Spruce Power — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue totaled $29.7 million for the third quarter of 2026, a decrease from $30.7 million in the third quarter of 2025, driven by lower revenues from Solar Renewable Energy Credits and Performance Based Incentives.
• Net income attributable to stockholders was $6.0 million ($0.28 diluted EPS) for the quarter, compared to a net loss of $0.9 million ($0.05 diluted loss per share) in the year-earlier period.
• Year-to-date net income was $6.8 million, compared to a net loss of $18.9 million in the same period of 2025.
• Operating EBITDA was $27.0 million for the quarter, up 3% year-over-year, and up 14% year-to-date.
• SG&A expenses were $10.3 million for the quarter, down 23% year-over-year from $13.3 million, driven by headcount reductions and streamlining efforts.
• Net cash provided by operations was $21.6 million for the quarter, compared to $11.2 million in the prior year period.
• Adjusted Cash Flow from Operations was $30.6 million for the quarter, up 52% from the year-earlier period.
• Total operating expenses were $21.2 million for the quarter, down from $22.3 million in the prior year period.
• Core Operating Expenses (SG&A + O&M) were $13.5 million for the quarter, down from $15.2 million in the prior year period.

Guidance and Future Outlook:

• Subsequent to the quarter end, the Company executed a non-binding term sheet for the refinancing of SP1, SP2, and SP3 facilities.
• Meeting the October 30 milestone extended the maturity of the SP1 facility to January 30, 2027.
• The Company remains committed to a disciplined approach including strategic acquisitions, capital expenditure projects, debt repayment, and shareholder return initiatives.

Business Segments and Product Lines:

• Spruce owns cash flows from approximately 83,000 home solar assets and customer contracts across 18 U.S. States with an average remaining contract life of approximately 9.5 years.
• The Company services approximately 60,000 third-party owned home solar systems.
• Gross Portfolio Value (PV6 basis) was $799.0 million as of September 30, 2026, comprising $683 million in Contracted Portfolio Value, $81 million in Renewal Portfolio Value, and $35 million in Uncontracted Renewable Energy Credits.

Market and Competitive Landscape:

• The Company operates in the distributed solar energy sector, providing subscription-based services for rooftop solar power and battery storage.
• The press release notes the highly competitive nature of the Company's business and markets as a risk factor.

Risks and Challenges:

• Risks include uncertainties regarding sufficient demand for home solar energy systems, potential disruptions to solar monitoring systems, and inadequate warranties or maintenance obligations.
• The Company faces risks related to its outstanding debt, including rising interest rates, covenant compliance, and the ability to refinance debt prior to maturity dates.
• Potential risks involve the use of artificial intelligence tools, including performance, accuracy, cybersecurity, and data privacy risks.
• Other risks include changes in laws and regulations, supply chain constraints, and the impact of natural disasters.

Management Commentary and Tone:

• Chris Hayes, Chief Executive Officer, stated that results reflect "continued cost discipline and steady operational execution."
• Management highlighted the positive effects of streamlining efforts implemented the previous fall, including structural efficiencies and labor savings through AI.
• The tone emphasizes the successful reduction of leverage and the achievement of the refinancing milestone.

Other Key Points:

• The Company ended the quarter with $87.3 million in cash and cash equivalents and restricted cash, or $4.53 per share.
• Total principal amount of outstanding debt decreased to $657.6 million with a blended interest rate of 6.3%, including the impact of hedge arrangements.
• The Company paid down $21.9 million of debt principal during the third quarter of 2026.
• There was $42.0 million remaining under the Company's authorized $50.0 million common share repurchase program as of September 30, 2026; no shares were repurchased during the quarter.
• All debt consists of project finance loans that are non-recourse to the Company itself.
• The Company will host a conference call on November 12, 2026, at 4:30 p.m. Eastern Time to discuss results and outlook.