Spruce Power (SPRU) Canaccord Genuity’s 45th Annual Growth Conference summary

Financial position and cost management

• End of Q2 cash per share was $5.07, mostly unrestricted, while shares traded at $1.45.

• No corporate-level debt; all debt is non-recourse and project-level, hedged through 2030.

• O&M costs reduced by 52% year-over-year, reflecting aggressive cost management.

• Adjusted cash flow from operations turned positive in Q2, marking a key milestone.

• No significant one-time charges expected going forward; focus is on execution and efficiency.

Business model and growth strategy

• Operates as a third-party owner of 85,000 residential solar rooftops, with over 10 years average contract tenure.

• Growth driven by M&A, programmatic deals with homebuilders, and Spruce PRO managed services.

• Spruce PRO offers high-margin, capital-light managed services to other solar asset owners.

• Recent deals include a 9,800-system acquisition in New Jersey and a 60,000-rooftop Spruce PRO contract with ADT Solar.

• Pipeline for Spruce PRO is robust, leveraging existing infrastructure and relationships.

Market environment and competitive positioning

• Not dependent on tax credits or government incentives, providing insulation from policy changes.

• M&A market is favorable due to financials and utilities divesting portfolios.

• Focused on operational scale in 18 states, with preference for concentrated portfolios.

• Fewer competitors in the current market, as many financial players have exited.

• About half of contracts are PPAs indexed to utility prices, benefiting from rising power costs.