Spruce 2025 Q3 Earnings 7.4% Loss Per Share Improvement Amid 44% Revenue Surge

Spruce reported mixed Q3 2025 results, with a 44% year-over-year revenue increase and narrowed losses, though cash balances remain under pressure. The company’s strategic focus on cost-cutting and asset management drove operational improvements, but sustained losses over three years underscore ongoing challenges. Guidance for Q4 highlighted seasonal revenue headwinds and a debt refinancing outlook.

Revenue

Spruce’s total revenue plummeted to $0 in Q3 2025, a 100% decline from $602,000 in the prior-year period. However, the company’s core operating segment, Spruce Power, reported a 44% year-over-year revenue surge to $30.7 million, driven by the NJR acquisition and increased SREC revenue. This segment’s performance contrasted sharply with the broader financial results, reflecting divergent operational dynamics between Spruce Biosciences and Spruce Power.

Earnings/Net Income

Spruce narrowed its per-share loss to $14.58 in Q3 2025 from $15.75 in Q3 2024, a 7.4% improvement. The net loss also decreased to $8.21 million from $8.67 million, a 5.3% reduction. Despite these improvements, the company has posted losses for three consecutive years, signaling persistent financial strain. The EPS performance, while showing marginal progress, remains a critical area of concern for investors.

Price Action

Spruce’s stock price experienced volatility in the latest trading period, dropping 5.18% on the day but rebounding with a 7.36% weekly gain. However, the month-to-date decline of 35.10% highlights investor uncertainty.

Post-Earnings Price Action Review

The strategy of purchasing Spruce Power (SPRU) shares on revenue announcement dates and holding for 30 days demonstrated consistent outperformance over the past three years. Cumulative returns reached 28.5% by Q3 2025, with a peak of 32.3% in early 2025, surpassing the SPY ETF’s 18.8% return. This underscores the stock’s potential for growth post-earnings, though recent price swings suggest market skepticism remains.

CEO Commentary

Christopher Hayes, CEO of Spruce Power, emphasized operational efficiency and cost management as key drivers of Q3 performance. The company reduced SG&A expenses by 15% YoY and plans further cuts through workforce reductions and office closures. Hayes also highlighted strategic priorities, including M&A opportunities, programmatic offtake partnerships, and expanding Spruce Pro servicing. For Spruce Biosciences, CEO Javier Szwarcberg noted progress on TA-ERT, with a BLA submission on track for Q1 2026 and $50 million in private placement proceeds.

Guidance

Spruce Power anticipates seasonal revenue declines in Q4 due to lower solar generation but expects to fund operations through 2026 with its $98.8 million cash reserve. Spruce Biosciences aims to leverage its $10.7 million cash position (excluding recent financing) to advance TA-ERT and maintain liquidity. Both entities face debt refinancing considerations in 2026, with Spruce Power targeting favorable terms for its SP1 portfolio.

Additional News

Spruce Biosciences secured a $50 million private placement in October 2025, bolstering its capital for TA-ERT’s BLA submission. The FDA granted Breakthrough Therapy Designation to TA-ERT for Sanfilippo Syndrome Type B, accelerating regulatory timelines. Additionally, the company completed a 1-for-75 reverse stock split in September 2025 to relist on Nasdaq. These moves signal strategic alignment with long-term growth objectives despite ongoing operational challenges.