Spruce Power Reports Fourth Quarter and Full-Year 2025 Results

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 DebtHOUSTON--(BUSINESS WIRE)--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 InformationRead the full story here

Spruce Power Reports Fourth Quarter and Full-Year 2025 Results

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