Spruce Power (SPRU) Q4 2025 Earnings Transcript

Image source: The Motley Fool.

Date

Wednesday, May 13, 2026 astatine 4:30 p.m. ET

Call participants

• Chief Executive Officer — Christopher Hayes

• Chief Financial Officer — Thomas Cimino

• Director of Investor Relations — Julia Gasbarre

Need a punctuation from a Motley Fool analyst? Email [email protected]

Full Conference Call Transcript

Christopher Hayes: Thanks, Julia. Good afternoon, everyone. 2025 was a breakout twelvemonth for Spruce and our 4th fourth capped it with exceptional momentum crossed the business. I could not beryllium prouder of what our squad accomplished. We delivered beardown growth, importantly expanded margins and fundamentally improved the ratio and scalability of our platform. For the 4th quarter, gross was astir $24 million, up 19% year-over-year, and operating EBITDA exceeded $17 million, reflecting some portfolio maturation and meaningful outgo improvements. For the afloat year, gross accrued 36% versus 2024, underscoring the spot of our level and the interaction of the NJR acquisition. Importantly, this maturation was accompanied by important operating leverage.

In the 4th quarter, O&M disbursal declined 64% year-over-year and SG&A declined 16% arsenic we executed connected our outgo optimization initiatives. These gains are structural successful quality and presumption america to thrust continued borderline enlargement arsenic we scale. We saw a meaningful inflection successful currency generation. Adjusted currency travel from operations was affirmative $5.1 cardinal successful the 4th compared to antagonistic $4.1 cardinal successful the anterior twelvemonth period, reflecting some improved operating show and the increasing publication from our portfolio. At the aforesaid time, we continued to delever, repaying $35.1 cardinal of indebtedness during 2025, expanding our endeavor value. The displacement successful our operating income underscores our breakout year.

For the afloat twelvemonth 2025, income from operations was affirmative $17.9 cardinal compared to antagonistic $50.4 cardinal successful the anterior year. Operating EBITDA was $80.1 cardinal for the afloat twelvemonth 2025, a 49% summation versus 2024. Taken together, these results show the spot of our model, a increasing basal of semipermanent contracted currency flows, improving portion economics and a level that becomes much businesslike arsenic it scales. Before turning to our strategy, I privation to code our financing process and the going interest disclosure you volition spot successful our upcoming 10-K. As portion of our superior strategy, we made a deliberate determination to widen our existing SP1 installation to make further flexibility arsenic we measure a broader refinancing opportunity.

Rather than a near-term azygous portfolio solution, we chose to presumption the institution to execute a much broad transaction that could see SP1, SP2 and SP3. With the SP1 hold present complete, we are moving aggressively connected a much broad solution. We judge this attack maximizes optionality, enhances semipermanent financing ratio and amended aligns our superior operation with the standard of the level we person built. The going interest disclosure is driven by accounting requirements related to the timing of this process. It is not reflective of our operating show oregon lender engagement.