Spruce Power Holding (SPRU) AI Stock Analysis

• Market Cap: $21.04M
• Dividend Yield: N/A
• Average Volume (3M): 109.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 8.97%
• EPS Growth: -68.08%
• Country: US
• Employees: 165
• Sector: Technology
• Sector Strength: 92
• Industry: Solar
• EPS (TTM): N/A
• Shares Outstanding: 17,826,560
• 10 Day Avg. Volume: 119,930
• 30 Day Avg. Volume: 109,438
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 31.35
• Enterprise Value/Revenue: 7.50
• Enterprise Value/Gross Profit: 13.36
• Enterprise Value/Ebitda: -29.42
• 1Y Price Target: $2.00
• Price Target Upside: 72.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-13.79% Downside)

Spruce Power's overall score is significantly impacted by its poor financial performance and bearish technical indicators. While the earnings call and corporate event provide some optimism, the company's financial instability and weak market sentiment are dominant concerns.

Spruce Power Holding Business Overview & Revenue Model

Company Description

Spruce Power Holding (SPRU) is a company focused on providing residential solar energy systems and energy efficiency upgrades across the United States. It operates in the renewable energy sector, offering homeowners sustainable solutions to reduce their carbon footprint and energy costs. The company is dedicated to enhancing the accessibility and affordability of solar power and energy-efficient technologies for residential customers.

How the Company Makes Money

Spruce Power Holding makes money primarily through the sale and installation of residential solar energy systems and related energy efficiency services. The company generates revenue by offering solar power purchase agreements (PPAs) and leasing options, allowing homeowners to benefit from solar energy without the upfront costs of purchasing solar panels. Additionally, Spruce Power earns income from maintenance and service agreements, ensuring the long-term performance and reliability of their installed systems. Key partnerships with financial institutions and technology providers also play a significant role in enabling the company to offer competitive pricing and financing solutions to its customers.

Spruce Power Holding Financial Statement Overview

Summary

Spruce Power Holding faces significant financial challenges, including persistent net losses, high leverage with a debt-to-equity ratio of 4.96, and negative cash flows. These issues highlight the need for strategic adjustments to improve financial stability and profitability.

Income Statement

The income statement reveals significant challenges for Spruce Power Holding. Although there is a noticeable increase in revenue over the periods, the company continues to operate at a net loss. The TTM (Trailing-Twelve-Months) shows a negative net profit margin of -94.83%, and the gross profit margin is 56.15%, indicating that the company is not managing to translate revenue growth into profitability. There are also negative EBIT and EBITDA margins, reflecting operational inefficiencies.

Balance Sheet

Spruce Power Holding's balance sheet shows a high debt-to-equity ratio of 4.96 in the TTM period, indicating high leverage which could pose financial risks. The equity ratio is 16.20%, reflecting a moderate level of financial stability. However, the declining trend in stockholders' equity over the periods suggests potential challenges in maintaining financial health.

Cash Flow

The cash flow analysis indicates that Spruce Power Holding is facing cash flow issues, with negative free cash flow and operating cash flow across the periods. The TTM period shows a negative free cash flow of -$29.02 million. The operating cash flow to net income ratio is 0.34, which is relatively weak, highlighting inefficiencies in converting income to cash. However, the company manages to control capital expenditures, which slightly mitigates the situation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.11M	79.86M	23.19M	15.60M	20.34M
Gross Profit	58.73M	42.05M	13.24M	-696.00K	2.74M
EBITDA	-4.81M	1.03M	-35.12M	53.29M	-53.61M
Net Income	-70.49M	-65.83M	-46.26M	28.79M	-31.34M
Balance Sheet
Total Assets	898.48M	895.02M	826.55M	393.22M	347.01M
Cash, Cash Equivalents and Short-Term Investments	72.80M	141.35M	220.32M	351.68M	329.64M
Total Debt	711.07M	625.68M	503.01M	4.60M	208.00K
Total Liabilities	752.33M	680.35M	537.58M	31.41M	14.82M
Stockholders Equity	143.71M	212.34M	279.95M	361.81M	332.19M
Cash Flow
Free Cash Flow	-42.16M	-34.16M	-63.49M	-52.13M	-20.03M
Operating Cash Flow	-41.81M	-33.66M	-63.49M	-48.49M	-19.88M
Investing Cash Flow	-101.41M	-16.73M	-29.01M	-14.83M	-145.00K
Financing Cash Flow	79.43M	-16.81M	-19.19M	85.36M	346.28M

Spruce Power Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.73, and below the 200-day MA of 2.27, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 28.09 is Positive, neither overbought nor oversold. The STOCH value of 14.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRU.

Spruce Power Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTCI	64 Neutral	$88.93M	―	-175.83%	―	-43.69%	12.75%
TURB	54 Neutral	$25.37M	―	-84.64%	―	-52.61%	-987.53%
TYGO	52 Neutral	$0.00	―	-221.18%	―	52.31%	-2421.56%
Sector *	50 Neutral	C$3.26B	5.29	-49.37%	9.09%	2.12%	-10.61%
MAXN	49 Neutral	$71.81M	―	307.38%	―	-54.68%	63.56%
SPRU	41 Neutral	$21.04M	―	-49.28%	―	8.97%	-68.08%
NOVAQ	40 Underperform	$50.27K	―	-21.91%	―	16.55%	15.72%

Spruce Power Holding Corporate Events

Spruce Power Appoints Thomas Cimino as Interim CFO

On June 5, 2025, Spruce Power Holding Corporation appointed Thomas Cimino as Interim Chief Financial Officer following the departure of former CFO Sarah Wells. Cimino, who brings over 25 years of financial expertise, will serve in this role at least through August 2025, guiding the company during its transition while Spruce searches for a permanent CFO. His extensive experience in financial reporting and strategic advisory across various sectors is expected to bolster Spruce’s operational efficiencies and growth strategies.

Spruce Power Holding Announces New Share Buyback Program

On May 13, 2025, Spruce Power Holding Corporation announced that its board of directors authorized a new share repurchase program, allowing the company to buy back up to $50 million of its common stock by May 15, 2027. This initiative follows the expiration of its previous program on May 15, 2025, under which the company repurchased 1,870,827 shares at an average price of $4.33 per share. The new program is designed to return value to shareholders and can be executed through various transaction methods, with the company retaining discretion over the timing and amount of repurchases based on market conditions.

Spruce Power CFO Sarah Wells Resigns Effective May 14

On April 29, 2025, Sarah Wells announced her resignation as Chief Financial Officer and Head of Sustainability at Spruce Power Holding Corporation, effective May 14, 2025, citing personal reasons unrelated to the company’s financial or accounting practices. The company has begun searching for a new CFO, utilizing an executive search firm to consider both internal and external candidates.