Spruce Power Holding Corporation (SPRU) AI Stock Analysis
SPRU AI stock analysis summary
AI ResearchSpruce Power Holding Corporation manages distributed solar energy assets and provides clean power subscriptions across the United States. Revenue reached $111.8M in FY2025, but the company reported a net income of -$26.0M. Spruce Power faces liquidity constraints, operating with $667.2M in total debt and a current ratio of 0.40.
- Market cap
- $25.2M
- Revenue (TTM)
- $108.5M
- P/E
- — fwd 45.2x
- 1Y return
- -52.0% S&P 500 16.8%
- Avg. target
- $6.00 358.0% vs last close
Bull case
- Spruce Power expanded annual revenue at a 5-year CAGR of 40.6% to reach $111.8M in FY2025.
- Gross margin improved significantly to 65.2% in FY2025, up from -4.5% in FY2021.
- The mean analyst price target of $6.00 indicates a 358.0% upside from the recent price of $1.31.
Bear case
- The company holds total debt of $667.2M against a cash position of just $44.7M as of June 30, 2026.
- Spruce Power remained unprofitable with a net loss of $26.0M in FY2025 and an EPS of -$0.40 over the trailing twelve months.
- The stock has declined 74.3% year-to-date and trades 59.0% below its 200-day moving average.
What Spruce Power does
Spruce Power Holding Corporation specializes in managing and operating distributed solar energy assets across the United States. The company provides accessible and sustainable energy solutions through subscription-based services tailored for homeowners and small businesses. These offerings enable customers to own and maintain rooftop solar installations alongside battery storage solutions, supporting energy independence. Serving approximately 52,000 clients nationwide, the company utilizes flexible subscription models to democratize access to renewable energy technologies. Headquartered in Wixom, Michigan, Spruce Power continues to expand its portfolio of distributed solar assets and enhance services to address the evolving energy needs of its customer base.
Growth and profitability
Spruce Power grew annual revenue from $15.6M in FY2021 to $111.8M in FY2025, achieving a 5-year revenue CAGR of 40.6%. Gross margin expanded from -4.5% in FY2021 to 65.2% in FY2025, while operating margin turned positive at 15.9% in FY2025 compared to -61.4% in FY2024. However, the company remained unprofitable, recording net income of -$26.0M in FY2025. Over the trailing twelve months ended June 30, 2026, revenue stood at $108.5M with an operating margin of 30.7% and a profit margin of -6.8%. In the latest quarter, quarterly revenue fell 8.7% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Spruce Power held $44.7M in cash and short-term investments against total debt of $667.2M, resulting in net debt of $622.6M. The company reported a debt-to-equity ratio of 5.54 and a current ratio of 0.40 on shareholders' equity of $120.4M. For FY2025, operating cash flow was -$3.5M, while free cash flow was -$3.8M. Capital expenditures totaled $221,000 and share buybacks equaled $1.8M during FY2025.
Valuation and performance
At $1.31 per share, Spruce Power trades at an enterprise value of $659.5M and a market capitalization of $25.2M. Its price-to-sales ratio of 0.2x and EV-to-EBITDA of 8.9x sit below the median of its US-listed Technology peers at 2.8x and 16.6x, respectively. The company's forward P/E of 45.2x exceeds the peer median of 18.8x. Over the past year, SPRU shares fell 52.0%, trailing the S&P 500 return of 16.8%. Over five years, the stock dropped 97.0% compared to an 83.0% gain for the index.
What analysts expect
Wall Street analysts maintain a mean price target of $6.00 for Spruce Power, representing a 358.0% premium over the last close of $1.31. Over the last four quarters, the company recorded 0 EPS beats against consensus estimates. SPRU posted a diluted EPS of -$0.40 over the trailing twelve months. Its next quarterly earnings release is scheduled for November 10, 2026.
Key risks and what to watch
- A current ratio of 0.40 indicates near-term liquidity pressure given negative trailing free cash flow of -$3.8M in FY2025.
- The debt-to-equity ratio of 5.54 leaves the company with high leverage relative to its $120.4M in shareholders' equity.
- Quarterly revenue fell 8.7% year-over-year in the period ended June 30, 2026, lagging the peer median growth rate of 11.6%.
- The company posted zero EPS beats across its last 4 reported quarters.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SPRU AI stock analysis
This page is an AI-written research summary of Spruce Power Holding Corporation (SPRU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SPRU income statement, SPRU balance sheet, SPRU key metrics, SPRU chart. See the SPRU stock overview for the latest quote and news.
SPRU AI stock analysis FAQ
What is Spruce Power's primary business model?
Spruce Power operates and manages distributed solar energy assets in the United States, providing subscription-based rooftop solar and battery storage services to approximately 52,000 residential and small business customers.
Does Spruce Power pay a dividend?
Spruce Power does not pay a dividend, focusing its capital on operations and reporting $1.8M in share buybacks during FY2025.
What is Spruce Power's current debt position?
As of June 30, 2026, Spruce Power carried $667.2M in total debt and $44.7M in cash and short-term investments, resulting in net debt of $622.6M.
When is Spruce Power's next earnings report date?
The company's next scheduled earnings report date is November 10, 2026.