Greenbacker's Q2 Revenue Up 20%, But Net Loss Widens to $10.9M

TL;DR

**Greenbacker's revenue growth is overshadowed by a ballooning net loss, making it a risky bet despite the green energy boom.**

AI Summary

Greenbacker Renewable Energy Co LLC reported a net loss of $10.9 million for the three months ended June 30, 2025, a significant increase from the $0.9 million net loss in the prior-year period. Total revenues for the three months ended June 30, 2025, were $10.2 million, up from $8.5 million in the same period of 2024, representing a 20% increase. For the six months ended June 30, 2025, total revenues reached $20.1 million, compared to $16.5 million in the first half of 2024, a 21.8% increase. The company's net loss for the six months ended June 30, 2025, widened to $20.5 million from $1.8 million in the corresponding 2024 period. Key business changes include increased energy commodities and service revenue, which rose to $9.8 million for the quarter from $8.1 million, and to $19.3 million for the six months from $15.7 million. The strategic outlook focuses on expanding its renewable energy portfolio, as evidenced by the growth in revenue from energy generation. However, the substantial increase in net loss indicates challenges in managing costs or asset valuations despite revenue growth.

Why It Matters

Greenbacker's widening net loss, despite revenue growth, signals potential operational inefficiencies or valuation pressures in the competitive renewable energy sector. For investors, this raises concerns about profitability and long-term returns, especially given the capital-intensive nature of renewable projects. Employees might face uncertainty if the company struggles to achieve sustained profitability. Customers, particularly those with long-term power purchase agreements, could see stability if Greenbacker can navigate these financial challenges. In the broader market, this performance highlights the complexities and risks even within a growing sector like renewables, potentially impacting investor sentiment towards similar unlisted renewable energy funds.

Risk Assessment

Risk Level: high — The company's net loss for the three months ended June 30, 2025, increased dramatically to $10.9 million from $0.9 million in the prior year, representing a 1,111% increase. For the six months, the net loss widened to $20.5 million from $1.8 million, a 1,039% increase. This significant and accelerating net loss, despite revenue growth, indicates substantial financial challenges and a high level of risk.

Analyst Insight

Investors should exercise extreme caution and conduct thorough due diligence on Greenbacker's cost structure and asset valuations. Given the substantial increase in net loss, it would be prudent to avoid new investments until there is clear evidence of improved profitability and a sustainable path to positive net income.

Financial Highlights

debt To Equity

N/A

revenue

$10.2M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$10.9M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

+20%

Revenue Breakdown

Key Numbers

• $10.9M — Net Loss (Q2 2025) (Increased from $0.9M in Q2 2024, a 1,111% increase.)
• $10.2M — Total Revenues (Q2 2025) (Up 20% from $8.5M in Q2 2024.)
• $20.5M — Net Loss (H1 2025) (Increased from $1.8M in H1 2024, a 1,039% increase.)
• $20.1M — Total Revenues (H1 2025) (Up 21.8% from $16.5M in H1 2024.)
• 20% — Q2 Revenue Growth (Percentage increase in total revenues from Q2 2024 to Q2 2025.)
• 21.8% — H1 Revenue Growth (Percentage increase in total revenues from H1 2024 to H1 2025.)
• $9.8M — Energy Commodities & Service Revenue (Q2 2025) (Increased from $8.1M in Q2 2024.)
• $19.3M — Energy Commodities & Service Revenue (H1 2025) (Increased from $15.7M in H1 2024.)

Key Players & Entities

• Greenbacker Renewable Energy Co LLC (company) — filer of the 10-Q
• $10.9 million (dollar_amount) — net loss for Q2 2025
• $0.9 million (dollar_amount) — net loss for Q2 2024
• $10.2 million (dollar_amount) — total revenues for Q2 2025
• $8.5 million (dollar_amount) — total revenues for Q2 2024
• $20.1 million (dollar_amount) — total revenues for H1 2025
• $16.5 million (dollar_amount) — total revenues for H1 2024
• $20.5 million (dollar_amount) — net loss for H1 2025
• $1.8 million (dollar_amount) — net loss for H1 2024
• SEC (regulator) — filing oversight

FAQ

Risk Factors

• Widening Net Loss [high — financial]: The company reported a net loss of $10.9 million for Q2 2025, a significant increase from $0.9 million in the prior-year period. For the first half of 2025, the net loss widened to $20.5 million from $1.8 million in H1 2024. This indicates potential challenges in cost management or asset valuation despite revenue growth.
• Commodity Price Volatility [medium — market]: While energy commodity revenue increased, fluctuations in energy prices can impact profitability. The company's reliance on energy commodity sales exposes it to market volatility.
• Asset Performance and Maintenance [medium — operational]: The company's revenue is derived from energy generation. Any underperformance of renewable energy assets or unexpected maintenance costs could negatively affect revenue and profitability.

Industry Context

The renewable energy sector continues to see growth driven by demand for clean energy and supportive policies. Companies like Greenbacker are expanding their portfolios to capitalize on this trend. However, the industry faces challenges related to energy price volatility, operational efficiency, and evolving regulatory landscapes.

Regulatory Implications

As a renewable energy company, Greenbacker is subject to various environmental regulations and energy market policies. Changes in government incentives, tax credits, or environmental standards could impact its operational costs and revenue streams.

What Investors Should Do

1. Monitor cost management strategies.
2. Analyze asset performance and valuation.
3. Assess revenue diversification and stability.

Glossary

Energy Commodities & Service

Revenue generated from the sale of energy commodities and related services, likely from the company's renewable energy assets. (This is a primary revenue driver for Greenbacker, showing significant growth.)

Investment Advisory, Management and Administrative Services

Fees earned for providing investment advice, managing assets, and administrative support. (Represents a smaller, stable revenue stream for the company.)

Product and Service Other

Revenue from miscellaneous products and services not categorized elsewhere. (A minor revenue component for the company.)

Year-Over-Year Comparison

Compared to the prior year, Greenbacker Renewable Energy Co LLC has demonstrated robust revenue growth, with Q2 revenues up 20% to $10.2 million and H1 revenues up 21.8% to $20.1 million. This growth is primarily driven by increased energy commodities and service revenue. However, this top-line expansion has been overshadowed by a substantial increase in net losses, with Q2 losses widening to $10.9 million from $0.9 million and H1 losses reaching $20.5 million from $1.8 million, indicating significant cost pressures or valuation adjustments.

Key Financial Figures

• $0.001 — 199,541,089 shares of common interests, $0.001 par value, outstanding. TABLE OF CONT

Filing Documents

• cik0001563922-20250630.htm (10-Q) — 3235KB
• grec-2025630xex311.htm (EX-31.1) — 10KB
• grec-2025630xex312.htm (EX-31.2) — 10KB
• grec-2025630xex321.htm (EX-32.1) — 5KB
• grec-2025630xex322.htm (EX-32.2) — 5KB
• 0001563922-25-000012.txt ( ) — 16956KB
• cik0001563922-20250630.xsd (EX-101.SCH) — 138KB
• cik0001563922-20250630_cal.xml (EX-101.CAL) — 153KB
• cik0001563922-20250630_def.xml (EX-101.DEF) — 689KB
• cik0001563922-20250630_lab.xml (EX-101.LAB) — 1270KB
• cik0001563922-20250630_pre.xml (EX-101.PRE) — 963KB
• cik0001563922-20250630_htm.xml (XML) — 3103KB

Forward-Looking Statements

Forward-Looking Statements iv PART I. FINANCIAL INFORMATION 1 Item 1.

Financial Statements and Notes

Financial Statements and Notes 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 81 Item 4.

Controls and Procedures

Controls and Procedures 82 PART II. OTHER INFORMATION 84 Item 1.

Legal Proceedings

Legal Proceedings 84 Item 1A.

Risk Factors

Risk Factors 84 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 84 Item 3. Defaults Upon Senior Securities 84 Item 4. Mine Safety Disclosures 84 Item 5. Other Information 85 Item 6. Exhibits 85

Signatures

Signatures 86 i Table of Contents GLOSSARY OF KEY TERMS When the following terms and abbreviations appear in the text of this report, except as otherwise indicated, they have the meanings indicated below: Adjusted EBITDA A non-GAAP financial measure that the Company uses as a performance measure as well as for internal planning purposes Advisers Act The Investment Advisers Act of 1940 Advisory Agreement Fourth Amended and Restated Advisory Agreement between Greenbacker Renewable Energy Company LLC and Greenbacker Capital Management LLC AEC Companies LED Funding LLC and Renew AEC One LLC ASC Accounting Standards Codification ASU Accounting Standards Update Aurora Solar Aurora Solar Holdings, LLC COD Commercial Operations Date CODM Chief Operating Decision Maker Contribution Agreement Contribution agreement between Greenbacker Renewable Energy Company LLC and Greenbacker Capital Management LLC's former parent, Greenbacker Group LLC under which the Acquisition was implemented DRP Distribution Reinvestment Plan Earnout Shares Class EO common shares issued as part of the Acquisition EBITDA A non-GAAP financial measure that adjusts income before income taxes to exclude interest, depreciation expense and amortization expense EPC Engineering, procurement, and construction Exchange Act Securities Exchange Act of 1934 FASB Financial Accounting Standards Board FFO A non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing operating performance of the business Fifth Operating Agreement Fifth Amended and Restated Limited Liability Company Operating Agreement of Greenbacker Renewable Energy Company LLC Fourth Operating Agreement Fourth Amended and Restated Limited Liability Company Operating Agreement of Greenbacker Renewable Energy Company LLC GCM Greenbacker Capital Management LLC GDEV Greenback

Forward-Looking Statements

Forward-Looking Statements Various statements in this Quarterly Report on Form 10-Q (this "Quarterly Report"), including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects, revenues, income and capital spending. We generally identify forward-looking statements with the words "believe," "intend," "expect," "seek," "may," "will," "should," "would," "anticipate," "could," "estimate," "plan," "predict," "project" or their negatives, and other similar expressions. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results, or to our expectations regarding future industry trends, are forward-looking statements. The forward-looking statements contained in this Quarterly Report are largely based on our expectations, which reflect many estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. In addition, assumptions about future events may prove to be inaccurate. We caution all readers that the forward-looking statements contained in this Quarterly Report are not guarantees of future performance, and we cannot assure any reader that such statements will prove correct or that the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to the numerous risks and uncertainties as described under Part I — Item 1A. Risk Factors

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Financial Statements GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) June 30, 2025 December 31, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 90,356 $ 120,057 Restricted cash, current 21,288 38,403 Accounts receivable, net 33,282 27,103 Derivative assets, current 14,699 17,632 Other current assets 17,824 28,586 Total current assets 177,449 231,781 Noncurrent assets: Restricted cash 2,134 3,128 Property, plant and equipment, net 2,414,302 2,232,486 Intangible assets, net 325,244 362,352 Investments, at fair value 69,378 74,136 Derivative assets 74,271 98,495 Other noncurrent assets 235,326 242,667 Total noncurrent assets 3,120,655 3,013,264 Total assets $ 3,298,104 $ 3,245,045 Liabilities, Redeemable Noncontrolling Interests and Equity Current liabilities: Accounts payable and accrued expenses $ 116,063 $ 69,464 Contingent consideration, current 1,809 15,293 Current portion of long-term debt 55,764 88,901 Current portion of failed sale-leaseback financing and deferred ITC gain 46,003 45,868 Tax credit transfer liability 13,905 — Other current liabilities 5,827 8,767 Total current liabilities 239,371 228,293 Noncurrent liabilities: Long-term debt, net of current portion 1,164,798 1,001,654 Failed sale-leaseback financing and deferred ITC gain, net of current portion 193,213 201,601 Deferred tax liabilities, net 27,249 35,316 Operating lease liabilities 187,773 196,911 Out-of-market contracts, net 165,882 180,640 Other noncurrent liabilities 67,269 59,561 Total noncurrent liabilities 1,806,184 1,675,683 Total liabilities $ 2,045,555 $ 1,903,976 Commitments and contingencies (Note 13. Commitments and Contingencies) Redeemable noncontrolling interests $ 1,777 $ 1,851 Equity: Preferred shares, par value, $ 0.001 per share, 50,000 authorized; none issued and outstanding — — Common

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View this 10-Q filing on SEC EDGAR