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 Performance - Reported Q2 2024 revenues of $22.5 million, a slight decrease from $22.8 million in Q2 2023, primarily due to lower solar renewable energy credit revenues[3] - Net loss attributable to stockholders for Q2 2024 was $8.6 million, with Operating EBITDA reported at $14.4 million[5] - Revenues for Q2 2024 were $22,481,000, a decrease of 1.5% compared to $22,813,000 in Q2 2023[21] - Net loss attributable to stockholders was $8,578,000 in Q2 2024, compared to a net income of $3,065,000 in Q2 2023[21] - Adjusted EBITDA for Q2 2024 was $5,402,000, down 52.1% from $11,231,000 in Q2 2023[22] - The company reported a net loss from continuing operations per share of $(0.46) for Q2 2024, compared to a profit of $0.10 per share in Q2 2023[21] Operating Expenses - Core operating expenses for Q2 2024 were $21.1 million, up from $19.0 million in Q2 2023, driven by higher compensation expenses including one-time severance costs[4] - Total operating expenses increased to $25,841,000 in Q2 2024, up 8.6% from $23,785,000 in Q2 2023[21] Cash and Assets - Total cash as of June 30, 2024, was $150.2 million, including $116.6 million in cash and cash equivalents, a decrease from $120.6 million as of March 31, 2024[6] - Cash and cash equivalents were $116,588,000 as of June 30, 2024, down from $141,354,000 at the end of 2023[23] - Total assets decreased to $858,434,000 as of June 30, 2024, from $895,021,000 at the end of 2023[23] - Total liabilities decreased to $653,871,000 as of June 30, 2024, from $680,352,000 at the end of 2023[24] Debt and Financing - Spruce Power closed a new $130 million non-recourse debt facility in June 2024, providing over $6 million in incremental capital[8] - The company has $44.7 million remaining under its $50 million common share repurchase program as of June 30, 2024[9] - Interest expense, net, was $7,591,000 in Q2 2024, down from $10,456,000 in Q2 2023[21] Future Outlook - The company maintains its 2024 Operating EBITDA guidance in the range of $68 - $86 million, with expectations trending towards the lower end[7] - Spruce continues to evaluate a pipeline of M&A opportunities and organic growth prospects through Spruce Pro[2] Portfolio and Operations - As of June 30, 2024, Spruce owned cash flows from approximately 75,000 home solar assets across 18 U.S. states, with a combined portfolio generation of approximately 133 thousand MWh of power[10] - Gross Portfolio Value as of June 30, 2024, was $778 million, reflecting the present value of future cash flows from customer contracts[10] - The weighted-average shares outstanding, basic, increased to 19,271,954 in Q2 2024 from 18,611,757 in Q2 2023[21]

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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ___________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 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 Registr ...

Spruce Power Holding Corporation (NYSE:SPRU) Q4 2023 Results Conference Call March 14, 2024 4:30 PM ET Company Participants Bronson Fleig - Head, IR Christian Fong - CEO Sarah Wells - CFO Conference Call Participants Joseph Osha - Guggenheim Partners Operator Good afternoon, and welcome to Spruce Power's Fourth Quarter 2023 Conference Call. As a reminder, today's call is being recorded. All participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Ope ...

Spruce Power Reports Fourth Quarter and Full-Year 2023 Results DENVER, COLORADO (March 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 fourth quarter and year ended December 31, 2023. Business Highlights Management Commentary and Outlook "Spruce's strategy is to be the dominant owner and operator of distributed solar assets. We entered 2024 ...

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, 2023 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 ...