SPRU · Spruce Power Holding Corporation

Spruce Power delivered a transformative fiscal year 2025, achieving record financial performance and reaching a clear inflection point in profitability. Full-year Operating EBITDA surged 49% to $80.1 million, while Operating Income swung to a $17.9 million gain from a $50.4 million loss in the prior year. This turnaround was driven by a combination of revenue growth and structural cost reductions. Fourth quarter revenues rose 19% year-over-year to $24.0 million, primarily attributed to the November 2024 acquisition of a residential solar portfolio from NJR Clean Energy Ventures, improved SREC revenue, and the new Spruce PRO service agreement with ADT.

The company demonstrated significant operating leverage through durable efficiency gains. Core operating expenses for the fourth quarter declined to $14.9 million from $20.7 million in the year-ago period. This included a 64% reduction in O&M expenses and a 16% decline in SG&A expenses, driven by the completion of meter upgrades, vertical integration of servicing teams, and lower professional fees. Management emphasized that these cost reductions are structural and position the company to expand margins as it scales.

Balance sheet execution was a key highlight, with $35.1 million of debt principal payments made during the year. The company exited 2025 with $93.1 million in cash ($5.13 per share) and total non-recourse debt of $695.5 million at a blended interest rate of 6.1%. CEO Chris Hayes noted the deliberate decision to extend the SP1 facility to maximize flexibility for a broader refinancing opportunity. Despite the improved operating performance, full-year net loss attributable to stockholders remained at $26.0 million, though this was a substantial improvement from the $70.5 million loss in 2024. The company did not repurchase shares during the fourth quarter, retaining $42.0 million of capacity under its existing authorization.