Executive Summary

Q4 revenue was $20.2M, up 28.8% YoY, and beat S&P Global consensus of $17.4M by 16.3% on one estimate; GAAP EPS of $(0.32) improved vs $(1.59) YoY, while Operating EBITDA was $10.8M, modestly below Q3 and prior-year comps . Revenue consensus from S&P Global: $17.4M*; actual $20.226M*.
Strategic execution advanced: closed NJR portfolio (+~9,800 systems) lifting Gross Portfolio Value to $910M (vs $749M ex-deal) and signed first Spruce Pro third-party servicing agreement with ADT (~60,000 systems), establishing a capital-light growth leg .
Liquidity remained solid ($72.8M unrestricted cash) with all $730.6M of debt non-recourse; floating-rate exposure materially hedged with swaps (positive MTM $24.2M at quarter-end) .
Management will not provide forward guidance; FY24 Operating EBITDA of $53.9M missed the revised $57–$62M range due to O&M and legal expenses—an overhang management aims to address with 2025 O&M reductions and efficiency programs .

What Went Well and What Went Wrong

What Went Well

Revenue and mix: Q4 revenue rose 28.8% YoY to $20.2M on the NJR acquisition and revenue recognition dynamics, and beat S&P Global consensus by ~$2.8M (16.3%) on one estimate . Consensus: $17.4M*; actual: $20.226M*.
Capital-light services traction: “In December 2024, we finalized a third-party servicing agreement with ADT Solar, covering approximately 60,000 systems… strong potential to deliver capital-light growth.” .
Portfolio scale and satisfaction: Portfolio grew to ~85,000 owned assets; CSAT improved to 83% in 2024 (from 74% in 2023), reinforcing operating execution and customer retention drivers .

What Went Wrong

Guidance/miss: FY24 Operating EBITDA came in at $53.9M vs revised $57–$62M guidance due to elevated O&M and legal costs; management withdrew forward guidance amid macro/industry volatility .
Expense pressure: Q4 core OpEx rose to $20.7M (SG&A $15.5M; O&M $5.3M), with SG&A inflated by ~$2.1M of professional services and CECL-related items tied to the NJR acquisition and accounting conservatism .
Liquidity drift: Unrestricted cash fell sequentially to $72.8M (from $113.7M in Q3), primarily from the NJR transaction plus ongoing O&M and legal spend; Operating EBITDA slipped sequentially ($10.8M vs $17.7M in Q3) .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$15.701	$22.481	$21.378	$20.226
Net Loss Attributable to Stockholders ($USD Millions)	$(30.188)	$(8.578)	$(53.529)	$(5.928)
EPS (Basic & Diluted) ($)	$(1.59)	$(0.45)	$(2.88)	$(0.32)
Operating EBITDA ($USD Millions)	$11.314	$14.443	$17.748	$10.806
Core Operating Expenses ($USD Millions)	$17.633	$21.1	$17.4	$20.748

Notes:

Operating EBITDA margin (derived): 53.4% in Q4’23 → 64.2% in Q2’24 → 83.0% in Q3’24 → 53.4% in Q4’24 (Operating EBITDA / Revenue; underlying figures cited above).

Actual vs S&P Global Consensus (Q4 2024):

Revenue: $20.226M vs $17.388M estimate (+16.3%); # of estimates: 1*.
EPS: Not available from S&P Global for this quarter (no consensus provided)*.
EBITDA consensus not meaningful; Operating EBITDA is a company-defined non-GAAP metric not covered by S&P consensus*.

KPI and Balance Sheet Highlights

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Owned Home Solar Assets & Contracts (approx.)	—	~75,000	~75,000	~85,000
Gross Portfolio Value (PV6, $USD Millions)	—	$778	$766	$910
Unrestricted Cash ($USD Millions)	—	$116.6	$113.7	$72.8
Total Cash ($USD Millions)	—	$150.2	$150.0	$109.1
Total Principal Debt ($USD Millions)	—	$640.0	$631.0	$730.6
Blended Interest Rate (%)	—	5.9%	5.9%	6.0%
Interest Rate Swaps MTM ($USD Millions)	—	+$30	+$19	+$24.2
CSAT (%)	74 (FY23)	—	81 (Q3)	83 (FY24)
Third-Party Serviced Systems	—	~4,500	~1,000	~60,000 (ADT agreement)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Result	Change
Operating EBITDA	FY 2024	$57–$62M (revised on Nov 13, 2024)	Actual: $53.9M	Miss
Adjusted Free Cash Flow	FY 2024	$(12)M – $(7)M (revised)	Not disclosed in Q4 materials	N/A
Financial Guidance (overall)	FY 2025	N/A	Not providing guidance at this time	Withdrawn/None

Other capital allocation update: Repurchased ~0.3M shares in Q4 at $2.93 average ($0.9M total); $43.8M remained under the $50M authorization at year-end .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4 2024)	Trend
O&M cost trajectory	Elevated non-routine O&M; transitory dynamic expected to ease	Focused initiatives to “sharply reduce O&M” through 2025 via sourcing/vendor management	Improving in 2025 (planned)
M&A pipeline/scale	Evaluating seasoned portfolios; refinancing supports activity	NJR deal closed (+~9,800 systems); pipeline continues	Executing; pipeline active
Spruce Pro (third-party services)	Hired GM; building pipeline	Finalized ADT agreement (~60k systems); hiring to expand wins	Scaling; capital-light growth
Legal/legacy items	Proxy/cooperation agreement; legal costs	“GAAP expenses… legacy XL Fleet… behind us”	Overhang abating
Hedging/capital structure	Swaps MTM +$30M (Q2)	Swaps MTM +$24.2M (Q4); all floating materially hedged	Hedged; stable
Customer satisfaction	Record Google rating 3.0/5.0 ; CSAT 81% (Q3)	CSAT 83% for 2024	Improving
Guidance posture	Maintained FY24 (low end)	Withdrew forward guidance; FY24 miss acknowledged	More conservative stance

Management Commentary

Strategic positioning: “Spruce offers investors greater stability and predictability… our business is predicated on maximizing the value of existing solar assets through operational efficiencies, maintenance and superior asset management.”
Spruce Pro inflection: “Finalized a third-party servicing agreement with ADT Solar, covering approximately 60,000 systems… strong potential to deliver capital-light growth.”
Cost discipline and margins: “We are focused on driving down operations and maintenance… actions we are taking should sharply reduce O&M expenses as 2025 progresses… drive improved operating efficiency and margin expansion in 2025.”
Guidance approach: “Given… volatility… we have decided not to provide financial guidance at this time.”

Q&A Highlights

The call moved to Q&A, but there were no analyst questions this quarter; management reiterated focus on scaling platform, optimizing capital structure, and consistent performance in closing remarks .

Estimates Context

Q4 2024 revenue beat: Actual $20.226M vs S&P Global consensus $17.388M (+16.3%); only one estimate submitted*. EPS consensus not available for the quarter*. EBITDA consensus not meaningful; Operating EBITDA is non-GAAP and not covered*.
Implication: Street models likely need to lift revenue run-rate assumptions modestly post-NJR deal; operating expense trajectory for 2025 should be revised to reflect O&M reduction plans and absence of legacy legal costs (offset by lack of formal guidance) .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Revenue resilience and a clear beat vs S&P consensus—driven by portfolio scale—offset a sequential dip in Operating EBITDA; expense control (O&M) is the key 2025 lever . Revenue consensus: $17.4M*, actual $20.226M*.
The NJR acquisition and ADT Spruce Pro servicing agreement create both capacity-driven revenue and capital-light fee streams, improving durability through cycles .
With $72.8M of unrestricted cash, non-recourse debt, and hedged rates, liquidity and interest exposure are manageable; expect disciplined capital allocation with opportunistic buybacks within growth constraints .
Lack of forward guidance introduces uncertainty, but management identified specific cost-down actions and operational improvements to expand margins in 2025 .
Near-term stock catalysts: further third-party servicing wins, additional accretive portfolio acquisitions, and visible O&M reductions showing up in quarterly Operating EBITDA .
Watchlist: cadence of portfolio buyouts/prepayments, SREC pricing contribution, and legal spend normalization vs 2024 levels .

Citations:

Q4 2024 8-K and press release:
Q4 2024 earnings call transcript: and alternate transcript -
Q3 2024 8-K, transcript: -, -
Q2 2024 8-K, transcript: -, -

SPRUCE POWER HOLDING CORP (SPRU)·Q4 2024 Earnings Summary