PowerBank Corporation reported a return to profitability in its fiscal first quarter of 2026, with revenue rising to $19.15 million—an increase of 27.5 % from $15.06 million a year earlier—and a net income of $1.01 million, compared with a $26.49 million loss in Q1 2025. Gross margin expanded to 44.61 %, up from 27.47 % in the prior year, while operating cash flow fell to $2.31 million from $7.42 million a year earlier due to higher working‑capital needs for accelerated project development.
The revenue growth was driven largely by the expansion of PowerBank’s independent power producer (IPP) portfolio, including the new Geddes solar project that began operations during the quarter. The company’s development‑fee revenue also grew, reflecting a higher mix of higher‑margin battery‑energy‑storage‑system (BESS) and electric‑vehicle (EV) charging contracts. The shift toward these higher‑margin segments helped lift gross margin, as the cost of goods sold remained relatively flat while the average selling price per unit increased.
Gross‑margin expansion was further supported by disciplined cost control. Management highlighted that the company’s focus on operational efficiency and tighter procurement processes kept direct‑cost growth in line with revenue growth. The higher contribution from BESS and EV‑charging projects—both of which carry higher gross‑margin profiles than traditional solar—also contributed to the 17‑percentage‑point lift in gross margin year over year.
Operating cash flow declined because the company invested more heavily in working capital to support the accelerated development of new projects. In addition, PowerBank extended its project‑financing loan with RE Royalties to November 26 2026 at a 12 % interest rate, and set a royalty rate of 0.80 % on BESS projects, with a potential reduction to 0.65 % if the loan is repaid by May 26 2026. These financing terms provide the company with continued liquidity while allowing it to fund its growing gigawatt‑plus pipeline.
PowerBank’s results beat analyst expectations on both revenue and earnings. Consensus revenue estimates for Q1 2026 were $14.01 million, so the company exceeded expectations by $5.14 million, a 36.7 % beat. Net income translated to $0.03 per basic share, surpassing the consensus EPS forecast of –$0.088 by $0.118, a 134 % beat. The strong earnings performance reflects the combined impact of higher‑margin project mix, effective cost control, and the successful operationalization of the Geddes solar project.
Dr. Richard Lu, President and CEO, said the quarter “demonstrates the effectiveness of our strategic pivot from a purely solar developer to a diversified clean‑energy infrastructure provider.” He added that the company remains focused on “rapidly advancing our project‑development pipeline through completion of project financings and strategic sales to drive revenue.” The earnings release signals that PowerBank’s aggressive investment strategy is beginning to generate sustainable cash flow and profitability, positioning the company for continued growth in battery storage, EV charging, and data‑center power solutions.
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