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SPRU's Q3 Loss Narrows Y/Y on NJR Acquisition and Cost Cuts, Stock Up 73%
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Shares of Spruce Power Holding Corporation (SPRU - Free Report) have surged 73% since the company announced its third-quarter 2025 results, sharply outperforming the S&P 500 index’s 1.6% decline over the same period. Over the past month, the stock has gained 79% compared with the S&P 500’s modest 0.2% increase, reflecting strong investor optimism surrounding the company’s recent performance and outlook.
Spruce Power incurred a third-quarter 2025 net loss of 5 cents per share, narrower than a loss of $2.88 per share recorded in the third quarter of 2024.
The company posted revenue of $30.7 million, a 44% jump from $21.4 million in the prior-year period. This significant year-over-year growth was primarily driven by the acquisition of a residential solar portfolio from NJR Clean Energy Ventures in November 2024 and incremental revenue from solar renewable energy credits (SRECs) and servicing agreements like the Spruce PRO partnership with ADT.
The company incurred a net loss attributable to stockholders of $0.9 million, narrower than the $53.5 million loss recorded in the third quarter of 2024. This reduction was largely attributed to lower impairment charges and cost control measures.
Operating EBITDA — a key metric highlighted by management — rose 48% to $26.2 million from $17.7 million in the prior year. Adjusted cash flow from operations more than doubled to $20.2 million from $9.9 million, reflecting stronger operating performance and cash collection.
Spruce Power Holding Corporation Price, Consensus and EPS Surprise
Spruce Power’s solar asset base remains substantial, with ownership of cash flows from approximately 85,000 home solar systems across 18 states. The company also services around 60,000 third-party-owned systems. Combined portfolio generation reached approximately 190,081 MWh during the quarter. Gross portfolio value, calculated on a present value (PV6) basis, totaled $872 million as of Sept. 30, 2025.
The company’s liquidity position remains strong, with $98.8 million in total cash, or $5.44 per share. Operating expenses fell meaningfully: operations and maintenance (O&M) costs dropped 53% to $1.8 million and selling, general, and administrative (SG&A) expenses decreased 4% to $12.9 million. Core operating expenses fell 15% year over year to $14.8 million, benefiting from cost efficiencies and the completion of a meter upgrade initiative.
Management Commentary
CEO Chris Hayes emphasized the company’s disciplined focus on cost containment and strategic growth. He attributed the quarter’s solid performance to scalable improvements in the servicing business and reiterated Spruce’s commitment to efficient operations and cash management.
Hayes also highlighted a new strategic initiative involving SG&A cost reduction through a workforce downsizing and closure of the Denver office. These changes are designed to channel resources toward Spruce’s core mission of sustainable growth.
On the debt front, Hayes noted the company is proactively engaging with financial institutions regarding the SP1 debt obligation due in the second quarter of 2026. Management expressed confidence in the company’s strengthened balance sheet and indicated multiple refinancing options are under review.
Drivers Behind the Headline Numbers
The company’s top-line growth was significantly influenced by the acquisition of the NJR solar portfolio and improved SREC revenues. Additionally, the Spruce PRO agreement with ADT continued to boost the servicing revenue base. The notable improvement in operating earnings and cash flow also stems from operational streamlining, including the wrap-up of the cost-intensive meter upgrade campaign.
Lower legal costs and absence of impairment charges that weighed on the previous year’s results further contributed to improved margins and bottom-line performance.
Guidance
Management commentary indicated a forward-looking focus on margin expansion, cash preservation, and strategic redeployment of capital to high-return initiatives. Management reaffirmed its dedication to assessing shareholder returns, including the ongoing $50 million share repurchase program, of which $42 million remained unused as of the end of the quarter.
Other Developments
During the quarter, Spruce Power initiated a corporate restructuring plan aimed at reducing SG&A costs. The plan involves the closure of the company’s Denver office and a reduction in headcount. These measures are expected to generate long-term savings and support the company’s transition toward a leaner, more focused operating structure.
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SPRU's Q3 Loss Narrows Y/Y on NJR Acquisition and Cost Cuts, Stock Up 73%
Shares of Spruce Power Holding Corporation (SPRU - Free Report) have surged 73% since the company announced its third-quarter 2025 results, sharply outperforming the S&P 500 index’s 1.6% decline over the same period. Over the past month, the stock has gained 79% compared with the S&P 500’s modest 0.2% increase, reflecting strong investor optimism surrounding the company’s recent performance and outlook.
Spruce Power incurred a third-quarter 2025 net loss of 5 cents per share, narrower than a loss of $2.88 per share recorded in the third quarter of 2024.
The company posted revenue of $30.7 million, a 44% jump from $21.4 million in the prior-year period. This significant year-over-year growth was primarily driven by the acquisition of a residential solar portfolio from NJR Clean Energy Ventures in November 2024 and incremental revenue from solar renewable energy credits (SRECs) and servicing agreements like the Spruce PRO partnership with ADT.
The company incurred a net loss attributable to stockholders of $0.9 million, narrower than the $53.5 million loss recorded in the third quarter of 2024. This reduction was largely attributed to lower impairment charges and cost control measures.
Operating EBITDA — a key metric highlighted by management — rose 48% to $26.2 million from $17.7 million in the prior year. Adjusted cash flow from operations more than doubled to $20.2 million from $9.9 million, reflecting stronger operating performance and cash collection.
Spruce Power Holding Corporation Price, Consensus and EPS Surprise
Spruce Power Holding Corporation price-consensus-eps-surprise-chart | Spruce Power Holding Corporation Quote
Key Business Metrics
Spruce Power’s solar asset base remains substantial, with ownership of cash flows from approximately 85,000 home solar systems across 18 states. The company also services around 60,000 third-party-owned systems. Combined portfolio generation reached approximately 190,081 MWh during the quarter. Gross portfolio value, calculated on a present value (PV6) basis, totaled $872 million as of Sept. 30, 2025.
The company’s liquidity position remains strong, with $98.8 million in total cash, or $5.44 per share. Operating expenses fell meaningfully: operations and maintenance (O&M) costs dropped 53% to $1.8 million and selling, general, and administrative (SG&A) expenses decreased 4% to $12.9 million. Core operating expenses fell 15% year over year to $14.8 million, benefiting from cost efficiencies and the completion of a meter upgrade initiative.
Management Commentary
CEO Chris Hayes emphasized the company’s disciplined focus on cost containment and strategic growth. He attributed the quarter’s solid performance to scalable improvements in the servicing business and reiterated Spruce’s commitment to efficient operations and cash management.
Hayes also highlighted a new strategic initiative involving SG&A cost reduction through a workforce downsizing and closure of the Denver office. These changes are designed to channel resources toward Spruce’s core mission of sustainable growth.
On the debt front, Hayes noted the company is proactively engaging with financial institutions regarding the SP1 debt obligation due in the second quarter of 2026. Management expressed confidence in the company’s strengthened balance sheet and indicated multiple refinancing options are under review.
Drivers Behind the Headline Numbers
The company’s top-line growth was significantly influenced by the acquisition of the NJR solar portfolio and improved SREC revenues. Additionally, the Spruce PRO agreement with ADT continued to boost the servicing revenue base. The notable improvement in operating earnings and cash flow also stems from operational streamlining, including the wrap-up of the cost-intensive meter upgrade campaign.
Lower legal costs and absence of impairment charges that weighed on the previous year’s results further contributed to improved margins and bottom-line performance.
Guidance
Management commentary indicated a forward-looking focus on margin expansion, cash preservation, and strategic redeployment of capital to high-return initiatives. Management reaffirmed its dedication to assessing shareholder returns, including the ongoing $50 million share repurchase program, of which $42 million remained unused as of the end of the quarter.
Other Developments
During the quarter, Spruce Power initiated a corporate restructuring plan aimed at reducing SG&A costs. The plan involves the closure of the company’s Denver office and a reduction in headcount. These measures are expected to generate long-term savings and support the company’s transition toward a leaner, more focused operating structure.