In This Article:
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Revenue: $23.8 million in Q1 2025, up from $20.2 million in Q4 2024 and $18.3 million in Q1 2024.
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Operating EBITDA: $12.3 million in Q1 2025, compared to $10.7 million in Q1 2024.
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Net Loss: $15.3 million attributable to stockholders in Q1 2025.
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Core Operating Expenses (OpEx): $18 million in Q1 2025, up from $16.6 million in Q1 2024.
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Portfolio O&M Expense: $3.9 million in Q1 2025, down from $5.3 million in Q4 2024.
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SG&A Expense: $14.1 million in Q1 2025, down from $15.5 million in Q4 2024, up from $13.5 million in Q1 2024.
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Total Cash: $96.5 million at the end of Q1 2025, with $61.9 million unrestricted.
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Long-term Debt: $723.8 million with a blended interest rate of 6%.
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Interest Rate Hedges: Positive mark-to-market of $18.1 million at quarter end.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue grew 30% year-over-year, driven by the acquisition of rooftop assets from New Jersey Resources.
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Operating EBITDA increased by 15%, reflecting improved financial performance.
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Spruce Power Holding Corp (NYSE:SPRU) has a robust balance sheet with close to $100 million in cash, mostly unrestricted.
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The company is actively seeking new acquisition opportunities that meet disciplined return hurdles.
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Spruce PRO, the third-party solar servicing platform, is off to a good start with a significant deal with ADT, covering approximately 60,000 systems.
Negative Points
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Higher operating and maintenance (O&M) expenses have been a challenge, although efforts are underway to reduce these costs.
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Cash burn during the period was affected by normal winter seasonality and a delay in payment collections from NJR assets.
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The company is experiencing higher SG&A expenses, which increased from the prior year period.
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The CFO, Sarah Wells, is leaving the company, which may lead to transitional challenges.
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Market conditions are challenging, slowing down growth despite disciplined acquisition strategies.
Q & A Highlights
Q: Great to see Spruce PRO landing ADT with 60,000 solar systems. How should we think about the scale of revenue opportunity there and the lead times to building up that business to a critical mass? Also, how have your other conversations and marketing at Spruce PRO been going so far this year? A: Christopher Hayes, Independent Chairman of the Board: Spruce PRO is a capital-light endeavor leveraging infrastructure investments made over the last 5 to 7 years. We have a deep pipeline of prospects and are excited about the team and market reception. We aim to make another announcement in the next quarter and believe we can operate profitably.