On this page of StockholderLetter.com we present the latest annual shareholder letter from SPRUCE POWER HOLDING CORP — ticker symbol SPRU. Reading current and past SPRU letters to shareholders can bring important insights into the investment thesis.
SPRUCE POWER ANNUAL REPORT 2024 2024

2024 Annual Letter to Stockholders Dear Holders of Spruce Power Stock: In my first letter to you as chief executive officer of Spruce Power, I will take the opportunity to talk candidly about how the business is doing, what I m focused on, and how we can accomplish the most important part of our jobs building value for you as a stockholder. I will begin by highlighting our priorities and recent accomplishments before continuing on to our objectives in 2025 and beyond. PRIORITIES AND RECENT ACCOMPLISHMENTS Sustainable Growth with Financial Discipline We are focused on scaling our portfolio of solar installations in a systematic and costefficient manner, ensuring that every acquisition, investment and operational improvement contributes to durable stockholder value. In 2024, we acquired approximately 9,800 residential solar systems from NJR Clean Energy Ventures. I believe the Company will benefit greatly from these long-term lease agreements with homeowners, including related customer payment streams and renewable energy credit program incentives, as well as the efficiencies associated with increased geographic density in New Jersey. We also successfully launched our third-party servicing channel, Spruce PRO. This new business line plays to our strengths, with partners leveraging our experience to maximize productivity, uptime and efficiency. Spruce PRO will focus on areas such as financial asset management, billing and collections, asset operations, account services, homeowner support, I.T. support and implementation, and Solar Renewable Energy Credits, or SREC Marketplace. We were proud to close our first Spruce PRO agreement with ADT Solar in 2024, covering 60,000 systems. Operational Improvement and Customer Experience We prioritize delivering a high quality, reliable and transparent experience to the homeowners we serve. During 2024, we made meaningful progress integrating advanced monitoring technology and streamlining our service offerings. As a result, we were able to improve system performance and increase customer satisfaction in turn driving customer retention and long-term contract value. In 2024, we enhanced our operational efficiency and increased our revenue while providing significant improvements in customer experience. I am proud to report that Spruce reconnected 4,800 systems, reduced ticket cycle times and cleared 10,000
backlogged service tickets in 2024. We also implemented an advanced asset management system and upgraded meters across our portfolio. These improvements and other upgrades drove a material increase in customer satisfaction, with our CSAT score rising to 83% in 2024, up from 74% in 2023. WHAT COMES NEXT I assumed leadership of Spruce Power humbled by the challenges and excited by the significant opportunities I see ahead for the Company. We are determined to reach our goal of generating positive free cash flow. I believe our path to achieving this objective is disciplined growth that scales our portfolio of solar installations coupled with prudent cost containment. I would like to explain both priorities in further detail. Expanding Our Portfolio of Installations Spruce generates predictable, recurring revenue and cash flow by delivering management services for approximately 145,000 systems and customer contracts. This is a great foundation for our business. However, to accelerate progress toward our free cash flow objective, we intend to scale our business with smart acquisitions of installed systems, the formation of programmatic off-take partnerships and through the growth of Spruce PRO servicing. We will continue to take a methodical approach to portfolio acquisitions and only purchase assets that meet our internal rate of return (IRR) requirements. Spruce has been able to command a higher return on opportunistic M&A because of our scale and expertise in this area. Given these advantages, we can be selective and only pursue agreements that meet our deal terms and density objectives. The second driver for expanding our portfolio of installations is programmatic off-take. While this is a new endeavor for Spruce, the model is well established in the industry, and our expectations for this initiative as a revenue driver are high. With programmatic off-take transactions, we are looking to acquire and service newly-installed systems on an ongoing basis as our partners complete installations of such systems. These partners may include home builders, legacy solar loan operators, or lease originators that are pivoting into third-party ownership (TPO) leases and power purchase agreements. We are confident that when we deploy our programmatic off-take initiative, we will ultimately generate double-digit IRRs on off-take projects while acquiring newer systems that have fewer maintenance issues. Finally, we believe that our Spruce PRO channel is an attractive offering for third-party owners of distributed generation assets. Increasingly, installers want to focus on origination rather than servicing. We are active in raising our visibility and pleased with Spruce PRO s deepening pipeline of opportunities.
Efficient Cost Containment Costs were higher than anticipated in 2024, driven in part by earlier than projected Operations and Maintenance (O&M) expense. Initially, we did not have a technology platform or team in place to optimize the management of resources. This led to inefficiency and added costs. We have since implemented a series of upgrades, including the onboarding of experienced hires, technology investments and a revamped strategy to intelligently route service calls from customers, limit truck rolls, right-size inventory on the truck and appropriately manage customer contracts in the most cost-effective manner possible. Other expense control initiatives we are undertaking include enhancements through strategic sourcing and procurement and better vendor management. We believe these efforts will contribute to improved operating efficiency and margin expansion in 2025. FOCUSING ON THE FUTURE We are energized by the opportunities ahead of us. I am inspired and grateful to work alongside Spruce team members every day that are committed to wisely and sensibly adding scale and managing costs. We are building on the foundation the Company has established to create value for our stockholders. Finally, I want to thank you for your continued trust and support in Spruce Power. Sincerely, Chris Hayes Chief Executive Officer Spruce Power
 • shareholder letter icon 5/20/2025 Letter Continued (Full PDF)
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SPRU Shareholder/Stockholder Letter Transcript:

SPRUCE POWER
ANNUAL REPORT
2024
2024


2024 Annual Letter to Stockholders
Dear Holders of Spruce Power Stock:
In my first letter to you as chief executive officer of Spruce Power, I will take the
opportunity to talk candidly about how the business is doing, what I   m focused on, and
how we can accomplish the most important part of our jobs     building value for you as
a stockholder.
I will begin by highlighting our priorities and recent accomplishments before continuing
on to our objectives in 2025 and beyond.
PRIORITIES AND RECENT ACCOMPLISHMENTS
Sustainable Growth with Financial Discipline
We are focused on scaling our portfolio of solar installations in a systematic and costefficient manner, ensuring that every acquisition, investment and operational
improvement contributes to durable stockholder value.
In 2024, we acquired approximately 9,800 residential solar systems from NJR Clean
Energy Ventures. I believe the Company will benefit greatly from these long-term lease
agreements with homeowners, including related customer payment streams and
renewable energy credit program incentives, as well as the efficiencies associated with
increased geographic density in New Jersey.
We also successfully launched our third-party servicing channel, Spruce PRO. This
new business line plays to our strengths, with partners leveraging our experience to
maximize productivity, uptime and efficiency. Spruce PRO will focus on areas such as
financial asset management, billing and collections, asset operations, account
services, homeowner support, I.T. support and implementation, and Solar Renewable
Energy Credits, or SREC Marketplace. We were proud to close our first Spruce PRO
agreement with ADT Solar in 2024, covering 60,000 systems.
Operational Improvement and Customer Experience
We prioritize delivering a high quality, reliable and transparent experience to the
homeowners we serve. During 2024, we made meaningful progress integrating
advanced monitoring technology and streamlining our service offerings. As a result, we
were able to improve system performance and increase customer satisfaction     in turn
driving customer retention and long-term contract value.
In 2024, we enhanced our operational efficiency and increased our revenue while
providing significant improvements in customer experience. I am proud to report that
Spruce reconnected 4,800 systems, reduced ticket cycle times and cleared 10,000

backlogged service tickets in 2024. We also implemented an advanced asset
management system and upgraded meters across our portfolio. These improvements
and other upgrades drove a material increase in customer satisfaction, with our CSAT
score rising to 83% in 2024, up from 74% in 2023.
WHAT COMES NEXT
I assumed leadership of Spruce Power humbled by the challenges and excited by the
significant opportunities I see ahead for the Company. We are determined to reach our
goal of generating positive free cash flow. I believe our path to achieving this objective
is disciplined growth that scales our portfolio of solar installations coupled with prudent
cost containment. I would like to explain both priorities in further detail.
Expanding Our Portfolio of Installations
Spruce generates predictable, recurring revenue and cash flow by delivering
management services for approximately 145,000 systems and customer contracts.
This is a great foundation for our business. However, to accelerate progress toward our
free cash flow objective, we intend to scale our business with smart acquisitions of
installed systems, the formation of programmatic off-take partnerships and through the
growth of Spruce PRO servicing.
We will continue to take a methodical approach to portfolio acquisitions and only
purchase assets that meet our internal rate of return (IRR) requirements. Spruce has
been able to command a higher return on opportunistic M&A because of our scale and
expertise in this area. Given these advantages, we can be selective and only pursue
agreements that meet our deal terms and density objectives.
The second driver for expanding our portfolio of installations is programmatic off-take.
While this is a new endeavor for Spruce, the model is well established in the industry,
and our expectations for this initiative as a revenue driver are high. With programmatic
off-take transactions, we are looking to acquire and service newly-installed systems on
an ongoing basis as our partners complete installations of such systems. These
partners may include home builders, legacy solar loan operators, or lease originators
that are pivoting into third-party ownership (TPO) leases and power purchase
agreements. We are confident that when we deploy our programmatic off-take
initiative, we will ultimately generate double-digit IRRs on off-take projects while
acquiring newer systems that have fewer maintenance issues.
Finally, we believe that our Spruce PRO channel is an attractive offering for third-party
owners of distributed generation assets. Increasingly, installers want to focus on
origination rather than servicing. We are active in raising our visibility and pleased with
Spruce PRO   s deepening pipeline of opportunities.

Efficient Cost Containment
Costs were higher than anticipated in 2024, driven in part by earlier than projected
Operations and Maintenance (O&M) expense. Initially, we did not have a technology
platform or team in place to optimize the management of resources. This led to
inefficiency and added costs.
We have since implemented a series of upgrades, including the onboarding of
experienced hires, technology investments and a revamped strategy to intelligently
route service calls from customers, limit truck rolls, right-size inventory on the truck and
appropriately manage customer contracts in the most cost-effective manner possible.
Other expense control initiatives we are undertaking include enhancements through
strategic sourcing and procurement and better vendor management. We believe these
efforts will contribute to improved operating efficiency and margin expansion in 2025.
FOCUSING ON THE FUTURE
We are energized by the opportunities ahead of us. I am inspired and grateful to work
alongside Spruce team members every day that are committed to wisely and sensibly
adding scale and managing costs. We are building on the foundation the Company has
established to create value for our stockholders.
Finally, I want to thank you for your continued trust and support in Spruce Power.
Sincerely,
Chris Hayes
Chief Executive Officer
Spruce Power



shareholder letter icon 5/20/2025 Letter Continued (Full PDF)
 

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