Revolve Renewable loses $858,947 (U.S.) in fiscal Q2

Executive Summary

• Revolve Renewable Power Corp. reported Q2 FY2026 financial results showing a 15% year-over-year increase in recurring revenue to $717,457, driven by its 13 MW operating portfolio.
• The company closed a transformative $40 million (U.S.) strategic financing agreement with Callaway on February 19, 2026, with $10 million drawn on closing, to accelerate the development of its 3 GW renewable energy portfolio.
• Significant operational milestones were achieved, including a Generation Permit for the 130 MW El 24 wind project in Mexico, AUC approval for the 15.7 MW Bright Meadows solar project in Canada, and continued progress on U.S. utility-scale developments.

Key Details

• Financial Performance (Q2 FY2026 vs Q2 FY2025):
  • Total Revenue: $717,457 (up 15% from $621,927); 100% of revenue is recurring from operating assets.
  • Energy Production: 5,179,733 kWh (up 17% from 4,441,039 kWh).
  • Gross Profit: $524,226 (Margin: 73%, down from 79% in Q2 FY2025).
  • Net Loss: $858,947 (improved from net loss of $908,959 in Q2 FY2025).
  • Cash and Security Deposits: $1,487,169 as of Dec 31, 2025.
• Strategic Financing:
  • Closed $40 million (U.S.) convertible loan facility with Callaway on Feb 19, 2026.
  • $10 million (U.S.) financed on closing; remaining funds available to advance projects.
  • Structure includes step-up conversion prices in the second tranche to align dilution with long-term value creation.
• Project Updates - Develop and Sell:
  • Mexico (El 24): Awarded final Generation Permit for 130 MW wind farm in Tamaulipas by CNE; one of only five such permits granted nationally. Interconnection application submitted to CFE on Feb 17, 2026, with final agreement expected in coming weeks.
  • Mexico (Presa Nueva): Evaluating potential registration for 400 MW wind project under new 2026 qualification window.
  • United States: Awaiting milestone payments from sale of 1.25 GW Bouse & Power solar/storage projects to ENGIE, valued at $40,000–$50,000 per MW.
• Project Updates - Develop, Own and Operate:
  • Mexico: Signed partnership with EPC partner on Oct 9, 2025, to develop >5 MW of distributed generation for commercial/industrial customers; definitive agreements for first group of projects expected in current quarter.
  • Canada (Bright Meadows): Received Power Plant Approval (Decision 29985-D01-2025) from Alberta Utilities Commission for 15.7 MW solar project in Wetaskiwin, Alberta. Moving to final interconnection and construction planning.
  • United States: Progress on 20 MW/80 MWh Vernal BESS and 49.5 MW Primus wind projects; both have signed interconnection agreements and are seeking commercial offtake solutions.
• Administrative/Equity:
  • Granted 926,702 Deferred Share Units (DSUs) to directors effective Feb 24, 2026.
  • 418,077 DSUs granted at $0.23/share; 508,625 DSUs granted at $0.19/share.
  • DSUs vest one year from grant date; issued in lieu of cash directors' fees to preserve working capital.

Notable Quotes

• "Revolve recorded a 15-per-cent increase in recurring revenue in Q2 2026, from our 13-megawatt (MW) portfolio of operating assets while making key investments in the continued development of our project pipeline," said chief executive officer Myke Clark.
• "In addition to that revenue growth, the Revolve team achieved several milestones on our utility-scale portfolio while continuing to expand our distributed generation pipeline and assess additional acquisition opportunities to accelerate our near-term recurring revenue stream even more aggressively."
• "Subsequent to the end of the quarter, Revolve closed a $40-million (U.S.) a transformative strategic financing partnership that will solidify our balance sheet and help to accelerate our business plan."