US distributed solar asset owner Spruce Power has posted increased sequential revenues and adjusted EBITDA in the third quarter of 2023, as its total portfolio of residential solar assets and contracts increased to over 75,000.
Revenues were US$23.3 million in Q3, up from US$22.8 million in Q2 and US$18.1 million in Q1. Year-on-year revenues were up more than fourfold, from just over US$5 million in Q3 2022. Adjusted EBITDA was US$14.9 million in Q3 2022 compared with US$13.8 million in Q2.
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Adjusted loss attributable to stockholders was US$1.2 million, whilst net loss attributable to stockholders was US$19.3 million.
“Solid third quarter results reflect the continued execution of our low-cost customer acquisition strategy which included the addition of approximately 25,000 home solar assets and contracts this year. This growth enabled record business cash inflows during the third quarter,” said Christian Fong, Spruce’s CEO.
Sarah Wells, Spruce’s CFO added: “We delivered a strong third quarter as step-change growth in our portfolio of home solar assets and contracts continues to build our recurring cash flow base. Since our merger with XL Fleet, Spruce has been managing several legacy legal items that have resulted in an ongoing expense burden. We’re pleased to move past these legacy XL Fleet issues and continue to focus on growing the positive cash flow from our core distributed energy business. We reiterate our expectation for business cash inflows of US$120 to US$130 million on an annual run rate basis.”
In December 2022, electric vehicle solutions provider XL Fleet acquired Spruce Power for a total cash consideration of approximately US$58 million and the assumption of approximately US$542 million of debt. Ensuing legal issues were settled in September 2023.
In August, Spruce Power took on an additional 2,400 residential solar systems and contracts across California, New Jersey and Massachusetts from an undisclosed party. Spruce funded the acquisition purchase price, of around US$20.9 million, entirely through proceeds from the concurrent upsizing of an existing credit facility.
April saw the company miss a listing on the New York Stock Exchange (NYSE) because its stock price was too low. As of March 27th 2023, its common stock price was less than US$1 for the 30th consecutive day, which made it ineligible for listing.