Spruce Power Holding (SPRU) AI Stock Analysis

• Market Cap: $47.62M
• Dividend Yield: N/A
• Average Volume (3M): 149.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 37.59%
• EPS Growth: 72.94%
• Country: US
• Employees: 165
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.04
• Shares Outstanding: 17,834,368
• 10 Day Avg. Volume: 117,239
• 30 Day Avg. Volume: 149,279
• PEG Ratio: -0.12
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -1.30
• Enterprise Value/Market Cap: 13.62
• Enterprise Value/Revenue: 6.01
• Enterprise Value/Gross Profit: 9.80
• Enterprise Value/Ebitda: 12.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $5.50 ▲(5.97% Upside)

Spruce Power's overall stock score is driven by strong earnings call results and positive technical indicators, offset by financial challenges and valuation concerns. The recent CFO appointment adds a positive outlook for strategic financial management.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful strategic initiatives, supporting long-term business sustainability.

Positive Free Cash Flow

Positive free cash flow enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

CFO Appointment

The new CFO's extensive experience is expected to strengthen financial management and support strategic growth initiatives.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Negative Profitability

Persistent unprofitability challenges long-term viability, as it may hinder investment in growth and innovation.

Impact of Policy Changes

Loss of tax credits could reduce new asset origination, impacting growth and competitive positioning in the renewable energy sector.

Spruce Power Holding Business Overview & Revenue Model

Company Description

Spruce Power Holding (SPRU) is a leading provider of residential solar energy solutions, primarily focused on offering solar power systems and related services to homeowners across the United States. The company operates in the renewable energy sector, specializing in the development, financing, and management of solar energy projects. Spruce Power aims to facilitate the transition to sustainable energy by empowering customers with affordable and accessible solar energy options, contributing to a cleaner environment and lower energy costs.

How the Company Makes Money

Spruce Power generates revenue through multiple avenues within the solar energy market. The primary revenue stream comes from the sale and installation of solar energy systems, where the company partners with various installation contractors to deliver its products to consumers. Additionally, Spruce Power benefits from long-term power purchase agreements (PPAs) and leases, where customers pay for the energy produced by the solar panels over time. The company also explores opportunities in tax equity financing, which allows it to leverage federal tax incentives for renewable energy investments. Strategic partnerships with financial institutions and energy service providers further enhance its revenue potential by expanding its customer base and improving service delivery.

Spruce Power Holding Financial Statement Overview

Summary

Spruce Power Holding faces significant financial challenges with high leverage, negative profitability, and cash flow constraints. Despite a strong gross profit margin and revenue growth, the company's high debt levels and negative returns on equity highlight potential risks.

Income Statement

Spruce Power Holding's income statement reveals a challenging financial position with negative net profit margins and EBIT margins over the TTM (Trailing-Twelve-Months) period. Despite a revenue growth rate of 12.24%, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins. The gross profit margin remains relatively strong at 63.81%, indicating efficient cost management at the gross level, but overall profitability is hindered by high operating expenses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 5.61, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is not explicitly provided, but the high leverage suggests a low equity proportion relative to total assets, which could pose risks in terms of financial stability.

Cash Flow

Cash flow analysis highlights negative operating cash flow and free cash flow, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges in covering net losses. However, the free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is marginally better aligned with net income, albeit both are negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.01M	82.11M	79.86M	23.19M	15.60M	20.34M
Gross Profit	66.19M	42.13M	42.05M	13.24M	-696.00K	2.74M
EBITDA	52.70M	-8.56M	8.23M	-34.82M	53.29M	-53.61M
Net Income	-25.05M	-70.49M	-65.83M	-93.93M	28.79M	-60.61M
Balance Sheet
Total Assets	857.06M	898.48M	895.02M	895.90M	393.22M	347.01M
Cash, Cash Equivalents and Short-Term Investments	98.77M	72.80M	141.35M	240.14M	351.68M	329.64M
Total Debt	690.60M	711.07M	625.68M	503.01M	4.60M	208.00K
Total Liabilities	729.72M	752.33M	680.35M	606.93M	31.41M	158.12M
Stockholders Equity	124.85M	143.71M	212.34M	279.95M	361.81M	188.90M
Cash Flow
Free Cash Flow	-25.28M	-42.16M	-34.16M	-63.49M	-48.49M	-20.03M
Operating Cash Flow	-24.93M	-41.81M	-33.66M	-63.49M	-48.49M	-19.88M
Investing Cash Flow	-116.51M	-101.41M	-16.73M	-37.29M	-14.83M	-145.00K
Financing Cash Flow	81.92M	79.43M	-16.81M	-10.90M	85.36M	346.28M

Spruce Power Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Positive. The current price of 5.19 is above the 20-day moving average (MA) of 5.13, above the 50-day MA of 3.81, and above the 200-day MA of 2.35, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPRU.

Spruce Power Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRU	62 Neutral	$47.62M	-0.63	-18.23%	―	37.59%	72.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TURB	54 Neutral	$34.26M	-9.50	-99.17%	―	-5.74%	54.80%
BEEM	40 Neutral	$39.86M	-1.47	-80.33%	―	-54.56%	-133.60%
SMXT	40 Underperform	$48.36M	-4.46	―	―	76.60%	70.94%
VVPR	39 Underperform	$39.34M	-0.48	―	―	-51.35%	-103.78%
MAXN	39 Underperform	$52.04M	―	―	―	-54.68%	63.56%

Spruce Power Holding Corporate Events

Spruce Power Appoints Thomas Cimino as CFO

On December 3, 2025, Spruce Power Holding Corporation appointed Thomas J. Cimino as its Chief Financial Officer, transitioning him from his role as Interim CFO, a position he held since June 2025. Cimino’s extensive experience in financial leadership within the energy sector, including roles at Vantage Drilling International and EnfraGen LLC, positions him to strengthen Spruce Power’s financial foundation and support its growth strategy. The appointment is expected to enhance the company’s operational and capital-allocation strategies, contributing to long-term value creation.

Spruce Power Holding Announces Workforce Reduction Plan

On September 16, 2025, Spruce Power Holding Corporation’s Board of Directors approved a plan to streamline operations, including a reduction in force affecting 19% of its workforce, which was announced on September 24, 2025. This strategic move is expected to generate $20 million in annual savings, enhance operational efficiency, and accelerate the company’s path to positive cash flow, supporting its growth initiatives and increasing shareholder value.