Spruce Power (SPRU) investor relations material

Executive summary

• Q3 2025 revenue rose 44% year-over-year to $30.7 million, driven by acquisitions and SREC revenue growth, while net loss attributable to stockholders improved to $0.9 million from $53.5 million in the prior-year period.

• Operating EBITDA increased 48% year-over-year to $26.2 million, reflecting operational improvements, acquisitions, and cost reductions.

• Cash generated from operations increased total cash to $98.8 million as of September 30, 2025.

• Strategic initiatives included workforce reduction, office closure, and a $20 million annual cost savings program.

• Portfolio expanded to 85,000 owned home solar assets and contracts, with servicing for 60,000 third-party systems.

Financial highlights

• Q3 2025 revenue was $30.7 million, up from $21.4 million year-over-year; nine-month revenue was $87.8 million, up 42%.

• Core operating expenses (SG&A and O&M) declined 15% year-over-year to $14.8 million.

• Adjusted cash flow from operations was $20.2 million, up 104% year-over-year.

• Principal debt payments of $11.4 million were made in Q3, reducing total debt principal to $705.6 million.

• All debt is non-recourse project finance, with a blended interest rate of 6.1% and hedged into the early 2030s.

Outlook and guidance

• No formal guidance provided; seasonality expected to reduce Q4 revenue due to lower sunlight.

• Cost reduction initiatives are expected to further decrease core operating expenses through 2025 and into 2026.

• Management is in discussions to refinance the $184.1 million SP1 Facility maturing April 2026, with term sheets under review.

• No need to refinance non-recourse debt in 2025; first maturity in April 2026 can likely be rolled over.

• Substantial doubt about the ability to continue as a going concern exists due to negative working capital and upcoming debt maturity, but management expects refinancing to be completed.