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]

Business Operations and Strategy - Spruce Power operates approximately 85,000 home solar assets and customer contracts, generating revenues primarily through long-term customer agreements and third-party contracts for solar renewable energy credits[18]. - The company completed the acquisition of approximately 2,400 home solar assets from a regulated utility company, with an average remaining contract life of approximately 11 years[22]. - Following the NJR Acquisition, Spruce Power's portfolio consists of 14 portfolios of home solar assets with a combined capacity of approximately 514 MWdc[24]. - The average remaining contract term for home solar assets in Spruce Power's portfolio is approximately 11 years as of December 31, 2024[34]. - Spruce Power's corporate strategy focuses on subscription-based solutions for distributed energy resources, aiming to deliver predictable revenues and profits[25]. - The company has a dedicated M&A team that has successfully acquired high-quality portfolios of solar energy systems, minimizing customer acquisition costs[30]. - Spruce Power's portfolio is geographically diverse across 18 states in the U.S., reducing exposure to localized risks and providing stable cash flows[35]. - The company aims to grow customer revenues by focusing on channels with the lowest customer acquisition costs, including acquiring existing systems and selling additional services[26]. Financial Performance - For the year ended December 31, 2024, the company's revenues totaled $82.1 million, compared to $79.9 million for the year ended December 31, 2023, reflecting a year-over-year increase of approximately 2.8%[184]. - The net loss attributable to stockholders for the year ended December 31, 2024, was $70.5 million, compared to a net loss of $65.8 million for the previous year, indicating an increase in losses of approximately 10.7%[184]. - Revenues increased by $2.2 million, or 3%, to $82.1 million in 2024 compared to 2023, primarily due to increased PPA revenues from the Tredegar Acquisition[201]. - Total operating expenses rose by $15.8 million, or 14%, to $132.5 million in 2024, driven by increased costs in operations and maintenance, selling, general and administrative expenses, and impairment of goodwill[200]. - Impairment of goodwill increased by $28.8 million, or 100%, to $28.8 million in 2024 due to a continuous decline in stock price and market capitalization[206]. - Interest income increased to $22.8 million in 2024 from $19.5 million in 2023, attributed to a full year of interest from the SEMTH Master Lease[207]. - Interest expense, net decreased by $1.7 million, or 4%, to $40.2 million in 2024, primarily due to net realized gains from interest rate swaps[208]. - Working capital as of December 31, 2024, was $76.9 million, with cash and cash equivalents totaling $109.1 million[212]. - The company had a debt balance of $705.3 million as of December 31, 2024, all of which is non-recourse project-level debt[214]. - Net cash used in continuing operating activities was $(41.7) million in 2024, compared to $(31.7) million in 2023[216]. Market and Regulatory Environment - Federal, state, and local government incentives support the adoption of solar energy, allowing Spruce Power to lower prices for customers and enhance return on investment[49]. - The Inflation Reduction Act (IRA) enacted on August 16, 2022, includes significant policy initiatives to enhance the clean energy industry, but potential revisions or delays in funding could negatively impact the company's business[50]. - The solar energy industry is still developing, and the company faces competition from traditional energy companies and other renewable energy firms, which could adversely affect its business growth[63]. - The company is subject to various risks related to regulatory changes, legal proceedings, and compliance costs, which could adversely affect business operations[61]. - Regulatory challenges in various states may limit the company's ability to deliver solar energy and qualify for incentives, impacting growth opportunities[121]. - Changes in laws regarding rebates and net metering could reduce the attractiveness of solar energy systems, affecting customer acquisition[122]. - The evolving regulatory landscape concerning electricity pricing and competition with utilities may reduce demand for the company's solar energy systems[127]. - Adverse changes in solar-related policies could negatively impact the company's financial condition and operational results[128]. Risks and Challenges - The company is exposed to risks related to the performance and reliability of solar energy systems, which could lead to warranty claims and product liability issues, adversely impacting financial performance[67]. - A material reduction in the retail price of traditional utility-generated electricity could harm the company's financial condition and results of operations[58]. - Rising interest rates could adversely affect the company's financial condition, and the effectiveness of hedging strategies may be limited[58]. - The company faces significant risks related to climate change, which could adversely affect energy production and revenue generation from solar energy systems[71]. - The company typically bears the risk of loss and maintenance costs for solar energy systems, which could lead to unforeseen expenses if repairs exceed estimates[72]. - The company may experience a reduction in the residual value of solar energy systems at the end of customer agreements, potentially impairing financial performance[73]. - Tariffs and trade restrictions imposed by the U.S. government on solar products from China could increase costs and reduce competitive pricing capabilities[75]. - The company competes with traditional energy companies and vertically integrated solar companies, which may have greater resources and market advantages[77][78]. - There is a risk of increased customer credit defaults, particularly during economic downturns, which could adversely affect revenue and financial condition[104]. - The company faces significant fluctuations in customer demand, which could affect operating results and growth potential[95]. - The company may require additional financing to support growth strategies, and failure to secure such financing could adversely affect operations[88][90]. - The company does not have direct control over supplier costs for solar energy system components, which may hinder competitive pricing[91]. - The company faces challenges in managing growth effectively, which could impact customer service and operational efficiency[86]. Management and Governance - The recent CEO transition occurred on April 12, 2024, with Christopher Hayes appointed as President and CEO, which may create uncertainty and impact business operations[98]. - Management has limited experience in operating a public company, which may hinder effective growth management and compliance with regulatory obligations[99]. - The company is subject to risks associated with proxy contests and actions of activist stockholders, which can be costly and time-consuming, potentially disrupting operations[153]. - The company has a comprehensive cybersecurity risk management program integrated into its overall enterprise risk management framework, overseen by the Audit Committee[156]. - The Audit Committee receives quarterly reports on cybersecurity matters and related risk exposures, ensuring ongoing oversight[157]. - The ability to attract and retain qualified personnel is critical, as competition for skilled employees is intense, impacting the execution of business strategies[97]. Legal and Compliance Issues - The company agreed to a settlement amount of $19.5 million to resolve class action litigation, with a net payment of $15.0 million after insurance recoveries[115]. - The SEC imposed a civil money penalty of $11.0 million for violations of federal securities laws, which has been paid[117]. - The company is currently involved in multiple legal proceedings, which could result in significant costs and resource diversion[118]. - The company faces potential patent infringement claims that could materially affect its business and financial condition[120]. - The company has received subpoenas from state attorneys general regarding its business practices, which may result in fines or penalties[131]. - The company has identified material weaknesses in internal control over financial reporting, which could lead to inaccurate financial reporting and a decline in stock price[132][133]. - The company is subject to evolving laws and regulations related to data privacy and security, which could increase operational costs and impact business[130]. Shareholder and Stock Information - The average closing price of the company's common stock was below $1.00 per share for 30 consecutive trading days in 2022 and 2023, raising the risk of delisting from the NYSE[141]. - The company has the ability to issue up to 324,696,266 shares of common stock under its 2020 Equity Incentive Plan, which could dilute existing stockholders' interests[146]. - The company has no current plans to declare cash dividends, meaning investors may need to rely on share price appreciation for future gains[139]. - Clayton Capital Appreciation Fund, L.P. and its affiliates owned approximately 2.1% of the company's outstanding shares and nominated two candidates for election as directors at the 2024 Annual Meeting of Stockholders[152]. - The company entered into a Cooperation Agreement with Clayton, agreeing to increase the Board size from six to seven directors and appoint Clara Nagy McBane to the Board[152].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ___________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________ Commission File Number 001-38971 Spruce Power Holding Corporation (Exact name o ...

Financial Data and Key Metrics Changes - Third quarter revenue was $21.4 million, a decrease from $23.3 million in the prior year period, primarily due to lower SREC revenues and higher performance guarantee payments [21] - Operating EBITDA for the third quarter was $17.7 million, down from $19.8 million in the prior year [23] - The company reported a GAAP net loss attributable to stockholders of $53.5 million [22] - Total cash at the end of the third quarter was approximately $150 million, unchanged from the previous quarter [23] - Unrestricted cash balance at quarter end was approximately $114 million, down from $117 million at the end of the second quarter [23] - A non-cash Goodwill impairment charge of approximately $29 million was recorded due to a decline in stock price and market capitalization [25] - The adjusted operating EBITDA guidance for the full year 2024 was revised to a midpoint of $60 million, down from a previous low end of $68 million [26][27] Business Line Data and Key Metrics Changes - The core business generated predictable monthly cash flows from over 75,000 solar assets and contracts [7] - The company signed a non-binding letter of intent to acquire a portfolio of close to 10,000 home solar systems, which is expected to generate impressive cash on cash returns [12] - The Spruce Pro servicing business is ramping up, with a memorandum of understanding signed with a large residential solar installer [14] Market Data and Key Metrics Changes - Inflation in retail utility rates across geographies is expected to benefit the company's customers, who save significantly through solar power [10] - The company noted that approximately 50% of its portfolio is tied to power purchase agreements, which will benefit from rising utility rates [42] Company Strategy and Development Direction - The company aims to grow its distributed energy platform through acquisitions of operating residential solar assets and expanding its capital-light service offerings [6] - A disciplined capital allocation strategy is in place, focusing on asset acquisitions, debt reduction, and potential shareholder return initiatives [18] - The company is transitioning from a private ownership model to one that prioritizes equity value, which is expected to yield more cash flow [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's durability despite potential policy changes, emphasizing the ongoing demand for solar installations [37] - The company remains optimistic about the growth prospects of Spruce Pro and the overall market for third-party servicing [16][46] Other Important Information - The company is resuming common stock repurchase activity, which may occur as early as the current quarter [19] - The management highlighted a focus on customer satisfaction, with a CSAT score improvement to 81% from 75% a year ago [11] Q&A Session Summary Question: Can you share details about the financial impact of the acquisition? - Management expressed excitement about the acquisition opportunity, emphasizing the potential for high-margin cash flow and synergies within the servicing organization [33] Question: Can you expand on the Spruce Pro opportunity and define success for 2025? - Management highlighted the excitement around the MOU and indicated that success would be defined by the quality of the pipeline, with a high probability of closing deals in 2025 [35] Question: How does the recent election impact the business model? - Management stated that the business model remains strong as long as new solar installations continue, indicating a robust M&A pipeline and service market [37] Question: What are the implications of rising power demand on rooftop solar? - Management noted that rising utility rates would make solar more economically compelling, benefiting the company's contracts [42] Question: Can you provide guidance on the fourth quarter performance? - Management reiterated the updated guidance provided earlier and did not offer additional specifics [44] Question: What are the sentiments regarding the stock trading below cash? - Management mentioned the share buyback plan as a bullish sentiment and expressed confidence in the growth prospects of the business [46]

Investor Presentation November 2024 % spruce Disclaimer 2 2 Use of Forward-Looking Statements Certain statements in this presentation may constitute "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or i ...

Spruce Power Reports Third Quarter 2024 Results DENVER, COLORADO (November 13, 2024) – Spruce Power Holding Corporation (NYSE: SPRU) ("Spruce" or the "Company"), a leading owner and operator of distributed solar energy assets across the United States, today reported financial results for the third quarter ended September 30, 2024. Business Highlights • Reported 3Q revenues of $21.4 million, net loss attributable to stockholders of $53.5 million and Operating EBITDA of $17.7 million • Ended quarter with stro ...

Spruce Power Holding Corporation (NYSE:SPRU) Q2 2024 Earnings Conference Call May 15, 2024 4:30 PM ET Company Participants Bronson Fleig - Head, IR Chris Hayes - CEO Sarah Wells - CFO Conference Call Participants Shawn Severson - Water Tower Research Operator Thank you for standing by. My name is Kayla, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Spruce Power Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any ba ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ___________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________ Commission File Number 001-38971 Spruce Power Holding Corporation (Exact name of Reg ...

Spruce Power Reports Second Quarter 2024 Results DENVER, COLORADO (August 14, 2024) – Spruce Power Holding Corporation (NYSE: SPRU) ("Spruce" or the "Company"), a leading owner and operator of distributed solar energy assets across the United States, today reported financial results for the second quarter ended June 30, 2024. Business Highlights • Reported 2Q revenues of $22.5 million, net loss attributable to stockholders of $8.6 million and Operating EBITDA of $14.4 million. • Ended quarter with strong li ...

Spruce Power Holding Corporation (NYSE:SPRU) Q1 2024 Earnings Conference Call May 15, 2024 4:30 PM ET Company Participants Bronson Fleig - Head, IR Chris Hayes - CEO Sarah Wells - CFO Conference Call Participants Peter Gastreich - Water Tower Research Tristan Richardson - Scotiabank Operator Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Spruce Power First Quarter 2024 Earnings Conference Call. All lines have ...