Spruce Power Reports 30% Revenue Increase to $23.8 Million in Q1 2025

Spruce Power Holding Corporation reported a significant increase in revenue for the first quarter of 2025, generating $23.8 million, a 30% rise from $18.3 million in the same period of 2024. This growth was primarily driven by an increase in subscription-based service revenues and solar renewable energy credit (SREC) revenues, which were bolstered by the company's recent acquisitions. However, the company also faced a net loss attributable to stockholders of $15.3 million, compared to a loss of $2.5 million in the prior year, reflecting challenges in operational costs and fluctuations in the value of its hedging portfolio.

The financial performance of Spruce Power was impacted by several factors, including increased operating expenses, which rose to $25.5 million from $21.9 million year-over-year. Notably, costs associated with solar energy system depreciation and operations and maintenance increased significantly, attributed to the company's recent acquisitions of solar energy systems. The company also incurred litigation settlements amounting to $0.6 million during the quarter, further contributing to the overall loss.

In terms of strategic developments, Spruce Power completed the Initial NJR Acquisition in November 2024, acquiring approximately 9,800 solar energy systems for $132.5 million. This acquisition was funded through a combination of cash and proceeds from a new non-recourse credit agreement, the SP5 Facility. The company has also continued to expand its customer base, servicing approximately 85,000 home solar assets across 18 U.S. states, with an average remaining contract life of about 11 years.

Operationally, Spruce Power reported a customer satisfaction score of 79% for the quarter, slightly down from 81% in the previous year. The company generated approximately 121,000 MWh of power during the quarter, up from 96,000 MWh in the same period last year. The company’s headcount has increased, reflecting its focus on enhancing operational capabilities and customer service. However, the company continues to face challenges related to its internal controls, as noted in its recent filings, which have raised concerns about the effectiveness of its financial reporting processes.

Looking ahead, Spruce Power's management remains optimistic about its growth trajectory, emphasizing the importance of its subscription-based model and ongoing acquisitions to drive future revenue. The company is actively working to address its internal control weaknesses and is focused on maintaining adequate liquidity to support its operations and growth initiatives. Management believes that with the current cash reserves and anticipated operational cash flows, it will be able to meet its financial obligations and continue its expansion in the solar energy market.