Spruce Power Closes 2025 with Breakout Results, Sets Sights on Aggressive Growth
On the heels of its fourth quarter 2025 earnings release, Spruce Power demonstrated a remarkable turnaround, delivering exceptional momentum across the business and capping off an outstanding year. The company's strong growth, significantly expanded margins, and improved efficiency and scalability have set the stage for continued success.
In the fourth quarter, revenue reached approximately $24 million, representing a 19% increase year-over-year. Operating EBITDA exceeded $17 million, reflecting both portfolio growth and meaningful cost improvements. For the full year, revenue increased 36% compared to 2024, underscoring the strength of Spruce Power's platform and the impact of its NJR acquisition.
The company's ability to drive substantial operating leverage was a key highlight, with O&M expense declining 64% year-over-year and SG&A decreasing 16%. These gains are structural in nature and position Spruce Power to drive continued margin expansion as it scales. Adjusted cash flow from operations was $5.1 million in the quarter compared to -$4.1 million in the prior year period, reflecting both improved operating performance and the growing contribution from its portfolio.
"2025 was a breakout year for Spruce," said Chris Hayes, Chief Executive Officer of Spruce Power. "We delivered strong growth, significantly expanded margins, and fundamentally improved the efficiency and scalability of our platform." The company's results demonstrate the strength of its model, a growing base of long-term contracted cash flows, improving unit economics, and a platform that becomes more efficient as it scales.
Spruce Power also made significant progress in its financing process, extending its existing SP one facility to create additional flexibility as it evaluates a broader refinancing opportunity. The company believes this approach maximizes optionality, enhances long-term financing efficiency, and better aligns its capital structure with the scale of the platform it has built.
The going concern disclosure in Spruce Power's upcoming 10-K is driven by accounting requirements related to the timing of this process. It is not reflective of the company's operating performance or lender engagement. The company remains confident in its ability to execute a financing solution that strengthens the business and supports future growth.
Spruce Power's strategy remains focused on three key growth drivers: acquiring installed residential solar portfolios, expanding programmatic partnerships with developers and originators, and scaling Spruce Pro, its capital-light servicing platform. The company believes this approach will drive continued revenue growth and margin expansion without deploying significant capital."
