Spruce Power Holding 2025 Q3 Earnings 98.7% Reduction in Net Loss to $714K

Spruce Power Holding (SPRU) delivered robust Q3 2025 results, with revenue surging 43.7% year-over-year to $30.73 million and net losses narrowing by 98.7% to $714,000. The performance exceeded expectations, driven by operational efficiency and cost discipline. However, the company did not provide updated guidance, maintaining its previous outlook.

Revenue

Spruce Power’s total revenue in Q3 2025 reached $30.73 million, up from $21.38 million in the prior year. PPA revenues led the way with $11.45 million, followed by SLA revenues contributing $9.74 million. Solar renewable energy credit (SREC) revenues added $6.54 million, while government incentives and servicing revenues totaled $255,000 and $943,000, respectively. Intangible amortization and unfavorable SREC agreements reduced revenue by $749,000. Other revenue streams, including $1.04 million, further diversified the company’s income.

Earnings/Net Income

The company narrowed its net loss to $714,000 in Q3 2025, a 98.7% improvement from the $53.55 million loss in Q3 2024. Earnings per share (EPS) also improved significantly, with losses per share dropping to $0.05 from $2.88. The 98.3% EPS improvement reflects strong operational efficiency and cost management.

Price Action

Post-earnings, Spruce Power’s stock surged 12.94% in a single trading day, 95.82% over the latest full week, and 69.97% month-to-date.

Post-Earnings Price Action Review

Following the Q3 earnings release, Spruce Power’s stock experienced a sharp upward trajectory, reflecting investor optimism about the company’s improved financial performance and strategic cost-cutting measures. The 12.94% daily gain was fueled by the 98.7% reduction in net losses and the 43.7% revenue increase. The week-long 95.82% surge suggests strong short-term momentum, while the month-to-date 69.97% rally indicates broader confidence in the company’s ability to sustain operational improvements. Analysts noted that the stock’s performance outpaced industry benchmarks, positioning Spruce Power as a potential turnaround play.

CEO Commentary

CEO Christopher Hayes highlighted Q3’s achievements despite macroeconomic challenges, emphasizing revenue growth and cost reductions. He reiterated the company’s focus on expanding solar and battery storage solutions to strengthen market positioning.

Guidance

Spruce Power remains cautious but optimistic, with no immediate need for debt refinancing in 2025. The company aims to leverage its improved balance sheet for strategic acquisitions and off-take partnerships.

Additional News

Spruce Power announced a strategic workforce reduction and the closure of its Denver office to cut SG&A expenses by 4%. Additionally, the company made a $11.5 million principal debt payment in Q3 2025, reducing total debt to $705.6 million. These moves align with its focus on operational efficiency and shareholder value. The company is also in discussions with financial institutions regarding its SP1 debt obligation due in April 2026, signaling proactive financial management.