A profitable PEX

2025 was PEX's second year in operation and ended as the first year we've experienced profit. We ended the year with $9,143.20 in net profit. What an achievement.

When we formed in 2024 we developed the bylaws that guide our cooperative, modeled after a worker co-op. These bylaws outline voting rights, communication standards, and the structure of our elected Board of Directors to ensure decisions are made collaboratively among Stewards. That document also guides what happens in a profitable year, keeping the long-term health of the co-op top priority.

All Stewards at People’s Exchange are volunteers. In 2025, Stewards contributed an incredible 3,722 hours to operating the space—that’s about 70 hours per week! While our long-term dream is to grow into a worker cooperative where every Steward earns a living wage, we’re not there yet. Still, when drafting our bylaws, we felt it was important to build in the option to recognize that hard work. We outlined the possibility that 25% of profitable earnings could be distributed to Stewards based on the number of volunteer hours they contributed that year.

The bylaws also establish a few Indivisible Funds. These are reserve accounts that Stewards contribute into towards the success of the co-op and can never be distributed to Stewards during the life of the business. The only time funds could be distributed out of these accounts is if the co-op dissolves and assets must be settled. Our bylaws set a goal of allocating 75% of any annual profit to these Indivisible Funds to ensure the co-op’s stability and growth remain the priority over individual gain.

The goal of our bylaws destines any profit earned in the following manner:

• 50% of net profit to the Cooperative Development Fund, an indivisible account that supports future business growth
• 25% of net profit goes to the Community Giving Fund, an indivisible account that earmarks a bucket of money for charitable giving, so we can support other orgs doing awesome work
• 25% can be distributed to Stewards as Net Income Member Surplus based on volunteer hours

Our 2025 financial breakdown:

• Total income: $28,560.66
• Total expenses: $19,417.45
• Net profit: $9,143.20

For 2025, our Board of Directors (Quibs, Mary, Jeanne, and Chase) voted to follow the goals laid out in our bylaws. Here's the breakdown of where our profit went for 2025:

• $4,571.61 (50%) was allocated to the indivisible Cooperative Development Fund
• $2,285.80 (25%) was allocated to the indivisible Community Giving Fund
• $2,285.80 (25%) was designated as Net Income Member Surplus and distributed to Stewards based on total volunteer hours contributed. Individual Steward distributions for 2025 ranged from $50 to $550

Each year, the Board must also decide whether the co-op can afford to pay out the Member Surplus distributions in cash that year. As we look towards moving into a larger space, our board of directors felt keeping our cash assets strong puts the co-op in the best position for growth. For that reason, we have elected not to issue payouts this year. Instead, each Steward’s portion will remain earmarked in their individual equity account for potential future payout. Our bylaws set a goal of paying out earned equity within three years.

Reaching profitability in just our second year is a huge milestone, and we're excited to be able to put money into those future development funds to build a sturdy foundation. Every volunteer hour, every thoughtful decision, and every dollar allocated reflects our shared commitment to doing this the cooperative way. We're committed to putting community and long-term sustainability first. 

Cheers to 2026,

Mary, PEX Board Treasurer