Spruce Power Holding Corporation

Hello, everyone. Thank you for joining us and welcome to Spruce Power first quarter 2026 earnings results conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the call over to Julia Gasparri, head of investor relations. Please go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to Spruce Power's first quarter 2026 earnings conference call. Joining me today are Chris Hayes, Spruce's chief executive officer, and Tom Cimino, the company's chief financial officer. Before we begin, I'd like to remind you that we will comment on our financial performance using both GAAP and non-GAAP financial measures. Important information about these non-GAAP financial measures, including reconciliations to the most comparable GAAP measures, is included in our earnings release for the first quarter of 2026. is available on the Investor Relations section of our website. Our discussion today will also include forward-looking statements that reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release and SEC filings for a discussion of these risk factors. With that, I will now turn the call over to Chris Hayes, Chief Executive Officer of Spruce Power. Chris?

Thanks, Julia. Good afternoon, everyone. We began 2026 with continued progress against our operational and financial priorities, delivering meaningful year-over-year improvement in profitability and operating efficiency while maintaining stable liquidity and recurring cash flow generation from our portfolio. For the first quarter, revenue totaled approximately $23.4 million, which was generally in line with the prior year period, despite weather-related impacts in the Northeast. Importantly, we continued to realize the benefits of our operational streamlining initiative resulting in substantial margin expansion and improving operating performance across the business operating EBITDA for the quarter was approximately 18.4 million an increase of 49 percent compared to the first quarter of 2025. income from operations improved by more than 5.5 million year over year reflecting continued cost discipline lower operating expenses, and the structural efficiencies we implemented through 2025. Our first quarter results demonstrate the strength of our operating platform and the durability of our long-term contracted revenue base. While top-line growth was modest during the quarter, our focus remains on maximizing cash generation, improving operating leverage, and positioning the business for sustainable long-term value creation. During the quarter, we executed our cost optimization initiatives. Operations and maintenance expenses declined 70% year over year, while SG&A expense declined 21%, driven primarily by lower labor costs, reduced professional services spend, and ongoing operational efficiencies associated with Project Streamline. Importantly, we believe a significant portion of these improvements are structural in nature. While some O&M activity shifted into later quarters of the year, the broader improvements in labor efficiency, vendor management, and servicing operations continue to support a meaningfully lower recurring cost structure for the business. Turning to liquidity and financing. As expected, our quarter-end financial statements include a going concern disclosure tied to the accounting treatment associated with the current maturity classification of the SP1 facility. Importantly, we successfully completed an extension of the SP1 facility during the quarter and continue to advance constructive refinancing discussions consistent with our historical financing strategy. We believe the extension provides additional flexibility as we evaluate a broader refinancing opportunity designed to optimize our long-term capital structure and align financing with the scale and maturity of the platform we had built. Operationally, the business remains stable, with approximately 84,000 customer contracts generating predictable recurring cash flows supported by long-term agreements and diversified geographic exposure. Looking ahead, our priorities remain consistent. First, continue to improve the efficiency and profitability of our operating platform. Second, advancing our refinancing initiatives and maintaining disciplined liquidity management. Third, selectively pursuing growth opportunities across portfolio acquisitions, programmatic partnerships, and Spruce Pro servicing relationships, where we believe we can generate attractive returns without significant incremental overhead. We also continue to see encouraging long-term opportunities within a variety of new business initiatives that we are exploring as the year continues. Overall, we are encouraged by the progress we made during the quarter and remain focused on disciplined execution as we move through 2026. With that, I'll turn the call over to Tom.