PART I [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Spruce Power's unaudited condensed consolidated financial statements, detailing financial position, operations, equity changes, and cash flows, with key accounting notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $862.6 million, while negative working capital of $120.2 million resulted from reclassifying $189.8 million of non-recourse debt to current liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$862,631** | **$898,479** | | Cash and cash equivalents | $53,511 | $72,802 | | Property and equipment, net | $577,625 | $589,014 | | **Total Liabilities** | **$735,221** | **$752,327** | | Non-recourse debt, current | $215,624 | $28,310 | | Non-recourse debt, non-current | $479,424 | $677,021 | | **Total Stockholders' Equity** | **$124,987** | **$143,714** | - The company's working capital turned significantly negative to **$(120.2) million** as of June 30, 2025, from a positive **$76.9 million** at year-end 2024. This was primarily driven by the reclassification of the SP1 Facility debt to current liabilities[19](index=19&type=chunk)[36](index=36&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenues increased 48% to $33.2 million with a narrowed net loss of $3.0 million, while six-month revenues grew 40% to $57.1 million but net loss widened to $18.3 million due to fair value changes Quarterly Results of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenues** | **$33,239** | **$22,481** | | Income (loss) from operations | $8,902 | $(3,360) | | Net loss attributable to stockholders | $(2,966) | $(8,578) | | Net loss per share, basic and diluted | $(0.17) | $(0.45) | Six-Month Results of Operations (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Revenues** | **$57,057** | **$40,768** | | Income (loss) from operations | $7,208 | $(6,957) | | Net loss attributable to stockholders | $(18,304) | $(11,032) | | Net loss per share, basic and diluted | $(1.01) | $(0.57) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Total stockholders' equity decreased from $143.7 million to $125.0 million due to net loss and $1.8 million in share repurchases - Total stockholders' equity declined from **$143.7 million** on December 31, 2024, to **$125.0 million** on June 30, 2025[23](index=23&type=chunk) - During the six months ended June 30, 2025, the company repurchased **778,619 shares** for a total cost of **$1.8 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $11.5 million for H1 2025, with overall cash, cash equivalents, and restricted cash decreasing by $18.7 million Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,467) | $(27,302) | | Net cash provided by investing activities | $8,296 | $13,487 | | Net cash used in financing activities | $(15,520) | $(8,917) | | **Net change in cash** | **$(18,691)** | **$(22,732)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover the 'going concern' warning due to the SP1 Facility debt maturity, NJR acquisitions, $695.0 million in non-recourse debt, and legal settlements - The company's debt obligations under the SP1 Facility mature on April 30, 2026. These conditions, along with negative working capital and recurring net losses, raise substantial doubt about the company's ability to continue as a going concern. Management believes it can refinance this debt[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - During the six months ended June 30, 2025, the company acquired **192** additional solar energy systems as part of the NJR Acquisitions for approximately **$4.5 million** in cash[84](index=84&type=chunk) - As of June 30, 2025, total non-recourse debt was **$695.0 million**, with the SP1 Facility of **$189.8 million** due in April 2026[94](index=94&type=chunk) - The company settled a class action lawsuit for **$4.75 million** in April 2025 and paid **$1.0 million** in attorney fees for another settled matter in September 2024[121](index=121&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting 48% Q2 revenue growth, narrowed net loss, and the 'going concern' risk related to the SP1 debt facility maturity [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 revenues rose 48% to $33.2 million with net loss narrowing to $3.0 million, while six-month revenues grew 40% to $57.1 million but net loss widened to $18.3 million due to interest rate swap changes Comparison of Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$33,239** | **$22,481** | **$10,758** | **48%** | | Cost of revenues - O&M | $2,137 | $4,474 | $(2,337) | (52)% | | SG&A expenses | $15,099 | $16,701 | $(1,602) | (10)% | | **Net loss attributable to stockholders** | **$(2,966)** | **$(8,578)** | **$5,612** | **(65)%** | Comparison of Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$57,057** | **$40,768** | **$16,289** | **40%** | | **Net loss attributable to stockholders** | **$(18,304)** | **$(11,032)** | **$(7,272)** | **66%** | - The increase in Q2 revenue was primarily due to **$3.0 million** in incremental SLA revenues and a **$5.9 million** increase in SREC revenues, largely from the NJR Acquisitions[158](index=158&type=chunk) - The wider net loss for the six-month period was primarily driven by a **$10.3 million** expense from the change in fair value of interest rate swaps in 2025, compared to a **$3.6 million** income from the same item in 2024[177](index=177&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company had negative working capital of $120.2 million and $90.5 million in cash, with management planning to refinance the SP1 Facility to address going concern risk - The company had negative working capital of **$120.2 million** as of June 30, 2025, resulting from the current classification of the SP1 Facility debt[178](index=178&type=chunk) - Total cash, cash equivalents, and restricted cash stood at **$90.5 million** as of June 30, 2025[178](index=178&type=chunk) - Management's plans to refinance the SP1 Facility are central to alleviating the substantial doubt about the company's ability to continue as a going concern[181](index=181&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Spruce Power is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Spruce Power is exempt from providing quantitative and qualitative disclosures about market risk[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting, with remediation efforts underway - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting[194](index=194&type=chunk) - The material weakness stems from deficiencies in the control environment (insufficient qualified personnel) and control activities (ineffective controls over revenue recognition)[197](index=197&type=chunk)[198](index=198&type=chunk) - A remediation plan is underway, which includes hiring qualified personnel, providing training on the COSO framework, and designing and implementing new controls related to revenue recognition[201](index=201&type=chunk)[202](index=202&type=chunk)[206](index=206&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the financial statements for a description of material pending legal proceedings, including class actions and state investigations - For details on legal proceedings, the report refers to Note 12 in the financial statements[208](index=208&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) A key risk factor is the loss or transition of senior management, which could create uncertainty and negatively impact business operations and strategy execution - A key risk is the loss or transition of senior management, highlighted by the recent turnover of the CEO in 2024 and CFO in 2025[210](index=210&type=chunk) - Management transitions may create uncertainty, divert resources, and negatively impact the company's ability to operate effectively and execute its strategies[211](index=211&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 479,667 shares for $1.0 million, with $42.0 million remaining available under the program extended to May 15, 2027 Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 388,459 | $2.10 | | May 2025 | 91,208 | $2.03 | | June 2025 | 0 | $0.00 | | **Total Q2** | **479,667** | | - As of June 30, 2025, approximately **$42.0 million** remained available under the share repurchase program[216](index=216&type=chunk) - The Board of Directors extended the Repurchase Program to expire on May 15, 2027[137](index=137&type=chunk)[215](index=215&type=chunk) [Item 3. Defaults Upon Senior Securities](index=52&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[217](index=217&type=chunk) [Item 4. Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[218](index=218&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter[219](index=219&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, as well as Inline XBRL documents[220](index=220&type=chunk)

Summary of Spruce Power Holding (SPRU) FY Conference Call Company Overview - **Company**: Spruce Power Holding (SPRU) - **Industry**: Solar Energy - **Date of Conference**: August 12, 2025 Key Points and Arguments 1. **Financial Position**: At the end of Q2, Spruce Power reported $5.07 in cash per share, with the majority being unrestricted, while trading at approximately $1.45 per share, indicating a significant market inefficiency [4][34] 2. **Operational Efficiency**: The company has successfully reduced Operations and Maintenance (O&M) costs by 52% year-over-year, demonstrating effective cost management [10][31] 3. **Market Position**: Spruce Power owns 85,000 solar rooftops out of approximately 5 million residential solar installations in the U.S., positioning itself as a significant player in the market [12][43] 4. **Growth Strategy**: The company plans to grow through mergers and acquisitions (M&A), focusing on acquiring portfolios from utilities and financial firms that are divesting their solar assets [13][44] 5. **Revenue Growth**: Q2 revenue increased by 48% year-over-year to $33 million, while EBITDA rose by 71% to $25 million [19][20] 6. **Cash Flow**: The company achieved positive adjusted cash flow from operations in Q2, marking a significant milestone [30][31] 7. **Market Dynamics**: The current administration's focus on fossil fuels is seen as a challenge for the solar industry, but Spruce Power remains insulated due to its lack of dependence on tax credits and incentives [22][42] 8. **Service Model**: The introduction of Spruce Pro, a service model offering managed services for solar installations, is expected to enhance margins and leverage existing infrastructure without significant capital investment [17][25] 9. **Debt Management**: The company has no corporate debt and operates on a project finance basis, with all debt being non-recourse at the project level [26][27] 10. **Future Outlook**: The company is optimistic about the potential for lower interest rates, which could benefit refinancing efforts and overall financial health [27][41] Additional Important Insights - **Market Inefficiency**: The significant discrepancy between cash per share and stock price suggests potential for investment opportunities [4][34] - **Customer Base**: Approximately half of Spruce Power's rooftops operate under Power Purchase Agreements (PPAs) indexed to utility prices, providing a natural revenue driver as utility prices rise [22] - **Competitive Landscape**: The current downturn in the solar market has led to fewer bidders for solar portfolios, creating opportunities for Spruce Power to acquire assets at favorable terms [48] This summary encapsulates the essential insights from the conference call, highlighting Spruce Power's financial health, operational strategies, and market positioning within the solar energy industry.

Financial Data and Key Metrics Changes - The company reported a 48% increase in revenue year-over-year, reaching $33.2 million in Q2 2025, up from $22.5 million in the prior year period [6][30] - Operating EBITDA grew by 71% year-over-year to $24.6 million, compared to $14.4 million in the prior year [6][33] - Core operating expenses totaled $17.2 million, down 19% from $21.2 million in the prior year [6][31] - The net loss attributable to stockholders was $3 million, an improvement from a loss of $8.6 million in the prior year [31] Business Line Data and Key Metrics Changes - The company’s operating expenses, including SG&A and O&M, decreased significantly, with O&M expenses dropping 52% year-over-year to $2.1 million [31][32] - The NJR acquisition contributed to increased lease revenues and SREC revenues, driving overall financial performance [30][33] Market Data and Key Metrics Changes - The company manages approximately 85,000 home solar assets and customer contracts, with significant room for growth in the residential solar market despite recent policy changes [10][12] - The U.S. solar market has over 5 million installations, with 97% on residential rooftops, indicating a large addressable market for the company [11] Company Strategy and Development Direction - The company aims to achieve positive free cash flow through growth in solar installations and cost containment [7] - A multi-pronged strategy includes opportunistic M&A, programmatic off-take partnerships, and expanding the Spruce Pro servicing business [14][18] - The company is focused on maximizing the value of existing solar assets through operational efficiencies and superior asset management [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the residential solar sector due to policy changes but emphasized the company's resilient business model [8][9] - The company expects an accelerated shift toward leases and PPAs, driven by rising utility rates and increasing power demand [14][13] - Management is confident in the ability to identify and execute new agreements that add shareholder value despite market uncertainties [23] Other Important Information - The company successfully launched a new CRM platform to enhance customer interactions and operational efficiency [25] - Total cash at the end of Q2 2025 was approximately $90.5 million, with $53.5 million being unrestricted [36] Q&A Session Summary - There were no questions during the Q2 2025 earnings call, and the session concluded without further inquiries [38]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Spruce Power reported strong Q2 2025 results, with **revenue up 48% to $33.2 million** and **Operating EBITDA up 71% to $24.6 million**, reflecting strategic progress | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenues | $33.2 million | +48% | | Operating EBITDA | $24.6 million | +71% | | O&M Expense | $2.1 million | -52% | | Net Loss Attributable to Stockholders | $3.0 million | Improved from $8.6M loss | | Total Cash Balance (as of June 30, 2025) | $90.5 million | - | | Adjusted Cash Flow generated in Operations | $9.5 million | +245% | - The company's primary strategic initiatives are scaling its portfolio of solar installations and prudently containing costs, with a key objective of generating **positive free cash flow**[3](index=3&type=chunk) - Spruce's business model as a third-party owner of existing residential solar systems generates **stable, high-margin recurring revenue** and is expected to have **minimal impact** from the H.R. 1 tax reconciliation bill[3](index=3&type=chunk)[5](index=5&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) Q2 2025 revenue increased to **$33.2 million** from **$22.5 million** YoY, driven by portfolio acquisition and SREC revenue, narrowing net loss to **$3.0 million** | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $33.2 million | $22.5 million | | Total Operating Expenses | $24.3 million | $25.8 million | | Net Loss Attributable to Stockholders | $3.0 million | $8.6 million | - The year-over-year revenue increase was primarily due to the **acquisition of a residential solar portfolio** from NJR Clean Energy Ventures and **improved solar renewable energy credits (SRECs) revenue**[6](index=6&type=chunk) - The decrease in operating expenses was mainly driven by **lower O&M costs**, which fell from **$4.5 million to $2.1 million** YoY, due to **operational efficiencies** and the near completion of **meter upgrade efforts**[8](index=8&type=chunk) [Financial Position and Capital Management](index=3&type=section&id=Financial%20Position%20and%20Capital%20Management) As of June 30, 2025, Spruce Power maintained a solid financial position with **$90.5 million in cash** and **$717.1 million in non-recourse project finance debt**, repurchasing **$1.0 million** in common stock | Metric | As of June 30, 2025 | | :--- | :--- | | Total Cash | $90.5 million | | - Cash and cash equivalents | $53.5 million | | - Restricted cash | $36.9 million | | Total Principal Debt | $717.1 million | | Blended Interest Rate | 6.1% | - All company debt consists of project finance loans that are **non-recourse** to the Company itself, meaning they are incurred at the project level[10](index=10&type=chunk) - In Q2 2025, the company **repurchased 479,667 shares for $1.0 million**, with **$42.0 million remaining** under the authorized $50.0 million share repurchase program[13](index=13&type=chunk) [Key Operating Metrics](index=4&type=section&id=Key%20Operating%20Metrics) As of Q2 2025, Spruce Power owns cash flows from approximately **85,000 home solar assets** with an **11-year average contract life**, generating **187 thousand MWh** and a Gross Portfolio Value (PV6) of **$887.0 million** | Operating Metric | Value (as of June 30, 2025) | | :--- | :--- | | Owned Home Solar Assets & Contracts | ~85,000 | | Serviced 3rd Party Systems | ~60,000 | | Average Remaining Contract Life | ~11 years | | Q2 2025 Portfolio Generation | ~187 thousand MWh | | Gross Portfolio Value (PV6) | $887.0 million | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section defines key non-GAAP financial measures, including **Operating EBITDA** and **Adjusted Cash Flow from Operations**, and explains Portfolio Value Metrics like **Contracted Portfolio Value** and **Renewal Portfolio Value** based on a **6% discount rate** - **Operating EBITDA:** Defined as Adjusted EBITDA plus net proceeds from master lease agreements, proceeds from contract buyouts/prepayments, and interest earned on cash investments[23](index=23&type=chunk) - **Adjusted Cash Flow from Operations:** Defined as cash from operations adjusted for recurring proceeds from the SEMTH master lease and sales of solar energy systems, as well as non-recurring legal settlements[24](index=24&type=chunk) | Portfolio Value Metric | Value (as of June 30, 2025) | | :--- | :--- | | Contracted Portfolio Value | $745 million | | Renewal Portfolio Value | $91 million | | Uncontracted Renewable Energy Credits | $51 million | | **Gross Portfolio Value** | **$887 million** | [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q2 2025, including the **Statement of Operations** and **Balance Sheet**, and reconciliations for key non-GAAP measures [Condensed Consolidated Statements of Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenues reached **$33.2 million**, with net loss attributable to stockholders at **$3.0 million**, or **($0.17) per share**, significantly improving from Q2 2024 | (In thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $33,239 | $22,481 | | Total operating expenses | $24,337 | $25,841 | | Income (loss) from operations | $8,902 | $(3,360) | | Net loss | $(2,867) | $(8,573) | | Net loss attributable to stockholders | $(2,966) | $(8,578) | | Net loss per share, basic and diluted | $(0.17) | $(0.45) | [Condensed Consolidated Balance Sheets](index=16&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Spruce Power reported total assets of **$862.6 million**, total liabilities of **$735.2 million**, and total stockholders' equity of **$125.0 million**, including **$53.5 million** in cash | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $53,511 | $72,802 | | Total current assets | $119,300 | $136,430 | | Total assets | $862,631 | $898,479 | | **Liabilities & Equity** | | | | Total current liabilities | $239,485 | $59,569 | | Total liabilities | $735,221 | $752,327 | | Total stockholders' equity | $124,987 | $143,714 | | Total liabilities & equity | $862,631 | $898,479 | [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, highlighting Q2 2025 **Operating EBITDA of $24.6 million**, **Adjusted Cash Flow from Operations of $9.5 million**, and **Core Operating Expenses of $17.2 million** Reconciliation of Net Loss to Operating EBITDA (Q2) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net loss attributable to stockholders | $(2,966) | $(8,578) | | EBITDA | $11,322 | $(1,261) | | Adjusted EBITDA | $17,430 | $5,402 | | **Operating EBITDA** | **$24,641** | **$14,443** | Reconciliation of Adjusted Cash Flow from Operations (Q2) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,343) | $(5,115) | | **Adjusted Cash Flow from Operations** | **$9,547** | **$2,764** | Calculation of Core Operating Expenses (Q2) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | O&M Expense | $2,137 | $4,474 | | SG&A Expense | $15,099 | $16,701 | | **Core operating expenses** | **$17,236** | **$21,175** | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section provides details on the investor conference call, an overview of Spruce Power's business as a leading distributed solar energy asset owner, and cautionary notes on forward-looking statements and risks - A conference call for analysts and investors was scheduled for **August 11, 2025**, at 2:30 p.m. Mountain Time to discuss the financial results[15](index=15&type=chunk) - Spruce Power is a **leading owner and operator of distributed solar energy assets**, providing subscription-based services for rooftop solar and battery storage[17](index=17&type=chunk) - The report includes a detailed **cautionary note on forward-looking statements**, outlining **numerous risks and uncertainties** that could cause actual results to differ from expectations[18](index=18&type=chunk)[19](index=19&type=chunk)

Company Overview - Spruce Power owns the cash flows from approximately 85,000 home solar assets and contracts representing 515 MW of capacity[6] - The company also provides management services to approximately 60,000 stand-alone systems owned by other companies, totaling approximately 145,000 systems and customer contracts[7] Financial Performance (1Q'25) - Revenue reached $24 million, a 30% year-over-year increase[9] - Adjusted Operating Margin was 24%[38] - Adjusted EBITDA Margin was 26%[38] - Total Cash was $96 million[9] Market Opportunity - The projected U.S solar build is 737 GW between 2024-2035[5] - U.S electricity consumption is expected to double by 2050[11] Acquisition Strategy - The company has acquired contracts related to over 67,000 home solar systems in 14 separate transactions since 4Q'18[22] - Spruce Power 5 Acquisition added cash flows from over 9,800 residential solar contracts in New Jersey[37] Debt and Portfolio Value - The company's debt has minimal exposure to interest rate fluctuations over the near-to-medium term as all debt is either floating rate debt that is hedged with interest rate swaps or fixed rate debt[45] - Spruce has $201 million in Net Portfolio Value as of 1Q'25, including Total Cash, Net Portfolio Value was $297 million[47]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $23.8 million, up from $20.2 million in Q4 2024 and $18.3 million in Q1 2024, reflecting a 30% year-over-year growth [26][27] - Operating EBITDA increased to $12.3 million in Q1 2025 from $10.7 million in the prior year period, primarily due to the NJR acquisition [28][29] - The company reported a GAAP net loss attributable to stockholders of $15.3 million [28] Business Line Data and Key Metrics Changes - The acquisition of rooftop assets from NJR contributed significantly to revenue growth, with approximately 9,800 installations acquired [6][12] - Spruce Pro, the third-party solar servicing platform, is expected to ramp up revenue gradually, with a significant partnership with ADT covering 60,000 systems [8][15] - Portfolio O&M expenses were $3.9 million in Q1 2025, down from $5.3 million in Q4 2024, indicating a sequential decline of over 25% [27] Market Data and Key Metrics Changes - The company is experiencing a cautious approach to new growth opportunities due to uncertainty in market conditions [8] - The SREC market in New Jersey is characterized by deep liquidity and high prices, which is expected to continue benefiting the company [38] Company Strategy and Development Direction - The company aims to achieve positive free cash flow through growth in solar installations and prudent cost containment [7][11] - Spruce is focused on opportunistic M&A and programmatic off-take partnerships to drive profitable expansion [12][14] - The company is enhancing operational efficiencies through strategic sourcing and better vendor management [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to identify and execute new agreements that add shareholder value despite near-term profitability challenges [20] - The company is not heavily dependent on aggressive new customer acquisition strategies, which differentiates it from many peers [24] - Management remains optimistic about the liquidity profile and ability to refinance upcoming debt [37][42] Other Important Information - Sarah Wells, the CFO, is leaving the company after seven years, and an interim CFO will be announced soon [25][40] - The company has a robust cash position with approximately $96.5 million in total cash, including $61.9 million in unrestricted cash [29] Q&A Session Summary Question: Thoughts on Spruce Pro's revenue opportunity and lead times - Management indicated that Spruce Pro is a capital-light endeavor with a deep pipeline of prospects and expects to make further announcements soon [34][35] Question: Environment for refinancing the FC1 loan - Management is confident in obtaining like-for-like terms for refinancing and is exploring more favorable credit options [37] Question: Insights on SRECs for the SP Five acquisition - Management noted that New Jersey has high liquidity and prices in the SREC market, which is expected to continue [38] Question: CFO transition and its implications - Management acknowledged the contributions of the outgoing CFO and is actively searching for a replacement [40][41] Question: Durability of the business model under the new administration - Management believes the company is less affected by policy changes due to its operational model, which focuses on maximizing existing solar assets [42][43]

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $23.8 million, up from $20.2 million in the fourth quarter and $18.3 million in the prior year period, reflecting a 30% year-over-year growth [26][27] - Operating EBITDA increased to $12.3 million for the first quarter, compared to $10.7 million in the prior year period, primarily due to the NJR acquisition [28][29] - The company reported a GAAP net loss attributable to stockholders of $15.3 million [28] Business Line Data and Key Metrics Changes - The acquisition of rooftop assets from NJR positively impacted revenue and operating EBITDA, with the company owning and operating approximately 85,000 home solar assets and servicing around 60,000 residential solar systems [5][6] - Portfolio O&M expenses were $3.9 million in the first quarter, down from $5.3 million in the fourth quarter, indicating a sequential decline of over 25% [27] - SG&A expenses were $14.1 million in the first quarter, down from $15.5 million in the fourth quarter but up from $13.5 million in the prior year period [27] Market Data and Key Metrics Changes - The company is experiencing a cautious approach to new growth opportunities due to uncertainty in the market, which has affected cash burn and revenue collection timing [7][29] - The New Jersey market has deep liquidity in the SREC market, which is expected to continue supporting revenue generation [39] Company Strategy and Development Direction - The company aims to achieve positive free cash flow through growth in solar installations, prudent cost containment, and disciplined acquisition strategies [6][11] - Spruce Pro is identified as a key revenue driver, leveraging existing infrastructure to provide services to third-party owners of solar assets [15][16] - The company is focused on operational enhancements through strategic sourcing and better vendor management to improve efficiency and margin expansion [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market challenges, emphasizing the predictability of cash flows from existing solar assets [20][23] - The company is optimistic about achieving profitability and positive cash flow through reduced spending and operational efficiencies [31] - Management highlighted the unique position of Spruce Power as a third-party operator, which mitigates risks associated with aggressive customer acquisition strategies [23][44] Other Important Information - The company has approximately $96.5 million in total cash, with $61.9 million being unrestricted cash at the end of the first quarter [29] - The Board of Directors has approved the renewal of the company's share repurchase program [22] Q&A Session Summary Question: What is the scale of revenue opportunity for Spruce Pro and the lead times to build that business? - Management indicated that Spruce Pro is a capital-light endeavor with a deep pipeline of prospects and expects to make further announcements in the next quarter [35][36] Question: What does the refinancing environment look like for the FC1 loan? - Management expressed confidence in obtaining like-for-like terms for refinancing and is exploring more favorable credit options [38] Question: Why are SRECs for the SP Five acquisition so high compared to other assets? - Management explained that New Jersey has deep liquidity and high prices in the SREC market, which is expected to continue [39] Question: What drove the decision for the CFO transition? - Management noted that the CFO's decision to move to a private company aligns with her personal objectives, and they are actively searching for a replacement [40][41] Question: How durable is the business model compared to industry peers under the new administration? - Management highlighted that being a third-party operator allows them to mitigate risks associated with new installations and tax credits, maintaining a strong liquidity profile [43][44]

Financial Performance - Revenues for Q1 2025 were $23.8 million, a 30.5% increase from $18.3 million in Q1 2024[16] - Net loss attributable to stockholders for Q1 2025 was $15.3 million, compared to a loss of $2.5 million in Q1 2024, representing a significant increase in losses[16] - Total operating expenses increased to $25.5 million in Q1 2025, up from $21.9 million in Q1 2024, reflecting a 16.5% rise[16] - The Company generates revenues primarily through long-term Customer Agreements, third-party contracts for solar renewable energy credits (SRECs), and servicing third-party owned solar energy systems[22] - Power Purchase Agreement (PPA) revenues were $7.9 million in Q1 2025, up from $7.5 million in Q1 2024, representing a growth of 5.0%[49] - Service Level Agreement (SLA) revenues increased significantly to $9.9 million in Q1 2025 from $7.3 million in Q1 2024, marking a growth of 36.4%[49] - Solar renewable energy credit revenues rose to $3.9 million in Q1 2025, compared to $1.8 million in Q1 2024, reflecting a growth of 109.5%[49] - The Company recognized interest income of $4.6 million for the three months ended March 31, 2025, compared to $3.8 million for the same period in 2024[39] Cash Flow and Liquidity - Cash and cash equivalents decreased to $61.9 million as of March 31, 2025, down from $72.8 million at the end of 2024, a decline of 15.9%[14] - The company reported a net cash used in operating activities of $9.1 million for Q1 2025, compared to $22.2 million in Q1 2024, indicating improved cash flow management[19] - As of March 31, 2025, the Company had cash and cash equivalents of $61.9 million and restricted cash of $34.5 million, totaling $96.5 million[37] - The company expects that its current cash and cash equivalents, along with future cash generated from operations, will be sufficient to meet cash requirements for the next 12 months[158] - Net cash used in continuing operating activities decreased by $13.1 million to $(9.1 million) for the three months ended March 31, 2025, compared to $(22.2 million) for the same period in 2024[159] - Net cash provided by continuing investing activities was $4.2 million for the three months ended March 31, 2025, primarily from $4.5 million of proceeds from investments and $1.4 million from the sale of solar energy systems[161] - Net cash used in continuing financing activities was $7.7 million for the three months ended March 31, 2025, mainly due to $6.8 million for repayments of non-recourse long-term debt[162] Assets and Liabilities - Total assets as of March 31, 2025, were $878.0 million, a decrease of 2.7% from $898.5 million at the end of 2024[14] - Total stockholders' equity decreased to $130.8 million as of March 31, 2025, down from $146.2 million at the end of 2024, a decline of 10.5%[15] - The total non-recourse debt as of March 31, 2025, was $700.122 million, a decrease from $705.331 million as of December 31, 2024[78] - The fair value of the Company's non-recourse debt was estimated at $718.1 million as of March 31, 2025, compared to $723.8 million as of December 31, 2024[86] - As of March 31, 2025, accrued expenses and other current liabilities totaled $28.096 million, slightly down from $28.125 million as of December 31, 2024[77] - The Company reported current assets of $1.5 million as of March 31, 2025, down from $2.1 million as of December 31, 2024, indicating a decrease of about 29.3%[99] - The total liabilities of the Company as of March 31, 2025, were $1.8 million, a decrease from $2.0 million as of December 31, 2024, reflecting a decline of about 12.5%[99] Shareholder Activities - The company repurchased 298,952 shares at a cost of $808,000 during the quarter, indicating a strategy to return value to shareholders[18] - The Board of Directors approved a Repurchase Program in May 2023, authorizing the repurchase of up to $50.0 million of outstanding common stock through May 15, 2025[188] - As of March 31, 2025, approximately $43.0 million remains available under the Repurchase Program[189] - A total of 298,952 shares were repurchased during the three months ended March 31, 2025, at an average price of $2.68 per share[188] - The repurchase activity included 97,380 shares in January 2025 at $2.91, 86,594 shares in February 2025 at $2.55, and 114,978 shares in March 2025 at $2.59[188] Operational Developments - The Company has approximately 85,000 home solar assets and customer contracts, enhancing its market presence in the renewable energy sector[21] - The Company ceased its Drivetrain and XL Grid operations in late 2022, which are now classified as discontinued operations[24] - The Company is contracted to service approximately 60,000 systems owned by third parties, in addition to its own 85,000 home solar assets[128] - The Company aims to leverage its platform to grow revenues through subscription-based solutions for distributed energy resources, focusing on customer acquisition cost efficiency[129] - The Company has entered into a new operating lease agreement for a servicing center in New Jersey with annual rental payments of approximately $0.1 million[122] Challenges and Risks - The Company has experienced recurring net losses and negative cash flows from operations, raising doubt about its ability to continue as a going concern[26] - The company identified a material weakness in internal control over financial reporting as of March 31, 2025, affecting the reliability of financial statements[171] - The company is actively hiring qualified personnel to strengthen internal controls and address previously disclosed material weaknesses[177] - The company has experienced turnover in key management positions, including the CFO, which may disrupt business operations and affect market perception[185] - The company continues to face challenges in attracting and retaining highly qualified personnel, which is critical for executing its global business strategy[186] Legal Matters - The Company is involved in ongoing legal proceedings, including a securities class action settlement amounting to $19.5 million, with a net payment of $15.0 million made in February 2024[101] - BMZ USA, Inc. obtained a judgment for $3.9 million against XL Hybrids, with a potential loss estimated at approximately $1.2 million accrued as of March 31, 2025[105] Future Outlook - The Company plans to extend or refinance the SP1 Facility, which has a maturity date of April 30, 2026, and believes this is highly likely to be completed[25] - The Company plans to adopt ASU 2024-03 regarding expense disaggregation disclosures in its annual financial statements for the year ended December 31, 2027[66] - The expected amortization of intangible assets for the remainder of 2025 is projected to be $845,000, with a total expected amortization of $8.675 million over the next five years[76]

[First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) Spruce Power reported strong Q1 2025 results with significant revenue and Operating EBITDA growth driven by strategic acquisitions, maintaining a robust cash position while focusing on further acquisitions, service expansion, and cost efficiency [Business Highlights](index=1&type=section&id=Business%20Highlights) Spruce Power reported strong year-over-year growth in the first quarter of 2025, with a 30% increase in revenue to $23.8 million and a 15% rise in Operating EBITDA to $12.3 million. The company ended the quarter with a total cash balance of $96.5 million and a portfolio of approximately 85,000 home solar assets Q1 2025 Key Metrics | Metric | Value | | :--- | :--- | | Revenues | $23.8 million (up 30% YoY) | | Net loss attributable to stockholders | $15.3 million | | Operating EBITDA | $12.3 million (up 15% YoY) | | Total cash balance (as of Mar 31, 2025) | $96.5 million | | Home solar assets and contracts | ~85,000 | | Spruce PRO third-party systems serviced | ~60,000 | | Quarterly portfolio generation | ~121 thousand MWh | [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) The CEO attributed the positive Q1 results, including a 30% revenue growth, to the acquisition of assets from NJR Clean Energy Ventures. The company maintains a strong balance sheet with nearly $100 million in cash and is actively pursuing new acquisitions, expanding its Spruce PRO servicing business with ADT as a new client, and focusing on cost management to improve profitability - The acquisition of rooftop assets from NJR Clean Energy Ventures was a primary driver for the **30% year-over-year revenue growth** and **15% increase in Operating EBITDA**[4](index=4&type=chunk) - The company is focused on three key strategic areas for 2025: - Actively seeking new, disciplined acquisition opportunities - Expanding the Spruce PRO servicing business, having recently signed ADT as its first third-party client - Implementing cost management actions to enhance profitability[4](index=4&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) Spruce Power's Q1 2025 financial results show increased revenues and Operating EBITDA, a strong cash position with non-recourse debt, ongoing share repurchases, and a substantial portfolio of home solar assets generating significant power [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) For Q1 2025, revenues increased to $23.8 million, up 30% year-over-year, primarily due to the NJR portfolio acquisition. Total operating expenses rose to $25.5 million from $21.9 million in the prior year, driven by higher SG&A and O&M costs. The company recorded a net loss attributable to stockholders of $15.3 million, while Operating EBITDA grew to $12.3 million from $10.7 million year-over-year Q1 Revenue Comparison | Period | Revenue | | :--- | :--- | | Q1 2025 | $23.8 million | | Q4 2024 | $20.2 million | | Q1 2024 | $18.3 million | Q1 Operating Expenses Comparison (YoY) | Expense Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Operating Expenses | $25.5 million | $21.9 million | | Core Operating Expenses | $18.0 million | $16.6 million | | - SG&A | $3.9 million | $3.1 million | | - O&M | $14.1 million | $13.5 million | - Operating EBITDA increased to **$12.3 million** in Q1 2025 from **$10.7 million** in Q1 2024, mainly due to the NJR acquisition, though partially offset by higher expenses and lower interest income. The company expects Operating EBITDA to improve in all quarters of 2025 compared to the prior year[9](index=9&type=chunk) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, Spruce Power held $96.5 million in total cash, down from $109.1 million at year-end 2024, with the decrease attributed to collections timing, seasonality, and share repurchases. The company's total outstanding debt was $723.8 million, all of which is non-recourse project finance debt with a blended interest rate of 6.0% Cash Position as of March 31, 2025 | Cash Category | Amount | | :--- | :--- | | Total Cash | $96.5 million | | Cash and Cash Equivalents | $61.9 million | | Restricted Cash | $34.5 million | - Total principal debt outstanding was **$723.8 million** with a blended interest rate of **6.0%**. All debt is non-recourse to the company, meaning it is secured at the project level and does not impact corporate cash balances[10](index=10&type=chunk) [Growth and Capital Allocation](index=3&type=section&id=Growth%20and%20Capital%20Allocation) Spruce Power is focused on maximizing shareholder value through strategic acquisitions, capital projects, debt repayment, and shareholder returns. During Q1 2025, the company repurchased 0.3 million shares for $0.8 million, leaving $43.0 million remaining under its $50.0 million share repurchase authorization - In Q1 2025, the company repurchased **0.3 million shares** of common stock at an average price of **$2.70 per share**, for a total cost of **$0.8 million**[13](index=13&type=chunk) - As of March 31, 2025, **$43.0 million** remained available under the company's **$50.0 million** share repurchase program[13](index=13&type=chunk) [Key Operating Metrics](index=3&type=section&id=Key%20Operating%20Metrics) As of Q1 2025, Spruce's portfolio consisted of approximately 85,000 home solar assets with an average remaining contract life of 11 years, which generated 121 thousand MWh of power during the quarter. The company also services an additional 60,000 third-party systems. The Gross Portfolio Value, calculated on a PV6 basis, was $901.0 million Operating Portfolio as of March 31, 2025 | Metric | Value | | :--- | :--- | | Owned home solar assets/contracts | ~85,000 | | Average remaining contract life | ~11 years | | Third-party systems serviced | ~60,000 | | Q1 2025 portfolio generation | ~121 thousand MWh | | Gross Portfolio Value (PV6) | $901.0 million | [Financial Statements and Non-GAAP Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section details Spruce Power's Q1 2025 financial statements, including consolidated statements of operations and balance sheets, alongside definitions and reconciliations of non-GAAP financial measures like Operating EBITDA [Use and Definitions of Non-GAAP Financial Information](index=8&type=section&id=Use%20and%20Definitions%20of%20Non-GAAP%20Financial%20Information) The company uses non-GAAP measures like EBITDA, Adjusted EBITDA, and Operating EBITDA to provide supplemental information on business performance. Operating EBITDA is a key metric defined as Adjusted EBITDA plus cash flows from master lease agreements, contract buyouts, and interest on cash investments. Core Operating Expenses are defined as the sum of SG&A and O&M expenses. Portfolio Value Metrics are used to estimate the remaining value of customer contracts - Operating EBITDA is a key non-GAAP metric used by management, defined as Adjusted EBITDA plus proceeds from master lease agreements, buyouts/prepayments, and interest earned on cash investments[24](index=24&type=chunk) Gross Portfolio Value Composition (as of March 31, 2025) | Component | Value (in millions) | | :--- | :--- | | Contracted Portfolio Value | $786 | | Renewal Portfolio Value | $71 | | Uncontracted Renewable Energy Credits | $44 | | **Gross Portfolio Value** | **$901** | [Condensed Consolidated Statements of Operations](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, Spruce Power reported revenues of $23.8 million, an increase from $18.3 million in the prior-year period. The company posted a loss from operations of $1.7 million and a net loss attributable to stockholders of $15.3 million, or ($0.84) per share, compared to a net loss of $2.5 million, or ($0.13) per share, in Q1 2024 Q1 Statement of Operations Summary (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $23,818 | $18,287 | | Total operating expenses | $25,512 | $21,884 | | Loss from operations | $(1,694) | $(3,597) | | Net loss attributable to stockholders | $(15,338) | $(2,454) | | Net loss per share, basic and diluted | $(0.84) | $(0.13) | [Reconciliation of Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides a reconciliation from GAAP Net Loss to non-GAAP metrics. For Q1 2025, the net loss attributable to stockholders of $15.3 million was reconciled to an Operating EBITDA of $12.3 million. This compares to a net loss of $2.5 million and an Operating EBITDA of $10.7 million in Q1 2024 Reconciliation to Operating EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to stockholders | $(15,338) | $(2,454) | | EBITDA | $(1,377) | $8,094 | | Adjusted EBITDA | $6,162 | $3,771 | | **Operating EBITDA** | **$12,290** | **$10,703** | [Condensed Consolidated Balance Sheets](index=16&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Spruce Power had total assets of $878.0 million, down from $898.5 million at the end of 2024. Total liabilities stood at $747.2 million, and total stockholders' equity was $130.8 million. Key assets included $61.9 million in cash and cash equivalents and $582.8 million in net property and equipment Balance Sheet Summary (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $125,870 | $136,430 | | Total assets | $877,987 | $898,479 | | Total current liabilities | $59,396 | $59,569 | | Total liabilities | $747,208 | $752,327 | | Total stockholders' equity | $130,779 | $146,152 | [Other Information](index=5&type=section&id=Other%20Information) This section provides details for the Q1 2025 conference call, an overview of Spruce Power's business as a leading distributed solar energy asset owner, and a cautionary note regarding forward-looking statements [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) Spruce Power management will host a conference call for analysts and investors to discuss the first quarter 2025 financial results and business outlook. The release provides details for accessing the live call and a subsequent audio replay - A conference call to discuss Q1 2025 results is scheduled for **May 14, 2025, at 2:30 p.m. Mountain Time**. Access details for the live call and replay are provided[16](index=16&type=chunk) [About Spruce Power](index=5&type=section&id=About%20Spruce%20Power) Spruce Power is a leading owner and operator of distributed solar energy assets in the U.S., providing subscription-based services for rooftop solar and battery storage. The company owns the cash flows from approximately 85,000 home solar assets and contracts - Spruce Power's business model is a power as-a-service subscription that allows homeowners to access solar technology without significant upfront investment or maintenance costs[17](index=17&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains a cautionary note regarding forward-looking statements, which are based on current expectations and are subject to numerous risks and uncertainties. It advises readers not to place undue reliance on these statements and refers them to the company's SEC filings for a more detailed discussion of risk factors - Forward-looking statements in the release, including management's outlook and expectations for growth, are subject to significant risks and uncertainties detailed in the company's SEC filings, such as the Annual Report on Form 10-K[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $20.2 million, up from $15.7 million in the prior year, primarily due to the NJR acquisition and conservative revenue recognition for delinquent accounts [30] - For the full year 2024, GAAP revenue was $82.1 million compared to $79.9 million in 2023 [30] - GAAP net loss attributable to stockholders was $5.9 million for the quarter [31] - Operating EBITDA for Q4 was $10.8 million, down from $11.3 million in the prior year, with full year operating EBITDA at $53.9 million [32] Business Line Data and Key Metrics Changes - The company owns and manages approximately 85,000 home solar assets, with a significant acquisition of 9,800 systems from NJR Clean Energy Ventures [10][12] - The NJR acquisition increased the gross portfolio value to $910 million in Q4, compared to $749 million without the acquisition [14] - Customer satisfaction (CSAT) score improved to 83% in 2024, up from 74% in 2023 [15] Market Data and Key Metrics Changes - The company operates in 18 states, with New Jersey becoming its second largest market after the NJR acquisition, now serving approximately 16,000 customers [13] Company Strategy and Development Direction - The corporate strategy is built on three pillars: acquiring installed systems, leveraging the Spruce Pro channel for capital-light growth, and expanding subscription-based solutions for distributed energy [20][23] - The company prioritizes long-term financial stability over short-term sales growth, focusing on operational efficiency and cost optimization strategies in 2025 [24][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the residential solar market but emphasized Spruce Power's stability and predictability compared to peers [8] - The company plans to optimize cash flow and manage operating expenses to improve efficiency in 2025 [36] Other Important Information - Total cash at the end of Q4 was approximately $109.1 million, with unrestricted cash at $72.8 million, down from $113.6 million at the end of Q3 [34] - The total principal balance of long-term debt was $730.6 million, with a blended interest rate of 6% [35] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from participants [37]