Spruce Power (SPRU) investor relations material

Executive summary

• Achieved significant year-over-year improvement in profitability and operating efficiency for Q1 2026, with stable liquidity and recurring cash flow from a portfolio of approximately 84,000 customer contracts and a servicing platform for 60,000 third-party systems.

• Corporate strategy focuses on leveraging its platform for subscription-based solutions, growing through low-cost channels, and delivering predictable revenues and cash flow.

• Operating income of $3.8 million in Q1 2026 reversed a $1.7 million loss in Q1 2025, with operating EBITDA up 49% year-over-year to $18.4 million.

• Net loss attributable to stockholders narrowed to $2.9 million from $15.3 million year-over-year, driven by lower expenses and favorable swap valuations.

• Continued execution of operational streamlining and cost optimization initiatives, resulting in substantial margin expansion and lower recurring costs.

Financial highlights

• Q1 2026 revenue was $23.4 million, down 2% from $23.8 million in Q1 2025, mainly due to lower non-cash amortization and PPA revenue, partially offset by higher SREC and incentive revenue.

• Operating EBITDA rose 49% year-over-year to $18.4 million, up from $12.3 million in Q1 2025.

• Net loss attributable to stockholders improved to $2.9 million from $15.3 million in the prior year.

• Total operating expenses declined to $19.6 million from $25.5 million year-over-year.

• O&M expenses dropped 70% to $1.2 million; SG&A expenses fell 21% to $11.6 million.

Outlook and guidance

• Full-year 2026 Operating EBITDA expected to remain in line with budget, with lower Q1 O&M spend offset by higher activity in later quarters.

• SG&A run rate anticipated to improve further as additional streamlining initiatives are implemented.

• Management expects continued cost discipline and operational leverage to drive long-term value.

• Focus remains on maximizing capital structure efficiency and pursuing refinancing opportunities.

• Substantial doubt about ability to continue as a going concern if refinancing is not achieved.