Spruce Power Reports 3% Revenue Increase to $82.1 Million, Faces Increased Net Loss

Spruce Power Holding Corporation reported a revenue increase of 3% for the fiscal year ending December 31, 2024, totaling $82.1 million, compared to $79.9 million in 2023. The company experienced a net loss attributable to stockholders of $70.5 million, up from a loss of $65.8 million in the previous year. This increase in losses was attributed to several factors, including fluctuations in the value of the company's hedging portfolio, impairment of goodwill, and variations in operations and maintenance costs. The company also noted that its financial performance for 2024 does not fully reflect the impact of the NJR Acquisition, completed in November 2024.

In terms of strategic developments, Spruce Power has been active in acquisitions, having completed several significant transactions in 2023 and 2024. The company acquired SEMTH in March 2023, which included rights to customer payment streams from approximately 22,500 contracts, and the Tredegar Acquisition in August 2023, which added 2,400 home solar assets. The NJR Acquisition in November 2024 further expanded its portfolio by approximately 9,800 solar energy systems. As of December 31, 2024, Spruce Power managed a total of approximately 85,000 home solar assets across 18 states, with an average remaining contract life of about 11 years.

Operationally, Spruce Power has focused on enhancing customer experience, achieving a customer satisfaction score of 83% in 2024, up from 74% in 2023. The company reported a combined portfolio generation of approximately 515 thousand MWh of power for the year, compared to 417 thousand MWh in 2023. The company’s employee headcount increased to 165 as of December 31, 2024, reflecting its growth strategy and operational needs.

Looking ahead, Spruce Power's management expressed optimism about leveraging its existing customer base and servicing platform to capitalize on the growing demand for distributed solar and battery storage services. However, the company also acknowledged the challenges posed by market conditions, including competition from traditional energy companies and potential regulatory changes. The company is committed to improving its internal controls and financial reporting processes, particularly in light of identified material weaknesses in its internal control over financial reporting as of December 31, 2024. Management is actively working on remediation plans to address these weaknesses and enhance operational efficiency.