Spruce Power cuts jobs, closes Denver office to save $20 million

DENVER - Spruce Power Holding Corporation (NYSE:SPRU), currently valued at $30.16 million in market capitalization, announced workforce reductions and office closures expected to generate $20 million in annual cost savings as part of a strategic reorganization aimed at achieving profitability. According to InvestingPro analysis, the company has been quickly burning through cash and is not profitable over the last twelve months.

The distributed solar energy asset owner will eliminate jobs, close its Denver headquarters, and consolidate certain roles across the organization, according to a press release statement. The company will incur approximately $1 million in one-time severance and reorganization costs in the third quarter. With a concerning current ratio of 0.5 and short-term obligations exceeding liquid assets, these cost-cutting measures appear crucial for the company’s sustainability.

"Our board and senior leadership team are taking proactive steps to preserve our strong cash position of more than $90 million, and to build a leaner, more efficient foundation for long-term growth," said Chris Hayes, Chief Executive Officer of Spruce. InvestingPro data reveals the company carries a significant debt burden of $703 million, making these efficiency measures particularly critical. Subscribers to InvestingPro can access 15+ additional key insights about Spruce Power’s financial health and market position.

The company indicated these measures are designed to accelerate its path to positive free cash flow while maintaining operational capabilities. With annual revenue of $98.4 million and trading at a low Price/Book multiple, Spruce plans to direct additional resources toward expanding its distributed solar energy platform, accelerating sales of its Spruce PRO offering, and implementing further operational efficiencies.

Spruce Power owns cash flows from approximately 85,000 home solar assets and contracts across the United States. The company provides subscription-based services for homeowners to access solar power and battery storage without significant upfront investments.

The restructuring reflects ongoing efforts to optimize the company’s financial position while continuing to scale its solar energy platform. Through the implementation of increased automation and IT systems, Spruce aims to optimize workflows and improve scalability across its business operations.

In other recent news, Spruce Power Holding Corporation reported its second-quarter 2025 earnings, highlighting significant revenue growth and improved financial metrics. Despite these positive financial developments, the company experienced a net loss. This reflects the company’s ongoing strategic initiatives and operational efficiencies. Additionally, Spruce Power announced a partnership with EnerWealth Solutions to launch North Carolina’s first residential solar plus storage lease program. This initiative aims to provide homeowners in the state with access to solar energy without upfront costs or credit checks. The lease model includes a production guarantee and on-site battery storage to enhance reliability. These recent developments underscore Spruce Power’s commitment to expanding its market presence and enhancing customer offerings.

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