SPRUCE POWER HOLDING CORP
For the period ended Sep 30, 2025. Filed Nov 13, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 13, 2025
SPRU$1.63+28.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001628280-25-039904
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001628280-25-051737
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 98 current paragraphs.
55 unchanged; 31 reworded; 12 added; 5 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Selling, general and administrative (“SG&A”) expenses decreased by $0.6 million, or 4%, to $12.9 million in the three months ended September 30, 2025 as compared to the same period in 2024 primarily due to lower professional fees partially offset by an increase in compensation and related costs, including severance related to reduction in workforce during the current period.
Current report
Litigation settlements decreased by $6.8 million in the three months ended September 30, 2025 as compared to the same period in 2024 primarily related to settlement costs associated with various Legacy XL Legal proceedings.
Current report
Impairment of Goodwill
Current report
Impairment of goodwill of $28.8 million recognized during the three months ended September 30, 2024 was due to a continuous decline in our stock price and market capitalization.
Current report
Comparison of the Nine Months Ended September 30, 2025 and 2024
Current report
Litigation Settlements
Current report
Impairment of Goodwill
Current report
Impairment of goodwill of $28.8 million recognized during the nine months ended September 30, 2024 was due to a continuous decline in our stock price and market capitalization.
Current report
Other Expense, net
Current report
These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) assuming the Company will continue as a going concern.
Current report
The Company’s debt obligations under the SP1 Facility are non-recourse to the Company (see Note 7. Non-Recourse Debt) and have a maturity date of April 30, 2026 (the “SP1 Maturity Date”). Because (i) the SP1 Maturity Date is within twelve months from the date these unaudited condensed consolidated financial statements are issued, (ii) the Company has not yet entered into a commitment to refinance the SP1 Facility although the maturity date is in April 2026, (iii) the Company has determined that it is unlikely to have sufficient cash on hand or proceeds from currently available liquidity sources to satisfy the SP1 Facility at the SP1 Maturity Date, (iv) the Company had negative working capital of $121.7 million as of September 30, 2025 solely due to the current maturity of the SP1 Facility at that date, and (v) the Company has experienced recurring net losses and negative cash flows from operations for the nine months ended September 30, 2025, these conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Current report
The Company plans to refinance the SP1 facility prior to the SP1 Maturity Date consistent with the Company’s historical financing strategy for investing in solar assets on a leveraged basis. The Company has obtained term sheets from potential lenders and placement agents, which are currently being reviewed by management and the board of directors. The Company’s management believes that such refinancing will be completed prior to the SP1 Maturity Dateand that any such substantial doubt is alleviated by managements plans. Should the Company be unsuccessful in refinancing the SP1 facility, this could result in a foreclosure of collateral and negatively impact operations. Further, an event of default on the SP1 facility, if not cured in the permittable time allowed under the agreement, would result in a cross default on the Second KeyBank Credit Agreement, which is non-recourse.
Removed paragraphs (5)
Previous report
Selling, general and administrative (“SG&A”) expenses decreased by $1.6 million, or 10%, to $15.1 million in the three months ended June 30, 2025 as compared to the same period in 2024 primarily due to a one-time severance cost of $1.9 million recognized upon the separation of the Former CEO from the Company in April 2024 and non-recurring legal fees of $0.9 million related to Legacy XL legal matters incurred in the prior quarter of 2024, both partially offset by a $1.2 million increase in SG&A expenses in the comparable period in 2025 primarily due to compensation and related costs and professional fees.
Previous report
Comparison of the Six Months Ended June 30, 2025 and 2024
Previous report
Interest expense, net in the six months ended June 30, 2025 of $25.5 million consisted of (i) $22.2 million of interest expense, net of realized gains from settlements of our interest rate swaps, and (ii) $3.3 million related to the amortization of debt discount and deferred financing costs.
Previous report
Other (Income) Expense, net
Previous report
Based on our current liquidity, we believe that our current cash and cash equivalents, together with the future cash inflows generated from our daily operations and management’s plans to refinance debt under the SP 1 Facility (see “Liquidity” discussions within Note 1. Organization and Description of Business), will be sufficient to satisfy the cash requirements of our current operations and principal payments on our debt obligations for the next 12 months. We continually evaluate our cash needs to raise additional funds or seek alternative sources to invest in growth opportunities and other purposes. We expect that we will continue to be dependent on financing from outside parties to complete future acquisitions, and we may invest our own cash in such future acquisitions. If financing is not available to us on acceptable terms if and when needed, we may not be able to achieve further growth or complete identified acquisition opportunities.
Reworded paragraphs (31)
Previous wording
For the three months ended June 30, 2025 and 2024, our revenues totaled $33.2 million and $22.5 million, respectively, while our net loss attributable to stockholders was $3.0 million and $8.6 million, respectively. For the six months ended June 30, 2025 and 2024, our revenues totaled $57.1 million and $40.8 million, respectively, while our net loss attributable to stockholders was $18.3 million and $11.0 million, respectively. Our financial performance during the three and six months ended June 30, 2025 was impacted by fluctuations in the value of our interest rate swaps, variations in our operations and maintenance costs, and the incremental impact of the NJR Acquisitions. See the section below titled “Results of Operations” in this Quarterly Report on Form 10-Q for more information on our operating results for the three and six months ended June 30, 2025 and 2024. We focus on the following core pillars in our operations:
Current wording
For the three months ended September 30, 2025 and 2024, our revenues totaled $30.7 million and $21.4 million, respectively, while our net loss attributable to stockholders was $0.9 million and $53.5 million, respectively. For the nine months ended September 30, 2025 and 2024, our revenues totaled $87.8 million and $61.9 million, respectively, while our net loss attributable to stockholders was $19.2 million and $64.6 million, respectively. Our financial performance during the three and nine months ended September 30, 2025 was impacted by fluctuations in the value of our interest rate swaps, variations in our operations and maintenance costs, and the incremental impact of the NJR Acquisitions. The three and nine months ended September 30, 2024 was impacted by goodwill impairment of $28.8 million and settlement costs associated with various Legacy XL Legal proceedings. See the section below titled “Results of Operations” in this Quarterly Report on Form 10-Q for more information on our operating results for the three and nine months ended September 30, 2025 and 2024. We focus on the following core pillars in our operations:
Previous wording
•Deliver operational excellence in our clean energy portfolio for customers and communities. Combined portfolio generation was approximately 187 thousand MWh of power for the three months ended June 30, 2025, compared to 160 thousand MWh of power for the three months ended June 30, 2024, respectively.
Current wording
•Deliver operational excellence in our clean energy portfolio for customers and communities. Combined portfolio generation was approximately 190 thousand MWh of power for the three months ended September 30, 2025, compared to 123 thousand MWh of power for the three months ended September 30, 2024, respectively.
Previous wording
•Execute on our growth and capital strategies. As of June 30, 2025, we owned cash flows from approximately 85,000 home solar assets and customer contracts across 18 U.S. states with an average remaining contract life of approximately 11 years compared to approximately 75,000 home solar assets and customer contracts with an average remaining contract life of approximately 12 years as of June 30, 2024 due to the impact of the NJR Acquisitions.
Current wording
•Execute on our growth and capital strategies. As of September 30, 2025, we owned cash flows from approximately 85,000 home solar assets and customer contracts across 18 U.S. states with an average remaining contract life of approximately 10 years compared to approximately 75,000 home solar assets and customer contracts with an average remaining contract life of approximately 11 years as of September 30, 2024 due to the impact of the NJR Acquisitions.
Previous wording
During the three months ended March 31, 2025 and June 30, 2025, we acquired 83 and 109, respectively, of the Additional NJR Systems, resulting in 192 systems in the aggregate for approximately $4.5 million in cash, inclusive of transaction costs of $0.1 million. We expect to purchase the remaining additional solar energy systems that we may be obligated to acquire upon those systems achieving operational milestones.
Current wording
During each of the three months ended March 31, 2025, June 30, 2025, and September 30, 2025, we acquired 83, 109, and 7, respectively, of the Additional NJR Systems, resulting in 199 systems in the aggregate for approximately $4.8 million in cash, inclusive of transaction costs of $0.1 million. Subsequent to September 30, 2025 and upon achieving operational milestone, we purchased one final Additional NJR System for $0.04 million.
Previous wording
During the three and six months ended June 30, 2025, we repurchased 0.5 million and 0.8 million shares, respectively, of common stock under our Repurchase Program in open market transactions at a weighted-average price of $2.10 and $2.33 per share, for an aggregate purchase price of $1.0 million and $1.8 million, respectively, inclusive of transaction costs.
Current wording
During the nine months ended September 30, 2025, the Company repurchased 0.8 million shares of common stock under the Repurchase Program in open market transactions at a weighted-average price of $2.33 per share for an aggregate purchase price of $1.8 million, inclusive of transaction costs. The Company repurchased no shares of common stock under the Repurchase Program during the three months ended September 30, 2025.
Previous wording
Revenues increased by $10.8 million, or 48%, to $33.2 million in the three months ended June 30, 2025 as compared to the same period in 2024. The increase was primarily due to (i) approximately $3.0 million of incremental SLA revenues related to the NJR Acquisitions, (ii) $5.9 million increase in SREC revenues, of which approximately $5.0 million related to the NJR Acquisitions, and (iii) $1.5 million increase due to government incentive PBIs in 2025.
Current wording
Revenues increased by $9.3 million, or 44%, to $30.7 million in the three months ended September 30, 2025 as compared to the same period in 2024. The increase was primarily due to (i) approximately $3.0 million of incremental SLA revenues related to the NJR Acquisitions, (ii) $5.3 million increase in SREC revenues, of which approximately $5.2 million related to the NJR Acquisitions, and (iii) $0.8 million increase due to incremental servicing revenues related to contracted services on third-party owned solar energy systems in 2025. Cost of Revenues — Solar Energy Systems Depreciation
Previous wording
Cost of revenues - solar energy systems depreciation increased by $1.6 million, or 29%, to $7.3 million in the three months ended June 30, 2025 as compared to the same period in 2024 primarily due to incremental depreciation related to the NJR Acquisitions.
Current wording
Cost of revenues - solar energy systems depreciation increased by $1.8 million, or 31%, to $7.5 million in the three months ended September 30, 2025 as compared to the same period in 2024 primarily due to incremental depreciation related to the NJR Acquisitions.
Previous wording
Cost of revenues - operations and maintenance (“O&M”) decreased by $2.3 million, or 52%, to $2.1 million in the three months ended June 30, 2025 as compared to the same period in 2024 primarily due to cost reductions resulting from certain O&M efficiencies implemented in early 2025, including greater leverage of our asset management platform to streamline third-party vendor management and return material authorization (RMA) processing. We also experienced a reduction in our meter upgrade program cost as the program is nearing completion.
Current wording
Cost of revenues - operations and maintenance (“O&M”) decreased by $2.1 million, or 53%, to $1.8 million in the three months ended September 30, 2025 as compared to the same period in 2024 primarily due to cost reductions resulting from certain O&M efficiencies implemented in early 2025, including greater leverage of our asset management platform to streamline third-party vendor management and return material authorization (RMA) processing. We also experienced a reduction in our meter upgrade program cost as the program is nearing completion.
Previous wording
Interest income of $5.2 million in the three months ended June 30, 2025 related to $4.4 million of interest income from the SEMTH Master Lease and $0.8 million of interest earned on investments in money market funds and U.S. Treasury securities. In comparison, interest income of $5.3 million for the three months ended June 30, 2024 related to $3.7 million of interest income from the SEMTH Master Lease and $1.6 million of interest earned on investments in money market funds and U.S. Treasury securities.
Current wording
Interest income of $5.2 million in the three months ended September 30, 2025 related to $4.5 million of interest income from the SEMTH Master Lease and $0.7 million of interest earned on investments in money market funds. In comparison, interest income of $6.3 million for the three months ended September 30, 2024 related to $4.8 million of interest income from the SEMTH Master Lease and $1.5 million of interest earned on investments in money market funds and U.S. Treasury securities.
Previous wording
Interest expense, net in the three months ended June 30, 2025 of $12.8 million consisted of (i) $11.2 million of interest expense, net of realized gains from settlements of our interest rate swaps, and (ii) $1.6 million related to the amortization of debt discount and deferred financing costs.
Current wording
Interest expense, net in the three months ended September 30, 2025 of $12.8 million consisted of (i) $11.2 million of interest expense, net of realized gains from settlements of our interest rate swaps of $2.0 million, and (ii) $1.6 million related to the amortization of debt discount and deferred financing costs. In comparison, interest expense, net in the three months ended September 30, 2024 of $11.4 million consisted of (i) $9.9 million of interest expense, net of realized gains from settlements of our interest rate swaps of $3.0 million, and (ii) $1.5 million related to the amortization of debt discount and deferred financing costs. Interest expense, net increased in the 2025 period due to the effect of the SP5 Facility entered into as part of the Initial NJR Acquisition in November 2024.
Previous wording
Other expense, net of $4.1 million and $3.1 million, respectively, for the three months ended June 30, 2025 and 2024 primarily related to the change in the fair value of our interest rate swaps due to changes in forecasted market interest rates.
Current wording
Other expense, net of $1.5 million and $11.3 million, respectively, for the three months ended September 30, 2025 and 2024 primarily related to the change in the fair value of our interest rate swaps due to changes in forecasted market interest rates.
Previous wording
Information with respect to the unaudited condensed consolidated statements of operations for the six months ended June 30, 2025 and 2024 is presented below:
Current wording
Information with respect to the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2025 and 2024 is presented below:
Previous wording
Revenues increased by $16.3 million, or 40%, to $57.1 million in the six months ended June 30, 2025 as compared to the same period in 2024. The increase was primarily due to (i) approximately $6.0 million of incremental SLA revenues related to the NJR Acquisitions, (ii) $7.9 million net increase in SREC revenues, of which the majority related to the NJR Acquisitions, (iii) $1.5 million increase due to government incentive PBIs, and (iv) $1.0 million of incremental servicing revenues related to contracted services on third-party owned solar energy systems in 2025.
Current wording
Revenues increased by $25.9 million, or 42%, to $87.8 million in the nine months ended September 30, 2025 as compared to the same period in 2024. The increase was due to (i) approximately $9.1 million of incremental SLA revenues primarily related to the NJR Acquisitions, (ii) $13.2 million net increase in SREC revenues, of which the majority related to the NJR Acquisitions, (iii) $1.6 million increase due to government incentive PBIs, and (iv) $1.8 million of incremental servicing revenues related to contracted services on third-party owned solar energy systems in 2025.
Previous wording
Cost of revenues - solar energy systems depreciation increased by $3.2 million, or 28%, to $14.6 million in the six months ended June 30, 2025 as compared to the same period in 2024 primarily due to incremental depreciation related to the NJR Acquisitions.
Current wording
Cost of revenues - solar energy systems depreciation increased by $4.9 million, or 28%, to $22.1 million in the nine months ended September 30, 2025 as compared to the same period in 2024 primarily due to incremental depreciation related to the NJR Acquisitions.
Previous wording
Cost of revenues - operations and maintenance decreased by $1.6 million, or 21%, to $6.0 million in the six months ended June 30, 2025 as compared to the same period in 2024 primarily due to cost reductions resulting from certain O&M efficiencies implemented in early 2025 (discussed above) and nearing completion of the meter upgrade efforts on our solar energy systems, both slightly offset by incremental O&M third-party service costs in 2025 related to the NJR Acquisitions.
Current wording
Cost of revenues - operations and maintenance decreased by $3.4 million, or 30%, to $7.9 million in the nine months ended September 30, 2025 as compared to the same period in 2024 primarily due to cost reductions resulting from certain O&M efficiencies implemented in early 2025 (discussed above) and nearing completion of the meter upgrade efforts on our solar energy systems, both slightly offset by incremental O&M third-party service costs in 2025 related to the NJR Acquisitions.
Previous wording
SG&A expenses decreased by $1.0 million, or 3%, to $29.2 million in the six months ended June 30, 2025 as compared to the same period in 2024 due to a one-time severance cost of $1.9 million recognized upon the separation of the Former CEO from the Company in April 2024 and non-recurring legal fees of $1.6 million related to Legacy XL legal matters incurred in 2024, both partially offset by a $2.5 million increase in SG&A expenses in 2025 primarily due to compensation and related costs and professional fees.
Current wording
SG&A expenses decreased by $1.3 million, or 3%, to $42.1 million in the nine months ended September 30, 2025 as compared to the same period in 2024 primarily due to one-time severance cost of $1.9 million recognized upon termination of the Former CEO from the Company in April 2024 and decrease in professional fees, partially offset by an increase in compensation costs, including severance related to reduction in workforce during the current period.
Previous wording
Litigation settlements of $0.7 million in the six months ended June 30, 2025 primarily related to a $0.6 million settlement in the first quarter of 2025 related to the termination of a Legacy XL lease.
Current wording
Litigation settlements of $1.1 million in the nine months ended September 30, 2025 primarily related to a $0.6 million settlement in the first quarter of 2025 associated with the termination of a Legacy XL lease, while $7.2 million in the comparable period related to settlement costs associated with various Legacy XL Legal proceedings.
Previous wording
Interest income of $10.4 million in the six months ended June 30, 2025 related to $9.0 million of interest income from the SEMTH Master Lease and $1.4 million of interest earned on investments in U.S. Treasury securities. In comparison, interest income of $10.6 million for the six months ended June 30, 2024 related to $7.5 million of interest income from the SEMTH Master Lease and $3.1 million of interest earned on investments in U.S. Treasury securities.
Current wording
Interest income of $15.6 million in the nine months ended September 30, 2025 related to $13.5 million of interest income from the SEMTH Master Lease and $2.1 million of interest earned on investments in U.S. Treasury securities. In comparison, interest income of $16.9 million for the nine months ended September 30, 2024 related to $12.3 million of interest income from the SEMTH Master Lease and $4.6 million of interest earned on investments in U.S. Treasury securities.
Previous wording
In comparison, interest expense, net in the three months ended June 30, 2024 of $7.6 million consisted of (i) $6.2 million of interest expense, net of realized gains from settlements of our interest rate swaps, which included a one-time gain of approximately $3.6 million associated with the full settlement of interest rate swaps related to the SP4 Facility which was fully repaid in June 2024, and (ii) $1.4 million related to the amortization of debt discount and deferred financing costs.
Current wording
Interest expense, net in the nine months ended September 30, 2025 of $38.3 million consisted of (i) $33.4 million of interest expense, net of realized gains from settlements of our interest rate swaps of $6.2 million, and (ii) $4.9 million related to the amortization of debt discount and deferred financing costs. In comparison, interest expense, net in the nine months ended September 30, 2024 of $29.9 million consisted of (i) $25.5 million of interest expense, net of realized gains from settlements of our interest rate swaps of $13.8 million, which included a one-time gain of approximately $3.6 million in the second quarter of 2024 associated with the settlement of interest rate swaps related to the SP4 Facility which was fully repaid in June 2024, and (ii) $4.4 million related to the amortization of debt discount and deferred financing costs.
Previous wording
Interest expense, net increased year over year due to the effect of the SP5 Facility effective in November 2024 and the impact of the $3.6 million gain associated with the full settlement of interest rate swaps related to the SP4 Facility. See Note 7. Non-Recourse Debt for further information on our debt and Note 8. Interest Rate Swaps for further information on our interest rate swaps.
Current wording
Interest expense, net increased year over year due to the effect of the SP5 Facility effective in November 2024 and the impact of the $3.6 million gain associated with the full settlement of interest rate swaps related to the SP4 Facility in June 2024. See Note 7. Non-Recourse Debt for further information on our debt and Note 8. Interest Rate Swaps for further information on our interest rate swaps.
Previous wording
Other expense, net of $10.3 million for the six months ended June 30, 2025 primarily related to the change in fair value of interest rate swaps due to changes in forecasted market interest rates, while other income, net of $3.6 million for the six months ended June 30, 2024 primarily related to the change in fair value of interest rate swaps of $3.2 million and other income, net of $0.4 million.
Current wording
Other expense, net of $11.9 million for the nine months ended September 30, 2025 primarily related to the change in fair value of interest rate swaps due to changes in forecasted market interest rates, while other expense, net of $7.7 million for the nine months ended September 30, 2024 primarily related to the change in fair value of interest rate swaps of $8.2 million and other income, net of $0.5 million.
Previous wording
As of June 30, 2025, we had negative working capital of $120.2 million resulting from the presentation of the principal amounts outstanding under the SP1 Facility as current debt as of that date. Our negative working capital included cash and cash equivalents and restricted cash of $90.5 million. We had net losses attributable to stockholders of $18.3 million and $11.0 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
As of September 30, 2025, we had negative working capital of $121.7 million resulting from the presentation of the principal amounts outstanding under the SP1 Facility as current debt as of that date. Our negative working capital included cash and cash equivalents and restricted cash of $98.8 million. We had net losses attributable to stockholders of $19.2 million and $64.6 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Our principal sources of liquidity include cash and cash equivalents and cash inflows from daily operations. We receive cash from certain of our wholly-owned subsidiaries specifically related to the portfolio servicing fees provided for under the relevant servicing agreements between us and the subsidiaries, as well as reimbursement for any expenses we pay on behalf of those subsidiaries, which are allowed under certain agreements related to those subsidiaries. Our cash requirements depend on many factors, including the execution of our business strategy. We may be required to utilize our cash to support certain current and future operations of our wholly owned subsidiaries. We remain focused on managing costs, including capital expenditures, maintaining a strong balance sheet, and ensuring adequate liquidity. Our primary cash needs are debt servicing, acquisition of solar energy portfolios, operating expenses, and working capital to support the growth in our business. Working capital is impacted by the timing and extent of our business needs. See below discussions under “Cash Flows Summary” for the impact of our operations on our cash balances during the six months ended June 30, 2025 and 2024.
Current wording
Our principal sources of liquidity include cash and cash equivalents and cash inflows from daily operations. We receive cash from certain of our wholly-owned subsidiaries specifically related to the portfolio servicing fees provided for under the relevant servicing agreements between us and the subsidiaries, as well as reimbursement for any expenses we pay on behalf of those subsidiaries, which are allowed under certain agreements related to those subsidiaries. Our cash requirements depend on many factors, including the execution of our business strategy. We may be required to utilize our cash to support certain current and future operations of our wholly owned subsidiaries. We remain focused on managing costs, including capital expenditures, maintaining a strong balance sheet, and ensuring adequate liquidity. Our primary cash needs are debt servicing, acquisition of solar energy portfolios, operating expenses, and working capital to support the growth in our business. Working capital is impacted by the timing and extent of our business needs. See below discussions under “Cash Flows Summary” for the impact of our operations on our cash balances during the nine months ended September 30, 2025 and 2024.
Previous wording
As of June 30, 2025, our aggregate debt balance was $695.0 million, net of $19.2 million of unamortized fair value adjustment and $2.8 million of unamortized deferred financing costs, all of which is non-recourse project-level debt. Our debt consists of five senior debt facilities and one subordinated debt facility, of which the earliest maturity date is April 30, 2026 and has been classified as current at June 30, 2025. For additional information on our debt, refer to Note 7. Non-Recourse Debt included within the accompanying unaudited condensed consolidated financial statements.
Current wording
As of September 30, 2025, our aggregate debt balance was $685.2 million, net of $17.8 million of unamortized fair value adjustment and $2.5 million of unamortized deferred financing costs, all of which is non-recourse project-level debt. Our debt consists of five senior debt facilities and one subordinated debt facility, of which the earliest maturity date is April 30, 2026 and has been classified as current at September 30, 2025. For additional information on our debt, refer to Note 7. Non-Recourse Debt included within the accompanying unaudited condensed consolidated financial statements.
Previous wording
Operating cash inflows include cash from the sale of solar energy power generated by our home solar energy systems and the servicing of long-term agreements for other institutional owners of home solar energy systems. These operating cash inflows are primarily offset by operating expenses, operating lease payments and interest payments on our outstanding debt. The related cash flows for our Drivetrain business are reflected as discontinued operating activities for the years presented. The net cash used in continuing operating activities consists of our corporate costs and certain other costs that were not allocated to our discontinued operations.
Current wording
Operating cash inflows include cash from the sale of solar energy power generated by our home solar energy systems and the servicing of long-term agreements for other institutional owners of home solar energy systems. These operating cash inflows are primarily offset by operating expenses, operating lease payments and interest payments on our outstanding debt. The related cash flows for our discontinued operating activities for the years presented relate to ongoing operating and maintenance costs. The net cash used in continuing operating activities consists of our corporate costs and certain other costs that were not allocated to our discontinued operations.
Previous wording
Net cash used in continuing operating activities improved by $16.0 million in the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a $15.0 million net settlement amount paid in February 2024 compared to $5.3 million aggregate settlements paid in early 2025, both related to settled legal proceedings (see Note 12. Commitments and Contingencies), and decreased operating expenses primarily related to O&M efficiencies during the six months ended June 30, 2025 discussed above.
Current wording
Net cash used in continuing operating activities improved by $28.1 million in the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to $16.0 million aggregate net settlement amounts paid in 2024 compared to $5.3 million aggregate settlements paid in early 2025, both related to settled legal proceedings (see Note 12. Commitments and Contingencies), increased revenue, and decreased operating expenses primarily related to O&M efficiencies during the nine months ended September 30, 2025 discussed above.
Previous wording
The net cash provided by continuing investing activities in the six months ended June 30, 2025 was $8.3 million, which primarily related to $10.5 million of proceeds from our investments under the SEMTH Master Lease and $2.6 million of proceeds from the sale of solar energy systems, partially offset by $4.5 million of net payments related to the acquisition of the Additional NJR Systems in 2025.
Current wording
The net cash provided by continuing investing activities in the nine months ended September 30, 2025 was $16.9 million, which primarily related to $17.9 million of proceeds from our investments under the SEMTH Master Lease and $4.1 million of proceeds from the sale of solar energy systems, partially offset by $4.8 million of net payments related to the acquisition of the Additional NJR Systems in 2025.
Previous wording
The net cash provided by continuing investing activities in the six months ended June 30, 2024 primarily related to $10.8 million of proceeds from the SEMTH investment and $2.9 million of proceeds from the sale of solar energy systems.
Current wording
The net cash provided by continuing investing activities in the nine months ended September 30, 2024 primarily related to $18.9 million of proceeds from the SEMTH investment and $4.7 million of proceeds from the sale of solar energy systems.
Previous wording
The net cash used in continuing financing activities in the six months ended June 30, 2025 was $15.5 million, which primarily related to $13.6 million for repayments of our non-recourse long-term debt, and $1.8 million related to shares repurchased under our Repurchase Program.
Current wording
The net cash used in continuing financing activities in the nine months ended September 30, 2025 was $27.1 million, which primarily related to $25.0 million for repayments of our non-recourse debt, and $1.8 million related to shares repurchased under our Repurchase Program.
Previous wording
The net cash used in continuing financing activities in the six months ended June 30, 2024 primarily related to $136.8 million for repayments of our non-recourse debt which included the full repayment of the SP4 Facility of $125.0 million in June 2024, partially offset by $130.0 million proceeds from the issuance of the SET Facility also in June 2024.
Current wording
The net cash used in continuing financing activities in the nine months ended September 30, 2024 primarily related to $145.8 million for repayments of our non-recourse debt which included the full repayment of the SP4 Facility of $125.0 million in June 2024 and $2.0 million payment of deferred financing costs, partially offset by $130.0 million proceeds from the issuance of the SET Facility also in June 2024.
Previous wording
Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. Preparation of these unaudited condensed financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Our most critical accounting estimates are those most important to the portrayal of its financial condition and results of operations and which require us to make its most difficult and subjective judgments, often as a result of the need to make estimates regarding matters that are inherently uncertain. Although management believes that its estimates and assumptions are reasonable, they are based on information available when they are made and, therefore, may differ from estimates made under different assumptions or conditions. Our critical accounting estimates are discussed within Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report. Other than the valuation models used in determining future principal debt amortization on certain of our credit facilities, there have been no other material changes to our critical accounting estimates during the six months ended June 30, 2025.
Current wording
Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. Preparation of these unaudited condensed financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Our most critical accounting estimates are those most important to the portrayal of its financial condition and results of operations and which require us to make its most difficult and subjective judgments, often as a result of the need to make estimates regarding matters that are inherently uncertain. Although management believes that its estimates and assumptions are reasonable, they are based on information available when they are made and, therefore, may differ from estimates made under different assumptions or conditions. Our critical accounting estimates are discussed within Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report. Other than the valuation models used in determining future principal debt amortization on certain of our credit facilities, there have been no other material changes to our critical accounting estimates during the nine months ended September 30, 2025.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Interest expense, net increased in the 2025 period due to the effect of the SP5 Facility entered into as part of the Initial NJR Acquisition in November 2024 and the impact of the $3.6 million gain associated with the full settlement of interest rate swaps related to the SP4 Facility.
Previous report — wording carried elsewhere
Cost of Revenues — Solar Energy Systems Depreciation
Previous report — wording carried elsewhere
In comparison, interest expense, net in the six months ended June 30, 2024 of $18.5 million consisted of (i) $15.6 million of interest expense, net of realized gains from settlements of our interest rate swaps, which included a one-time gain of approximately $3.6 million associated with the settlement of interest rate swaps related to the SP4 Facility which was fully repaid in June 2024, and (ii) $2.9 million related to the amortization of debt discount and deferred financing costs.