Street Calls of the Week
DENVER - Spruce Power Holding Corporation (NYSE:SPRU) announced Wednesday a strategic partnership with Treehouse to expand its offerings into the home battery storage market. The collaboration aims to provide Spruce’s existing solar customers with battery upgrade options through Treehouse’s software-enabled installation platform. According to InvestingPro data, Spruce has demonstrated strong revenue growth of 23.43% over the last twelve months, though operating with a significant debt burden.
The partnership will allow Spruce, which manages approximately 85,000 residential solar systems nationwide, to offer battery storage solutions to its customer base without requiring direct asset ownership or significant capital investment. With a market capitalization of $43.69 million and a healthy gross profit margin of 57.75%, the company aims to leverage its existing infrastructure efficiently. Customers will have access to battery installations through Treehouse’s network of licensed electricians.
"Battery storage is the next wave of value creation in distributed energy, and Spruce is built to lead it," said Chris Hayes, CEO of Spruce Power, in a press release statement. "Our partnership with Treehouse gives us the ability to rapidly activate our massive installed base and capture the upside of storage adoption, without the capital intensity of traditional deployment."
The company indicated the partnership creates a new revenue stream through its battery storage program while deepening customer relationships. Spruce customers interested in battery upgrades can initiate the process through Treehouse’s platform. InvestingPro analysis reveals that the company faces challenges with its current ratio of 0.5, indicating potential liquidity constraints. Subscribers can access 18 additional ProTips and comprehensive financial metrics through the Pro Research Report.
Eric Owski, Co-Founder and CEO at Treehouse, noted that decreasing battery prices and the company’s installation process present an opportunity for Spruce customers to gain backup power capabilities and increase the value of their energy systems.
The collaboration positions Spruce to participate in emerging grid services opportunities, including virtual power plants, as battery adoption increases among its customer base.
Spruce Power provides subscription-based services for homeowners with rooftop solar power and battery storage, while Treehouse specializes in software-enabled installation for electrification projects.
In other recent news, Spruce Power Holding Corporation reported its second-quarter 2025 earnings, highlighting significant revenue growth despite a net loss. The company has been focusing on strategic initiatives and operational efficiencies. Additionally, Spruce Power announced a strategic reorganization aimed at achieving profitability, which includes workforce reductions and closing its Denver headquarters. This move is expected to generate $20 million in annual cost savings, although it will incur approximately $1 million in one-time severance and reorganization costs in the third quarter.
Spruce Power has also entered into a multi-year backup servicing agreement with Puerto Rico-based solar financing platform Sunvida. This partnership will initially cover data storage, validity checks, and reporting services. Furthermore, Spruce Power has partnered with EnerWealth Solutions to launch North Carolina’s first residential solar plus storage lease program. This initiative provides homeowners with access to solar energy without upfront costs or credit checks, including a production guarantee and on-site battery storage for reliability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.