Executive Summary

Q2 2025 delivered strong top-line and profitability metrics: revenue rose 48% year over year to $33.2M and Operating EBITDA increased 71% to $24.6M, driven by the NJR portfolio acquisition, higher SREC revenue, and O&M efficiencies .
Core operating expenses fell 19% YoY to $17.2M; O&M expense declined 52% YoY to $2.1M as process, routing, and vendor management improvements took hold .
Liquidity remained solid with total cash of $90.5M ($53.5M unrestricted) and non-recourse debt of $717.1M at a 6.1% blended rate; floating-rate exposure is materially hedged into the early 2030s .
No numeric guidance was issued; management reiterated focus on cost containment and capital-light growth (Spruce PRO, programmatic offtake). SREC monetization in New Jersey via a multi-year forward contract is expected to generate ~$10M through 2029, supporting predictable cash flows .
Wall Street consensus estimates were not available via S&P Global for EPS and revenue in Q2, limiting beat/miss analysis; results should drive estimate recalibration around higher recurring revenue and lower O&M run-rate [GetEstimates – values from S&P Global]*.

What Went Well and What Went Wrong

What Went Well

Revenue and EBITDA inflected: “Second quarter results reflect the strength of our business model, with revenue growing 48%... and Operating EBITDA surging 71%” as O&M expense fell 52% .
Cash-flow visibility improved with SREC hedging: “multi-year agreement to sell… New Jersey SRECs… expected to generate approximately $10,000,000 in fully hedged revenue through 2029,” reinforcing dependable cash generation .
Operating improvements: sequential reduction in O&M for the second consecutive quarter through improved technology routing, inventory right-sizing, and vendor management; launch of new CRM in June to drive efficiency .

What Went Wrong

GAAP net loss persisted, albeit improved: net loss attributable to stockholders was $(3.0)M (continuing EPS $(0.16)), reflecting interest expense and swap fair-value changes despite stronger operating performance .
SG&A remained elevated versus prior year excluding severance; legal and professional fees drove marginal increases and weighed on near-term profitability .
Limited formal guidance and coverage: no numeric guidance ranges issued; S&P Global consensus data for EPS and revenue unavailable, constraining market beat/miss framing [GetEstimates – values from S&P Global]*.

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$20.226	$23.818	$33.239
Net Loss Attributable to Stockholders ($USD Millions)	$(5.928)	$(15.338)	$(2.966)
EPS – Continuing Ops (Basic & Diluted, $USD)	$(0.29)	$(0.84)	$(0.16)
EPS – Total Net Loss (Basic & Diluted, $USD)	$(0.32)	$(0.84)	$(0.17)
Income (Loss) from Operations ($USD Millions)	$(6.441)	$(1.694)	$8.902
Operating EBITDA ($USD Millions)	$10.806	$12.290	$24.641
Adjusted EBITDA ($USD Millions)	$1.882	$6.162	$17.430
Core Operating Expenses ($USD Millions)	$20.748	$17.996	$17.236
O&M Expense ($USD Millions)	$5.285	$3.896	$2.137
SG&A Expense ($USD Millions)	$15.463	$14.100	$15.099

Liquidity & Debt	Q4 2024	Q1 2025	Q2 2025
Total Cash ($USD Millions)	$109.1	$96.5	$90.5
Cash & Equivalents ($USD Millions)	$72.8	$61.9	$53.5
Restricted Cash ($USD Millions)	$36.3	$34.5	$36.9
Total Debt Principal ($USD Millions)	$730.6	$723.8	$717.1
Blended Interest Rate (%)	6.0%	6.0%	6.1%

KPIs	Q4 2024	Q1 2025	Q2 2025
Combined Portfolio Generation (thousand MWh)	515 (FY 2024)	121	187
Gross Portfolio Value (PV6, $USD Millions)	$910	$901	$887
Contracted Portfolio Value ($USD Millions)	$797	$786	$745
Renewal Portfolio Value ($USD Millions)	$69	$71	$91
Uncontracted SREC Value ($USD Millions)	$44	$44	$51
Owned Home Solar Assets/Contracts	~85,000	~85,000	~85,000
Third-Party Systems Serviced	~60,000	~60,000	~60,000
Weighted-Average Shares (Basic & Diluted)	18.568M	18.188M	17.918M

Note: Operating EBITDA margin rose sequentially (Q2: ~74% vs Q1: ~52% vs Q4: ~53%), calculated from Operating EBITDA and Revenue .

Segment breakdown: Not applicable; Spruce operates as an owner/operator of distributed solar assets; disclosures did not present multi-segment reporting .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Operating EBITDA vs PY	FY 2025 (each quarter)	“Improvement for all quarters in 2025 relative to year-earlier periods”	Reiterated focus on cost containment and scaling to drive improved performance; no numeric updates	Maintained qualitative
Debt Refinancing Needs	2025	Not specified	“Do not need to refinance any non-recourse debt in 2025; first maturity April 2026 with potential like-for-like rollover”	Clarified
Capital Returns (Repurchase)	Ongoing	$50M program, $43.8M remaining at YE 2024	$42.0M remaining as of 6/30/25; bought ~480k shares at $2.10 avg in Q2 for $1.0M total cost	Maintained; activity update
SREC Monetization	2025–2029	Not specified	NJ SREC forward sale expected to generate ~$10M, fully hedged through 2029	New disclosure
Formal Numeric Guidance (Revenue, Margins, OpEx, OI&E, Tax)	2025	None	None	No guidance

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q4 2024; Q-1: Q1 2025)	Current Period (Q2 2025)	Trend
Business model resilience vs installers	Emphasis on long-term contracted cash flows; less dependence on new installs/government support	Reiterated: third-party owner model; post-install acquisitions, stable cash flows	Consistent, reinforced
Spruce PRO servicing	Launch with ADT (~60k systems) ; ramping Spruce PRO	Pipeline expanding; unlevered, capital-light; new San Diego servicing deal; potential SREC monetization add-ons	Expanding
O&M cost containment	Elevated in 2024; focus on improving efficiency	Sequential declines; routing/tech/vendor mgmt; new CRM live in June	Improving
SREC monetization/hedging	Value included in portfolio metrics	NJ multi-year forward sale delivering ~$10M through 2029; pursuing additional states	Positive monetization, hedged
Policy/macros (IRA changes, H.R. 1, AI/data centers demand)	Market uncertainty acknowledged	Minimal impact from H.R. 1 for Spruce’s model; rising utility rates, AI/data centers drive demand	Constructive setup despite policy shifts
Programmatic offtake	Not highlighted	Far-advanced in partnering; expects double-digit IRRs on acquired/serviced new installations	Emerging driver
Capital allocation/repurchases	$0.9M repurchases in Q4; $43.8M remaining	$1.0M repurchases in Q2; $42.0M remaining	Ongoing

Management Commentary

“Second quarter results reflect the strength of our business model... Operating EBITDA surging 71%, as we drove a 52% decline in O&M expense... We are laser-focused on our objective of generating positive free cash flow.” — Chris Hayes, CEO .
“We expect minimal impact from the H.R. 1 tax reconciliation bill... We buy systems post installation and after any tax credits are monetized.” — Chris Hayes .
“The transaction [NJ SRECs] is expected to generate approximately $10,000,000 in fully hedged revenue for Spruce through 2029.” — Chris Hayes .
“O&M expense was $2.1 million... down from $3.9 million in the first quarter... benefits of prior investments in technology... better vendor management... launched a new CRM platform.” — Chris Hayes .
“At the end of the second quarter, total cash... was approximately $90.5M... total debt principal was $717.1M... all non-recourse... floating rate debt instruments materially hedged into the early 2030s.” — Thomas Cimino, Interim CFO .

Q&A Highlights

No analyst Q&A occurred; the operator closed without questions, and management reiterated focus on cost containment, scaling, and positive cash flow, plus upcoming conference participation .
Management noted no need to refinance 2025 non-recourse debt and signaled flexibility for the April 2026 maturity .
Clarified sequential O&M reductions and CRM deployment in June underpinning operational efficiencies .

Estimates Context

S&P Global consensus for Q2 2025 EPS and revenue was unavailable; coverage appears limited, preventing formal beat/miss determination [GetEstimates – values from S&P Global]*.
In absence of consensus, investors should anchor on actuals: revenue $33.239M, Operating EBITDA $24.641M, and continued core OpEx reduction, implying upward pressure on forward EBITDA and cash flow assumptions .
Models may need to reflect: higher recurring revenue run-rate from NJR assets and Spruce PRO, SREC hedging benefits (~$10M through 2029), and a lower O&M baseline evidenced by Q2 .

Key Takeaways for Investors

Revenue scalability with cost discipline: Strong YoY and sequential gains, with operating leverage visible as O&M declines; expect continued margin improvement if O&M efficiencies persist .
Cash flow quality improving: SREC forward sale and master lease cash receipts support more predictable, hedged inflows; adjusted CFO positive on a quarterly basis in Q2 .
Business model insulation: Minimal impact from H.R. 1; focus on post-install acquisitions and servicing reduces origination risk vs installer-dependent peers .
Emerging growth vectors: Programmatic offtake and Spruce PRO provide capital-light expansion with double-digit IRR potential; monitor partner announcements and servicing wins .
Balance sheet flexibility: $90.5M total cash, non-recourse, hedged debt profile lowers refinancing risk near-term; first maturity April 2026 with like-for-like rollover potential .
Capital returns: Ongoing buybacks with $42.0M remaining authorization signal confidence; assess buyback cadence vs deleveraging and M&A pipeline .
Trading lens: Near-term catalysts include additional SREC monetization deals, Spruce PRO contract wins, and signs of programmatic offtake execution; absence of formal guidance may limit headline beats, but sequential O&M improvement and recurring revenue narrative are constructive .

*Values retrieved from S&P Global.

SPRUCE POWER HOLDING CORP (SPRU)·Q2 2025 Earnings Summary