PowerBank Announces Fiscal Year End Results

PowerBank links lower revenue to its shift toward project ownership and expects growth to resume in fiscal 2027.

Rhea-AI Summary

PowerBank (PBK) reported fiscal 2026 revenue of $27.4 million, down from the prior year, as its net loss narrowed.

For the year ended June 30, 2026, revenue fell from $41.5 million, while gross margin rose to 34.7% from 25.3%. Net loss narrowed to $24.3 million, or $0.58 per basic share, from $31.1 million, or $0.97 per basic share. Operating cash outflow eased to $12.8 million from $17.3 million. Adjusted EBITDA, a non-IFRS earnings measure, worsened to a $3.5 million loss from $0.8 million. Production revenue from independently owned power projects rose to $9.8 million from $9.3 million.

Working capital reached $1.6 million at June 30, 2026, reversing a $1.8 million deficit a year earlier. Project milestones included commercial operation at an Ontario battery project and three New York community solar projects, plus a $2.95 million US federal solar contract. PowerBank expects revenue to return to growth in fiscal 2027. Financial figures are in Canadian dollars.

13 points · 0 major

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0 major · 6 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointGross margin rose to 34.7% in fiscal 2026 from 25.3% in fiscal 2025.
• Moderate pointNet loss narrowed to $24.3 million, or $0.58 per basic share, from $31.1 million, or $0.97.
• Moderate pointOperating cash outflow eased to $12.8 million from $17.3 million in fiscal 2025.
• Moderate pointWorking capital reached $1.6 million at June 30, 2026, versus a $1.8 million deficit a year earlier.
• Moderate point$2.95 million US federal contract awarded for a covered parking canopy solar project.
• Moderate pointEight New York projects met the IRS Physical Work Test; associated estimated tax credits total approximately US$29.7 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 revenue is expected by PowerBank to return to growth.

6 minor points

• Minor pointProduction revenue from independently owned power projects rose to $9.8 million from $9.3 million.
• Minor pointCurrent liabilities fell to $39.4 million at June 30, 2026, from $43.1 million a year earlier.
• Minor pointOntario battery project SFF 06 began commercial operation on April 20, 2026.
• Minor pointThree New York community solar projects reached commercial operation; PowerBank signed an operations and maintenance agreement for them.
• Minor pointThree Nova Scotia community solar projects secured interconnection agreements, advancing a 12.4 MW pipeline.
• Minor pointThree new New York battery projects added 60 MWh to PowerBank’s project portfolio.

Negative

• Moderate pointRevenue fell to $27.4 million in fiscal 2026 from $41.5 million in fiscal 2025.
• Moderate pointAdjusted EBITDA loss widened to $3.5 million from $0.8 million in fiscal 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Growth plans depend on continued third-party financing availability for PowerBank and its customers.
• Minor pointGross profit declined to $9.5 million from $10.5 million despite the higher margin.
• Minor pointCurrent assets fell to $40.9 million at June 30, 2026, from $41.3 million a year earlier.
• Minor pointCurrent portion of long-term debt and short-term loans increased from the prior year.

News Explained

At June 30, 2026, PowerBank reported $10.7 million in cash, $40.9 million in current assets, $39.4 million in current liabilities, and $1.6 million in working capital; the company says its growth strategy depends on continued third-party financing.

Market Context

The May 15 Q3 report recorded nine-month FY2026 revenue of $22.2 million and net loss of $12.2 milli...

Analysis

The May 15 Q3 report recorded nine-month FY2026 revenue of $22.2 million and net loss of $12.2 million, providing a same-fiscal-year interim comparison for these full-year results; it covered nine months, not the full year.

Key Figures

Revenue: $27.4 million CAD vs. $41.5 million CAD Gross margin: 34.7% vs. 25.3% IPP production revenue: $9.8 million CAD vs. $9.3 million CAD +4 more

Revenue

$27.4 million CAD vs. $41.5 million CAD

FY2026 vs. FY2025

Gross margin

34.7% vs. 25.3%

FY2026 vs. FY2025

IPP production revenue

$9.8 million CAD vs. $9.3 million CAD

FY2026 vs. FY2025

Adjusted EBITDA

Loss of $3.5 million CAD vs. loss of $0.8 million CAD

FY2026 vs. FY2025; non-IFRS measure

Net loss

$24.3 million CAD vs. $31.1 million CAD

FY2026 vs. FY2025

Cash flow from operating activities

Outflow of $12.8 million CAD vs. $17.3 million CAD

FY2026 vs. FY2025

Working capital

$1.6 million CAD vs. a $1.8 million CAD deficit

As of June 30, 2026 vs. June 30, 2025

Historical Context

1 past event · Latest: May 15

1 event

1. May 15

   Earnings report

   24h Move

   +0.9%

   Nine-month FY2026 revenue was $22.2M; net loss narrowed to $12.2M and working capital reached $10.7M.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ifrs, prospectus supplement, short form base shelf prospectus, physical work test

4 terms

ifrs financial

"in accordance with IFRS Accounting Standards"

International Financial Reporting Standards (IFRS) are a set of common accounting rules used by many companies worldwide to prepare financial statements, so numbers like revenue, profit and assets are measured in the same way across borders. For investors, IFRS matters because it makes it easier to compare the financial health and performance of different companies—like using the same ruler to measure different objects—reducing surprises and helping informed investment decisions.

prospectus supplement regulatory

"for the purposes of the Company's prospectus supplement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

short form base shelf prospectus regulatory

"to its short form base shelf prospectus dated May 7, 2025"

A short form base shelf prospectus is a pre-approved, reusable document that lets a company register a pool of securities (like stocks or bonds) it can sell over time without repeating a full disclosure process each time. Think of it as a menu the company files once so it can quickly offer items from that menu later; investors care because it speeds up capital raises, can dilute existing holdings, and signals the company’s ability to access funding when needed.

physical work test regulatory

"met the IRS Physical Work Test ahead of the July 4, 2026 deadline"

A physical work test is a medical assessment that checks whether a person can perform the physical tasks required by a job or to qualify for disability or workers’ compensation benefits. For investors it matters because results can affect a company’s payroll, insurance costs, legal exposure and productivity—similar to a car inspection revealing whether a vehicle is safe to drive and what repairs will cost.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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 Gross Margin Expands to 34.7% from 25.3%; Net Loss Narrows by $6.8 Million; IPP Production Revenue Reaches $9.8 Million

This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated June 5, 2025, to its short form base shelf prospectus dated May 7, 2025.

TORONTO, Sept. 29, 2026 /PRNewswire/ -- PowerBank Corporation (NASDAQ: PBK) (Cboe CA: PBK) (FSE: 103) ("PowerBank" or the "Company") reports results for the fiscal year ended June 30, 2026. All financial figures are in Canadian dollars and are in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board as presented in the consolidated financial statements. References to "FY2025" mean the year ended June 30, 2025 and references to "FY2026" mean the year ended June 30, 2026.

Fiscal Year Financial Highlights (All amounts are for the Twelve-Month Period ended June 30, 2026)

• Revenues were $27.4 million compared to $41.5 million in the same period during FY2025.
• Gross profit was $9.5 million, or 34.7% of revenues, compared to $10.5 million, or 25.3% of revenues in the same period for FY2025.
• IPP production revenue increased from $9.3 million to $9.8 million during the period.
• Adjusted EBITDA⁽¹⁾ of $(3.5) million compared to $(0.8) million for the same period during FY2025.
• Net loss of $24.3 million, or $(0.58) per basic share during the period in FY2026, compared to a net loss of $31.1 million, or $(0.97) per basic share during the same period in FY2025.
• Cash flow from operating activities was an outflow of $12.8 million compared to an outflow of $17.3 million in the same period in FY2025.
• Working capital improved to $1.6 million as of June 30, 2026, compared to a working capital deficit of $(1.8) million at June 30, 2025.

Corporate Fourth Quarter Highlights and Milestones:

• On May 5, the Company announced the SFF 06 battery energy storage project in Ontario achieved commercial operation on April 20, 2026.
• On May 21, the Company announced three new battery energy storage system projects in upstate New York, adding 60 MWh to the growing portfolio of BESS.
• The Company announced all three Community Solar Projects in the 21 MW upstate New York portfolio reached commercial operation.  On June 30, the Company announced that it has executed an Operations and Maintenance Services Agreement for the three projects.
• On June 9, the Company announced that equipment procurement and physical work occurred for 8 distributed solar and energy storage projects in New York State, meaning the projects met the IRS Physical Work Test ahead of the July 4, 2026 deadline. The estimated ITC value associated with the safe-harbored projects is approximately US$29.7 million, with an estimated portfolio construction value of approximately US$74.3 million.
• The Company announced that all three community solar projects in Nova Scotia have secured interconnection agreements, advancing the 12.4 MW pipeline in the province.
• On June 26, the Company announced it was awarded a $2.95 million federal contract with the US Department of Defense and the Department of the Army for a Covered Parking Canopy Solar Project.
• On June 29, the Company announced a Joint Development Agreement with Nodiac Corp. to leverage PowerBank's portfolio of solar and BESS sites across North America for the deployment of distributed AI compute infrastructure.

Dr. Richard Lu, CEO of PowerBank commented: "Fiscal 2026 was the year PowerBank's financial transformation took hold. While revenue declined as we shifted from selling projects toward owning them, gross margin expanded to 34.7% from 25.3%, we narrowed our net loss by $6.8 million, reduced cash used in operations by $4.4 million, and moved from a working capital deficit to positive working capital of $1.6 million. We brought five projects into commercial operation during the year, including our SFF 06 battery energy storage project in Ontario, and our IPP portfolio generated $9.8 million in production revenue. With this foundation in place, we expect revenue to return to growth in Fiscal 2027."

(1) EBITDA and Adjusted EBITDA are non-IFRS financial measures with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of Non-IFRS financial measures to the most directly comparable IFRS measures see "Non-IFRS Financial Measures" in this News Release.

Summary of Annual Results (All amounts are for the Twelve-Month Period)

Twelve Months Ended	June 30, 2026	June 30, 2025
Consolidated Statements of Comprehensive Income (loss)
Total revenue	$27,410	$41,531
Cash flow from operating activities	($12,828)	($17,260)
Adjusted EBITDA (a non-IFRS measure)	($3,514)	($846)
Net (loss) income	($24,296)	($31,116)
Basic (loss) earnings per share	(0.58)	(0.97)
Diluted (loss) earnings per share	(0.58)	(0.97)

The Company ended the 2026 fiscal year with $40.9 million in current assets (including $10.7 million in cash), as compared to $41.3 million in current assets as of year-end June 30, 2025. The decrease was primarily due to lower prepaid expenses and deposits and trade and other receivables, substantially offset by higher inventories and cash.

Current liabilities decreased from $43.1 million as of the year ended June 30, 2025, to $39.4 million as of June 30, 2026, primarily due to lower trade and other payables and contract liabilities, partially offset by increases in the current portion of long-term debt and short-term loans. As a result, the Company had working capital of $1.6 million at June 30, 2026.

For complete details please refer to the unaudited condensed interim consolidated financial statements and associated Management Discussion and Analysis for the nine months ended March 31, 2026, available on SEDAR+ (https://www.sedarplus.ca).

The Company notes that the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements for the Company and its customers and the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power, which could cause demand for the Company's services to decline. Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the statements in this press release.

Conference Call — September 29, 2026, at 4:30 PM ET

The Company will review financial results and provide a business update. Interested parties can register for the webinar by clicking here.

After registering, you will receive a confirmation email containing information about joining the webinar.

Non-IFRS Financial Measures

The Company has disclosed certain non-IFRS financial measures and ratios in this press release, as discussed below. These non-IFRS financial measures and non-IFRS ratios are widely reported in the renewable energy industry as benchmarks for performance and are used by management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company's performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company's performance prepared in accordance with IFRS.

Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure ("NI 52-112") as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation.

A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage, or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.

Adjusted EBITDA

Adjusted EBITDA is a non-IFRS financial measure, which excludes the following from net earnings:

• Income tax (income) expense;
• Finance costs;
• Amortization and depreciation;
• Fair value gain/loss;
• Stock based compensation;
• Impairment charges or reversals;
• Loss on investments;
• Foreign exchange gains or losses.

Management believes Adjusted EBITDA is a valuable indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Management uses Adjusted EBITDA for this purpose. EBITDA is also frequently used by investors and analysts for valuation purposes whereby Adjusted EBITDA is multiplied by a factor or "EBITDA multiple" based on an observed or inferred relationship between Adjusted EBITDA and market values to determine the approximate total enterprise value of a Company. Management also believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results because it is consistent with the indicators management uses internally to measure the Company's performance.

Adjusted EBITDA is intended to provide additional information to investors and analysts. It does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of operating performance prepared in accordance with IFRS. Other companies may calculate Adjusted EBITDA differently.

	Twelve months ended June 30,
	2026	2025
	$	$
Net income (loss) per financial statements	$ (24,296)	$ (31,116)
Add (Deduct):
Depreciation and amortization	204	100
Depreciation and amortization included in cost of goods sold	5,503	5,018
Interest income	(353)	(607)
Interest expense	3,762	3,263
Interest expense included in cost of goods sold	448	461
Share-based compensation	4,584	2,203
Current tax (recovery) expense	(477)	953
Deferred income tax (recovery) expense	(372)	(5,173)
Fair value change of derivatives	70	1,340
Fair value change of warrant liabilities	(1,111)	(3,575)
Fair value change of CVR liabilities	(713)	(7,195)
Fair value change of other liabilities due to non-controlling interest holders	38	-
Inventory write-offs (reversals)	1,856	56
Accounts receivable write-offs	933	-
Assets abandonment	542	-
Impairment loss	4,724	30,374
Finance costs	679	-
Loss on investments	-	3,385
Contract cancellation fees	578
Other (income) expense (1)	(113)	(333)
Adjusted EBITDA	$ (3,514)	$ (846)

(1) Other (income) expense primarily consist of unrealized foreign exchange gains and losses, along with certain one-time payments received.

For the twelve months ended June 30, 2026, Adjusted EBITDA was a loss of $3,514, compared to a loss of $846 in the same period in the prior year, representing a decrease of $2,668. The decrease primarily reflected lower development and EPC revenue and higher operating expenses.

About PowerBank Corporation

PowerBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar and Battery Energy Storage System (BESS) projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The Company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar, and virtual net metering projects. The Company has a potential development pipeline of over one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built. To learn more about PowerBank, please visit www.powerbankcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. In particular and without limitation, this news release contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the Company's growth strategies; the expected energy production from solar power and BESS projects mentioned in this press release; the expected value of EPC agreements; the Company's expectations regarding project development; the Company's business plan and forecasts; the safe-harboring of Investment Tax Credits under the OBBBA; and the size of the Company's development pipeline. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward-looking statements included in this news release, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Forward-Looking Statements" and "Risk Factors" in the Company's most recently completed Annual Information Form, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements; the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company's project development and construction activities may not be successful; developing and operating solar projects exposes the Company to various risks; the Company faces a number of risks involving Power Purchase Agreements ("PPAs") and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; foreign exchange rate fluctuations; a change in the Company's effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company's results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company and CIM may be unable to conclude definitive documentation for the CIM Transaction; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues and tariffs; risks related to inflation; unexpected warranty expenses that may not be adequately covered by the Company's insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; the future impact of any public health threats; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings.

The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

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SOURCE PowerBank Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did PowerBank’s fiscal 2026 revenue and gross margin compare with fiscal 2025?

PowerBank’s fiscal 2026 revenue was $27.4 million, down from $41.5 million in fiscal 2025, while gross margin rose to 34.7% from 25.3%. All amounts are in Canadian dollars.

How much was PowerBank’s fiscal 2026 net loss?

PowerBank recorded a $24.3 million net loss, or $0.58 per basic share, for the year ended June 30, 2026. That compares with a $31.1 million net loss, or $0.97 per basic share, in fiscal 2025.

What tax-credit milestone did PowerBank’s New York projects reach?

Equipment procurement and physical work for eight distributed solar and energy storage projects met the IRS Physical Work Test before the July 4, 2026 deadline. The associated estimated investment tax credit value is approximately US$29.7 million; estimated portfolio construction value is approximately US$74.3 million.