Spruce Power Holding Corporation · NYSE:SPRU
Spruce Power — Q1 2025 Earnings Presentation
18 slides from Spruce Power's earnings presentation, May 14, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: Disclaimer
Disclaimer Use of Forward-Looking Statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,”
Slide 3: Investment Proposition
Investment Proposition Significant Long-Lived Projected U.S. solar build of 737 GW between 2024-2035(1). Increasingly, installers prefer focusing on origination rather than Opportunity ongoing management services of existing solar installations Spruce maximizes value of existing solar assets through
Slide 4: Overview
Overview Leading third-party owner (TPO) and operator of U.S. residential rooftop solar systems Rooftop Solar Portfolio Spruce PRO Servicing Residential Power Markets ✓ Spruce owns the cash flows from ✓ Spruce provides management ✓ Spruce has dedicated M&A and ~85,000 home solar assets and services
Slide 5: Model and Key Metrics
Model and Key Metrics 85K Realizing Ownership & Acquisition Synergies Home Solar Assets & Contracts(1) ✓Growing customer base by acquiring portfolios of Distributed Generation (DG) Solar assets and customers, primarily residential solar leases and 11 Years PPAs, generating stable recurring cash flow
Slide 6: Growth in U.S. Power Demand is Not Reliant on the IRA
Growth in U.S. Power Demand is Not Reliant on the IRA Solar Offers Fast to Market New Electric Capacity U.S. Electricity Consumption to Double by 2050 Regardless of IRA1 Solar is a Rapidly Deployable Source of New Electric Capacity(2) 8.3 8.3 Wind ~1 Yr U.S. Electricity Consumption 1,000s of TWh Bat
Slide 7: Substantial Addressable Market
Substantial Addressable Market Driven by Massive Growth in U.S. Residential Solar Cumulative U.S. Residential Solar Installations (GWs) (1) Key Highlights • Rising electricity prices and increasingly sophisticated homeowner energy needs accelerating residential solar growth • Meaningful lease / PPA
Slide 8: Proven Execution of Acquisition Strategy
Proven Execution of Acquisition Strategy …With Visibility to Continued Step-Change Growth Spruce Solar Assets & Contracts (‘000s) ✓ Acquired contracts related to 67,000+ home solar systems in 14 separate 85 transactions since commencing M&A 75 growth strategy in 4Q’18 50 51 48 ✓ Strong track record
Slide 9: Spruce PRO Servicing is Best-in-Class
Spruce PRO Servicing is Best-in-Class Spruce PRO is a leading residential energy services Spruce’s in-house capabilities… solution provider for the DG solar sector, providing services to both Spruce & third-party customers, ✓ Customer billing ✓ Portfolio accounting touching ~$1.0 billion in assets ✓
Slide 10: Recent M&A Transaction Summary
Recent M&A Transaction Summary Solar assets and contracts expanded by nearly 35,000 over past two years Spruce Power 4 Portfolio Acquisition Tredegar Acquisition Spruce Power 5 Portfolio Acquisition ✓ Spruce closed on the acquisition of SS Holdings, ✓ Spruce closed the Tredegar Acquisition in August
Slide 11: 1Q 2025 Financial Performance
Highlights 1Q 2025 Financial Performance A. Higher YoY revenue primarily $ in millions, unless specified 1Q’24 4Q'24 1Q’25 associated with the NJR Financials acquisition. Improved system performance and the Spruce A Revenue 18.3 20.2 23.8 PRO service agreement with B O&M 3.1 5.3 3.9 ADT also contrib
Slide 12: Quarterly Debt Update
Quarterly Debt Update Spruce is well protected in a higher interest rate environment Long-Term Debt Composition Financing Highlights • $ in millions, unless specified Residential solar assets support elevated debt levels due to long-term, contracted cash flows from Credit SP1 SP2 SP3 SP4 SP5 Mezzani
Slide 13: Measuring Customer Value
Measuring Customer Value $ in millions, unless specified 1Q'24 4Q'24 1Q'25 Contracted Portfolio Value $717 $797 $786 • Our cash flows are backed by long-term, subscription-based Renewal Portfolio Value $61 $69 $71 contracts, with ~85,000 home solar assets and contracts at the Uncontracted Renewable
Slide 14: Appendix
Section V Appendix Ve
Slide 15: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Operating EBITDA Three Months Ended Three Months Ended Three Months Ended March 31, December 31, March 31, $ in thousands, unless specified 2025 2024 2024 Net income (loss) attributable t
Slide 16: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Reconciliation of Income (Loss) from Operations to Adjusted Income (Loss) from Operations Three Months Ended Three Months Ended Three Months Ended March 31, December 31, March 31, $ in thousands, unless specified 2025 2024 2024 Income (loss) from operati
Slide 17: Definitions
Definitions Adjusted Earnings (Loss) Before Interest, Income Taxes, Depreciation, and Amortization (“Adjusted EBITDA”): We define Adjusted EBITDA as our consolidated net income (loss) and adding interest expense, income taxes, depreciation and amortization, and other items that we do not consider to
Slide 18: Definitions
Definitions Certain Additional Matters: Depending on the context, references to “Spruce” or "Spruce Power" may also include the historical business of Spruce Holding Company 1 LLC, Spruce Holding Company 2 LLC, Spruce Holding Company 3 LLC, and Spruce Manager LLC prior to their acquisition on Septem