SPRU

Shares of Spruce Power Holding Corporation SPRU have declined 9.5% since the company reported its earnings for the quarter ended June 30, 2026. This compares with the S&P 500 index’s 0.4% growth over the same time frame. Over the past month, the stock has declined 16.8% against the S&P 500’s 2.9% growth. Spruce Power reported second-quarter 2026 net income of 14 cents per share against a net loss of 17 cents per share a year earlier. Revenues of $30.3 million denoted a 9% decline from $33.3 million in the year-ago quarter. Despite the revenue decline, net income attributable to stockholders came in at $3.3 million against a net loss of $3 million a year earlier. Operating income increased 10% year over year to $9.8 million from $8.9 million, benefiting from lower operating costs. Total operating expenses fell 16% to $20.6 million from $24.4 million, while selling, general and administrative expenses declined 26% year over year. Spruce Power Holding Corporation price-consensus-eps-surprise-chart | Spruce Power Holding Corporation Quote Operating EBITDA reached a record $26.5 million, up 7% from $24.6 million in the second quarter of 2025, as lower operating costs more than offset weaker revenues. Core operating expenses, comprising SG&A and operations and maintenance expenses, declined 21% to $13.8 million from $17.4 million. O&M expense, however, increased to $2.5 million from $2.2 million, reflecting additional efforts to reduce the outstanding service-ticket backlog. The company’s portfolio generated approximately 196,000 megawatt-hours of power, up from 187,000 megawatt-hours a year earlier. Combined power purchase agreement and solar lease revenues increased 2% year over year to $22.5 million. Spruce Power owned cash flows from approximately 83,000 home solar assets and customer contracts across 18 states, with an average remaining contract life of about 10 years, while servicing approximately 60,000 third-party-owned systems. Adjusted cash flow from operations was positive $4.8 million, although GAAP cash used in operating activities totaled $3.2 million, partly reflecting working-capital timing and higher SREC receivables. Spruce Power ended the quarter with $81.5 million of cash and restricted cash, including $44.7 million of unrestricted cash and repaid $7.9 million of debt principal. Total assets decreased to $818.4 million as of June 30, 2026, from $837.3 million at 2025-end. In contrast, total stockholders’ equity increased to $120.4 million from $118.8 million over the same period. For the second quarter, net cash used in operating activities increased to $3.2 million from $2.3 million in the year-ago quarter. The revenue decline reflected several pressures outside the core contracted portfolio. Management said combined PPA and lease revenue increased by $0.4 million, but this was more than offset by a $1.4 million reduction in performance-based incentive revenue, a $1.1 million decline in SREC revenues and a net $0.9 million reduction in other revenue. Lower SP5 SREC production and a slower-than-anticipated ramp in Spruce Pro revenue were the principal revenue headwinds. Profitability benefited from cost reductions implemented in 2025. SG&A fell to $11.3 million, primarily due to lower labor and recurring professional-services costs, although nonrecurring professional fees related to corporate strategy, refinancing and legal matters partially offset those savings. Management also attributed the improvement in net income to lower operating expenses and a favorable year-over-year change in the noncash valuation of interest-rate swaps. CEO Christopher Hayes said the quarter demonstrated the benefits of Spruce’s leaner operating model and structural efficiencies, with cost containment supporting profitability despite top-line fluctuations. Management is also expanding its in-house field-services approach from New Jersey into Southern California, aiming to lower servicing costs, shorten repair cycles and improve control over service quality. Refinancing remains a near-term priority. Management said SP1 and SP2 maturities resulted in a going-concern disclosure and negative working capital at quarter-end. Spruce Power has begun preliminary lender discussions regarding SP1 and is evaluating refinancing alternatives for both facilities, with the objective of completing transactions ahead of their respective maturities. Management maintained its full-year forecast. PPA and lease revenue is expected to remain generally consistent with first-half portfolio performance and normal seasonal patterns, while overall revenues are expected to be in line with the first half. Higher second-half service activity is expected to largely offset first-half O&M favorability, leaving full-year O&M broadly consistent with initial expectations. Recurring SG&A is expected to decline from approximately $11 million per quarter toward approximately $10 million in the fourth quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Spruce Power Holding Corporation (SPRU): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Operating EBITDA increased to $26.5 million from $24.6 million in the prior year quarter, driven by lower operating costs. Income from operations rose 10% year-over-year to $9.8 million, and the company returned to positive GAAP net income of $3.3 million. Core operating expenses (SG&A and O&M) declined 21% year-over-year to $13.8 million, with SG&A down 26%. Combined PPA and lease revenue grew 2% year-over-year to $22.5 million, and portfolio power generation increased to 196,000 MWh from 187,000 MWh. The company reduced debt by $7.9 million during the quarter and maintained a strong liquidity position with $81.5 million in total cash. Customer satisfaction score remained high at 80%, reflecting strong operational execution and service quality. Total revenue declined to $30.3 million from $33.3 million in the prior year period, due to lower SREC production and a slower-than-expected ramp in Spruce Pro revenue. The company faces near-term refinancing risk, with SP1 and SP2 maturities within 12 months, leading to a going concern disclosure and negative working capital position. O&M expense increased year-over-year to $2.5 million from $2.2 million, driven by efforts to reduce the service ticket backlog. Cash used in operating activities was negative $3.2 million during the quarter, reflecting working capital timing and higher SREC receivables. The company expects full-year O&M spending to rise in the second half, offsetting first-half favorability, and recurring SG&A will only gradually decline to $10 million by Q4. There is no assurance regarding the timing, terms, or completion of refinancing transactions, which could impact liquidity and capital structure. Warning! GuruFocus has detected 5 Warning Signs with SPRU. Is SPRU fairly valued? Test your thesis with our free DCF calculator. Q: What is the status of the SP1 and SP2 debt maturities, and what is the company's plan to address the going concern disclosure?A: Chris Hayes (CEO) confirmed that refinancing is a critical near-term priority. The SP1 facility matures on January 30, 2027, and SP2 on May 14, 2027. The company is in preliminary discussions with potential lenders for SP1 and evaluating alternatives for both facilities. The goal is to complete refinancing ahead of the maturities to preserve liquidity and maintain an appropriate capital structure, though no assurance can be given on timing or terms. Q: Can you explain the year-over-year revenue decline despite the portfolio's stability?A: Tom Samino (CFO) detailed that revenue fell to $30.3 million from $33.3 million. While combined PPA and lease revenue increased by $400,000, this was offset by a $1.4 million reduction in performance-based incentives, a $1.1 million reduction in SREC revenue (particularly from SP5), and a $900,000 net reduction in other revenue. The underlying recurring customer portfolio remained stable, with generation up to 196,000 MWh from 187,000 MWh. Q: How is the company's cost reduction strategy impacting profitability?A: Chris Hayes (CEO) highlighted that core operating expenses (SG&A and O&M) declined 21% year-over-year to $13.8 million. SG&A fell 26% to $11.3 million due to lower labor and professional services costs. This drove operating EBITDA up to $26.5 million from $24.6 million, and income from operations increased 10% to $9.8 million. The company returned to positive GAAP net income of $3.3 million versus a net loss of $3 million in the prior year. Q: What is the outlook for O&M expenses in the second half of 2026?A: Tom Samino (CFO) noted that O&M expense was $2.5 million in Q2, up from $2.2 million, due to efforts to reduce the service ticket backlog. However, for the first six months, O&M was down approximately 40% year-over-year. The company expects service volumes to increase in H2, which should bring full-year O&M spending closer to original plan, offsetting the first-half favorability. Q: How is the in-house field services model performing, and what are its benefits?A: Chris Hayes (CEO) stated that the in-house field services model is a key part of the operating strategy. It has reduced servicing costs across the New Jersey portfolio and is being extended to Southern California. As the rollout matures, the company believes it can lower servicing costs per system, shorten repair cycle times, and improve control over service quality and system uptime. Q: What is the company's approach to growth and capital allocation?A: Chris Hayes (CEO) reiterated that the company is taking a disciplined approach to growth, including portfolio acquisitions, programmatic partnerships, and Spruce Pro servicing relationships. Growth will only be pursued where expected returns justify the capital and incremental overhead. The primary focus remains on refinancing, liquidity management, and operational efficiency. Q: Can you provide details on the company's liquidity and debt position?A: Tom Samino (CFO) reported ending the quarter with total cash of $81.5 million, including $44.7 million of unrestricted cash. The company repaid $7.9 million of debt principal during the quarter, bringing total debt principal outstanding to $680 million. Interest rate swaps covered 91% of floating-rate term debt, and the company remained in compliance with all covenants. Q: What are the expectations for full-year 2026 revenue and SG&A?A: Tom Samino (CFO) stated that the full-year forecast is unchanged. PPA and lease revenue is expected to remain consistent with portfolio performance and seasonal patterns. SREC revenue, particularly from SP5, is expected to be in line with the first half. Recurring SG&A is expected to trend from approximately $11 million quarterly toward approximately $10 million in Q4. Q: How is the company leveraging technology and AI to improve operations?A: Chris Hayes (CEO) mentioned that the company is evaluating practical opportunities to use automation and AI across customer service, asset management, finance, and other core functions. The focus is on targeted applications that reduce manual work, improve data quality and service levels, and support productivity without adding unnecessary overhead. Q: What drove the negative working capital position at quarter end?A: Tom Samino (CFO) explained that the current classification of SP1 and SP2 maturities, which fall within 12 months of the financial statement issuance date, caused the reported negative working capital position. This is a GAAP requirement as committed refinancing arrangements had not been executed as of that date, leading to the going concern disclosure. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Operating income up 10% year-over-year in the second quarterNet income attributable to stockholders of $3.3 millionRecord Operating EBITDA of $26.5 million$81.5 million of cash, $4.24 per share HOUSTON, August 12, 2026--(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 second quarter ended June 30, 2026. Second Quarter 2026 Business Highlights Delivered a solid financial performance, achieving operating income of $9.8 million for the quarter compared to $8.9 million in the second quarter of 2025 Net income attributable to stockholders of $3.3 million for the quarter compared to net loss attributable to stockholders of $3.0 million for the year-earlier period Net income attributable to stockholders of $0.6 million for the first half of 2026 compared to net loss attributable to stockholders of $18.2 million for the year-earlier-period Revenues of $30.3 million in the quarter, down from second quarter 2025 revenues of $33.3 million SG&A expenses down 26% compared to the year-earlier period Total operating expenses down 16% compared to the year-earlier period Net cash used in operations of $3.2 million for the quarter compared to $2.3 million in the year-earlier period Operating EBITDA up 7% year-over-year in the second quarter, and up 21% in the first half of 2026 compared to the year-earlier period, driven by continued cost management Adjusted Cash Flow generated in Operations of $4.8 million for the second quarter of 2026 Ended the second quarter with $81.5 million of cash and cash equivalents and restricted cash, or $4.24 per share Continued to reduce leverage, paying down $7.9 million of debt principal in the second quarter of 2026 Management Commentary and Outlook Chris Hayes, Chief Executive Officer, commented: "Our second quarter 2026 results demonstrate the power of our ongoing focus on a lean operating model and the structural efficiencies we established late last year. Spruce delivered operating income of $9.8 million, up from $8.9 million in the prior-year period, generating net income attributable to stockholders of $3.3 million. The structural cost reductions implemented last fall continue to yield significant results, fueling a 21% decrease in core operating expenses this quarter. The sustained cost containment drove a 7% year-over-year increase in Operating EBITDA, proving that our streamlined platform can drive profitability regardless of top-line fluctuations. We also made strong progress on our capital allocation priorities, generating $4.8 million in Adjusted Cash Flow from Operations and paying down $7.9 million of debt principal during the quarter. We ended Q2 with $81.5 million of cash and cash equivalents and restricted cash, or $4.24 per share. We believe our current liquidity, combined with our ongoing debt reduction, will help us maintain flexibility as we continue to pursue a broader portfolio refinancing. With expanding profitability, fundamental cost reductions embedded across our business, and a solid balance sheet, we believe Spruce is well positioned to convert our long-term contracted cash flows into sustainable shareholder value throughout the second half of 2026." Consolidated Financial Results Revenues totaled $30.3 million for the second quarter of 2026, compared with $33.3 million for the second quarter of 2025. Revenues for the second quarter are down slightly due to lower revenues from Solar Renewable Energy Credits and Performance Based Incentives. Total operating expenses were $20.6 million for the second quarter of 2026, compared to $24.4 million for the second quarter of 2025. The year-over-year decline in operating expense is attributed primarily to a decrease in SG&A expenses and ongoing cost management efforts implemented in the third quarter of 2025. Core Operating Expenses, which includes both SG&A expenses and O&M expenses was $13.8 million in the aggregate for the second quarter of 2026, down from $17.4 million in the year-earlier period. This includes $11.3 million of SG&A expenses and O&M expenses of $2.5 million in the second quarter of 2026, down from SG&A expense of $15.2 million and up from O&M expense of $2.2 million for the second quarter of 2025. The decreases in both total operating expenses and Core Operating Expenses were primarily attributable to lower year-over-year SG&A costs due to headcount reduction implemented in the third quarter of 2025. Net income attributable to stockholders was $3.3 million, or $0.14 diluted earnings per share for the second quarter of 2026, compared to net loss of $3.0 million or $0.17 diluted loss per share for the second quarter of 2025. Balance Sheet and Liquidity Total principal amount of outstanding debt as of June 30, 2026, decreased to $679.5 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 and cash equivalents and restricted cash as of June 30, 2026, was $81.5 million, or $4.24 per share, including cash and cash equivalents of $44.7 million and restricted cash of $36.9 million. Per-share amount is based on 19,249,671 shares issued and outstanding as of June 30, 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 $802.0 million as of June 30, 2026. During the second 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 June 30, 2026. Key Operating Metrics As of June 30, 2026, Spruce owned cash flows from approximately 83,000 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 June 30, 2026. Conference Call Information The Spruce management team will host a conference call for analysts and investors to discuss its second quarter 2026 financial results and business outlook at 4:30 p.m. Eastern Time August 12, 2026. The conference call can be accessed live over the telephone by dialing (833) 461-5787 and referencing Conference ID 833224795. Alternatively, the call can be accessed via a live webcast accessible at https://events.q4inc.com/attendee/833224795. A replay will be available shortly after the call and can be accessed at https://events.q4inc.com/attendee/833224795. The replay will be available until August 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 83,000 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 (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260812918989/en/ Contacts For More Information Investor Contact: [email protected] Media Contact: [email protected]

Image source: The Motley Fool. Wednesday, May 13, 2026 at 4:30 p.m. ET Chief Executive Officer — Christopher Hayes Chief Financial Officer — Thomas Cimino Director of Investor Relations — Julia Gasbarre Need a quote from a Motley Fool analyst? Email [email protected] Christopher Hayes: Thanks, Julia. Good afternoon, everyone. 2025 was a breakout year for Spruce and our fourth quarter capped it with exceptional momentum across the business. I could not be prouder of what our team accomplished. We delivered strong growth, significantly expanded margins and fundamentally improved the efficiency and scalability of our platform. For the fourth quarter, revenue was approximately $24 million, up 19% year-over-year, and operating EBITDA exceeded $17 million, reflecting both portfolio growth and meaningful cost improvements. For the full year, revenue increased 36% versus 2024, underscoring the strength of our platform and the impact of the NJR acquisition. Importantly, this growth was accompanied by substantial operating leverage. In the fourth quarter, O&M expense declined 64% year-over-year and SG&A declined 16% as we executed on our cost optimization initiatives. These gains are structural in nature and position us to drive continued margin expansion as we scale. We saw a meaningful inflection in cash generation. Adjusted cash flow from operations was positive $5.1 million in the quarter compared to negative $4.1 million in the prior year period, reflecting both improved operating performance and the growing contribution from our portfolio. At the same time, we continued to delever, repaying $35.1 million of debt during 2025, increasing our enterprise value. The shift in our operating income underscores our breakout year. For the full year 2025, income from operations was positive $17.9 million compared to negative $50.4 million in the prior year. Operating EBITDA was $80.1 million for the full year 2025, a 49% increase versus 2024. Taken together, these results demonstrate the strength of our model, a growing base of long-term contracted cash flows, improving unit economics and a platform that becomes more efficient as it scales. Before turning to our strategy, I want to address our financing process and the going concern disclosure you will see in our upcoming 10-K. As part of our capital strategy, we made a deliberate decision to extend our existing SP1 facility to create additional flexibility as we evaluate a broader refinancing opportunity. Rather than a near-term single portfolio solution, we chose to position the company to execute a more comprehensive transaction that could include SP1, SP2 and SP3. With the SP1 extension now complete, we are moving aggressively on a more comprehensive solution. We believe this approach maximizes optionality, enhances long-term financing efficiency and better aligns our capital structure with the scale of the platform we have built. The going concern disclosure is driven by accounting requirements related to the timing of this process. It is not reflective of our operating performance or lender engagement. We are encouraged by the level of interest and support we have seen and remain confident in our ability to execute a financing solution that strengthens the business and supports future growth. Looking ahead, our strategy remains focused on 3 key growth drivers. First, acquiring installed residential solar portfolios where our platform can unlock incremental value through operational improvements; second, expanding programmatic partnerships with developers and originators, allowing us to efficiently grow our asset base; and third, scaling Spruce Pro, our capital-light servicing platform, which we believe represents a significant and underappreciated opportunity to grow revenue and expand margins without deploying capital. Across each of these areas, our operating capabilities, cost structure and experience managing distributed solar assets position us to execute at scale. In closing, we exited 2025 with strong momentum, improved profitability, solid cash position and a clear path to continued growth. We are confident in the trajectory of the business and excited about the opportunities ahead in 2026. With that, I'll turn the call over to Tom. Thomas Cimino: Thanks, Chris, and good afternoon, everyone. I'll begin with our fourth quarter financial results. For the fourth quarter 2025, revenue totaled $24 million compared to $20.2 million in the fourth quarter 2024. The increase was again primarily attributable to the residential solar portfolio acquired from NJR in November 2024 as well as higher solar renewable energy credit revenue. Sequentially, revenue declined from the third quarter, which is consistent with the seasonal pattern of solar production and customer payments, particularly during the winter months when solar generation is lower. Turning to expenses. Total operating expense was $21.8 million for the quarter compared to $26.7 million in the year earlier period. Core operating expenses, which include SG&A and O&M totaled $14.9 million compared with $20.7 million in the fourth quarter of 2024. Breaking that down further, SG&A expenses were $13 million. O&M expenses were $1.9 million. The year-over-year improvement reflects the early stages of our project streamline and its impact on SG&A as we focus on reducing recurring costs. Regarding O&M costs for the year-over-year period, both the completion of our meter upgrade activities as well as continued efficiencies and cost discipline across the business contributed to the favorable variance. Operating EBITDA for the quarter was $17 million, up from $10.8 million in the fourth quarter 2024, primarily reflecting the contribution of the NJR portfolio as well as improvements in the company's operating cost structure. Now moving on to the balance sheet and liquidity. Adjusted cash flow from operations was $5.1 million for the quarter compared with a negative $4.1 million in the prior period -- prior year period. Cash flow from operations can fluctuate quarter-to-quarter due to both seasonal solar generation patterns and timing of certain debt service payments. Despite these fluctuations, the underlying cash generation from our portfolio remains stable and continues to support the ongoing paydown of debt principal. We continue to repay debt principal, paying $10.1 million during the quarter and $35.1 million for the year. We closed the year with a total of $93.1 million in cash. That compares to $98.8 million at the end of the third quarter and approximately $90 million at the end of the second quarter. The modest sequential change primarily reflects the timing of debt service as we pay the mezzanine debt service semiannually. Total outstanding principal debt as of December 31, 2025, was $695.5 million with a blended interest rate of approximately 6.1%, including the impact of our hedge arrangements. As Chris discussed earlier, we strategically entered into an extension of our SP1 facility, which gives us maximum optionality and a runway to focus on a broader refinancing transaction across multiple portfolios. We extended the terms to January 30, 2027, with the stipulation that we have a term sheet by October 30, 2026. Looking ahead, we intend to build on the momentum we established in the second half of 2025. We look to continue to reduce costs and further improve our recurring run rate core expense profile as we fully implement our streamlined savings while pursuing modest disciplined growth. With that, I'll turn the call back over to Chris for closing comments. Christopher Hayes: Thanks, Tom. To summarize, our fourth quarter and full year results reflect continued progress executing our strategy. We remain focused on generating stable cash flow from our operating portfolio, improving the efficiency of our platform and pursuing disciplined growth opportunities through portfolio acquisitions, programmatic partnerships and the continued expansion of Spruce Pro. We appreciate the continued support of our investors and look forward to updating you again next quarter. Operator, please open the line for any questions. Operator: [Operator Instructions] Our first question comes from the line of Will Hamilton from Kestrel Merchant Partners. William Hamilton: Congrats on the strong cash flow. I just wanted to see if I could get a little bit more color on the revenue buckets. How much was SREC during the quarter and the services revenue since those have been larger growth contributors? Christopher Hayes: Yes. You got it, Tom. Thomas Cimino: Yes. Well, appreciate it. Thanks for the compliment on the quarter. The K, you'll see we break out the revenue by component. The SREC revenue for the year was $21 million and the system, either leases or PPA revenue was $78 million. But keep in mind, the SP4 revenue is consistent with every quarter. That revenue is recorded below the line as interest income, and that's just due to the accounting nuance and the requirements to record that revenue as actually interest income. But you can see it in the cash flow statement as cash coming in. So that's the breakdown. William Hamilton: Okay. And then -- on with Spruce Pro, how would you characterize like sort of the pipeline of adding new business there to grow that? Christopher Hayes: Yes. I would say, overall, we have a robust pipeline that's made up of kind of what we call a few large whales and sort of some smaller opportunities. So we've been super active in the market. Obviously, we didn't announce anything in the quarter, but we are hopeful there will be announcements in the near term and are very aggressive in that space. William Hamilton: Okay. And then last question is more on M&A, which is hard to answer, but you haven't done anything too recent. I was just wondering what is the pipeline like for that. But is it also now kind of tied to the debt consolidation deal that you're working on? Christopher Hayes: Yes. So I'll answer them separately, but talk about any interplay between the two. So we do have a super active pipeline. I mean we've done 13 acquisitions over a number of years. So having been active in the market, we get phone calls. We're always beating the bushes. We are underwriting a number of deals, whether we get to closing remains to be seen, but that is certainly the objective. As it relates to the SP1 strategic extension that we chose, no, there is not an interplay with that and either helping or hurting any strategic growth acquisitions that sort of operate independently. Operator: There are no further questions. I'd like to now turn the call back over to Julia Gasbarre for closing remarks. Julia Gasbarre: Thanks, operator, and thank you to everyone for joining us today and for your continued support. If you have any questions, please reach out to the Investor Relations team. This concludes our call. Operator: This concludes today's meeting. You may now disconnect. Before you buy stock in Spruce Power, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Spruce Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Spruce Power (SPRU) Q4 2025 Earnings Transcript was originally published by The Motley Fool

Operating EBITDA up 49%; Positive adjusted cash generation from operations up 181% Ends quarter with $4.71 in cash per share. HOUSTON, May 13, 2026--(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 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 (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260513337583/en/ Contacts For More Information Investor Contact: [email protected] Media Contact: [email protected]

Image source: The Motley Fool. Wednesday, May 13, 2026 at 4:30 p.m. ET Chief Executive Officer — Christopher Hayes Chief Financial Officer — Thomas Cimino Need a quote from a Motley Fool analyst? Email [email protected] Christopher Hayes: Thanks, Julia. Good afternoon, everyone. We began 2026 with continued progress against our operational and financial priorities, delivering meaningful year-over-year improvement in profitability and operating efficiency, while maintaining stable liquidity and recurring cash flow generation from our portfolio. For the first quarter, revenue totaled approximately $23.4 million, which was generally in line with the prior year period despite weather-related impacts in the Northeast. Importantly, we continue to realize the benefits of our operational streamlining initiatives, resulting in substantial margin expansion and improving operating performance across the business. Operating EBITDA for the quarter was approximately $18.4 million, an increase of 49%, compared to the first quarter of 2025. Income from operations improved by more than $5.5 million year-over-year, reflecting continued cost discipline, lower operating expenses and the structural efficiencies we implemented through 2025. Our first quarter results demonstrate the strength of our operating platform and the durability of our long-term contracted revenue base. While top line growth was modest during the quarter, our focus remains on maximizing cash generation, improving operating leverage and positioning the business for sustainable long-term value creation. During the quarter, we executed our cost optimization initiatives. Operations and maintenance expenses declined 70% year-over-year, while SG&A expense declined 21%, driven primarily by lower labor costs, reduced professional services spend and ongoing operational efficiencies associated with Project Streamline. Importantly, we believe a significant portion of these improvements are structural in nature. While some O&M activity shifted into later quarters of the year, the broader improvements in labor efficiency, vendor management and servicing operations continue to support a meaningfully lower recurring cost structure for the business. Turning to liquidity and financing. As expected, our quarter end financial statements include a going concern disclosure tied to the accounting treatment associated with the current maturity classification of the SP1 facility. Importantly, we successfully completed an extension of the SP1 facility during the quarter and continue to advance constructive refinancing discussions consistent with our historical financing strategy. We believe the extension provides additional flexibility as we evaluate a broader refinancing opportunity designed to optimize our long-term capital structure and align financing with the scale and maturity of the platform we have built. Operationally, the business remains stable. With approximately 84,000 customer contracts generating predictable, recurring cash flows supported by long-term agreements and diversified geographic exposure. Looking ahead, our priorities remain consistent: first, continue to improve the efficiency and profitability of our operating platform; second, advancing our refinancing initiatives and maintaining disciplined liquidity management; third, selectively pursuing growth opportunities across portfolio acquisitions, programmatic partnerships and Spruce Pro servicing relationships, where we believe we can generate attractive returns without significant incremental overhead. We also continue to see encouraging long-term opportunities within a variety of new business initiatives that we are exploring as the year continues. Overall, we are encouraged by the progress we made during the quarter and remain focused on disciplined execution as we move through 2026. With that, I'll turn the call over to Tom. Thomas Cimino: Thanks, Chris, and good afternoon, everyone. I'll begin with our first quarter financial results. For the first quarter 2026, revenue totaled $23.4 million, compared to $23.8 million in the first quarter of 2025. Modest year-over-year decline was primarily attributable to lower noncash amortization revenue associated with our previously acquired solar energy agreements as well as lower PPA revenue driven by weather-related impacts and customer buyouts. These items were partially offset by higher SREC and performance-based incentive revenue. Turning to expenses. Total operating expense for the quarter was $19.6 million compared with $25.5 million in the prior year period. Core operating expenses, which include SG&A and O&M totaled approximately $12.7 million, compared with approximately $18.6 million in the first quarter of 2025. Breaking that down further, SG&A expense was approximately $11.6 million. O&M expense was approximately $1.2 million. The year-over-year improvement reflects our continued execution of streamlined initiatives including lower labor costs, reduced professional service expense and ongoing operating efficiencies throughout the organization. Within O&M, the reduction was driven by improved servicing efficiencies and lower third-party vendor activity and the completion of elevated service and meter upgrade activity that occurred during the prior year period. As Chris mentioned, some O&M activity shifted into later quarters of 2026 as we align servicing volumes with our full year operating plan. As a result, we expect O&M expenses to increase sequentially throughout the year while remaining generally in line with our full year expectations. Operating EBITDA for the quarter was $18.4 million compared with $12.3 million in the first quarter of 2025 and representing an increase of 49%. Net loss attributable to stockholders improved significantly to approximately $2.9 million compared with a net loss of approximately $15.3 million in the prior year period. The improvement was driven primarily by lower operating expenses and favorable year-over-year changes in the valuation of our interest rate swaps. Now turning to the balance sheet and liquidity. We ended the quarter with total cash and restricted cash of approximately $85.6 million, including approximately $50 million of unrestricted cash. During the quarter, we repaid approximately $8.2 million of debt principal, continuing our long-term deleveraging strategy. Total outstanding debt as of March 31, 2026, was $668 million with a blended interest rate of approximately 6.6%, including the impact of our hedge arrangement. As Chris discussed, we completed an amendment to the SP1 facility during the quarter, extending the maturity to October 2026, with the potential extension to expense into January 2027, subject to achieving a signed term sheet. We continue to actively evaluate refinancing alternatives and remain encouraged by ongoing discussions. Looking ahead, our current outlook for full year 2026 remains generally consistent with our prior expectations. We expect full year operating EBITDA to remain in line with our budget with lower first quarter O&M spend and collections, offset by higher servicing activity and collections during the second half of the year. We expect continued improvements in SG&A run rate as additional streamlined initiatives are implemented. Overall, we believe the business is well positioned to continue generating stable recurring cash flow from operations while improving operational efficiency and advancing our financing objectives. With that, I'll turn the call back over to Chris for closing remarks. Christopher Hayes: Thanks, Tom. To summarize, our first quarter results reflect continued progress executing our operational and financial strategy. We delivered substantial year-over-year improvement in profitability and operating EBITDA, continue to reduce costs across the organization, maintained stable liquidity and advanced our refinancing process. As we move through 2026, we remain focused on disciplined execution, recurring cash flow generation, operational efficiency and long-term shareholder value creation. We appreciate the continued support of our investors and look forward to updating you again next quarter. Operator, please open the line for questions. Operator: [Operator Instructions] At this time, there are no further questions. This concludes today's call. Thank you all for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Spruce Power (SPRU) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Spruce Power Holding (NYSE:SPRU) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. View the webcast at https://events.q4inc.com/attendee/177518258 Spruce Power Holding Corp reported first quarter 2026 revenue of $23.4 million, maintaining consistency with the prior year despite weather impacts. The company achieved a 49% increase in operating EBITDA to $18.4 million, driven by cost optimization and operational efficiencies. Operational expenses decreased significantly, with a 70% reduction in operations and maintenance costs and a 21% decline in SG&A expenses. Spruce Power Holding Corp successfully extended the maturity of its SP1 facility and is actively exploring refinancing options to optimize its capital structure. The company maintains a stable cash flow from approximately 84,000 customer contracts and continues to focus on operational efficiency, cost reduction, and strategic growth opportunities. OPERATOR Hello everyone. Thank you for joining us and welcome to Spruce Power First Quarter 2026 Earnings Results Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the call over to Julia Gasparri, Head of Investor Relations. Please go ahead. Thank you. Operator Good afternoon everyone and welcome to Spruce Power's first quarter 2026 earnings conference call. Joining me today are Chris Hayes, Spruce Power's Chief Executive Officer, and Tom Cimino, the company's Chief Financial Officer. Before we begin, I'd like to remind you that we will comment on our financial performance using both GAAP and non GAAP financial measures. Important information about these non GAAP financial measures, including reconciliations to the most comparable GAAP measures, is included in our earnings Release for the first quarter of 2026 is available on the Investor Relations section of our website. Our discussion today will also include forward looking statements that reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release and SEC filings for a discussion of these risk factors. With that, I will now turn the call over to Chris Hayes, Chief Executive Officer of Spruce Power. Chris Hayes (Chief Executive Officer) Chris thanks, Julia. Good afternoon everyone. We began 2026 with continued progress against our operational and financial priorities, delivering meaningful year over year improvement in profitability and operating efficiency while maintaining stable liquidity and recurring cash flow generation from our portfolio. For the first quarter, revenue totaled approximately 23.4 million, which was generally in line with the prior year period despite weather related impacts in the Northeast. Importantly, we continue to realize the benefits of our operational streamlining initiative, resulting in substantial margin expansion and improving operating performance across the business. Operating EBITDA for the quarter was approximately 18.4 million, an increase of 49% compared to the first quarter of 2025. Income from operations improved by more than 5.5 million year over year reflecting continued cost discipline, lower operating expenses and the structural efficiencies we implemented through 2025. Our first quarter results demonstrate the strength of our operating platform and the durability of our long term contracted revenue base. While top line growth was modest during the quarter, our focus remains on maximizing cash generation, improving operating leverage and positioning the business for sustainable long term value creation. During the quarter we executed our cost optimization initiatives, Operations and maintenance expenses declined 70% year over year while SG&A expense declined 21%, driven primarily by lower labor costs, reduced professional services spend and ongoing operational efficiencies associated with project streamline. Importantly, we believe a significant portion of these improvements are structural in nature. While some O&M activity shifted into later quarters of the year, the broader improvements in labor efficiency, vendor management and servicing operations continue to support a meaningfully lower recurring cost structure for the business. Turning to Liquidity and Financing as expected, our quarter end financial statements include a going concern disclosure tied to the accounting treatment associated with the current maturity classification of the SP1 Facility. Importantly, we successfully completed an extension of the SP1 Facility during the quarter and continue to advance constructive refinancing discussions consistent with our historical financing strategy. We believe the extension provides additional flexibility as we evaluate a broader refinancing opportunity designed to optimize our long term capital structure and align financing with the scale and maturity of the platform we have built. Operationally, the business remains stable with approximately 84,000 customer contracts generating predictable recurring cash flows supported by long term agreements and diversified geographic exposure. Looking ahead, our priorities remain consistent. First, continue to improve the efficiency and profitability of our operating platform. Second, advancing our refinancing initiatives and maintaining disciplined liquidity management. Third, selectively pursuing growth opportunities across portfolio acquisitions, programmatic partnerships and Spruce Pro servicing relationships where we believe we can generate attractive returns without significant incremental overhead. We also continue to see encouraging long term opportunities within a variety of new business initiatives that we are exploring as the year continues. Overall, we are encouraged by the progress we made during the quarter and remain focused on disciplined execution as we move through 2026. With that, I'll turn the call over to Tom. Tom Cimino (Chief Financial Officer) Thanks Chris. Good afternoon everyone. I'll begin with our first quarter financial results. For the first quarter 2026 revenue totaled 23.4 million compared to 23.8 million in the first quarter of 2025. The modest year over year decline was primarily attributable to lower non cash amortization revenue associated with our previously acquired solar energy agreements as well as lower PPA revenue driven by weather related impacts and customer buyouts. These items were partially offset by higher SREC and performance based incentive revenue. Turning to expenses, total operating expense for the quarter was 19.6 million compared with 25.5 million in the prior year period. Core operating expenses which include SG and A and O and m totaled approximately 12.7 million compared with approximately 18.6 million in the first quarter of 2025. Breaking that down further, SG&A expense was approximately 11.6 million. O&M expense was approximately 1.2 million. The year over year improvement reflects our continued execution of streamlined initiatives including lower labor costs, reduced professional service expense and ongoing operating efficiencies throughout the organization. Within O&M, the reduction was driven by improved servicing efficiencies, lower third party vendor activity and the completion of elevated service and meter upgrade activity that occurred during the prior year period. As Chris mentioned, some O&M activity shifted into later quarters of 2026 as we aligned servicing volumes with our full year operating plan. As a result, we expect O&M expenses to increase sequentially throughout the year while remaining generally in line with our full year expectations. Operating EBITDA for the quarter was 18.4 million compared with 12.3 million in the first quarter 2025, representing an increase of 49%. Net loss attributable to stockholders, improved significantly to approximately 2.9 million compared with a net loss of approximately 15.3 million in the prior year period. The improvement was driven primarily by lower operating expenses and favorable year over year changes in the valuation of our interest rate swaps. Now turning to the balance sheet and liquidity, we ended the quarter with total cash and restricted cash of approximately 85.6 million, including approximately 50 million of unrestricted cash. During the quarter we repaid approximately $8.2 million of debt principal continuing our long term deleveraging strategy. Total outstanding Debt as of March 31, 2026 was $668 million with a blended interest rate of approximately 6.6% including the impact of our hedge arrangements. As Chris discussed, we completed an amendment to the SP1 Facility during the quarter extending the maturity to October 2026 with the potential extension to January 2027 subject to achieving a signed term sheet. We continue to actively evaluate refinancing alternatives and remain encouraged by ongoing discussions. Looking ahead, our current outlook for full year 2026 remains generally consistent with our prior expectations. We expect full year operating EBITDA to remain in line with our budget with lower first quarter O&M spend and collections offset by higher servicing activity and collections. During the second half of the year, we expect continued improvements in SG&A run rate as additional streamline initiatives are implemented. Overall, we believe the business is well positioned to continue generating stable recurring cash flow from operations while improving operational efficiency and advancing our financing objectives. With that, I'll turn the call back over to Chris for closing remarks. Chris Hayes (Chief Executive Officer) Thanks Tom. To summarize, our first quarter results reflect continued progress executing our operational and financial strategy. We delivered substantial year over year improvement in profitability and operating EBITDA, continued to reduce costs across the organization, maintained stable liquidity and advanced our refinancing process. As we move through 2026, we remain focused on disciplined execution, recurring cash flow generation, operational efficiency, and long term shareholder value creation. We appreciate the continued support of our investors and look forward to updating you again next quarter. Operator, Please open the line for questions. OPERATOR Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question. And if you are muted locally, please remember to unmute your device. Please stand by while we compile the Q and A roster. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga: SPRUCE POWER HOLDING (SPRU): Free Stock Analysis Report This article Transcript: Spruce Power Holding Q1 2026 Earnings Conference Call originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Spruce Power Holding Corp (NYSE:SPRU) reported a significant year-over-year increase in operating EBITDA, up 49% compared to the first quarter of 2025. The company achieved substantial margin expansion and improved operating performance due to operational streamlining initiatives. Operations and maintenance expenses declined by 70% year-over-year, and SG&A expenses decreased by 21%, primarily due to lower labor costs and reduced professional services spend. Spruce Power Holding Corp (NYSE:SPRU) successfully completed an extension of the SP1 facility, providing additional flexibility for refinancing opportunities. The company maintained stable liquidity with approximately $85.6 million in total cash and restricted cash, including $50 million of unrestricted cash. Revenue for the first quarter of 2026 was $23.4 million, slightly down from $23.8 million in the first quarter of 2025, due to lower non-cash amortization revenue and weather-related impacts. The company reported a net loss attributable to stockholders of approximately $2.9 million, although this was an improvement from the prior year. There is a going concern disclosure tied to the accounting treatment associated with the current maturity classification of the SP1 facility. Some operations and maintenance activities have been deferred to later quarters, which may lead to increased expenses in subsequent periods. The company is still in the process of evaluating refinancing alternatives, indicating ongoing uncertainty in its long-term capital structure. Warning! GuruFocus has detected 4 Warning Signs with SPRU. Is SPRU fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the financial performance for the first quarter of 2026? A: Chris Hayes, CEO, stated that revenue for the first quarter was approximately $23.4 million, consistent with the prior year despite weather-related impacts. Operating EBITDA increased by 49% to $18.4 million, and income from operations improved by over $5.5 million year-over-year due to cost discipline and structural efficiencies implemented in 2025. Q: What were the main drivers behind the reduction in operating expenses? A: Tom Cimino, CFO, explained that total operating expenses decreased to $19.6 million from $25.5 million in the previous year. This was due to lower labor costs, reduced professional service expenses, and ongoing operational efficiencies. SG&A expenses were $11.6 million, and O&M expenses were $1.2 million, reflecting improved servicing efficiencies and lower third-party vendor activity. Q: How is Spruce Power addressing its liquidity and financing needs? A: Chris Hayes, CEO, mentioned that they completed an extension of the SP1 facility, providing additional flexibility for refinancing opportunities. The company is actively evaluating refinancing alternatives to optimize its long-term capital structure, with ongoing constructive discussions. Q: What is the outlook for the full year 2026? A: Tom Cimino, CFO, stated that the outlook remains consistent with prior expectations. They anticipate full-year operating EBITDA to align with the budget, with lower first-quarter O&M spend offset by higher servicing activity in the second half. Continued improvements in SG&A run rate are expected as more streamlined initiatives are implemented. Q: Are there any new business initiatives being explored? A: Chris Hayes, CEO, indicated that they are exploring various new business initiatives throughout the year, which present encouraging long-term opportunities. The focus remains on improving operational efficiency, advancing refinancing initiatives, and selectively pursuing growth opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.