Spruce Power (NYSE: SPRU) to cut 19% of workforce, target $20M savings

Rhea-AI Filing Summary

Spruce Power Holding Corporation approved a plan to streamline operations through a reduction in force. The company expects these actions, including staff cuts, to generate approximately $20 million in annualized cost savings once fully implemented.

The reduction affects about 40 employees and contractors, or roughly 19% of the workforce, who were notified on September 24, 2025. Spruce Power estimates it will incur around $1 million of charges, mainly for severance and related cash costs, with most of these recognized in the third quarter of 2025.

Positive

• Significant expected cost savings: The company anticipates approximately $20 million in annualized cost savings from the reduction in force and related streamlining once fully implemented, which could materially lower its ongoing operating expense base.

Negative

• Large workforce reduction and restructuring charges: About 40 employees and contractors, or 19% of the workforce, are being terminated, and the company expects around $1 million of primarily cash severance-related charges, with potential for additional, currently unquantified costs.

Insights

Equity restructuring and operations analyst

Spruce Power is cutting 19% of its workforce to save about $20 million annually, with roughly $1 million in near-term charges.

Spruce Power Holding Corporation plans a reduction in force as part of broader efforts to streamline operations. The actions target annualized cost savings of approximately $20 million when fully implemented, suggesting a meaningful shift in the company’s cost structure.

The cuts affect around 40 employees and contractors, representing about 19% of the workforce. The company expects to record about $1 million in charges, primarily cash severance and related costs, with most recognized in the quarter ended September 30, 2025, creating a short-term earnings impact.

Management also notes potential additional charges or cash expenditures if events associated with the reduction in force arise, indicating some uncertainty around final costs. Forward-looking statements emphasize risks tied to streamlining efforts, so subsequent disclosures will clarify whether the targeted $20 million savings are achieved as planned.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): September 24, 2025

Spruce Power Holding Corporation

(Exact name of registrant as specified in its charter)

Delaware

001-38971

83-4109918

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

2000 S Colorado Blvd, Suite 2-825, Denver, Colorado						80222
(Address of principal executive offices)						(Zip Code)

(866) 777-8235

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

SPRU

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.05. Costs Associated with Exit or Disposal Activities.

On September 16, 2025, the Board of Directors approved a plan to implement a reduction in force as part of the Company’s broader efforts to streamline operations. The Company expects that these efforts, including the reduction in force, will result in annualized cost savings of approximately $20 million, when fully implemented.

The reduction in force is expected to affect approximately 40 employees and contractors, representing approximately 19% of the Company’s workforce, who were informed of the reduction in force on September 24, 2025.

In connection with the reduction in force, the Company estimates that it will incur charges of approximately $1 million, consisting primarily of cash expenditures for employee severance and related costs. The Company expects to recognize the majority of these charges in the third quarter of 2025. The Company may also incur other charges or cash expenditures not currently contemplated due to events that may occur as a result of, or associated with, the reduction in force.

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the expected costs and timing of costs associated with the reduction in force and expected cost savings. These forward-looking statements are based on the Company’s current expectations and inherently involve significant risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the Company’s efforts to streamline operations, in addition to the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and its other filings filed from time to time with the Securities and Exchange Commission. The Company does not assume any obligation to update any forward-looking statement, except as required by law.

Item 7.01 Regulation FD Disclosure.

On September 24, 2025, the Company issued a press release announcing the reduction in force and efforts to streamline operations. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in Item 7.01 of this Current Report on Form 8-K (including Exhibit 99.1 attached hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference into any filing by the Company, under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.						Description
99.1						Press Release of Spruce Power Holding Corporation, issued September 24, 2025
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			SPRUCE POWER HOLDING CORPORATION
Date: September 24, 2025			By:			/s/ Jonathan M. Norling
			Name:			Jonathan M. Norling
			Title:			Chief Legal Officer

FAQ

What cost savings does Spruce Power (SPRU) expect from its workforce reduction?

Spruce Power expects approximately $20 million in annualized cost savings from its reduction in force and broader streamlining efforts. These savings are anticipated once the plan is fully implemented, helping lower the company’s recurring operating expenses over time.

How many employees are affected by Spruce Power’s 2025 reduction in force?

The reduction in force affects about 40 employees and contractors, representing roughly 19% of Spruce Power’s workforce. Impacted individuals were informed on September 24, 2025, as part of a broader initiative to streamline the company’s operations and reduce costs.

What charges will Spruce Power (SPRU) record from the workforce reduction?

Spruce Power estimates it will incur about $1 million in charges tied to the reduction in force, primarily cash expenditures for employee severance and related costs. The company expects to recognize most of these charges in the third quarter of 2025.

Could Spruce Power incur additional costs beyond the initial $1 million estimate?

Yes. Spruce Power notes it may incur other charges or cash expenditures not currently contemplated if events occur as a result of, or associated with, the reduction in force. Any such additional costs would come on top of the estimated $1 million in charges.

When did Spruce Power approve and announce its workforce reduction plan?

Spruce Power’s Board of Directors approved the reduction in force plan on September 16, 2025. Affected employees were informed on September 24, 2025, when the company also issued a press release describing the staff cuts and broader streamlining efforts.

How does Spruce Power describe the purpose of its reduction in force?

Spruce Power states the reduction in force is part of its broader efforts to streamline operations. Management expects these actions, together with other efficiency measures, to lower ongoing operating costs and support its targeted annualized savings of about $20 million.