Powerhouse Ventures Posts $121k Operating Cash Flow and 54.7% Fund Return

A Milestone Quarter for Powerhouse Ventures

Powerhouse Ventures Limited (ASX – PVL) has marked a significant milestone, reporting its first operating cash flow positive quarter with net cash from operating activities of $121,000 for the three months ended 31 December 2025. This achievement comes just over a year after the company announced its new strategic vision and reflects the growing strength of its business units.

While the positive cash flow is a key indicator of financial health, Powerhouse Ventures emphasises that it represents only part of the broader picture. The company’s merchant capital model involves earning transactional revenue partly in scrip, aligning its interests with investors but not immediately reflected in cash results. Additionally, longer-term exposure to outperformance fees from its expanding funds business adds further value beyond the quarterly cash flow.

Strong Performance Across Business Units

The Corporate Advisory division has been particularly active, successfully completing three ASX capital raisings during the quarter. Notable transactions include a $10.25 million placement for Nordic Resources, a $4.25 million oversubscribed institutional placement for Pivotal Metals where Powerhouse acted as sole lead manager and cornerstone investor, and a $10 million placement for AusQuest. These deals underscore the company’s strong origination capabilities and focus on gold and copper mining developers, sectors benefiting from global supply constraints and electrification trends.

Meanwhile, the Aliwa Alpha Fund, acquired by Powerhouse Ventures in December 2024, has continued to outperform, delivering a 6.76% return in the December quarter and achieving a cumulative return of approximately 54.7% since acquisition. The fund’s overweight position in small resources and its reputation in the microcap segment position it well for continued outperformance amid expected market activity.

Strategic Expansion into Critical Infrastructure

Powerhouse Ventures is advancing its Funds Business Unit strategy with the forthcoming launch of the Critical Infrastructure Opportunities Fund under the Burleigh Ventures brand. A strategic partnership with GlobalDots, a global independent cloud integrator, was announced in December 2025. This partnership provides financial and operational support, including a conditional commitment of US$1 million to US$5 million, and access to deal flow and expert diligence. The fund aims to capitalise on global mega trends in data, energy, AI, quantum, and space technologies.

The company’s balance sheet remains robust, with an unaudited net tangible asset (NTA) value of $18.8 million at quarter-end, representing a 16% increase year-on-year despite a slight 3% dip from the previous quarter. Powerhouse Ventures expects to build on this momentum, forecasting material profit growth in FY2026 subject to market conditions.

Looking Ahead

With a strong pipeline in Corporate Advisory and a solid foundation in funds management, Powerhouse Ventures is well-positioned to capitalise on its strategic initiatives. The successful launch and capital raising for the Burleigh Ventures fund could introduce recurring revenue streams, further enhancing profitability. Investors will be watching closely for the company’s full-year audited results and updates on fund performance and capital raising progress.