Greenbacker Narrows Q3 Loss Amid Revenue Dip, Asset Growth

TL;DR

**Greenbacker's Q3 loss narrowed, but the massive debt increase is a red flag for future profitability.**

AI Summary

Greenbacker Renewable Energy Co LLC reported a net loss of $31.895 million for the three months ended September 30, 2025, an improvement from a net loss of $58.399 million in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $108.202 million, compared to $114.651 million in 2024. Total net revenue decreased slightly to $50.246 million for the three months ended September 30, 2025, from $52.002 million in 2024, primarily due to a decrease in Investment Management revenue from $4.878 million to $3.240 million. Operating expenses saw a significant reduction, falling to $75.129 million for the three months ended September 30, 2025, from $101.553 million in 2024, driven by lower direct operating costs and general and administrative expenses. The company's total assets increased to $3.414 billion as of September 30, 2025, from $3.245 billion at December 31, 2024, largely due to an increase in property, plant and equipment, net, from $2.232 billion to $2.534 billion. Long-term debt, net of current portion, increased substantially to $1.325 billion from $1.001 billion, indicating increased leverage. The company also recognized a gain of $15.417 million on liability extinguishment for the nine months ended September 30, 2025.

Why It Matters

Greenbacker's reduced net loss, despite a slight revenue dip, suggests improved operational efficiency and cost management, which is crucial for investor confidence in the renewable energy sector. The substantial increase in property, plant and equipment indicates continued investment in its core renewable energy projects, positioning the company for future growth in a competitive market. However, the significant rise in long-term debt could raise concerns about financial leverage and interest rate sensitivity, especially given the current volatile economic climate. For customers, continued investment in projects could mean more reliable and expanded renewable energy access, while employees might see stability from operational improvements. The broader market will watch how Greenbacker balances growth with debt management in the rapidly evolving renewable energy landscape.

Risk Assessment

Risk Level: medium — The company's long-term debt, net of current portion, increased significantly from $1.001 billion at December 31, 2024, to $1.325 billion at September 30, 2025, representing a 32.3% increase. This substantial increase in leverage, coupled with an accumulated deficit of $675.595 million, indicates a heightened financial risk, despite the narrowing net loss.

Analyst Insight

Investors should closely monitor Greenbacker's debt management strategies and future interest expense, given the significant increase in long-term debt. While operational improvements are positive, the rising leverage warrants caution; consider if the growth in assets justifies the increased financial risk.

Financial Highlights

debt To Equity

1.72

revenue

$50,246,000

operating Margin

-149.5%

total Assets

$3,414,404,000

total Debt

$1,374,672,000

net Income

-$31,895,000

eps

N/A

gross Margin

N/A

cash Position

$78,663,000

revenue Growth

-3.4%

Revenue Breakdown

Key Numbers

• $31.895M — Net Loss (Q3 2025) (Improved from $58.399M loss in Q3 2024)
• $50.246M — Total Net Revenue (Q3 2025) (Slight decrease from $52.002M in Q3 2024)
• $75.129M — Total Operating Expenses (Q3 2025) (Significant reduction from $101.553M in Q3 2024)
• $3.414B — Total Assets (Sept 30, 2025) (Increased from $3.245B at Dec 31, 2024)
• $1.325B — Long-term Debt (Sept 30, 2025) (Increased from $1.001B at Dec 31, 2024)
• $15.417M — Gain on Liability Extinguishment (9M 2025) (New gain recognized in the period)
• $675.595M — Accumulated Deficit (Sept 30, 2025) (Increased from $584.733M at Dec 31, 2024)
• 199,476 — Common Shares Outstanding (Sept 30, 2025) (Slight increase from 199,326 at Dec 31, 2024)

Key Players & Entities

• Greenbacker Renewable Energy Co LLC (company) — Registrant
• $31.895 million (dollar_amount) — Net loss for three months ended September 30, 2025
• $58.399 million (dollar_amount) — Net loss for three months ended September 30, 2024
• $108.202 million (dollar_amount) — Net loss for nine months ended September 30, 2025
• $114.651 million (dollar_amount) — Net loss for nine months ended September 30, 2024
• $50.246 million (dollar_amount) — Total net revenue for three months ended September 30, 2025
• $52.002 million (dollar_amount) — Total net revenue for three months ended September 30, 2024
• $1.325 billion (dollar_amount) — Long-term debt, net of current portion, as of September 30, 2025
• $1.001 billion (dollar_amount) — Long-term debt, net of current portion, as of December 31, 2024
• $15.417 million (dollar_amount) — Gain on liability extinguishment for nine months ended September 30, 2025

FAQ

Risk Factors

• Increasing Leverage [high — financial]: Long-term debt increased substantially to $1.325 billion as of September 30, 2025, from $1.001 billion at December 31, 2024. This indicates increased financial leverage, which can amplify both gains and losses and potentially strain the company's ability to service its debt.
• Accumulated Deficit [medium — financial]: The company's accumulated deficit grew to $675.595 million as of September 30, 2025, from $584.733 million at December 31, 2024. This trend suggests ongoing profitability challenges and a history of net losses, which could impact investor confidence and future financing.
• Dependence on Property, Plant and Equipment [medium — operational]: A significant portion of the company's assets, $2.534 billion, is tied up in property, plant and equipment. Fluctuations in the value or operational efficiency of these assets could materially impact the company's financial performance and asset base.
• Revenue Volatility [medium — market]: Total net revenue decreased slightly to $50.246 million for Q3 2025 from $52.002 million in Q3 2024, primarily driven by a decline in Investment Management revenue. This highlights potential volatility in revenue streams and the need for diversified income sources.
• Reduced Cash Position [low — financial]: Cash and cash equivalents decreased to $78.663 million as of September 30, 2025, from $120.057 million at December 31, 2024. This reduction in liquidity could limit the company's flexibility in meeting short-term obligations or pursuing new opportunities.
• Intangible Asset Decline [low — financial]: Intangible assets, net, decreased from $362.352 million at December 31, 2024, to $316.211 million as of September 30, 2025. This reduction may indicate amortization or impairment of intangible assets, impacting the overall asset valuation.

Industry Context

Greenbacker Renewable Energy operates within the competitive renewable energy sector, which is characterized by significant capital investment, evolving regulatory landscapes, and a growing demand for sustainable power sources. The industry is seeing increased focus on solar, wind, and battery storage projects. Companies like Greenbacker often rely on project financing, tax incentives, and long-term power purchase agreements to generate revenue and manage operational costs.

Regulatory Implications

The renewable energy sector is subject to various environmental regulations, energy market policies, and tax incentives (like the Investment Tax Credit - ITC). Changes in these regulations or the expiration of tax credits could materially impact project economics and the company's financial performance. Compliance with environmental standards and reporting requirements is crucial.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios.
2. Analyze the drivers of revenue decline in Investment Management.
3. Evaluate the sustainability of operating expense reductions.
4. Assess the impact of the gain on liability extinguishment.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the latest financial results, showing a reduced net loss and increased assets but also higher debt.
• 2025-09-30: Balance Sheet Date — Reflects the company's financial position with total assets of $3.414 billion and total liabilities of $2.158 billion.
• 2024-12-31: End of Fiscal Year 2024 — Prior period comparison point for assets, liabilities, and accumulated deficit.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception, minus any cumulative net income. It represents a negative balance in retained earnings. (Indicates the company's historical profitability, with an increase to $675.595 million as of September 30, 2025.)

Property, plant and equipment, net

The net book value of tangible assets used in the operation of a business, such as buildings, machinery, and land, after deducting accumulated depreciation. (Represents the largest asset category for Greenbacker, increasing to $2.534 billion, highlighting investment in operational infrastructure.)

Long-term debt, net of current portion

The portion of a company's total debt that is due more than one year from the balance sheet date. (Shows the company's long-term borrowing obligations, which significantly increased to $1.325 billion, indicating higher leverage.)

Gain on liability extinguishment

A gain recognized when a company settles a debt or other liability for less than its carrying amount. (A one-time gain of $15.417 million recognized in the nine months ended September 30, 2025, which positively impacted net income for that period.)

Redeemable noncontrolling interests

Represents the equity interests of subsidiaries that are redeemable by the holders at a future date, often at the option of the holder or the company. (This liability decreased to $0 as of September 30, 2025, from $1.851 million at December 31, 2024, indicating these interests have been settled or expired.)

Year-Over-Year Comparison

Compared to the prior year, Greenbacker Renewable Energy Co LLC has shown a reduction in net loss for both the three-month period (from $58.399 million to $31.895 million) and the nine-month period (from $114.651 million to $108.202 million). This improvement is largely attributed to a significant reduction in operating expenses, falling from $101.553 million to $75.129 million in Q3. However, total net revenue saw a slight decrease to $50.246 million, primarily due to lower Investment Management revenue. The company's balance sheet reflects substantial growth in total assets to $3.414 billion, driven by increased property, plant and equipment, but also a significant rise in long-term debt to $1.325 billion, indicating increased financial leverage.

Key Financial Figures

• $0.001 — 199,495,075 shares of common interests, $0.001 par value, outstanding. TABLE OF CONT

Filing Documents

• cik0001563922-20250930.htm (10-Q) — 3191KB
• grec-2025930xex101.htm (EX-10.1) — 217KB
• grec-2025930xex102.htm (EX-10.2) — 214KB
• grec-2025930xex311.htm (EX-31.1) — 10KB
• grec-2025930xex312.htm (EX-31.2) — 10KB
• grec-2025930xex321.htm (EX-32.1) — 5KB
• grec-2025930xex322.htm (EX-32.2) — 5KB
• 0001563922-25-000017.txt ( ) — 17657KB
• cik0001563922-20250930.xsd (EX-101.SCH) — 145KB
• cik0001563922-20250930_cal.xml (EX-101.CAL) — 148KB
• cik0001563922-20250930_def.xml (EX-101.DEF) — 750KB
• cik0001563922-20250930_lab.xml (EX-101.LAB) — 1328KB
• cik0001563922-20250930_pre.xml (EX-101.PRE) — 1021KB
• cik0001563922-20250930_htm.xml (XML) — 2995KB

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 58 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 84 Item 4.

Controls and Procedures

Controls and Procedures 85 PART II. OTHER INFORMATION 87 Item 1.

Legal Proceedings

Legal Proceedings 87 Item 1A.

Risk Factors

Risk Factors 87 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 87 Item 3. Defaults Upon Senior Securities 88 Item 4. Mine Safety Disclosures 88 Item 5. Other Information 88 Item 6. Exhibits 89

Signatures

Signatures 90 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) September 30, 2025 December 31, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 78,663 $ 120,057 Restricted cash, current 13,831 38,403 Accounts receivable, net 35,827 27,103 Derivative assets, current 14,719 17,632 Other current assets 37,413 28,586 Total current assets 180,453 231,781 Noncurrent assets: Restricted cash 2,138 3,128 Property, plant and equipment, net 2,534,895 2,232,486 Intangible assets, net 316,211 362,352 Investments, at fair value 73,998 74,136 Derivative assets 73,510 98,495 Other noncurrent assets 233,199 242,667 Total noncurrent assets 3,233,951 3,013,264 Total assets $ 3,414,404 $ 3,245,045 Liabilities, Redeemable Noncontrolling Interests and Equity Current liabilities: Accounts payable and accrued expenses $ 92,389 $ 69,464 Contingent consideration, current 1,949 15,293 Current portion of long-term debt 49,113 88,901 Current portion of failed sale-leaseback financing and deferred ITC gain 46,003 45,868 Other current liabilities 6,021 8,767 Total current liabilities 195,475 228,293 Noncurrent liabilities: Long-term debt, net of current portion 1,325,559 1,001,654 Failed sale-leaseback financing and deferred ITC gain, net of current portion 197,721 201,601 Deferred tax liabilities, net 14,077 35,316 Operating lease liabilities 195,572 196,911 Out-of-market contracts, net 162,480 180,640 Other noncurrent liabilities 67,518 59,561 Total noncurrent liabilities 1,962,927 1,675,683 Total liabilities $ 2,158,402 $ 1,903,976 Commitments and contingencies (Note 13. Commitments and Contingencies) Redeemable noncontrolling interests $ — $ 1,851 Equity: Preferred shares, par value, $ 0.001 per share, 50,000 authorized; none issued and outstanding — — Common shares, par value, $ 0.001 per share, 3

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