan noted that “removing a high‑cost operating component while retaining our supply‑chain platform strengthens our balance sheet and allows us to invest in sustainable, margin‑positive opportunities.” The company also expects to preserve supply‑chain revenue opportunities with potential contribution margins of up to 15 % from the retained SuperSuite business.
Financially, iPower has faced a decline in revenue in recent quarters—Q4 2025 revenue fell to $11.5 million from $19.5 million in Q4 2024, and Q1 2025 revenue was $19.0 million versus $26.5 million in Q1 2024. Gross margin has slipped to 43.3 % in Q3 2025 from 47 % a year earlier. The sale is therefore a strategic effort to counteract these headwinds by concentrating on higher‑margin segments and reducing exposure to legacy retail costs.
Overall, the divestiture is a material shift that improves iPower’s liquidity, reduces operating drag, and aligns the company’s resources with its growth‑oriented SuperSuite platform and digital‑asset initiatives. The transaction signals management’s confidence in the company’s core business and its willingness to streamline operations to support long‑term value creation.
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