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• They're like a Bosch or Cummins specializing in providing electric and hybrid powertrain upgrade kits for existing commercial vehicle fleets.
• Imagine them as a ChargePoint that also installs the electric or hybrid drive systems into your commercial fleet vehicles, not just the charging stations.

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Spruce Power (symbol: SPRU), as described in the provided background, sells primarily to other companies and organizations. Its major customers are:

• Fortune 500 corporate enterprises
• Public utilities
• Various municipalities

The provided background does not list specific names of these customer companies or their symbols.

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Chris Hayes, Chief Executive Officer

Chris Hayes was appointed President and CEO of Spruce Power on April 12, 2024. He previously served as Chairman of the Board since January 2023 and as a director since December 2020. Hayes is the founder and managing partner of Alturus, a company focused on developing, owning, and operating sustainable infrastructure projects for Fortune 1000 companies, which pioneered an energy-as-a-service (EaaS) platform for decarbonization. He also co-founded Altenex, a company credited with creating the "virtual power purchase agreement," which was acquired by Edison International in 2015. Hayes has a history of creating valuable intellectual property and a successful track record in generating returns for investors.

Thomas Cimino, Chief Financial Officer

Thomas Cimino was appointed permanent Chief Financial Officer of Spruce Power, effective December 8, 2025, after serving as Interim CFO since June 5, 2025. He brings over 25 years of financial leadership experience across a diverse range of sectors. His previous roles include serving as CFO at Vantage Drilling International and AEI Services, and as Executive Vice President of Finance and Administration at EnfraGen. Earlier in his career, Cimino held positions at the U.S. Securities and Exchange Commission, worked with PwC's Global Capital Markets Group, and began his public accounting career with KPMG.

Jon Norling, Chief Legal Officer

Jon Norling serves as the Chief Legal Officer for Spruce Power, managing the company's legal affairs and advising the Board and executive management on corporate and strategic matters. Before joining Spruce Power as General Counsel in 2017, Norling was the General Counsel of Renewable Energy Trust Capital (RET), where he was involved in acquiring and developing over a billion dollars of wind and solar PV assets. His past experience also includes serving as General Counsel to Columbia Energy Partners, a wind, solar, and wave energy developer, and as corporate counsel at Vestas, a wind turbine generator manufacturer. He was also a Shareholder at Lane Powell, where he chaired the firm's Energy Practice. Norling is an Adjunct Professor of Law at Lewis & Clark College, teaching classes in renewable energy development and finance.

Derick Smith, Chief Operating Officer

Derick Smith holds the position of Chief Operating Officer at Spruce Power, overseeing solar customer, financial, IT, and asset operations for a portfolio of 85,000 assets. Within Spruce Power, he has held various leadership roles, including Senior Vice President and Vice President, where he managed investor relations, corporate customer engagement, and financial analysis. Prior to his tenure at Spruce Power, Smith gained experience in key positions at Spectra Energy from 2007 to 2017, where he was responsible for leading financial strategies and investor relations.

Richard DiMatteo, Senior Vice President, Head of Spruce Pro

Richard DiMatteo joined Spruce Power as Senior Vice President, Head of Spruce Pro on July 2, 2024. In this role, he is responsible for directing and overseeing all aspects of product innovation, formation, and go-to-market strategy for Spruce Pro, with a focus on leveraging the company's capabilities to generate high-margin organic revenue and shareholder value through a scalable third-party servicing platform. Most recently, DiMatteo co-founded and served as EVP at Highland Electric Fleets, Inc., a leading provider of fleet electrification-as-a-service (EaaS), where he developed the first-of-its-kind customer offering and contract for fleet electrification. His career also includes experience in Fortune 500 solar PPA origination at Edison Energy, structured finance at SunEdison, and executive training at GE.

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The key risks for the business described in the background, XL Fleet Corp., which provided fleet electrification solutions for commercial vehicles, were primarily related to market perception, technological shifts, and operational dependencies.

1. Risk of Misleading Projections and Overestimation of Market Demand

   As XL Fleet Corp., the company faced an $11 million penalty from the Securities and Exchange Commission (SEC) for allegedly misleading investors regarding its electric vehicle sales pipeline. The SEC found that from its SPAC merger in September 2020 to January 2021, XL Fleet made public statements about a sales pipeline exceeding $220 million, with projections of significant revenue growth. However, more than 90% of this figure comprised speculative sales opportunities. This illustrates a significant risk associated with inaccurate forecasting and potentially overstating market interest, which can result in severe financial penalties and reputational damage.

2. Rapid Technological Obsolescence and Intense Competition

   The market for fleet electrification solutions is characterized by rapid technological advancements. XL Fleet Corp.'s focus on hybrid electric and plug-in hybrid electric drive systems [cite: BACKGROUND] presented a risk of technological obsolescence as fully battery-electric vehicle technology and other alternative propulsion systems advanced rapidly. The competitive landscape included established automotive original equipment manufacturers (OEMs) entering the electric vehicle market, alongside numerous startups and specialized providers, creating pressure on market share and product relevance.

3. Reliance on Original Equipment Manufacturers (OEMs) and Supply Chain Volatility

   The business model of fitting electrification solutions onto commercial vehicles implies a significant dependence on the consistent availability of vehicle chassis from OEMs. Additionally, the company relied on a stable supply chain for critical components such as electric motors, inverter motor controllers, and lithium-ion battery packs [cite: BACKGROUND]. Disruptions in the automotive industry, such as semiconductor shortages or raw material scarcity, or issues within its own supply chain, could severely impact XL Fleet Corp.'s ability to produce and deliver its products, thereby affecting revenue generation.

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The primary clear emerging threat to Spruce Power (SPRU), as described in the background as XL Fleet Corp., is the increasing vertical integration and direct market entry by major original equipment manufacturers (OEMs) of commercial vehicles. These large automotive companies are rapidly developing and offering their own comprehensive, factory-built fully electric and hybrid commercial vehicle solutions, often bundled with their proprietary charging infrastructure and fleet management services. This trend directly competes with and could significantly diminish the market for third-party fleet electrification providers, retrofitting solutions, and independent infrastructure providers like XL Fleet, as customers may prefer integrated solutions directly from vehicle manufacturers.

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Spruce Power (SPRU) operates in the U.S. market, focusing on subscription-based solutions for residential rooftop solar, battery storage, and EV charging.

The addressable markets for Spruce Power's main products and services in the U.S. are as follows:

• Residential Rooftop Solar Market: The U.S. residential solar market size is projected to increase by USD 10.93 billion with a Compound Annual Growth Rate (CAGR) of 12.3% between 2024 and 2029. Another estimate forecasts the market to reach USD 17.68 billion by 2030, expanding at a CAGR of 14.4% from 2024 to 2030. The residential sector is identified as the fastest-growing segment within the broader U.S. solar power market, which was valued at USD 53.45 billion in 2024 and is expected to reach USD 123.86 billion by 2032 with a CAGR of 11.19% from 2025 to 2032.
• Residential Battery Storage Market: The U.S. residential energy storage market was valued at USD 0.49 billion in 2024 and is projected to grow at a CAGR of 13.55%, reaching USD 1.36 billion by 2032. Another source estimates the market to be around USD 137.2 million in 2024, growing to USD 603.6 million by 2030 at a CAGR of 28.0% between 2024 and 2030. The broader residential battery market size is estimated at USD 26.02 billion in 2026 and is expected to reach USD 57.93 billion by 2031, with a CAGR of 17.36% during the forecast period of 2026-2031.
• Residential EV Charging Market: The U.S. residential EV charger market is expected to grow from USD 9.68 billion in 2025 to USD 12.23 billion in 2026 and is forecast to reach USD 39.4 billion by 2031 at a 26.35% CAGR over the period 2026-2031. The residential segment currently accounts for approximately 25% of the overall U.S. EV charging station market. The U.S. electric vehicle charging infrastructure market as a whole was valued at USD 5.09 billion in 2024 and is projected to grow at a CAGR of 30.3% from 2025 to 2030, with the residential segment dominating in 2024. Furthermore, the number of charge points in the U.S. is forecast to rise from about 4 million currently to 35 million in 2030, with residential segments (single-unit and multi-unit) projected to account for approximately 80% of all charge points by 2030.

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For Spruce Power (SPRU), the following are expected drivers of future revenue growth over the next 2-3 years:

1. Acquisitions of Residential Solar Portfolios: Spruce Power's primary strategy for revenue growth involves the acquisition and management of existing portfolios of residential solar contracts and assets. This approach provides predictable, long-term cash flows. Recent acquisitions, such as the NJR Clean Energy Ventures portfolio in November 2024, have significantly contributed to revenue increases and are expected to continue driving growth.
2. Expansion of Spruce Pro Servicing Business: The company aims to expand its third-party asset management platform, Spruce Pro, which manages solar systems for other institutional owners of distributed energy assets. This "capital-light growth opportunity" generates revenue through servicing fees, exemplified by a multi-year agreement with ADT Solar covering a substantial number of systems.
3. Monetization of Solar Renewable Energy Credits (SRECs): Spruce Power actively leverages its platform and expertise to capture the benefits from Solar Renewable Energy Credits (SRECs). The sale of these credits is a low-cost, low-risk opportunity for generating high-margin, capital-light cash flow, with a multi-year agreement for New Jersey SRECs projected to generate approximately $10 million in hedged revenue through 2029.
4. Growth in Subscription-Based Services from Existing and Acquired Assets: The company generates recurring revenue through subscription-based services, including power purchase agreements and leases from its owned residential solar assets. As Spruce Power continues to acquire new portfolios, the base of these predictable subscription revenues expands, ensuring a steady and growing stream of income.
5. Operational Efficiencies and Vertical Integration: While not a direct revenue generator, Spruce Power's focus on cost containment and operational efficiencies, particularly through vertical integration of its operations and maintenance (O&M) services, is expected to enhance profitability and margins. This improved financial health indirectly supports revenue growth by making the business more attractive for future acquisitions and by maximizing the net income from existing revenue streams, partly by improving system uptime for SREC generation.

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Share Repurchases

• A new share repurchase program was authorized in May 2025 for up to $50 million, effective until May 15, 2027, replacing the expiring program.
• Under a prior share repurchase program, active from May 2023 to May 2025, Spruce repurchased approximately 1.87 million shares at an average price of around $4.33 per share.
• In the fourth quarter of 2024, Spruce repurchased 0.3 million shares for $0.9 million, with $43.8 million remaining under the authorized program at year-end.

Share Issuance

• In December 2020, XL Fleet, the predecessor to Spruce Power, received approximately $350 million in cash proceeds through its merger with a special purpose acquisition company (SPAC), Pivotal Investment Corporation II.

Inbound Investments

• XL Fleet received approximately $350 million in cash proceeds from its merger with Pivotal Investment Corporation II in December 2020, intended to advance fleet electrification through new product development and charging infrastructure.

Outbound Investments

• In September 2022, XL Fleet acquired Spruce Power for approximately $58 million, also assuming about $542 million in debt, which led to a strategic shift to residential solar and energy services and the company's rebranding as Spruce Power.
• Spruce Power completed the Spruce Power 4 Portfolio and Tredegar acquisitions in 2023, further adding approximately 9,800 home solar assets and customer contracts in 2024 through NJR Clean Energy Ventures.

Capital Expenditures

• In the last 12 months, capital expenditures for Spruce Power were $392,000.
• Capital expenditures in Q3 2025 amounted to $36K, representing a 62.9% decrease from the previous quarter.
• Initial capital expenditures for the 'Spruce Pro' brand extension in 2024 were estimated to be negligible.