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Spruce Power Holding (SPRU)
NYSE:SPRU
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Spruce Power Holding
(NYSE:SPRU)
40Underperform
Spruce Power Holding (SPRU) vs. S&P 500 (SPY)
Market Cap
$36.88M
Dividend YieldN/A
Average Volume (3M)104.20K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth2.37%
EPS Growth-10.00%
CountryUS
Employees165
SectorTechnology
Sector Strength67
IndustrySolar
Share Statistics
EPS (TTM)-0.32
Shares Outstanding18,078,238
10 Day Avg. Volume76,386
30 Day Avg. Volume104,201
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap17.88
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit15.69
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Spruce Power Holding Business Overview & Revenue Model
Company DescriptionXL Fleet Corp. provides fleet electrification solutions for commercial vehicles in North America. Its products include hybrid electric drive systems are comprised of an electric motor that is mounted onto the vehicle's drive shaft, an inverter motor controller, and a lithium-ion battery pack to store energy to be used for propulsion; plug-in hybrid electric drive system, which are fitted to vehicles. In addition, the company offers vehicle electrification and infrastructure solutions, and charging stations. It serves end-use customer base comprising Fortune 500 corporate enterprises, public utilities, and various municipalities. The company was incorporated in 2009 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneySpruce Power Holding generates revenue through the sale and leasing of residential solar energy systems. The company offers various financial products to homeowners, including solar leases, power purchase agreements (PPAs), and solar loans. These financial arrangements allow customers to adopt solar energy with minimal upfront costs, while Spruce Power earns income through long-term agreements for the use of its solar systems. Additionally, the company may benefit from government incentives and renewable energy credits, further enhancing its revenue streams. Partnerships with installation and technology companies also play a significant role in enabling Spruce Power to expand its market reach and optimize its service offerings.
Spruce Power Holding Financial Statement Overview
Summary
Spruce Power Holding demonstrates strong revenue growth, but its profitability and cash flow challenges, along with high leverage, significantly limit its financial health. The company faces a high debt-to-equity ratio and negative cash flows, which hinder operational flexibility and increase financial risk.Income Statement
Spruce Power Holding shows a significant increase in revenue over the years, from $7.2M in 2019 to $82.1M in 2024, indicating strong top-line growth. However, the company struggles with profitability, evidenced by consistently negative net income and EBIT margins. The gross profit margin improved to 71.5% in 2024, but net profit margins remain negative due to high operating expenses.―
Balance Sheet
The company has a high debt-to-equity ratio of 4.87 in 2024, indicating significant leverage, which poses financial risk. Despite this, the company maintains a relatively stable equity position, although it has decreased over time. The equity ratio of 16.3% in 2024 suggests a limited buffer against liabilities.40
Cash Flow
Spruce Power Holding faces challenges in cash flow management, with consistently negative operating and free cash flow. The free cash flow growth rate is negative, indicating declining cash generation capability. The operating cash flow to net income ratio is not favorable, reflecting difficulties in converting income into cash.―
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 79.86M | 23.19M | 15.60M | 20.34M | 7.21M | Gross Profit |
| 42.05M | 13.24M | -696.00K | 2.74M | -860.00K | EBIT |
| -36.82M | -59.87M | -58.91M | -15.29M | -13.57M | EBITDA |
| 1.03M | -35.12M | 53.29M | -53.61M | -13.32M | Net Income Common Stockholders |
| -65.83M | -46.26M | 28.79M | -31.34M | -17.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 141.35M | 220.32M | 351.68M | 329.64M | 3.39M | Total Assets |
| 895.02M | 826.55M | 393.22M | 347.01M | 9.25M | Total Debt |
| 625.68M | 503.01M | 4.60M | 208.00K | 13.73M | Net Debt |
| 484.32M | 282.69M | -347.08M | -329.43M | 10.35M | Total Liabilities |
| 680.35M | 537.58M | 31.41M | 14.82M | 22.95M | Stockholders Equity |
| 212.34M | 279.95M | 361.81M | 332.19M | -13.70M |
| Cash Flow | Free Cash Flow | |||
| -34.16M | -63.49M | -52.13M | -20.03M | -11.58M | Operating Cash Flow |
| -33.66M | -63.49M | -48.49M | -19.88M | -11.55M | Investing Cash Flow |
| -16.73M | -29.01M | -14.83M | -145.00K | -28.00K | Financing Cash Flow |
| -16.81M | -19.19M | 85.36M | 346.28M | 9.21M |
Spruce Power Holding Technical Analysis
Negative
2.05
Price Trends
2.26
Negative
2.51
Negative
2.65
Negative
Market Momentum
-0.07
Negative
45.79
Neutral
35.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Negative. The current price of 2.05 is above the 20-day moving average (MA) of 2.02, below the 50-day MA of 2.26, and below the 200-day MA of 2.65, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 35.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRU.
Spruce Power Holding Risk Analysis
Spruce Power Holding disclosed 36 risk factors in its most recent earnings report. Spruce Power Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Spruce Power Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $10.93B | 10.46 | -6.70% | 2.99% | 7.54% | -12.22% | |
54 Neutral | $26.54M | ― | -147.73% | ― | -52.61% | -987.53% | |
52 Neutral | $40.91M | ― | -123.52% | ― | -43.69% | 12.75% | |
45 Neutral | $52.42M | ― | -176.23% | ― | -43.25% | -82.90% | |
41 Neutral | $22.64M | ― | -21.91% | ― | 16.55% | 15.72% | |
40 Underperform | $36.88M | ― | -39.70% | ― | 2.37% | -10.00% | |
39 Underperform | $43.88M | ― | 307.38% | ― | -54.68% | 63.56% |
* Technology Sector Average
Performance Comparison
SPRU
Spruce Power Holding
2.05
-2.04
-49.88%
NOVA
Sunnova Energy International
0.21
-4.21
-95.25%
MAXN
Maxeon Solar Technologies
2.80
-225.20
-98.77%
FTCI
FTC Solar
3.01
-2.72
-47.47%
TYGO
Tigo Energy
0.83
-0.30
-26.55%
TURB
Turbo Energy, S.A. Sponsored ADR
2.65
1.53
136.61%
Spruce Power Holding Earnings Call Summary
Earnings Call Date:Mar 31, 2025
(Q4-2024)
| % Change Since: -14.94%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Neutral
Spruce Power showcased significant portfolio growth and operational improvements in 2024, including a key acquisition and the launch of a third-party servicing channel. Despite these achievements, the company faced financial challenges, including missing EBITDA targets and declining unrestricted cash, leading to a cautious outlook without financial guidance for 2025.Q4-2024 Updates
Positive Updates
Portfolio Growth and Acquisition
Spruce Power increased its portfolio to approximately 85,000 home solar assets and customer contracts across 18 states, including the acquisition of a residential solar portfolio from NJR Clean Energy Ventures, adding 9,800 systems and expanding presence in New Jersey.
Operational Efficiency Improvements
Spruce reconnected 4,800 systems, reduced ticket cycle times, cleared 10,000 backlog service tickets, and improved customer satisfaction scores to 83% in 2024, up from 74% in 2023.
Launch of Third-Party Servicing Channel
Spruce successfully launched Spruce Pro, a third-party solar servicing platform, gaining a significant servicing agreement with ADT Solar covering approximately 60,000 systems.
Financial Stability and Cash Flow
Spruce Power continues to generate stable, predictable cash flows due to its unique business model focused on existing solar assets, with a total cash balance of approximately $109.1 million at the end of the fourth quarter.
Negative Updates
Missed Operating EBITDA Targets
The company missed its full year 2024 operating EBITDA guidance range of $57 million to $62 million, achieving $53.9 million primarily due to higher than expected O&M and legal expenses.
Decline in Unrestricted Cash
Unrestricted cash balance declined to $72.8 million at the end of the fourth quarter from $113.6 million at the end of the third quarter, mainly due to the NJR transaction and ongoing operational spend.
Absence of Financial Guidance
Spruce Power decided not to provide financial guidance for 2025, citing a volatile residential solar market, macroeconomic conditions, and utility rate environment.
Company Guidance
During the Spruce Power Fourth Quarter 2024 Earnings Conference Call, Chris Hayes, CEO, emphasized the company's strategic focus on stability and efficiency in the residential solar market. Spruce Power operates with a fundamentally different business model compared to its peers, relying on existing solar assets to generate stable long-term cash flows. The company expanded its portfolio to approximately 85,000 home solar assets, following the acquisition of 9,800 systems from NJR Clean Energy Ventures, increasing its gross portfolio value to $910 million. Operational improvements, such as reconnecting 4,800 systems and enhancing asset management, boosted customer satisfaction scores from 74% in 2023 to 83% in 2024. Despite a GAAP net loss of $5.9 million, the fourth quarter revenue increased to $20.2 million, contributing to an annual revenue of $82.1 million. Spruce Power's financial goals for 2025 include optimizing cash flow and managing operating expenses, with a focus on reducing operations and maintenance costs, which amounted to $5.3 million in the fourth quarter. The company ended the year with unrestricted cash of $72.8 million and a total principal balance of long-term debt at $730.6 million, hedged with interest rate swaps.Spruce Power Holding Corporate Events
Executive/Board Changes
Spruce Power CFO Sarah Wells Resigns Effective May 14
Neutral
May 6, 2025
On April 29, 2025, Sarah Wells announced her resignation as Chief Financial Officer and Head of Sustainability at Spruce Power Holding Corporation, effective May 14, 2025, citing personal reasons unrelated to the company’s financial or accounting practices. The company has begun searching for a new CFO, utilizing an executive search firm to consider both internal and external candidates.
Spark’s Take on SPRU Stock
According to Spark, TipRanks’ AI Analyst, SPRU is a Underperform.
Spruce Power’s overall stock score is weighed down by financial weaknesses, including high leverage and negative cash flows, which limit its financial health. Despite strong revenue growth and operational improvements, technical indicators show bearish trends, and valuation metrics raise concerns. The cautious outlook from the earnings call further impacts the score, reflecting uncertainties in the residential solar market.
To see Spark’s full report on SPRU stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.