PowerBank (NASDAQ:SUUN) reported a fiscal third-quarter loss as a project-related revenue adjustment weighed on results, while management emphasized progress across its solar and battery storage development pipeline and said the company remains focused on preserving liquidity and advancing construction milestones.
On the company’s earnings call for the quarter ended March 31, 2026, Chief Executive Officer Dr. Richard Lu said PowerBank is continuing to scale its development and engineering, procurement and construction platform while expanding its portfolio of independent power producer assets.
Revenue Hit by Project Repurchase Adjustment
Chief Financial Officer Sam Sun said third-quarter fiscal 2026 revenue was negative CAD 34,000, compared with CAD 4.7 million in the prior-year quarter. The result included a revenue adjustment of approximately CAD 2.5 million tied to the contractual repurchase of certain project entities, the Grantsville and Highway 28 projects, after Qcells exercised a conditional sale-back right subsequent to quarter end.
Sun said management determined the repurchase represented an adjusting subsequent event as of March 31, 2026. Excluding that adjustment, EPC services revenue was CAD 949,000 and IPP production revenue was CAD 938,000 for the quarter.
For the nine months ended March 31, 2026, total revenue was CAD 22 million, compared with CAD 23.9 million in the prior-year period. EPC services revenue totaled CAD 14.7 million, development fee revenue was CAD 882,000 and IPP production revenue rose to CAD 6 million from CAD 5.8 million, which Sun attributed to improved production levels across the company’s operating solar facilities. Other services contributed CAD 570,000, up from CAD 38,000 a year earlier.
Loss Narrows Over Nine-Month Period
PowerBank reported nine-month gross profit of CAD 7.8 million, or 35% of revenue, compared with CAD 6.2 million, or 26% of revenue, in the prior-year period. Sun said the margin expansion reflected a more favorable revenue mix and improved operating discipline.
Operating expenses for the nine-month period were CAD 20.1 million, down from CAD 30.7 million a year earlier. The prior-year period included a CAD 7.8 million impairment charge that did not recur. Current-year operating expenses included CAD 2.1 million of inventory write-offs tied to project cancellations, CAD 933,000 in accounts receivable write-offs and CAD 578,000 in contract cancellation fees.
The company’s net loss for the nine months ended March 31 was CAD 12.2 million, or CAD 0.31 per basic share, compared with a net loss of CAD 34.7 million, or CAD 1.10 per basic share, in the prior-year period. For the third quarter alone, net loss was CAD 5.5 million, or CAD 0.12 per share, compared with a loss of CAD 6.5 million, or CAD 0.21 per share, in the year-ago quarter.
Adjusted EBITDA, a non-IFRS measure, was a loss of approximately CAD 3.8 million in the quarter, compared with a loss of approximately CAD 3.6 million in the prior-year quarter. For the nine-month period, adjusted EBITDA was a loss of approximately CAD 1.3 million, in line with the prior-year period.
Liquidity Improves as Construction Pipeline Advances
As of March 31, 2026, PowerBank had CAD 11.3 million in cash. Total current assets were CAD 36.7 million and current liabilities were CAD 26 million, resulting in positive working capital of CAD 10.7 million. That compared with a working capital deficit of CAD 2 million at the fiscal year ended June 30, 2025.
Total assets were CAD 135 million at quarter end, while total liabilities were CAD 106 million and total equity was CAD 29 million. Sun said the company’s long-term debt, including the current portion, remains primarily project-level, non-recourse financing associated with operating assets and projects under construction.
For the nine months ended March 31, cash used in operating activities was CAD 11.4 million, cash used in investing activities was CAD 5.8 million and cash provided by financing activities was CAD 21.1 million. That resulted in a net increase in cash of approximately CAD 3.9 million during the period.
New York Projects and Tax Credit Positioning
Lu highlighted construction progress in New York, where the company announced spring mobilization of nine projects in March. The projects include Jordan 1, Jordan 2, Elmira, Newark and Camp Smith, among others, and represent a combined 42 megawatts of solar generation and 21 megawatts of battery energy storage. Lu said spring mobilization marks the initial stage of construction, including site preparation.
The company also said it has secured 15 late-stage distributed solar and energy storage projects in New York that were executed in December 2025, positioning those projects to remain eligible for U.S. federal investment tax credits under the One Big Beautiful Bill Act. Lu said nine of the projects broke ground this spring after meeting the IRS physical work test before the July 4, 2026, deadline.
The estimated investment tax credit value associated with the safe-harbored projects is approximately CAD 65 million, with an estimated portfolio construction value of approximately CAD 168 million, according to Lu.
PowerBank also received NYSERDA-approved incentives totaling approximately CAD 3.4 million across the Elmira, Jordan 1 and Jordan 2 projects, which Lu said strengthened the economics of the company’s New York pipeline.
Battery Storage Milestone and Data Center Opportunity
In Ontario, Lu said the SFF-06 battery energy storage project achieved commercial operation on April 20, 2026. He called the milestone significant, saying it adds a recurring IPP revenue stream under a long-term contract with the Ontario Independent Electricity System Operator.
For two additional Ontario E-LT1 battery energy storage contracts, Nile 3 and OZ 1, Lu said timelines remain dependent on permitting proceedings, which the company is actively managing.
Lu also pointed to strategic initiatives outside the company’s traditional solar and battery storage business. In April, PowerBank announced a letter of intent with Nodiac Corp. to use the company’s portfolio of solar and battery storage sites across North America for distributed artificial intelligence computing infrastructure, described as edge data centers. Lu said PowerBank is in “material discussions” about leveraging its assets, site network and permitting experience to support power supply for data centers.
Management said the company’s total development pipeline is approximately 1 gigawatt hour of solar and 1 gigawatt hour of battery, including 58 megawatts under construction and 164 megawatts in advanced development across solar photovoltaic and battery storage, with the balance in early-stage development.
No questions were asked during the call’s question-and-answer portion. Lu closed by reiterating that management believes the company remains resilient and intends to continue executing its existing pipeline while pursuing potential new opportunities.
About PowerBank (NASDAQ:SUUN)
PowerBank Corporation, formerly known as SolarBank Corporation, operates as an independent renewable and clean energy project developer and asset operator in Canada and the United States. The company engages in the site origination, development, financing, engineering, procurement, construction, operation, maintenance, and asset management of solar photovoltaic power generation projects. It offers solar energy solutions in the areas of behind-the-meter solar power plants, electricity grid connected community solar gardens, and utility scale solar farms.
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