tiprankstipranks
Spruce Power Holding Corporation (SPRU)
NYSE:SPRU
Want to see SPRU full AI Analyst Report?

Spruce Power Holding (SPRU) AI Stock Analysis

1,530 Followers

Top Page

SPRU

Spruce Power Holding

(NYSE:SPRU)

Select Model
Select Model
Select Model
Neutral 43 (OpenAI - 5.2)
Rating:43Neutral
Price Target:
$2.00
▼(-7.83% Downside)
Action:Reiterated
Date:07/31/26
The score is held down primarily by high leverage and continued net losses despite improved operating profitability and modest positive TTM cash flow. Technicals are also weak with the stock trading below all major moving averages. The earnings call was moderately constructive due to strong EBITDA and cost improvements and steady guidance, but refinancing/going-concern and debt overhang remain key risks, while valuation offers limited support given the negative P/E and no dividend yield provided.
Positive Factors
Improving operating profitability
Sustained high gross and operating margins indicate the company's asset‑management model can generate strong per‑asset cash economics. Margin expansion improves cash conversion and resilience to revenue variability, supporting longer‑term debt servicing and reinvestment capacity.
Negative Factors
High leverage
An elevated debt burden versus a small equity base materially constrains financial flexibility. High leverage increases refinancing needs, interest expense and counterparty risk; with limited equity cushion, adverse cash flow swings could pressure covenant compliance and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving operating profitability
Sustained high gross and operating margins indicate the company's asset‑management model can generate strong per‑asset cash economics. Margin expansion improves cash conversion and resilience to revenue variability, supporting longer‑term debt servicing and reinvestment capacity.
Read all positive factors

Spruce Power Holding (SPRU) vs. SPDR S&P 500 ETF (SPY)

Spruce Power Holding Business Overview & Revenue Model

Company Description
XL Fleet Corp. specializes in delivering electrification solutions tailored for commercial vehicle fleets across North America. Their product portfolio features hybrid electric drive systems, which integrate an electric motor positioned on the veh...
How the Company Makes Money
Spruce Power primarily makes money from cash flows generated by residential solar systems it owns and operates under long-term customer contracts. Key revenue streams typically include: (1) recurring customer payments under legacy residential sola...

Spruce Power Holding Earnings Call Summary

Earnings Call Date:May 13, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational progress: strong margin expansion, large reductions in O&M and SG&A, a 49% increase in operating EBITDA, and a materially improved net loss, supported by a stable customer base and a solid cash balance. Offsetting these positives are a slight year-over-year revenue decline driven by weather, lower noncash amortization and customer buyouts, a going concern disclosure tied to the near‑term maturity classification of the SP1 facility, and substantial outstanding debt that requires successful refinancing. Management has secured an SP1 extension and is actively pursuing refinancing, which partially mitigates financing risk but leaves execution uncertainty. Overall, operational and profitability improvements are significant and appear to outweigh the financing and timing headwinds noted.
Positive Updates
Strong Operating EBITDA Growth
Operating EBITDA of $18.4M in Q1 2026, up 49% year-over-year from $12.3M in Q1 2025, driven by margin expansion and operational efficiencies.
Negative Updates
Modest Revenue Decline
Revenue of $23.4M in Q1 2026, down from $23.8M in Q1 2025 (≈1.7% decline). Decline attributable to lower noncash amortization from acquired solar agreements, lower PPA revenue due to weather impacts and customer buyouts.
Read all updates
Q1-2026 Updates
Negative
Strong Operating EBITDA Growth
Operating EBITDA of $18.4M in Q1 2026, up 49% year-over-year from $12.3M in Q1 2025, driven by margin expansion and operational efficiencies.
Read all positive updates
Company Guidance
Management said its full‑year 2026 outlook remains generally consistent with prior expectations and they expect full‑year operating EBITDA to be in line with budget (Q1 operating EBITDA was $18.4M, +49% YoY), with lower Q1 O&M and collections being offset by higher servicing activity and collections in the second half; O&M is expected to increase sequentially through the year but remain generally in line with full‑year expectations (Q1 O&M $1.2M, down 70% YoY) and SG&A run‑rate should continue to improve (Q1 SG&A $11.6M, down 21% YoY). They continue to advance refinancing initiatives—SP1 maturity extended to October 2026 with a potential extension to January 2027 pending a signed term sheet—and highlighted liquidity and balance sheet metrics of $85.6M total cash (≈$50M unrestricted), $668M total debt with a blended interest rate of ~6.6% (including hedges), $8.2M of debt repaid in the quarter, and a contracted customer base of ~84,000.

Spruce Power Holding Financial Statement Overview

Summary
Operating performance has improved (TTM gross margin ~77%, EBIT margin ~25%, EBITDA margin ~42%) and TTM operating/free cash flow are modestly positive (~$2.9M/~$2.8M). However, the company remains net-loss making (TTM net margin ~-12%), revenue has contracted sharply on a TTM basis (~-36%), and the balance sheet is highly leveraged (debt-to-equity ~5.6x; negative ROE), which meaningfully elevates financial risk.
Income Statement
44
Neutral
Balance Sheet
24
Negative
Cash Flow
33
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue111.41M111.81M82.11M79.86M23.19M15.60M
Gross Profit75.25M72.91M42.13M42.05M13.24M-696.00K
EBITDA67.50M55.47M-8.56M8.23M-34.82M53.29M
Net Income-13.61M-26.03M-70.49M-65.83M-93.93M28.79M
Balance Sheet
Total Assets824.37M837.27M898.48M895.02M895.90M393.22M
Cash, Cash Equivalents and Short-Term Investments50.02M54.84M72.80M141.35M240.14M351.68M
Total Debt673.16M681.89M711.07M625.68M503.01M4.60M
Total Liabilities705.03M716.02M752.33M680.35M606.93M31.41M
Stockholders Equity116.92M118.83M143.71M212.34M279.95M361.81M
Cash Flow
Free Cash Flow855.00K-3.75M-42.16M-34.16M-63.49M-48.49M
Operating Cash Flow989.00K-3.53M-41.81M-33.66M-63.49M-48.49M
Investing Cash Flow25.94M24.78M-101.41M-16.73M-37.29M-14.83M
Financing Cash Flow-37.77M-37.25M79.43M-16.81M-10.90M85.36M

Spruce Power Holding Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.17
Price Trends
50DMA
2.56
Negative
100DMA
3.13
Negative
200DMA
3.83
Negative
Market Momentum
MACD
-0.14
Negative
RSI
51.51
Neutral
STOCH
48.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Neutral. The current price of 2.17 is below the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.56, and below the 200-day MA of 3.83, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 48.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPRU.

Spruce Power Holding Risk Analysis

Spruce Power Holding disclosed 1 risk factors in its most recent earnings report. Spruce Power Holding reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Spruce Power Holding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
$15.31M-2.76-62.97%232.69%
46
Neutral
$23.31M-1.04-73.50%-39.07%36.89%
43
Neutral
$35.82M-2.61-11.21%26.46%83.31%
40
Neutral
$19.63M-3.0842.25%309.46%71.91%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPRU
Spruce Power Holding
2.35
1.14
94.21%
BEEM
Beam Global
1.15
-1.28
-52.67%
TURB
Turbo Energy, S.A. Sponsored ADR
1.40
-0.90
-39.10%
SMXT
SolarMax Technology, Inc.
0.36
-1.30
-78.19%

Spruce Power Holding Corporate Events

Executive/Board Changes
Spruce Power Announces Major Legal Leadership Transition
Neutral
Jul 17, 2026
Spruce Power Holding Corporation has appointed Bobby L. Owens as General Counsel, effective July 13, 2026, reflecting a leadership change in the company’s legal function. Owens brings extensive experience from prior roles at OXEA Corporation...
Executive/Board Changes
Spruce Power Holding Announces Board Director Resignation
Neutral
Jun 24, 2026
On June 17, 2026, Spruce Power Holding Corporation announced the immediate resignation of director Ja-chin Audrey Lee from the company’s board. Lee had been serving as a Class C director with a term scheduled to expire at the 2026 Annual Mee...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026