Spruce Power Holding Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a decline in revenue and increased losses compared to the previous fiscal period. The company generated revenues of $21.4 million for the third quarter, down 8% from $23.3 million in the same period in 2023. For the nine months, revenues totaled $61.9 million, a decrease of 4% from $64.2 million year-over-year.

Total operating expenses for the third quarter rose significantly to $58.5 million, compared to $47.8 million in the prior year, primarily due to a $28.8 million goodwill impairment charge recognized in Q3 2024, attributed to a decline in stock price and market capitalization. The net loss from continuing operations for the third quarter was $(53.6) million, an increase of 182% from $(19.0) million in Q3 2023. For the nine-month period, the net loss from continuing operations was $(64.6) million, up 101% from $(32.2) million in the same period last year.

The company’s total current assets decreased to $173.0 million as of September 30, 2024, from $203.3 million at the end of 2023, while total assets fell to $806.8 million from $895.0 million. Total liabilities also decreased to $655.1 million from $680.4 million. Cash and cash equivalents were reported at $113.7 million, down from $154.2 million a year earlier.

Spruce Power's core revenue streams include the sale of electricity generated by home solar systems, third-party contracts for solar renewable energy credits (SRECs), and servicing agreements. The company has been focusing on expanding its subscription-based solutions and enhancing customer service. As of September 30, 2024, Spruce Power had entered into a non-binding letter of intent to acquire approximately 10,000 additional home solar assets, potentially increasing its total to around 85,000 assets.

In terms of strategic developments, the company underwent a leadership transition with the appointment of Christopher Hayes as CEO on April 12, 2024. Additionally, the company faced activist investor engagement, resulting in a cooperation agreement that expanded the Board of Directors.

The company continues to navigate challenges, including material weaknesses in internal controls over financial reporting, which management is actively addressing through a remediation plan. Despite these challenges, Spruce Power remains focused on its growth strategy within the distributed solar energy market.