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Spruce Power Holding (SPRU)
NYSE:SPRU
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Spruce Power Holding
(NYSE:SPRU)
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Rating:46Neutral
Price Target:
$1.50
▼(-14.77% Downside)
Spruce Power Holding's overall stock score is primarily impacted by its financial challenges, including high leverage and negative profitability. While technical indicators suggest moderate strength, the valuation remains a concern with a negative P/E ratio. Positive earnings call sentiment and growth initiatives provide some optimism, but financial risks remain significant.
Spruce Power Holding (SPRU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.39M
Dividend YieldN/A
Average Volume (3M)2.70M
Price to Earnings (P/E)―
Beta (1Y)1.30
Revenue Growth22.78%
EPS Growth-27.59%
CountryUS
Employees165
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)-0.17
Shares Outstanding17,834,368
10 Day Avg. Volume104,701
30 Day Avg. Volume2,702,729
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)0.38
Price to Sales (P/S)0.67
P/FCF Ratio-1.30
Enterprise Value/Market Cap20.67
Enterprise Value/Revenue6.58
Enterprise Value/Gross Profit10.31
Enterprise Value/Ebitda-171.54
Forecast
1Y Price Target
$1.50Price Target Upside-14.77% Downside
Rating ConsensusHold
Number of Analyst Covering1
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 makes money primarily through the sale and installation of residential solar energy systems and related energy efficiency services. The company generates revenue by offering solar power purchase agreements (PPAs) and leasing options, allowing homeowners to benefit from solar energy without the upfront costs of purchasing solar panels. Additionally, Spruce Power earns income from maintenance and service agreements, ensuring the long-term performance and reliability of their installed systems. Key partnerships with financial institutions and technology providers also play a significant role in enabling the company to offer competitive pricing and financing solutions to its customers.
Spruce Power Holding Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant revenue and EBITDA growth, cost reduction achievements, and a robust cash position, which indicate strong operational performance. However, policy changes affecting tax credits and increased legal fees present challenges. The sentiment leans toward positive due to the substantial growth and cost management initiatives that are in place.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Spruce reported a 48% increase in revenue compared to the year earlier period, primarily due to the acquisition of approximately 9,800 rooftop assets from NJR Resources and growth in solar renewable energy credits (SREC) revenue.
Operating EBITDA Growth
Spruce experienced a 71% year-over-year growth in operating EBITDA, reflecting strong operational performance.
Cost Reduction Achievements
Core operating expenses, including SG&A and O&M, were $17.2 million, down 19% from the year earlier period. Operations and maintenance (O&M) expenses decreased 52% year-over-year.
Robust Cash Position
The company's balance sheet remains robust with over $90 million in cash, the majority of which is unrestricted.
Positive Programmatic Offtake and Servicing Growth
Spruce Pro, the company's third-party solar servicing platform, is generating new wins, including a full scope deal servicing a group of systems in San Diego.
Negative Updates
Impact of Policy Changes
Recent policy changes in Washington, D.C. are eliminating some residential solar energy tax credits such as 25D, which is expected to negatively impact cash loan deals and larger projects in the residential solar space.
Decreased Unrestricted Cash
Unrestricted cash decreased to $53.5 million from $61.9 million at the end of the first quarter.
Legal and Professional Fees
SG&A expenses increased marginally due to higher legal and other professional fees, despite a decline in overall core operating expenses.
Company Guidance
During the Spruce Power Second Quarter 2025 Earnings Results Conference Call, CEO Christopher M. Hayes reported a 48% increase in revenue and a 71% growth in operating EBITDA compared to the previous year, primarily due to the acquisition of 9,800 rooftop assets and growth in SREC revenue. Core operating expenses, including SG&A and O&M, were $17.2 million, reflecting a 19% reduction from the prior year. With over $90 million in cash, Spruce Power is focused on achieving positive free cash flow by leveraging its existing portfolio of approximately 145,000 solar systems and transitioning towards a more sustainable model. Despite challenges in the residential solar sector due to policy changes, Spruce’s differentiated business model, which does not rely on aggressive customer acquisition or IRA tax credits, positions it for continued growth. The company also highlighted its strategy of opportunistic M&A, programmatic offtake, and expanding its Spruce Pro servicing business as key revenue drivers, with recent developments including a multiyear SREC agreement expected to generate $10 million in revenue through 2029.Spruce Power Holding Financial Statement Overview
Summary
Spruce Power Holding faces significant financial challenges, including high leverage, negative profitability, and cash flow constraints. Despite a strong gross profit margin and revenue growth, the company's high debt levels and negative returns on equity highlight potential risks.Income Statement
Spruce Power Holding's income statement reveals a challenging financial position with negative net profit margins and EBIT margins over the TTM (Trailing-Twelve-Months) period. Despite a revenue growth rate of 12.24%, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins. The gross profit margin remains relatively strong at 63.81%, indicating efficient cost management at the gross level, but overall profitability is hindered by high operating expenses.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 5.61, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is not explicitly provided, but the high leverage suggests a low equity proportion relative to total assets, which could pose risks in terms of financial stability.40
Negative
Cash Flow
Cash flow analysis highlights negative operating cash flow and free cash flow, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges in covering net losses. However, the free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is marginally better aligned with net income, albeit both are negative.38
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 98.66M | 82.11M | 79.86M | 23.19M | 15.60M | 20.34M |
| Gross Profit | 62.95M | 58.73M | 42.05M | 13.24M | -696.00K | 2.74M |
| EBITDA | -3.78M | -8.56M | 1.03M | -35.12M | 53.29M | -53.61M |
| Net Income | -77.76M | -70.49M | -65.83M | -46.26M | 28.79M | -31.34M |
Balance Sheet | ||||||
| Total Assets | 862.63M | 898.48M | 895.02M | 826.55M | 393.22M | 347.01M |
| Cash, Cash Equivalents and Short-Term Investments | 53.51M | 72.80M | 141.35M | 220.32M | 351.68M | 329.64M |
| Total Debt | 700.62M | 711.07M | 625.68M | 503.01M | 4.60M | 208.00K |
| Total Liabilities | 735.22M | 752.33M | 680.35M | 537.58M | 31.41M | 14.82M |
| Stockholders Equity | 124.99M | 143.71M | 212.34M | 279.95M | 361.81M | 332.19M |
Cash Flow | ||||||
| Free Cash Flow | -26.36M | -42.16M | -34.16M | -63.49M | -52.13M | -20.03M |
| Operating Cash Flow | -25.96M | -41.81M | -33.66M | -63.49M | -48.49M | -19.88M |
| Investing Cash Flow | -106.60M | -101.41M | -16.73M | -29.01M | -14.83M | -145.00K |
| Financing Cash Flow | 72.83M | 79.43M | -16.81M | -19.19M | 85.36M | 346.28M |
Spruce Power Holding Technical Analysis
Positive
1.76
Price Trends
1.47
Positive
1.69
Positive
2.12
Negative
Market Momentum
0.09
Negative
62.27
Neutral
80.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Positive. The current price of 1.76 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.47, and below the 200-day MA of 2.12, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 80.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | 120.04M | -2.22 | -255.34% | ― | -17.53% | 8.53% | |
54 Neutral | 95.85M | -26.56 | -127.18% | ― | -26.62% | -65.66% | |
47 Neutral | 134.77M | -2.43 | -3034.87% | ― | 52.31% | -2421.56% | |
46 Neutral | $31.39M | ― | -47.48% | ― | 22.78% | -27.59% | |
44 Neutral | 62.69M | -0.02 | 209.06% | ― | -54.68% | 63.56% | |
40 Underperform | 12.57K | >-0.01 | -20.09% | ― | 16.55% | 15.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
SPRU
Spruce Power Holding
1.76
-0.82
-31.78%
NOVAQ
Sunnova Energy International
0.02
-10.35
-99.81%
MAXN
Maxeon Solar Technologies
3.71
-4.14
-52.74%
FTCI
FTC Solar
8.07
2.58
46.99%
TYGO
Tigo Energy
2.05
0.49
31.41%
TURB
Turbo Energy, S.A. Sponsored ADR
8.70
7.37
554.14%
Spruce Power Holding Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Spruce Power Appoints Thomas Cimino as Interim CFO
Neutral
Jun 11, 2025
On June 5, 2025, Spruce Power Holding Corporation appointed Thomas Cimino as Interim Chief Financial Officer following the departure of former CFO Sarah Wells. Cimino, who brings over 25 years of financial expertise, will serve in this role at least through August 2025, guiding the company during its transition while Spruce searches for a permanent CFO. His extensive experience in financial reporting and strategic advisory across various sectors is expected to bolster Spruce’s operational efficiencies and growth strategies.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.