Powerhouse Ventures (ASX: PVL) Posts Maiden Operating Profit

Powerhouse Ventures reported its first operating profit after completing a full financial year with all three of its Corporate Advisory, Funds Management and Treasury businesses operating.

Operating revenue rose 344% to $3.89 million in the year ended June 30, 2026, while the Financials-sector company recorded an operating profit of $0.8 million, a $1.5 million improvement from FY25.

The expansion was funded from Powerhouse’s existing balance sheet, with no equity raised during the year.

Advisory Emerges as Main Earnings Driver

Corporate Advisory, lead by Head of Advisory Richard Rouse, accounted for 92% of group adjusted EBITDA and remained Powerhouse’s principal earnings contributor.

The division generated $4.7 million in revenue and $3.4 million in adjusted EBITDA, representing a margin of 71%.

Cash fee revenue increased 378% to $3.2 million as the business completed 10 mandates with more than $40 million in transaction value, compared with three transactions in FY25.

The mandates included secondary equity raisings, structured debt transactions, an initial public offering and Powerhouse’s first sell-side mergers and acquisitions engagement.

As of August 25, seven of the eight equity capital markets transactions completed by the division were trading at or above their issue prices. On an equal-weighted basis, the transactions had generated an annualised return of 62.7%.

However, 53% of Advisory revenue was received in scrip or earned on securities already held by the group. That means a significant proportion of reported revenue remains linked to the valuation and liquidity of portfolio securities rather than cash receipts alone.

Executive Chairman James Kruger said all three business units had traded for the full year, with the company delivering its maiden operating profit and demonstrating that it was now self-sufficient.

At June 30, the group held $1.1 million in cash, $500,000 in treasury investments and $4.7 million in ASX-listed securities. Combined liquidity stood at $6.37 million, while the group remained debt free.

Funds Platform Builds Scale

Powerhouse’s Aliwa Alpha Fund returned 34.73% net during FY26, compared with a benchmark return of 7.53%.

According to FundMonitors.com, the fund ranked second among 100 funds in its Australian long small-and-mid-cap peer group.

Funds under management exceeded $30 million at year-end.

The fund began raising additional capital in July following the completion of its restructure and commercial reset.

Separately, Powerhouse signed a memorandum of understanding with a European venture firm to establish a co-managed technology fund.

The proposed fund is targeting approximately $100 million in commitments, with legal documentation currently being prepared.

Powerhouse Sets FY27 Priorities

Powerhouse’s FY27 priorities include launching the proposed technology fund during calendar 2026 and raising further capital for the Aliwa Alpha Fund.

The company also plans to maintain execution across its Corporate Advisory business while assessing potential inorganic growth opportunities.

Over the medium term, the board intends to consider tax-effective options for returning capital to shareholders. No specific distribution has been announced.