Spruce Power Holding (SPRU) AI Stock Analysis

• Market Cap: $46.55M
• Dividend Yield: N/A
• Average Volume (3M): 149.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 22.78%
• EPS Growth: -27.59%
• Country: US
• Employees: 165
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.17
• 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: 13.94
• Enterprise Value/Revenue: 6.58
• Enterprise Value/Gross Profit: 10.31
• Enterprise Value/Ebitda: -171.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $3.00 ▲(3.09% Upside)

Spruce Power Holding's overall stock score is primarily influenced by its challenging financial performance, marked by high leverage and negative profitability. However, the technical analysis indicates positive momentum, which provides some optimism. The valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

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, including 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	98.66M	82.11M	79.86M	23.19M	15.60M	20.34M
Gross Profit	62.95M	58.73M	42.05M	13.24M	-696.00K	2.74M
EBITDA	-3.78M	-8.56M	1.03M	-35.12M	53.29M	-53.61M
Net Income	-77.76M	-70.49M	-65.83M	-46.26M	28.79M	-31.34M
Balance Sheet
Total Assets	862.63M	898.48M	895.02M	826.55M	393.22M	347.01M
Cash, Cash Equivalents and Short-Term Investments	53.51M	72.80M	141.35M	220.32M	351.68M	329.64M
Total Debt	700.62M	711.07M	625.68M	503.01M	4.60M	208.00K
Total Liabilities	735.22M	752.33M	680.35M	537.58M	31.41M	14.82M
Stockholders Equity	124.99M	143.71M	212.34M	279.95M	361.81M	332.19M
Cash Flow
Free Cash Flow	-26.36M	-42.16M	-34.16M	-63.49M	-52.13M	-20.03M
Operating Cash Flow	-25.96M	-41.81M	-33.66M	-63.49M	-48.49M	-19.88M
Investing Cash Flow	-106.60M	-101.41M	-16.73M	-29.01M	-14.83M	-145.00K
Financing Cash Flow	72.83M	79.43M	-16.81M	-19.19M	85.36M	346.28M

Spruce Power Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.91
• 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 2.91 is above the 20-day moving average (MA) of 2.90, above the 50-day MA of 2.18, and above the 200-day MA of 2.08, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 60.13 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
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPRU	―	$46.55M	-0.62	-47.48%	―	22.78%	-27.59%
TURB	―	$39.22M	-10.87	―	―	-26.62%	-65.66%
BEEM	―	$52.74M	―	-65.81%	―	-49.36%	-32.19%
MAXN	―	$58.12M	―	―	―	-54.68%	63.56%
SMXT	―	$55.93M	―	―	―	-27.65%	16.39%
VVPR	―	$47.63M	-0.72	―	―	-51.35%	-103.78%

Spruce Power Holding Corporate Events

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.

The most recent analyst rating on (SPRU) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Spruce Power Holding stock, see the SPRU Stock Forecast page.

Spruce Power’s Earnings Call: Robust Growth Amid Challenges

Spruce Power Holding Corporation’s recent earnings call conveyed a generally positive sentiment, underscored by significant revenue and EBITDA growth, alongside effective cost management strategies. The company showcased strong operational performance, although it faces challenges from policy changes affecting tax credits and increased legal fees. Overall, the sentiment leans towards optimism due to the substantial growth and strategic initiatives in place.

Spruce Power Reports Strong Q2 2025 Growth

Spruce Power Holding Corporation is a prominent player in the distributed solar energy sector in the United States, specializing in owning and operating solar energy assets and providing subscription-based services for homeowners.