Spruce Power Holding Corporation (SPRU)

Spruce Power Reports First Quarter 2026 ResultsMay 13, 2026 4:05 PM
Business Wire Operating EBITDA up 49%; Positive adjusted cash generation from operations up 181%
Ends quarter with $4.71 in cash per share. Spruce Power Holding Corporation (NYSE: SPRU) (“Spruce”, "Spruce Power" or the “Company”), a leading owner and operator of distributed solar energy assets across the United States, today reported financial results for the first quarter ended March 31, 2026. First Quarter 2026 Business Highlights Delivered a strong financial performance, achieving Operating Income of $3.8 million for the quarter compared to a loss of $1.7 million in the first quarter 2025 Revenues of $23.4 million in the quarter, in line with first quarter 2025 revenues of $23.8 million Demonstrated powerful operating leverage, with Operating EBITDA up 49% year-over-year in the first quarter, driven by continued cost management Continued reduction in core operating costs, including a 70% decline in Operations & Maintenance (“O&M”) expense and a 21% decline in Selling, General and Administrative (“SG&A”) expense for the first quarter Positive cash generation, with $2.6 million of Adjusted Cash Flow Generated in Operations for the first quarter 2026 compared to $3.2 million used in the first quarter 2025 Cash Flow used in Operations of $2.7 million for the quarter compared to $9.1 million in the year-earlier period Net loss attributable to stockholders of $2.9 million for the quarter compared to net loss attributable to stockholders of $15.3 million for the year-earlier period Ended the first quarter with $85.6 million of cash, or $4.71 per share, providing substantial liquidity, flexibility, and embedded value Continued to reduce leverage, paying down $8.2 million of debt principal in the first quarter Management Commentary and Outlook Chris Hayes, Chief Executive Officer, commented: "Our first quarter 2026 results confirm that the inflection point we reached last year was only the beginning. Building on the momentum of 2025, Spruce continues to hit its stride, delivering operating income of $3.8 million, up significantly from a loss of $1.7 million in the prior-year period. The cost reductions implemented last fall are embedded in our financial performance. Fundamental shifts in the business, a 70% decline in O&M and a 21% decline in SG&A year-over-year, drove a 49% increase in operating EBITDA. We continue to execute on our commitment to deliver the business and enhance equity value. We ended the quarter with a robust cash position of $85.6 million of cash, or $4.71 per share. This liquidity, combined with our continued commitment to delever the business, paying down $8.2 million of debt this quarter, ensures we have the financial flexibility to drive long-term value while operating from a position of stability. Our focus remains on maximizing the efficiency of our capital structure. Following the deliberate extension of our SP1 facility, we are actively pursuing broader refinancing opportunities across our portfolios. With a streamlined operating model now delivering consistent results and a fortified balance sheet, Spruce is exceptionally well-positioned to convert our long-term contracted cash flows into sustainable shareholder value throughout the remainder of 2026.” Consolidated Financial Results Revenues totaled $23.4 million for the first quarter of 2026, compared with $23.8 million for the first quarter of 2025. Revenues for the first quarter are in line with prior year revenues, representing stable asset performance. Total operating expenses were $19.6 million for the first quarter of 2026, compared to $25.5 million for the first quarter of 2025. The year-over-year decline in operating expense is attributed primarily to a decrease in operations and maintenance costs and ongoing cost management efforts implemented in the third quarter 2025. Core operating expenses, which includes both SG&A expenses and O&M expenses was $12.7 million in the aggregate for the first quarter of 2026, down from $18.6 million in the year-earlier period. This includes $11.6 million of SG&A expenses and O&M expenses of $1.2 million in the first quarter of 2026, down from SG&A expense of $14.7 million and O&M expense of $3.9 million for the first quarter of 2025. The decreases in both total operating expenses and core operating expenses were primarily attributable to lower year-over-year O&M costs due to the completion of meter upgrades as well as more prudent cost management, which included the vertical integration of servicing teams in concentrated markets. The decrease in SG&A expenses was due to both a labor reduction and related compensation and benefit costs as well as lower professional service fees. Net loss attributable to stockholders was $2.9 million, or $0.16 per share for the first quarter of 2026, compared to $15.3 million or $0.84 for the first quarter of 2025. Balance Sheet and Liquidity Total principal amount of outstanding debt as of March 31, 2026, decreased to $687.3 million with a blended interest rate of 6.2%, including the impact of hedge arrangements. All debt consists of project finance loans that are non-recourse to the Company itself. Non-recourse debt is incurred at the project level and does not impact the Company’s unrestricted cash on hand balance. Total cash as of March 31, 2026, was $85.6 million, or $4.71 per share, including cash and cash equivalents of $50.0 million and restricted cash of $35.6 million. Per-share amount is based on 18,170,425 shares issued and outstanding as of March 31, 2026. Growth and Capital Allocation Spruce is committed to maximizing long-term value for its shareholders through a disciplined approach that includes strategic acquisitions, capital expenditure projects, debt repayment and shareholder return initiatives. The Company's gross portfolio value (on a PV6 basis as defined below) was $840.0 million as of March 31, 2026. During the first quarter of 2026, Spruce repurchased no shares of common stock. There was $42.0 million remaining under the Company's authorized $50.0 million common share repurchase program as of March 31, 2026. Key Operating Metrics As of March 31, 2026, Spruce owned cash flows from approximately 84,000 home solar assets and customer contracts across 18 U.S. States with an average remaining contract life of approximately 10 years. In addition, the Company services approximately 60,000 third-party owned home solar systems as of March 31, 2026. Gross Portfolio Value, on a PV6 basis as described below, was $840.0 million as of March 31, 2026. Conference Call Information The Spruce management team will host a conference call for analysts and investors to discuss its first quarter 2026 financial results and business outlook at 4:30 p.m. Eastern Time May 13, 2026. The conference call can be accessed live over the telephone by dialing (206) 407-3770 and referencing Conference ID 177518258. Alternatively, the call can be accessed via a live webcast accessible at https://events.q4inc.com/attendee/177518258. A replay will be available shortly after the call and can be accessed at https://events.q4inc.com/attendee/177518258. The replay will be available until May 27, 2026. About Spruce Power Spruce Power is a leading owner and operator of distributed solar energy assets across the United States. We provide subscription-based services that make it easy for homeowners to benefit from rooftop solar power and battery storage. Our power as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Our Company owns the cash flows from approximately 84,000 home solar assets and customer contracts across the United States. For additional information, please visit www.sprucepower.com. Cautionary Note Regarding Forward Looking Statements Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are characterized by the use of certain words or phrases (and their derivatives) such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “opportunity,” “plan,” “goals,” “target” “predict,” “potential,” “estimate,” “should,” “will,” “would,” “continue,” “likely,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based upon our current plans and strategies, management’s assumptions and expectations about future events, and market conditions and reflect our current assessment of the risks and uncertainties related to our business and are made as of the date of this release. Forward-looking statements in this release may include, without limitation, statements made in Mr. Hayes’ quotations, statements regarding contracted portfolio value and renewal portfolio value, potential future acquisitions, potential future repurchases under the stock repurchase program, the impacts of the Company’s O&M initiatives and operational enhancements and the Company's ability to sustain cost reductions, the Company’s expected key revenue drivers, expectations with respect to Spruce PRO and its potential partnerships, expectations with respect to refinancing outstanding debt, and the Company's prospects for long-term growth in revenues, business cash inflows, earnings and Operating EBITDA. Repurchases under the stock repurchase program will depend upon market prices, trading volume, available cash and other factors, and therefore, there is no guarantee that any repurchases will be completed or as to the number of shares that may be purchased. There can be no assurance that actual future results, performance or achievements of, or trends affecting, us will not differ materially from any future results, performance, achievements or trends expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from historical results or the forward-looking statements contained herein, including but not limited to: uncertainties relating to the solar energy industry and the risk that sufficient additional demand for home solar energy systems may not develop or take longer to develop than we anticipate; disruptions to our solar monitoring systems, which could negatively impact our revenues and increase our expenses; warranties provided by the manufacturers of equipment for our assets and maintenance obligations may be inadequate to protect us; the solar energy systems we own or may acquire may have a limited operating history and may not perform as we expect, including as a result of unsuitable solar and meteorological conditions; problems with performance of our solar energy systems may cause us to incur expenses, may lower the value of our solar energy systems, and may damage our market reputation; the ability to identify and complete future acquisitions or strategic relationships and the ability to integrate strategic acquisitions; the ability to develop and market new products and services; changes in, and our compliance with, laws and regulations affecting our business; the highly competitive nature of the Company’s business and markets; the ability to manage our growth effectively or grow by expanding our market penetration or acquiring additional home solar portfolios; the ability to execute on and consummate business plans in anticipated time frames; litigation, complaints, product liability claims or other claims, government investigations and/or adverse publicity; cost increases or shortages in the components or chassis necessary to support the Company’s products and services, including due to tariffs or trade restrictions; developments in technology or improvements in distributed solar energy generation and related technologies or components may materially adversely affect demand for our offerings; a material reduction in the retail price of traditional utility generated electricity, electricity from other sources or renewable energy credits; we may require additional financing to support the development of our business and implementation of our growth strategy; we are subject to risks relating to our outstanding debt, including risks relating to rising interest rates and the risk that we may not have sufficient cash flow to pay or refinance our debt and to continue as a going concern; the impact of natural disasters and other events beyond our control, such as hurricanes, wildfires or pandemics, on the Company’s business, results of operations, financial condition, regulatory compliance and customer experience; cybersecurity risks; the loss or transition of key employees or senior management or the Company’s inability to attract and retain qualified personnel; the risk that the Company may identify material weaknesses in its internal control over financial reporting, or fail to maintain an effective system of internal control over financial reporting; general economic, financial, legal, political and business conditions, supply chain constraints and changes in domestic and foreign markets; the availability of capital and additional financing; economic conditions, including market interest rates, inflation, recessionary conditions and U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom; governmental investigations, litigation, complaints, other claims, or adverse publicity, which may cause us to incur significant expense, hinder execution of business and growth strategy, or impact the price of our common stock; changes in tax laws, which may materially adversely affect our business, prospects, financial condition, and operating results; our ability to use net operating loss carryforwards and other tax attributes; risks associated with construction, regulatory compliance, risks relating to changes in, and our compliance with, laws and regulations affecting our business, and other contingencies; violations of export control and/or economic sanctions laws and regulations; the adequacy of our insurance coverage; competition from traditional energy companies as well as solar and other renewable energy companies; and the other risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 31, 2026, subsequent Quarterly Reports on Form 10-Q, and other documents that the Company files with the SEC in the future. These factors are not exhaustive. New risk factors emerge from time to time, and it is not possible to predict all such risk factors, nor can the Company assess the impact of all such risk factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from the results implied by these forward-looking statements. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Use of Non-GAAP Financial Information This press release includes references to certain non-GAAP financial measures. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter, without the impact of items or events that may obscure trends in our underlying financial performance. These non-GAAP financial measures should not be considered in isolation and should be considered as a supplement to, and not as a substitute for or superior to, the GAAP financial measures presented in this press release, our financial statements, and other publicly filed reports. This prospective financial information was not prepared with a view toward compliance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information or U.S. GAAP with respect to forward-looking financial information. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Definitions of Non-GAAP Financial Information Earnings (Loss) Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”): We define EBITDA as our consolidated net income (loss) and adding back interest expense, net, income taxes, and depreciation and amortization. We believe EBITDA provides meaningful information as to the performance of our business and therefore we use it to supplement our GAAP reporting. We believe that Adjusted EBITDA, which excludes certain identified items that we do not consider to be part of our ongoing business, improves the comparability of year-to-year results, and is more representative of our underlying performance. Management uses this information to assess and measure the performance of our operating segment. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and to provide an additional measure of performance. Operating EBITDA: We define Operating EBITDA as Adjusted EBITDA plus proceeds from investment in master lease agreement, net, proceeds from buyouts / prepayments and interest earned on cash investments. Proceeds from investment in master lease agreement, net, represent cash flows from the Company's Spruce Power 4 Portfolio, which holds the 20-year use rights to customer payment streams of approximately 22,500 solar lease and power purchase agreements, net of servicing costs. Proceeds from buyouts / prepayments represent cash inflows from the early buyout of customer solar contracts and cash inflows from the prepayment of customer solar contracts. Interest earned on cash investments represent cash interest received on investments in money market funds. Adjusted Cash Flow from Operations: We define Adjusted Cash Flow from Operations as cash from operations adjusted for the recurring proceeds from both our SEMTH master lease and sales of solar energy systems, as well as material non-recurring litigation settlements. Core Operating Expenses: We define Core Operating Expenses as the sum of our SG&A and our O&M expenses. Portfolio Value Metrics We believe Portfolio Value Metrics are helpful to management, investors, and analysts to understand the value of our business and to evaluate the estimated remaining value of our customer contracts, including present value implied from future, uncontracted sales of SRECs generated from assets that the Company owns today. Gross Portfolio Value reflects the remaining projected net cash flows from current customers discounted at 6% (“PV6”) Projected cash flows include the customer’s initial agreement plus renewal ($ in millions) As of March 31,
2026 Contracted Portfolio Value (1)   719 Renewal Portfolio Value (2)   72 Uncontracted Renewable Energy Credits (3)   48 Gross Portfolio Value (4) $ 840 (1) Contracted Portfolio Value represents the present value of the remaining net cash flows discounted at 6% per annum during the initial term of the Company’s customer agreements as of the measurement date. It is calculated as the present value of cash flows discounted at 6% that the Company expects to receive from customers in future periods as set forth in customer agreements, after deducting expected operating and maintenance costs, equipment replacements costs, distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to third-party project equity investors. The calculation includes cash flows the Company expects to receive in future periods from state incentive and rebate programs, contracted sales of solar renewable energy credits, and awarded net cash flows from grid service programs with utilities or grid operators. (2) Renewal Portfolio Value is the forecasted net present value the Company would receive upon or following the expiration of the initial customer agreement term, but before the 30th anniversary of the system’s activation in the form of cash payments during any applicable renewal period for customers as of the measurement date. The Company calculates the Renewal Portfolio Value amount at the expiration of the initial contract term assuming that, on average, Spruce's customers choose to renew 50% of the time at a contract rate representing a 35% discount to the contract rate in effect at the end of the initial contract term, for a term of 7-years. (3) Uncontracted sales of SRECs based on forward market REC pricing curves, adjusted for liquidity discounts. (4) Gross Portfolio Value represents the sum of Contracted Portfolio Value, Renewal Portfolio Value and Uncontracted SRECs. Spruce Power Holding Corporation Condensed Consolidated Statements of Operations (Unaudited) For the Three Months Ended March 31, 2026 and 2025     Three Months Ended
March 31, (In thousands, except per share and share amounts)   2026       2025           Revenues $ 23,420     $ 23,834   Operating expenses:       Cost of revenues - solar energy systems depreciation   7,272       7,285   Cost of revenues - operations and maintenance   1,169       3,916   Selling, general and administrative expenses   11,580       14,666   Gain on asset disposal, net   (449 )     (335 ) Total operating expenses   19,572       25,532   Income (loss) from operations   3,848       (1,698 ) Other (income) expense:       Interest income   (4,784 )     (5,267 ) Interest expense, net   12,287       12,667   Change in fair value of interest rate swaps   (800 )     6,237   Other expense (income)   —       (21 ) Net loss   (2,855 )     (15,314 ) Less: Net income attributable to noncontrolling interests   70       24   Net loss attributable to stockholders $ (2,925 )   $ (15,338 ) Net loss per share, basic and diluted $ (0.16 )   $ (0.84 ) Net loss attributable to stockholders per share, basic and diluted $ (0.16 )   $ (0.84 ) Weighted-average shares outstanding, basic and diluted   18,170,425       18,187,637   Spruce Power Holding Corporation Calculation of Core Operating Expenses For the Three Months Ended March 31, 2026 and 2025     Three Months Ended
March 31, (In thousands) 2026   2025 Calculation of core operating expenses:       Cost of revenues - operations and maintenance   1,169     3,916 Selling, general and administrative expenses   11,580     14,666 Core operating expenses $ 12,749   $ 18,582 Spruce Power Holding Corporation Reconciliation of Adjusted Cash Flow from Operations For the Three Months Ended March 31, 2026 and 2025     Three Months Ended
March 31, (In thousands)   2026       2025   Reconciliation of Adjusted Cash Flow from Operations       Net cash used in operating activities $ (2,697 )   $ (9,124 ) Proceeds from investment related to SEMTH master lease agreement   3,892       4,527   Proceeds from sale of solar energy systems   1,442       1,357   Adjusted Cash Flow from Operations $ 2,637     $ (3,240 ) Spruce Power Holding Corporation Reconciliation of Non-GAAP Financial Measures For the Three Months Ended March 31, 2026 and 2025     Three Months Ended
March 31, (In thousands)   2026       2025   Reconciliation of Net Loss to EBITDA, Adjusted EBITDA, and Operating EBITDA       Net loss attributable to stockholders $ (2,925 )   $ (15,338 ) Net income attributable to noncontrolling interests   70       24   Interest income   (4,784 )     (5,267 ) Interest expense, net   12,287       12,667   Depreciation and amortization   7,179       6,537   EBITDA   11,827       (1,377 ) Net (income) loss from discontinued operations   4       4   Legal charges related to legacy shareholder and securities lawsuits   (1,200 )     —   Gain on asset disposal, net   (449 )     (335 ) Change in fair value of interest rate swaps   (800 )     6,237   Meter upgrade campaign   —       63   Other one-time costs   1,362       285   Stock based compensation   1,013       826   Bad debt expense   435       244   Accretion expense   86       80   Non-recurring acquisition/divestment expenses   —       135   Adjusted EBITDA   12,278       6,162   Proceeds from investment in master lease agreement, net   4,007       3,842   Proceeds from buyouts / prepayments   1,630       1,541   Interest earned on cash investments   440       745   Operating EBITDA $ 18,355     $ 12,290   Spruce Power Holding Corporation Condensed Consolidated Balance Sheets (Unaudited) March 31, 2026 and December 31, 2025       As of (In thousands, except share and per share amounts)   March 31,
2026   December 31,
2025 Assets         Current assets         Cash and cash equivalents   $ 50,017     $ 54,842   Restricted cash     35,608       38,303   Accounts receivable, net of allowance of $0.6 million and $0.8 million as of March 31, 2026 and December 31, 2025, respectively     18,806       15,748   Interest rate swap assets, current     4,025       3,791   Prepaid expenses and other current assets     2,890       3,189   Total current assets     111,346       115,873   Investment related to SEMTH master lease agreement     133,181       132,843   Property and equipment, net     553,057       561,388   Interest rate swap assets, non-current     9,998       9,990   Intangible assets, net     7,550       7,830   Deferred rent assets     4,964       4,872   Right-of-use assets, net     3,998       4,208   Other assets     274       269   Total assets   $ 824,368     $ 837,273   Liabilities, stockholders’ equity and noncontrolling interests         Current liabilities         Accounts payable   $ 1,135     $ 1,916   Accrued expenses and other current liabilities     19,443       20,308   Non-recourse debt, current     207,923     $ 213,826   Deferred revenue, current     1,168       1,222   Lease liability, current     945       945   Interest rate swap liabilities, current     399       545   Total current liabilities     231,013       238,762   Non-recourse debt, non-current     460,340       462,942   Deferred revenue, non-current     3,947       3,831   Lease liability, non-current     3,952       4,181   Unfavorable solar renewable energy agreements, net     606       807   Interest rate swap liabilities, non-current     1,222       1,633   Other long-term liabilities     3,949       3,865   Total liabilities     705,029       716,021   Commitments and contingencies         Stockholders’ equity:         Common stock, $0.0001 par value; 350,000,000 shares authorized at March 31, 2026 and December 31, 2025; 20,041,252 and 18,170,425 shares issued and outstanding at March 31, 2026, respectively, and 20,041,252 and 18,170,425 issued and outstanding at December 31, 2025     2       2   Additional paid-in capital     482,340       481,327   Accumulated deficit     (357,329 )     (354,404 ) Treasury stock at cost, 1,870,827 shares and 1,870,827 at March 31, 2026 and 2025, respectively     (8,095 )     (8,095 ) Total stockholders’ equity     116,918       118,830   Noncontrolling interests     2,421       2,422   Total equity     119,339       121,252   Total liabilities, stockholders’ equity and noncontrolling interests   $ 824,368     $ 837,273             Spruce Power Holding Corporation Condensed Consolidated Statement of Cash Flows (Unaudited) March 31, 2026 and December 31, 2025       Three Months Ended
March 31, (In thousands)     2026       2025             Operating activities:         Net loss   $ (2,855 )   $ (15,314 ) Adjustments to reconcile net loss to net cash used in operating activities:         Stock-based compensation, net     1,013       826   Bad debt expense     435       244   Amortization of deferred revenue     (85 )     (86 ) Depreciation and amortization expense     7,509       7,548   Amortization related to unfavorable solar renewable energy agreements for each period     (93 )     (748 ) Accretion expense     86       80   Change in fair value of interest rate swaps     (800 )     6,237   Interest income related to SEMTH master lease agreement     (4,344 )     (4,521 ) Gain on disposal of assets     (449 )     (335 ) Change in operating right-of-use assets and lease liability     (20 )     (20 ) Amortization of debt discount and deferred financing costs     1,580       1,637   Changes in operating assets and liabilities:         Accounts receivable, net     (3,492 )     (5,285 ) Deferred rent assets     (91 )     (258 ) Prepaid expenses and other current assets     298       1,566   Other assets     (5 )     —   Accounts payable     (781 )     (212 ) Accrued expenses and other current liabilities     (745 )     (714 ) Other long-term liabilities     (5 )     —   Deferred revenue     147       231   Net cash used in operating activities     (2,697 )     (9,124 ) Investing activities:         Proceeds from sale of solar energy systems     1,442       1,357   Proceeds from investment related to SEMTH master lease agreement     3,892       4,527   Cash paid for acquisitions     —       (1,621 ) Purchases of other property and equipment     —       (87 ) Net cash provided by investing activities     5,334       4,176   Financing activities:         Payment of deferred financing costs     (1,908 )     —   Repayments of non-recourse debt     (8,178 )     (6,846 ) Share repurchases     —       (808 ) Capital distributions to noncontrolling interests     (71 )     (77 ) Net cash provided by (used in) financing activities     (10,157 )     (7,731 ) Net change in cash and cash equivalents and restricted cash:     (7,520 )     (12,679 ) Cash and cash equivalents and restricted cash, beginning of period     93,145       109,148   Cash and cash equivalents and restricted cash, end of period   $ 85,625     $ 96,469   Supplemental disclosure of cash flow information:         Cash paid for interest   $ 7,552     $ 6,275     View source version on businesswire.com: https://www.businesswire.com/news/home/20260513337583/en/ For More Information
Investor Contact: investors@sprucepower.com
Media Contact: publicrelations@sprucepower.com Original: Spruce Power Reports First Quarter 2026 Results

Spruce Power to Release First Quarter 2026 Results and Host Conference Call on May 13May 4, 2026 4:05 PM
Business Wire Spruce Power Holding Corporation (NYSE: SPRU) (“Spruce”), a leading owner and operator of distributed solar energy assets across the United States, today announced that it will report first quarter 2026 financial results after the stock market close on Wednesday, May 13. Spruce will issue a press release reporting its results, which will be available on the Investor Relations section of its website at https://investors.sprucepower.com/overview/default.aspx. Management will then host a conference call and webcast for investors and analysts at 3:30 p.m. CT to discuss the results. Spruce Power First Quarter 2026 Webcast and Conference Call Details When: Wednesday, May 13, 2026 Time: 4:30 PM ET / 3:30 PM CT Dial-in: (206) 407-3770//Meeting ID: 177518258 Webcast: https://events.q4inc.com/attendee/177518258 A replay of the conference call can be accessed at the link: https://events.q4inc.com/attendee/177518258. The replay will be available until May 27, 2026. About Spruce Power Spruce Power Holding Corporation and its subsidiaries (“Spruce Power”) (NYSE: SPRU) is a leading owner and operator of distributed solar energy assets across the United States. We provide subscription-based services that make it easy for homeowners to benefit from rooftop solar power and battery storage. Our power as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Our company owns the cash flows from approximately 84,000 home solar assets and contracts across the United States. For additional information, please visit www.sprucepower.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260504814642/en/ Investor Contact: investors@sprucepower.com
Media Contact: publicrelations@sprucepower.com Original: Spruce Power to Release First Quarter 2026 Results and Host Conference Call on May 13

Spruce Power tops revenue forecasts as expenses declineMarch 31, 2026 10:23 AM
IH Market News
Spruce Power Holding Corporation (NYSE:SPRU) reported fourth-quarter revenue of $24.0 million, representing a 19% increase year-over-year, supported by growth in its portfolio and expanded servicing operations. The company posted an adjusted EPS loss of $0.38 for the quarter ending December 31, 2025.Shares of the power company rose 1.29% in after-hours trading following the earnings announcement.Quarterly revenue surpassed the $20.2 million reported in the same period a year earlier, marking the strongest performance in the company’s history. For the full year, revenue reached $111.8 million, up 36% from $82.1 million in 2024.The company recorded operating income of $17.9 million for 2025, compared with an operating loss of $50.4 million in the previous year. Operating EBITDA increased 49% to $80.1 million for the full year, while fourth-quarter operating EBITDA rose 57%.Operating expenses declined significantly during the quarter. Operations and maintenance costs fell 64% to $1.9 million, compared with $5.3 million in the fourth quarter of the prior year.Selling, general and administrative expenses dropped 16% to $13.0 million, down from $15.5 million a year earlier. The company said the reductions were driven by the completion of meter upgrade programs and the vertical integration of servicing teams across key markets.“2025 was the best year in Spruce’s history, and our fourth quarter results reflect a business that is hitting its stride,” said Chris Hayes, Chief Executive Officer. “The cost reductions we have achieved—particularly in O&M and SG&A—are structural and position us to continue expanding margins as we scale.”Spruce finished the year with $93.1 million in cash, equivalent to $5.13 per share, including $54.8 million in cash and cash equivalents and $38.3 million in restricted cash.During 2025, the company repaid $35.1 million of debt, lowering total outstanding borrowings to $695.5 million with a blended interest rate of 6.1%.Spruce Power Holding stock price

Original: Spruce Power tops revenue forecasts as expenses decline

Spruce Power Reports Fourth Quarter and Full-Year 2025 ResultsMarch 30, 2026 4:05 PM
Business Wire
Spruce Power Delivers Record 2025 Results, Generates $17.9 million in Operating Income and Operating EBITDA of $80.1 million up 49% for the Year


Exits Year with Over $5 per Share in Cash While Paying Down almost $2 per Share in Debt


Spruce Power Holding Corporation (NYSE: SPRU) (“Spruce”, "Spruce Power" or the “Company”), a leading owner and operator of distributed solar energy assets across the United States, today reported financial results for the fourth quarter and full-year ended December 31, 2025.


Fourth Quarter and Full-Year 2025 Business Highlights



Delivered the strongest financial performance in company history, achieving full-year Operating Income of $17.9 million compared to a loss of $50.4 million in 2024



Strengthened equity value through balance sheet execution, including $35.1 million of debt principal payments in 2025, enhancing enterprise value and reducing leverage



Revenues of $24.0 million in the fourth quarter, up 19% year-over-year, and up 36% for the full year, driven by portfolio growth and servicing expansion



Positive cash generation, with $5.1 million of Adjusted Cash Flow Generated in Operations for the fourth quarter and $31.6 million for 2025



Demonstrated powerful operating leverage, with Operating EBITDA up 57% year-over-year in the fourth quarter and 49% for the full year, driven by revenue growth and structural cost reductions



Reduced core operating costs at scale, including a 64% decline in Operations & Maintenance (“O&M”) expense and a 16% decline in Selling, General and Administrative (“SG&A”) expense for the fourth quarter, reflecting durable efficiency gains across the platform



Net loss attributable to stockholders of $6.9 million and $26.0 million for the quarter and year, respectively, compared to net loss attributable to stockholders of $5.9 million and $70.5 million for the year-earlier periods



Cash Flow used in Operations of $3.3 million for the quarter and $3.5 million used for the year



Ended the year with $93.1 million of cash, or $5.13 per share, providing substantial liquidity, flexibility, and embedded value



Management Commentary and Outlook


Chris Hayes, Chief Executive Officer, commented:


“2025 was the best year in Spruce’s history, and our fourth quarter results reflect a business that is hitting its stride. We delivered strong growth, achieved record EBITDA, and reached a clear inflection point in cash generation, all while fundamentally improving the efficiency of our platform.


What is most exciting is that these gains are not one-time in nature. The cost reductions we have achieved—particularly in O&M and SG&A—are structural and position us to continue expanding margins as we scale.


We also made meaningful progress strengthening our balance sheet, including repaying $35.1 million of debt during the year, which directly enhances equity value as we continue to delever the business.


We exited the year with $93.1 million of cash, or $5.13 per share, giving us significant flexibility as we continue to grow the business and optimize our capital structure.


As part of that strategy, we made a deliberate decision to extend our SP1 facility to maximize flexibility as we pursue a broader refinancing opportunity across multiple portfolios. We believe this approach positions us to enhance long-term financing efficiency and support the next phase of growth.


With strong momentum, a more efficient operating model, and a growing base of long-term contracted cash flows, we believe Spruce is exceptionally well positioned heading into 2026.”


Consolidated Financial Results


Revenues totaled $24.0 million for the fourth quarter of 2025, compared with $20.2 million for the fourth quarter of 2024. The year-over-year increase was primarily due to the November 2024 acquisition of a residential solar portfolio from NJR Clean Energy Ventures ("NJR") and improved solar renewable energy credits ("SRECs") revenue. The Spruce PRO service agreement signed with ADT in December 2024 also contributed to growth.


Total operating expenses were $21.8 million for the fourth quarter of 2025, compared to $26.7 million for the fourth quarter of 2024. The year-over-year decline in operating expense is attributed primarily to a decrease in operations and maintenance costs and ongoing cost management efforts.


Core Operating Expenses, which includes both SG&A expenses and O&M expenses was $14.9 million in the aggregate for the fourth quarter of 2025, down from $20.7 million in the year-earlier period. This includes $13.0 million of SG&A expenses and O&M expenses of $1.9 million in the fourth quarter of 2025, down from SG&A expense of $15.5 million and O&M expense of $5.3 million for the fourth quarter of 2024.


The decreases in both total operating expenses and Core Operating Expenses were primarily attributable to lower year-over-year O&M costs due to the completion of meter upgrades as well as more prudent cost management, which included the vertical integration of servicing teams in concentrated markets. The decrease in SG&A expenses was due to both a labor reduction and related compensation and benefit costs as well as lower professional service fees.


Net loss attributable to stockholders was $6.9 million, or $0.38 per share for the fourth quarter of 2025, compared to $5.9 million or $0.32 for the fourth quarter of 2024.


Balance Sheet and Liquidity


Total principal amount of outstanding debt as of December 31, 2025, decreased to $695.5 million with a blended interest rate of 6.1%, including the impact of hedge arrangements. All debt consists of project finance loans that are non-recourse to the Company itself. Non-recourse debt is incurred at the project level and does not impact the Company’s unrestricted cash on hand balance.


Total cash as of December 31, 2025, was $93.1 million, or $5.13 per share, including cash and cash equivalents of $54.8 million and restricted cash of $38.3 million. Per-share amount is based on 18,170,425 shares issued and outstanding as of December 31, 2025.


Growth and Capital Allocation


Spruce is committed to maximizing long-term value for its shareholders through a disciplined approach that includes strategic acquisitions, capital expenditure projects, debt repayment and shareholder return initiatives


The Company's gross portfolio value (on a PV6 basis as defined below) was $848.0 million as of December 31, 2025.


During the fourth quarter of 2025, Spruce repurchased no shares of common stock. There was $42.0 million remaining under the Company's authorized $50.0 million common share repurchase program as of December 31, 2025.


Key Operating Metrics


As of December 31, 2025, Spruce owned cash flows from approximately 84,000 home solar assets and customer contracts across 18 U.S. States with an average remaining contract life of approximately 10 years. Combined portfolio generation for the fourth quarter of 2025 was approximately 104,711 MWh of energy. In addition, the Company services approximately 60,000 third-party owned home solar systems as of December 31, 2025. Gross Portfolio Value, on a PV6 basis as described below, was $848.0 million as of December 31, 2025.


Conference Call Information


The Spruce management team will host a conference call for analysts and investors to discuss its fourth quarter and full year 2025 financial results and business outlook at 4:30 p.m. Eastern Standard Time March 30, 2026. The conference call can be accessed live over the telephone by dialing (646) 307-1963 and referencing Conference ID 3699222. Alternatively, the call can be accessed via a live webcast accessible at https://events.q4inc.com/attendee/468435160.


An audio replay will be available shortly after the call and can be accessed by dialing (800) 770-2030. The passcode for the replay is 3699222. The replay will be available until April 14, 2026.


About Spruce Power


Spruce Power is a leading owner and operator of distributed solar energy assets across the United States. We provide subscription-based services that make it easy for homeowners to benefit from rooftop solar power and battery storage. Our power as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Our Company owns the cash flows from approximately 84,000 home solar assets and customer contracts across the United States. For additional information, please visit www.sprucepower.com.


Cautionary Note Regarding Forward Looking Statements


Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are characterized by the use of certain words or phrases (and their derivatives) such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “opportunity,” “plan,” “goals,” “target” “predict,” “potential,” “estimate,” “should,” “will,” “would,” “continue,” “likely,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based upon our current plans and strategies, management’s assumptions and expectations about future events, and market conditions and reflect our current assessment of the risks and uncertainties related to our business and are made as of the date of this release. Forward-looking statements in this release may include, without limitation, statements made in Mr. Hayes’ quotations, statements regarding contracted portfolio value and renewal portfolio value, potential future acquisitions, potential future repurchases under the stock repurchase program, the impacts of the Company’s O&M initiatives and operational enhancements and the Company's ability to sustain cost reductions, the Company’s expected key revenue drivers, expectations with respect to Spruce PRO and its potential partnerships, expectations with respect to refinancing outstanding debt, and the Company's prospects for long-term growth in revenues, business cash inflows, earnings and Operating EBITDA. Repurchases under the stock repurchase program will depend upon market prices, trading volume, available cash and other factors, and therefore, there is no guarantee that any repurchases will be completed or as to the number of shares that may be purchased. There can be no assurance that actual future results, performance or achievements of, or trends affecting, us will not differ materially from any future results, performance, achievements or trends expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from historical results or the forward-looking statements contained herein, including but not limited to: uncertainties relating to the solar energy industry and the risk that sufficient additional demand for home solar energy systems may not develop or take longer to develop than we anticipate; disruptions to our solar monitoring systems, which could negatively impact our revenues and increase our expenses; warranties provided by the manufacturers of equipment for our assets and maintenance obligations may be inadequate to protect us; the solar energy systems we own or may acquire may have a limited operating history and may not perform as we expect, including as a result of unsuitable solar and meteorological conditions; problems with performance of our solar energy systems may cause us to incur expenses, may lower the value of our solar energy systems, and may damage our market reputation; the ability to identify and complete future acquisitions or strategic relationships and the ability to integrate strategic acquisitions; the ability to develop and market new products and services; changes in, and our compliance with, laws and regulations affecting our business; the highly competitive nature of the Company’s business and markets; the ability to manage our growth effectively or grow by expanding our market penetration or acquiring additional home solar portfolios; the ability to execute on and consummate business plans in anticipated time frames; litigation, complaints, product liability claims or other claims, government investigations and/or adverse publicity; cost increases or shortages in the components or chassis necessary to support the Company’s products and services, including due to tariffs or trade restrictions; developments in technology or improvements in distributed solar energy generation and related technologies or components may materially adversely affect demand for our offerings; a material reduction in the retail price of traditional utility generated electricity, electricity from other sources or renewable energy credits; we may require additional financing to support the development of our business and implementation of our growth strategy; we are subject to risks relating to our outstanding debt, including risks relating to rising interest rates and the risk that we may not have sufficient cash flow to pay or refinance our debt and to continue as a going concern; the impact of natural disasters and other events beyond our control, such as hurricanes, wildfires or pandemics, on the Company’s business, results of operations, financial condition, regulatory compliance and customer experience; cybersecurity risks; the loss or transition of key employees or senior management or the Company’s inability to attract and retain qualified personnel; the risk that the Company may identify material weaknesses in its internal control over financial reporting, or fail to maintain an effective system of internal control over financial reporting; general economic, financial, legal, political and business conditions, supply chain constraints and changes in domestic and foreign markets; the availability of capital and additional financing; economic conditions, including market interest rates, inflation, recessionary conditions and U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom; governmental investigations, litigation, complaints, other claims, or adverse publicity, which may cause us to incur significant expense, hinder execution of business and growth strategy, or impact the price of our common stock; changes in tax laws, which may materially adversely affect our business, prospects, financial condition, and operating results; our ability to use net operating loss carryforwards and other tax attributes; risks associated with construction, regulatory compliance, risks relating to changes in, and our compliance with, laws and regulations affecting our business, and other contingencies; violations of export control and/or economic sanctions laws and regulations; the adequacy of our insurance coverage; competition from traditional energy companies as well as solar and other renewable energy companies; and the other risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 31, 2025, subsequent Quarterly Reports on Form 10-Q, and other documents that the Company files with the SEC in the future. These factors are not exhaustive. New risk factors emerge from time to time, and it is not possible to predict all such risk factors, nor can the Company assess the impact of all such risk factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from the results implied by these forward-looking statements. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.


Use of Non-GAAP Financial Information


This press release includes references to certain non-GAAP financial measures. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter, without the impact of items or events that may obscure trends in our underlying financial performance. These non-GAAP financial measures should not be considered in isolation and should be considered as a supplement to, and not as a substitute for or superior to, the GAAP financial measures presented in this press release, our financial statements, and other publicly filed reports. This prospective financial information was not prepared with a view toward compliance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information or U.S. GAAP with respect to forward-looking financial information. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies.


Definitions of Non-GAAP Financial Information


Earnings (Loss) Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”):


We define EBITDA as our consolidated net income (loss) and adding back interest expense, net, income taxes, and depreciation and amortization. We believe EBITDA provides meaningful information as to the performance of our business and therefore we use it to supplement our GAAP reporting. We believe that Adjusted EBITDA, which excludes certain identified items that we do not consider to be part of our ongoing business, improves the comparability of year-to-year results, and is more representative of our underlying performance. Management uses this information to assess and measure the performance of our operating segment. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and to provide an additional measure of performance.


Operating EBITDA:


We define Operating EBITDA as Adjusted EBITDA plus proceeds from investment in master lease agreement, net, proceeds from buyouts / prepayments and interest earned on cash investments. Proceeds from investment in master lease agreement, net, represent cash flows from the Company's Spruce Power 4 Portfolio, which holds the 20-year use rights to customer payment streams of approximately 22,500 solar lease and power purchase agreements, net of servicing costs. Proceeds from buyouts / prepayments represent cash inflows from the early buyout of customer solar contracts and cash inflows from the prepayment of customer solar contracts. Interest earned on cash investments represent cash interest received on investments in money market funds.


Adjusted Cash Flow from Operations:


We define Adjusted Cash Flow from Operations as cash from operations adjusted for the recurring proceeds from both our SEMTH master lease and sales of solar energy systems, as well as non-recurring litigation settlements.


Core Operating Expenses:


We define Core Operating Expenses as the sum of our SG&A and our O&M expenses.


Portfolio Value Metrics


We believe Portfolio Value Metrics are helpful to management, investors, and analysts to understand the value of our business and to evaluate the estimated remaining value of our customer contracts, including present value implied from future, uncontracted sales of SRECs generated from assets that the Company owns today.



Gross Portfolio Value reflects the remaining projected net cash flows from current customers discounted at 6% (“PV6”)



Projected cash flows include the customer’s initial agreement plus renewal





($ in millions)






As of December 31,

2025








Contracted Portfolio Value (1)






 






729








Renewal Portfolio Value (2)






 






71








Uncontracted Renewable Energy Credits (3)






 






48








Gross Portfolio Value (4)






$






848







(1) Contracted Portfolio Value represents the present value of the remaining net cash flows discounted at 6% per annum during the initial term of the Company’s customer agreements as of the measurement date. It is calculated as the present value of cash flows discounted at 6% that the Company expects to receive from customers in future periods as set forth in customer agreements, after deducting expected operating and maintenance costs, equipment replacements costs, distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to third-party project equity investors. The calculation includes cash flows the Company expects to receive in future periods from state incentive and rebate programs, contracted sales of solar renewable energy credits, and awarded net cash flows from grid service programs with utilities or grid operators.


(2) Renewal Portfolio Value is the forecasted net present value the Company would receive upon or following the expiration of the initial customer agreement term, but before the 30th anniversary of the system’s activation in the form of cash payments during any applicable renewal period for customers as of the measurement date. The Company calculates the Renewal Portfolio Value amount at the expiration of the initial contract term assuming that, on average, Spruce's customers choose to renew 50% of the time at a contract rate representing a 35% discount to the contract rate in effect at the end of the initial contract term, for a term of 7-years.


(3) Uncontracted sales of SRECs based on forward market REC pricing curves, adjusted for liquidity discounts.


(4) Gross Portfolio Value represents the sum of Contracted Portfolio Value, Renewal Portfolio Value and Uncontracted SRECs.






 



Spruce Power Holding Corporation








Condensed Consolidated Statements of Operations (Unaudited)








For the Three Months and Years Ended December 31, 2025 and 2024










 



 






Three Months Ended

December 31,






 






Years Ended December 31,








(In thousands, except per share and share amounts)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








 






 






 






 






 






 






 






 








Revenues






$






24,028






 






 






$






20,226






 






 






$






111,812






 






 






$






82,107






 








Operating expenses:






 






 






 






 






 






 






 








Cost of revenues - solar energy systems depreciation






 






7,073






 






 






 






6,189






 






 






 






29,139






 






 






 






23,377






 








Cost of revenues - operations and maintenance






 






1,884






 






 






 






5,285






 






 






 






9,764






 






 






 






16,597






 








Selling, general and administrative expenses






 






12,975






 






 






 






15,463






 






 






 






55,113






 






 






 






58,889






 








Litigation settlements






 






637






 






 






 






179






 






 






 






1,711






 






 






 






7,384






 








Impairment of goodwill






 






—






 






 






 






—






 






 






 






—






 






 






 






28,757






 








Gain on asset disposal, net






 






(786






)






 






 






(449






)






 






 






(1,855






)






 






 






(2,504






)








Total operating expenses






 






21,783






 






 






 






26,667






 






 






 






93,872






 






 






 






132,500






 








Income (loss) from operations






 






2,245






 






 






 






(6,441






)






 






 






17,940






 






 






 






(50,393






)








Other (income) expense:






 






 






 






 






 






 






 








Interest income






 






(5,086






)






 






 






(5,850






)






 






 






(20,718






)






 






 






(22,758






)








Interest expense, net






 






12,616






 






 






 






10,332






 






 






 






50,918






 






 






 






40,232






 








Change in fair value of interest rate swaps






 






746






 






 






 






(5,400






)






 






 






12,684






 






 






 






2,753






 








Other expense (income)






 






774






 






 






 






(72






)






 






 






698






 






 






 






(542






)








Net loss from continuing operations






 






(6,805






)






 






 






(5,451






)






 






 






(25,642






)






 






 






(70,078






)








Net income (loss) from discontinued operations






 






(9






)






 






 






(25






)






 






 






(64






)






 






 






25






 








Net loss






 






(6,814






)






 






 






(5,476






)






 






 






(25,706






)






 






 






(70,053






)








Less: Net income attributable to noncontrolling interests






 






51






 






 






 






452






 






 






 






320






 






 






 






436






 








Net loss attributable to stockholders






$






(6,865






)






 






$






(5,928






)






 






$






(26,026






)






 






$






(70,489






)








Net loss from continuing operations per share, basic and diluted






$






(0.38






)






 






$






(0.29






)






 






$






(1.42






)






 






$






(3.79






)








Net income (loss) from discontinued operations per share, basic and diluted






$






—






 






 






$






—






 






 






$






—






 






 






$






—






 








Net loss attributable to stockholders per share, basic and diluted






$






(0.38






)






 






$






(0.32






)






 






$






(1.44






)






 






$






(3.82






)








Weighted-average shares outstanding, basic and diluted






 






18,068,059






 






 






 






18,566,015






 






 






 






18,068,059






 






 






 






18,470,926






 









 



Spruce Power Holding Corporation








Calculation of Core Operating Expenses








For the Three Months Ended December 31, 2025 and 2024








 



 






Three Months Ended

December 31,








(In thousands)






 






2025






 






 






2024








Calculation of core operating expenses:






 






 






 








Cost of revenues - operations and maintenance






$






1,884






 






$






5,285








Selling, general and administrative expenses






 






12,975






 






 






15,463








Core operating expenses






$






14,859






 






$






20,748











 



Spruce Power Holding Corporation








Reconciliation of Adjusted Cash Flow from Operations








For the Three and Twelve Months Ended








December 31, 2025 and 2024










 



 






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








(In thousands)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Reconciliation of Adjusted Cash Flow from Operations






 






 






 






 






 






 






 








Net cash provided by/(used) in operating activities






 






(3,302






)






 






 






(13,458






)






 






 






(3,530






)






 






 






(41,811






)








Proceeds from investment related to SEMTH master lease agreement






 






6,847






 






 






 






6,746






 






 






 






24,726






 






 






 






25,614






 








Proceeds from sale of solar energy systems






 






1,546






 






 






 






1,379






 






 






 






5,609






 






 






 






6,091






 








Non-recurring legal settlement






 






—






 






 






 






1,250






 






 






 






4,750






 






 






 






17,250






 








Adjusted Cash Flow from Operations






$






5,091






 






 






$






(4,083






)






 






$






31,555






 






 






$






7,144






 











 



Spruce Power Holding Corporation








Reconciliation of Non-GAAP Financial Measures








For the Three Months and Years Ended December 31, 2025 and 2024










 



 






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








(In thousands)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Reconciliation of Net Loss to EBITDA, Adjusted EBITDA, and Operating EBITDA






 






 






 






 






 






 






 








Net loss attributable to stockholders






$






(6,865






)






 






$






(5,928






)






 






$






(26,026






)






 






$






(70,489






)








Net income attributable to noncontrolling interests






 






51






 






 






 






452






 






 






 






320






 






 






 






436






 








Interest income






 






(5,086






)






 






 






(5,850






)






 






 






(20,718






)






 






 






(22,758






)








Interest expense, net






 






12,616






 






 






 






10,332






 






 






 






50,918






 






 






 






40,232






 








Depreciation and amortization






 






6,325






 






 






 






5,331






 






 






 






26,146






 






 






 






20,280






 








EBITDA






 






7,041






 






 






 






4,337






 






 






 






30,640






 






 






 






(32,299






)








Net (income) loss from discontinued operations






 






9






 






 






 






25






 






 






 






64






 






 






 






(25






)








Impairment of goodwill






 






—






 






 






 






—






 






 






 






—






 






 






 






28,757






 








Legal charges related to legacy shareholder and securities lawsuits






 






—






 






 






 






275






 






 






 






—






 






 






 






8,952






 








Gain on asset disposal, net






 






(786






)






 






 






(449






)






 






 






(1,855






)






 






 






(2,504






)








Change in fair value of interest rate swaps






 






746






 






 






 






(5,400






)






 






 






12,684






 






 






 






2,753






 








Meter upgrade campaign






 






18






 






 






 






480






 






 






 






321






 






 






 






2,123






 








Other one-time costs






 






503






 






 






 






183






 






 






 






2,309






 






 






 






4,311






 








Change in fair value warrant liabilities






 






—






 






 






 






—






 






 






 






—






 






 






 






(17






)








Stock based compensation






 






845






 






 






 






957






 






 






 






3,267






 






 






 






3,097






 








Bad debt expense






 






254






 






 






 






258






 






 






 






1,301






 






 






 






1,386






 








Accretion expense






 






85






 






 






 






55






 






 






 






328






 






 






 






236






 








Non-recurring acquisition/divestment expenses






 






—






 






 






 






1,161






 






 






 






135






 






 






 






1,161






 








Adjusted EBITDA






 






8,715






 






 






 






1,882






 






 






 






49,194






 






 






 






17,931






 








Proceeds from investment in master lease agreement, net






 






6,382






 






 






 






6,082






 






 






 






22,183






 






 






 






23,077






 








Proceeds from buyouts / prepayments






 






1,333






 






 






 






1,656






 






 






 






6,133






 






 






 






6,934






 








Interest earned on cash investments






 






565






 






 






 






1,186






 






 






 






2,633






 






 






 






5,922






 








Operating EBITDA






$






16,995






 






 






$






10,806






 






 






$






80,143






 






 






$






53,864






 










 



Spruce Power Holding Corporation








Condensed Consolidated Balance Sheets (Unaudited)








December 31, 2025 and December 31, 2024









 



 






 






As of December 31,








(In thousands, except share and per share amounts)






 






 






2025






 






 






 






2024






 








Assets






 






 






 






 








Current assets






 






 






 






 








Cash and cash equivalents






 






$






54,842






 






 






$






72,802






 








Restricted cash






 






 






38,303






 






 






 






36,346






 








Accounts receivable, net of allowance of $0.8 million and $0.8 million as of December 31, 2025 and 2024, respectively






 






 






15,748






 






 






 






15,010






 








Interest rate swap assets, current






 






 






3,791






 






 






 






6,258






 








Prepaid expenses and other current assets






 






 






3,189






 






 






 






6,014






 








Total current assets






 






 






115,873






 






 






 






136,430






 








Investment related to SEMTH master lease agreement






 






 






132,843






 






 






 






136,942






 








Property and equipment, net






 






 






561,388






 






 






 






589,014






 








Interest rate swap assets, non-current






 






 






9,990






 






 






 






18,414






 








Intangible assets, net






 






 






7,830






 






 






 






8,957






 








Deferred rent assets






 






 






4,872






 






 






 






3,717






 








Right-of-use assets, net






 






 






4,208






 






 






 






4,750






 








Other assets






 






 






269






 






 






 






255






 








Total assets






 






$






837,273






 






 






$






898,479






 








Liabilities, stockholders’ equity and noncontrolling interests






 






 






 






 








Current liabilities






 






 






 






 








Accounts payable






 






$






1,916






 






 






$






987






 








Accrued expenses and other current liabilities






 






 






20,308






 






 






 






28,125






 








Non-recourse debt, current






 






 






213,826






 






 






$






28,310






 








Deferred revenue, current






 






 






1,210






 






 






 






1,194






 








Lease liability, current






 






 






945






 






 






 






892






 








Interest rate swap liabilities, current






 






 






545






 






 






 






—






 








Current liabilities of discontinued operations






 






 






12






 






 






 






61






 








Total current liabilities






 






 






238,762






 






 






 






59,569






 








Non-recourse debt, non-current






 






 






462,942






 






 






 






677,021






 








Deferred revenue, non-current






 






 






3,831






 






 






 






2,790






 








Lease liability, non-current






 






 






4,181






 






 






 






4,848






 








Unfavorable solar renewable energy agreements, net






 






 






779






 






 






 






4,134






 








Interest rate swap liabilities, non-current






 






 






1,633






 






 






 






385






 








Other long-term liabilities






 






 






3,865






 






 






 






3,540






 








Long-term liabilities of discontinued operations






 






 






28






 






 






 






40






 








Total liabilities






 






 






716,021






 






 






 






752,327






 








Commitments and contingencies






 






 






 






 








Stockholders’ equity:






 






 






 






 








Common stock, $0.0001 par value; 350,000,000 shares authorized at December 31, 2025 and December 31, 2024; 20,041,252 and 18,170,425 shares issued and outstanding at December 31, 2025, respectively, and 19,403,262 and 18,311,054 issued and outstanding at December 31, 2024






 






 






2






 






 






 






2






 








Additional paid-in capital






 






 






481,327






 






 






 






478,366






 








Accumulated deficit






 






 






(354,404






)






 






 






(328,377






)








Treasury stock at cost, 1,870,827 shares and 1,092,208 at December 31, 2025 and 2024, respectively






 






 






(8,095






)






 






 






(6,277






)








Total stockholders’ equity






 






 






118,830






 






 






 






143,714






 








Noncontrolling interests






 






 






2,422






 






 






 






2,438






 








Total equity






 






 






121,252






 






 






 






146,152






 








Total liabilities, stockholders’ equity and noncontrolling interests






 






$






837,273






 






 






$






898,479






 










 



Spruce Power Holding Corporation








Condensed Consolidated Statement of Cash Flows (Unaudited)








December 31, 2025 and December 31, 2024









 



 






 






Years Ended

December 31,








(In thousands)






 






 






2025






 






 






 






2024






 








 






 






 






 






 








Operating activities:






 






 






 






 








Net loss






 






$






(25,706






)






 






$






(70,053






)








Add back: Net loss (income) from discontinued operations






 






 






64






 






 






 






(25






)








Adjustments to reconcile net loss to net cash used in operating activities:






 






 






 






 








Stock-based compensation, net






 






 






2,961






 






 






 






2,712






 








Bad debt expense






 






 






1,301






 






 






 






1,386






 








Amortization of deferred revenue






 






 






(317






)






 






 






(1,193






)








Depreciation and amortization expense






 






 






30,191






 






 






 






24,381






 








Amortization related to unfavorable solar renewable energy agreements for each period






 






 






(2,993






)






 






 






(3,097






)








Impairment of goodwill






 






 






—






 






 






 






28,757






 








Accretion expense






 






 






328






 






 






 






236






 








Change in fair value of interest rate swaps






 






 






12,684






 






 






 






2,753






 








Change in fair value of warrant liabilities






 






 






—






 






 






 






(17






)








Interest income related to SEMTH master lease agreement






 






 






(18,085






)






 






 






(16,823






)








Gain on disposal of assets






 






 






(1,855






)






 






 






(2,504






)








Change in operating right-of-use assets and lease liability






 






 






(72






)






 






 






26






 








Amortization of debt discount and deferred financing costs






 






 






6,536






 






 






 






6,026






 








Changes in operating assets and liabilities:






 






 






 






 








Accounts receivable, net






 






 






(2,040






)






 






 






(3,490






)








Deferred rent assets






 






 






(1,155






)






 






 






(1,263






)








Prepaid expenses and other current assets






 






 






2,825






 






 






 






3,707






 








Other assets






 






 






(14






)






 






 






2






 








Accounts payable






 






 






929






 






 






 






(133






)








Accrued expenses and other current liabilities






 






 






(10,361






)






 






 






(15,571






)








Other long-term liabilities






 






 






—






 






 






 






(9






)








Deferred revenue






 






 






1,374






 






 






 






2,506






 








Net cash used in continuing operating activities






 






 






(3,405






)






 






 






(41,686






)








Net cash used in discontinued operating activities






 






 






(125






)






 






 






(125






)








Net cash used in operating activities






 






 






(3,530






)






 






 






(41,811






)








Investing activities:






 






 






 






 








Proceeds from sale of solar energy systems






 






 






5,609






 






 






 






6,091






 








Proceeds from investment related to SEMTH master lease agreement






 






 






24,726






 






 






 






25,614






 








Cash paid for acquisitions






 






 






(5,334






)






 






 






(132,763






)








Purchases of other property and equipment






 






 






(221






)






 






 






(354






)








Net cash provided by (used in) continuing investing activities






 






 






24,780






 






 






 






(101,412






)








Financing activities:






 






 






 






 








Proceeds from issuance of non-recourse debt






 






 






—






 






 






 






239,842






 








Payment of deferred financing costs






 






 






—






 






 






 






(3,374






)








Repayments of non-recourse debt






 






 






(35,099






)






 






 






(155,943






)








Share repurchases






 






 






(1,818






)






 






 






(853






)








Capital distributions to noncontrolling interests






 






 






(336






)






 






 






(323






)








Net cash provided by (used in) continuing financing activities






 






 






(37,253






)






 






 






79,349






 








Net cash provided by discontinued financing activities






 






 






—






 






 






 






81






 








Net cash used in financing activities






 






 






(37,253






)






 






 






79,430






 








Net change in cash and cash equivalents and restricted cash:






 






 






(16,003






)






 






 






(63,793






)








Cash and cash equivalents and restricted cash, beginning of period






 






 






109,148






 






 






 






172,941






 








Cash and cash equivalents and restricted cash, end of period






 






$






93,145






 






 






$






109,148






 








Supplemental disclosure of cash flow information:






 






 






 






 








Cash paid for interest






 






$






42,978






 






 






$






35,060






 








Supplemental disclosure of noncash investing and financing information:






 






 






 






 








Right-of-use asset obtained in exchange for lease liability






 






$






307






 






 






$






—






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260330976329/en/
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Original: Spruce Power Reports Fourth Quarter and Full-Year 2025 Results