Financial Data and Key Metrics Changes - Fourth quarter revenue increased to $20.2 million from $15.7 million year-over-year, primarily due to higher revenues from the NJR acquisition [30] - 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 the fourth quarter was $10.8 million, down from $11.3 million in the prior year [32] - Total cash at the end of the fourth quarter was approximately $109.1 million, with unrestricted cash at $72.8 million [34] Business Line Data and Key Metrics Changes - The company owns and manages approximately 85,000 home solar assets and customer contracts, with a gross portfolio value of $910 million, up from $749 million without the NJR transaction [10][14] - Portfolio O&M expense decreased to $5.3 million in the fourth quarter from $5.6 million in the prior year [30] - SG&A expense increased to $15.5 million in the fourth quarter from $12 million in the prior year, impacted by professional services related to the NJR acquisition [30][31] Market Data and Key Metrics Changes - The NJR acquisition expanded Spruce's presence in New Jersey, now the company's second largest market with approximately 16,000 customers [12][13] - Customer satisfaction (CSAT) score rose to 83% in 2024, up from 74% in 2023 [15] Company Strategy and Development Direction - The corporate strategy is built on three pillars: acquiring portfolios of installed systems, maximizing return on assets through the Spruce Pro channel, and expanding subscription-based solutions for distributed energy [19][20][23] - The company prioritizes long-term financial stability over short-term sales growth, focusing on operational efficiency and shareholder value creation [24][27] 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][27] - The company plans to implement cost optimization strategies in 2025, particularly focusing on reducing O&M costs [25][26] - Management decided not to provide financial guidance due to the volatile residential solar environment and macroeconomic factors [33] Other Important Information - The company successfully launched its third-party servicing channel, Spruce Pro, which is gaining traction with a significant agreement with ADT Solar [17][18] - All long-term debt is non-recourse and serviced by customer collections, with a total principal balance of $730.6 million at the end of the fourth quarter [35] Q&A Session Summary Question: No questions were asked during the session - There were no questions from participants during the Q&A session [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].

Financial Performance - Total revenues for the three months ended September 30, 2024, were $21,378 thousand, a decrease of 8.0% compared to $23,250 thousand for the same period in 2023[22]. - The net loss attributable to stockholders for the three months ended September 30, 2024, was $53,529 thousand, compared to a net loss of $19,313 thousand for the same period in 2023, indicating a significant increase in losses[22]. - The company reported a loss from operations of $37,159 thousand for the three months ended September 30, 2024, compared to a loss of $24,517 thousand in the same period last year[22]. - The company reported a net loss from continuing operations of $53,550 thousand for the three months ended September 30, 2024, compared to a loss of $18,963 thousand for the same period in 2023[22]. - Net loss for the nine months ended September 30, 2024, was $64,577,000, compared to a net loss of $36,407,000 for the same period in 2023, representing an increase of 77.5%[5]. - The net loss attributable to stockholders for the three months ended September 30, 2024, was $53,529,000, compared to a net loss of $19,313,000 for the same period in 2023, representing an increase of 177%[141]. - The basic and diluted net loss per share for the three months ended September 30, 2024, was $(2.88), compared to $(1.11) for the same period in 2023, indicating a significant decline in earnings[141]. Operating Expenses - Operating expenses increased to $58,537 thousand for the three months ended September 30, 2024, compared to $47,767 thousand in the prior year, representing a 22.6% increase[22]. - Selling, general and administrative expenses increased by $1.1 million, or 9.1%, to $13.5 million for the three months ended September 30, 2024, compared to $12.4 million for the same period in 2023[166]. Cash and Assets - Cash and cash equivalents decreased to $113,658 thousand as of September 30, 2024, down from $141,354 thousand as of December 31, 2023, reflecting a decline of 19.6%[19]. - Total current assets were $173,006 thousand as of September 30, 2024, a decrease of 14.9% from $203,341 thousand as of December 31, 2023[19]. - As of September 30, 2024, total cash, cash equivalents, and restricted cash amounted to $149.981 million, a decrease of 22.1% from $192.733 million on September 30, 2023[46]. - Accounts receivable at the end of the period was $940 thousand, down from $1.693 million at the beginning of the period, reflecting a write-off of uncollectible accounts of $1.881 million[48]. - As of September 30, 2024, net solar energy systems amounted to $464.2 million, down from $483.9 million as of December 31, 2023[94]. - Intangible assets, net, as of September 30, 2024, were $9.3 million, down from $10.2 million as of December 31, 2023[95]. Liabilities and Equity - The company’s total liabilities decreased to $655,138 thousand as of September 30, 2024, down from $680,352 thousand as of December 31, 2023, representing a reduction of 3.7%[22]. - The accumulated deficit increased to $(322,449) thousand as of September 30, 2024, compared to $(257,888) thousand at the end of the previous year[20]. - As of September 30, 2024, total stockholders' equity was $151.636 million, down from $204.563 million at June 30, 2024, reflecting a net loss of $53.554 million for the quarter[24]. Acquisitions and Investments - The company acquired Legacy Spruce Power for $32.6 million, with the purchase price allocated to various assets including $495.6 million for solar energy systems after adjustments[84]. - The SEMTH acquisition on March 23, 2023, involved a cash payment of approximately $23.0 million and the assumption of $125.0 million in senior indebtedness, acquiring rights to customer payment streams from approximately 22,500 home SLAs and PPAs[88]. - The Tredegar acquisition on August 18, 2023, involved the purchase of approximately 2,400 home solar assets for $20.9 million, with an average remaining contract life of about 11 years[91]. Revenue Streams - PPA revenues for the three months ended September 30, 2024, were $11.458 million, slightly up from $11.370 million in the same period last year[64]. - SLA revenues decreased to $6.702 million for the three months ended September 30, 2024, from $7.596 million in the prior year[64]. - Solar renewable energy credit revenues were $1.222 million for the three months ended September 30, 2024, down from $2.072 million in the same period last year[64]. - The company generated $4,712,000 from the sale of solar energy systems during the nine months ended September 30, 2024, compared to $5,068,000 in the same period of 2023, showing a decline of 7%[5]. Legal and Settlement Matters - The company reached a settlement of $19.5 million related to a securities class action, with a net payment of $15.0 million after insurance recoveries[125]. - A settlement-in-principle for shareholder derivative actions was reached, providing for corporate governance enhancements without monetary payments[128]. - The company paid a civil monetary penalty of $11.0 million to the SEC as part of a settlement regarding allegations related to its business combination[129]. - A settlement agreement was reached with US Bank for $2.3 million regarding reimbursement obligations under a tax recapture guaranty agreement[130]. Future Outlook and Strategy - The company aims to grow subscriber revenues by focusing on channels with the lowest customer acquisition costs, including acquiring existing systems from other companies[155]. - The company’s future growth is significantly dependent on acquiring operating home solar energy systems in bulk from other companies[159]. - Management believes no additional capital will be needed to execute its current business plan over the next 12 months[185].

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 ...

Financial Performance - Reported Q3 2024 revenues of $21.4 million, a decrease from $23.3 million in Q3 2023, primarily due to lower solar renewable energy credit revenues and higher performance guarantee payments[4]. - Net loss attributable to stockholders for Q3 2024 was $53.5 million, with Operating EBITDA reported at $17.7 million[6]. - Revenues for Q3 2024 were $21,378,000, a decrease of 8.05% from $23,250,000 in Q3 2023[27]. - Net loss attributable to stockholders was $53,529,000 in Q3 2024, compared to a net loss of $19,313,000 in Q3 2023, representing a significant increase in losses[27]. - Adjusted EBITDA for Q3 2024 was $6,712,000, down 27.14% from $9,208,000 in Q3 2023[28]. - The company reported a net loss from continuing operations per share of $2.88 for Q3 2024, compared to a loss of $1.09 per share in Q3 2023[27]. - The company incurred impairment of goodwill amounting to $28,757,000 in Q3 2024, with no such charge in Q3 2023[27]. Cash and Assets - The company ended the quarter with $150.0 million in total cash, including $113.7 million in unrestricted cash[8]. - Cash and cash equivalents were $113,658,000 as of September 30, 2024, down from $141,354,000 at the end of 2023, a decrease of 19.63%[29]. - Total assets decreased to $806,774,000 as of September 30, 2024, from $895,021,000 at the end of 2023, reflecting a decline of 9.83%[29]. - Total liabilities decreased to $655,138,000 as of September 30, 2024, from $680,352,000 at the end of 2023[30]. Operating Expenses - Core operating expenses for Q3 2024 were $17.4 million, up from $15.9 million in Q3 2023, due to higher non-routine operations and maintenance costs[5]. - Total operating expenses increased to $58,537,000 in Q3 2024, up 22.66% from $47,767,000 in Q3 2023[27]. Debt and Financing - The total principal amount of outstanding debt was $631.0 million with a blended interest rate of 5.9%[7]. - The company plans to fund the acquisition of the solar assets through a combination of cash on hand and non-recourse project level debt[11]. Growth and Acquisitions - Executed a non-binding Letter of Intent to acquire approximately 10,000 home solar assets, which would represent over 10% growth in the rooftop solar portfolio if completed[4][11]. - As of September 30, 2024, the company owned cash flows from approximately 75,000 home solar assets with a Gross Portfolio Value of $766.0 million[14][24]. - The company serviced approximately 1,000 third-party owned home solar systems as of September 30, 2024[14]. Guidance - Revised 2024 guidance for Operating EBITDA to a range of $57 - $62 million and Adjusted Free Cash Flow to a range of ($12) - ($7) million[9]. Shareholder Information - Weighted-average shares outstanding increased to 18,566,015 in Q3 2024 from 17,351,796 in Q3 2023[27].

Financial Data and Key Metrics Changes - For Q2 2024, revenue was $22.5 million, a slight decrease from $22.8 million in the prior year period, primarily due to lower revenues from solar renewable energy credits [13] - Operating EBITDA for Q2 was $14.4 million, with adjusted EBITDA at $5.4 million [14] - The total cash position at the end of Q2 was approximately $150 million, unchanged from Q1 [15] - The company reported a GAAP net loss attributable to stockholders of $8.6 million [14] Business Line Data and Key Metrics Changes - Core operating expenses (OpEx) for Q2 totaled $21.1 million, up from $19 million in the prior year, with portfolio O&M expenses increasing to $4.4 million from $3 million [13] - SG&A expenses rose to $16.7 million from $16 million, impacted by $1.9 million related to the CEO transition [14] Market Data and Key Metrics Changes - The company noted a favorable shift in the residential solar market, with higher interest rates and better policy incentives leading to an acceleration in solar lease and PPA origination [7] - The exit of a large player from the market has created additional opportunities for Spruce [7] Company Strategy and Development Direction - The strategic priorities focus on growth through acquiring operating residential solar assets and expanding capital-light third-party service offerings [4] - The company aims to maintain a conservative approach to M&A, emphasizing attractive returns and free cash flow generation [10] - Spruce is positioned to capitalize on the growing demand for long-term capital providers in the solar market [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's model as a third-party owner, highlighting the benefits of avoiding customer acquisition costs [19] - The company anticipates that rising electricity costs will enhance the economic appeal of rooftop solar for homeowners [23][25] - Management is optimistic about the expanding opportunity set in the market due to recent industry disruptions [20] Other Important Information - The company achieved a Google rating of 3.0 out of 5.0, the highest in its history, reflecting improvements in customer satisfaction [6] - The refinancing of the Spruce Power 4 credit facility was successfully completed, with a new rating of A+ from Kroll Bond Rating Agency [16] Q&A Session Summary Question: Impact of recent bankruptcy of a public residential solar installer - Management indicated that the bankruptcy highlights the advantages of their business model as a third-party owner, which avoids origination costs and allows for growth through acquisitions [19] Question: Go-to-market strategy for Spruce Pro - The new General Manager is focused on productizing and commercializing the service offerings, with plans to build a robust pipeline through various marketing efforts [21] Question: Adoption curve for Spruce Pro services - Management noted that the sales cycles for these services are longer, requiring a strategic approach to build the customer base [22] Question: Rooftop solar's role in the increasing electricity demand landscape - Management emphasized that rising electricity costs and decreasing solar costs create a favorable economic argument for homeowners, expanding the market for Spruce [23][25]

Financial Performance - Total revenues for Q2 2024 were $22,481,000, a slight decrease of 1.5% compared to $22,813,000 in Q2 2023[16] - The net loss attributable to stockholders for Q2 2024 was $8,578,000, compared to a net income of $3,065,000 in Q2 2023[16] - The company reported a loss from operations of $3,360,000 in Q2 2024, compared to a loss of $972,000 in Q2 2023[16] - The net loss for the six months ended June 30, 2024, was $11,023,000, compared to a net loss of $17,240,000 for the same period in 2023, indicating an improvement of approximately 36%[22] - For the six months ended June 30, 2024, total revenues were $40.8 million, compared to $40.9 million for the same period in 2023[50] - Revenues decreased by $0.3 million, or 1.5%, to $22.5 million for the three months ended June 30, 2024, compared to $22.8 million for the same period in 2023[145] - For the six months ended June 30, 2024, revenues decreased by $0.1 million, or 0.3%, to $40.8 million compared to $40.9 million for the same period in 2023[154] Operating Expenses - Operating expenses increased to $25,841,000 in Q2 2024, up 8.6% from $23,785,000 in Q2 2023[16] - Cost of revenues increased by $1.5 million, or 18.0%, to $10.1 million for the three months ended June 30, 2024, primarily due to higher operating and maintenance costs[145] - Selling, general and administrative expenses rose by $0.7 million, or 4.5%, to $16.7 million for the three months ended June 30, 2024, driven by higher compensation expenses including one-time severance costs[146] Cash and Liquidity - Cash and cash equivalents decreased to $116,588,000 as of June 30, 2024, down from $141,354,000 at December 31, 2023[13] - The cash and cash equivalents at the end of the period were $150,209,000, down from $192,110,000 at the beginning of the period[23] - Total cash, cash equivalents, and restricted cash amounted to $150.2 million as of June 30, 2024, down from $192.1 million as of June 30, 2023[38] - Net cash used in continuing operating activities was $27,402,000 for the six months ended June 30, 2024, compared to $16,113,000 for the same period in 2023, reflecting an increase in cash outflow[22] - The net change in cash and cash equivalents for the six months ended June 30, 2024, was $(22,732) thousand, an improvement from $(48,034) thousand in the prior year[164] Assets and Liabilities - Total assets decreased to $858,434,000 as of June 30, 2024, from $895,021,000 at December 31, 2023[14] - Total liabilities decreased to $653,871,000 as of June 30, 2024, down from $680,352,000 at December 31, 2023[14] - The accumulated deficit increased to $(268,920,000) as of June 30, 2024, compared to $(257,888,000) at December 31, 2023[14] - The company reported a total stockholders' equity of $265,966,000 as of June 30, 2023, compared to $288,891,000 at the end of the previous quarter[20] Investments and Acquisitions - The acquisition of Legacy Spruce Power was completed for a total purchase price of $32.6 million, which included cash payments of $61.8 million less cash and restricted cash acquired of $29.2 million[65] - The acquisition of SEMTH was completed for approximately $23.0 million in cash, with the assumption of $125.0 million in outstanding senior indebtedness[73] - The estimated fair value of the investment in the SEMTH Master Lease was approximately $146.9 million on the transaction date[74] Stock and Equity - The weighted-average shares outstanding, basic, increased to 19,271,954 in Q2 2024 from 18,611,757 in Q2 2023[16] - The company performed a one-for-eight reverse stock split effective October 6, 2023, impacting all share amounts retrospectively[31] - Stock-based compensation expense for the three months ended June 30, 2024, was $0.5 million, a decrease from $0.8 million for the same period in 2023[90] - The Company granted 295,229 stock options during the six months ended June 30, 2024, with an average exercise price of $3.74[91] Legal and Regulatory Matters - The Company reached a settlement of $19.5 million related to a securities class action, with a net payment of $15.0 million after insurance recoveries[106] - The Company is involved in ongoing legal proceedings but believes the outcomes will not significantly impact its financial position[105] - The Company is cooperating with state attorney generals' investigations regarding its sales and marketing protocols[111] Future Outlook and Strategy - The corporate strategy focuses on subscription-based solutions for distributed energy resources, aiming to enhance customer service and operational efficiency[137] - Future growth is dependent on acquiring operating home solar energy systems in bulk from other companies, leveraging existing market opportunities[140] - The ability to raise capital from third parties is critical for supporting ownership of existing assets and enabling future growth[141]

Financial Data and Key Metrics Changes - First quarter revenue was $18.3 million, a slight increase from $18.1 million in the prior year period, primarily due to incremental revenues from the Tredegar acquisition [28] - First quarter GAAP net loss attributable to stockholders was $2.5 million [30] - Adjusted EBITDA for the first quarter was $3.8 million, with total operating EBITDA reaching approximately $10.7 million after including net proceeds from investments and interest earned [31] Business Line Data and Key Metrics Changes - Portfolio O&M expense increased to $3.1 million from $1.9 million in the prior year period, largely due to timing considerations [29] - SG&A expenses decreased to $13.5 million from $15.7 million in the prior year, impacted by legal fees tied to legacy XL Fleet lawsuits [29] Market Data and Key Metrics Changes - The residential solar market is experiencing a massive investment wave, with around 25 gigawatts of rooftop solar installed in the U.S. over the past five years [15] - The company anticipates hundreds of thousands of homeowners will adopt solar through the end of the decade, indicating a robust market outlook [16] Company Strategy and Development Direction - The company aims to pursue capital light organic growth opportunities, focusing on acquiring operating residential solar portfolios and optimizing its servicing technology platform [10][11] - Spruce has launched Spruce Pro, a B2B brand for marketing its servicing technology platform, with early interest exceeding expectations [20] Management's Comments on Operating Environment and Future Outlook - Management believes the company is in its strongest position in corporate history, with a strong balance sheet and abundant liquidity to capitalize on opportunities in the residential solar market [9] - The company emphasizes a disciplined approach to capital allocation, prioritizing high-return opportunities and maintaining flexibility in decision-making [21][24] Other Important Information - As of March 31, 2024, the company had cash and cash equivalents of $150 million, down from $173 million at the end of 2023, primarily due to legal settlements related to legacy XL Fleet [32] - The total principal balance of long-term debt was $640 million, with a blended interest rate of 5.8% [33] Q&A Session Summary Question: Why did the company not repurchase any shares in the first three months? - The company is focused on building a long-term durable business and sees compelling opportunities for M&A that require capital [43] Question: Can you elaborate on the competitive advantages of the servicing platform? - The company believes it offers the most comprehensive service offering in the market, which allows for leveraging fixed costs and pursuing capital light growth [51][53] Question: How does the company view the pace of M&A going forward? - The company is seeing a widening spread between bid and ask prices and remains disciplined in pursuing acquisitions, waiting for the right opportunities [54]

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 MARCH 31, 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 Re ...

DENVER, COLORADO (May 15, 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 quarter ended March 31, 2024. Business Highlights Management Commentary and Outlook "Our team remains squarely focused on being the dominant owner and operator of distributed solar assets," said Chris Hayes, Spruce's Chief Executive Officer. Hayes continued, "I'm excited ...