The clean energy firm advanced its flagship Cider solar project and secured major tax equity commitments while facing new litigation from a bankrupt subsidiary’s trustee.

May 14, 2026

Greenbacker Renewable Energy Company LLC reported a narrower net loss for the first quarter of 2026, signaling some operational stabilization following a tumultuous 2025 marked by significant asset divestitures and federal policy upheaval. The Delaware-based renewable energy and investment management firm posted a net loss of approximately $27.5 million for the three months ended March 31, 2026, compared with a loss of $40.7 million in the same period a year earlier — a roughly 32 percent improvement.

As reported in our coverage of the company’s annual results, Greenbacker spent much of 2025 reshaping its portfolio through the sale of more than 300 megawatts of operating capacity and confronting the impact of sweeping federal tax credit changes under the One Big Beautiful Bill Act. The first-quarter results reflect the lingering effects of those decisions while highlighting new developments in the company’s strategic direction.

Revenue Declines Reflect Divestiture Impact

Total net revenue dropped to $34.8 million from $50.5 million a year earlier, a 31 percent decline driven primarily by the 2025 sales of Celadon Manager LLC, Dogwood Manager LLC, and assets formerly held by GREC Entity Holdco. Energy revenue alone fell 22 percent to $34.3 million.

Solar power generation took the biggest hit, with production down approximately 60 percent year over year to roughly 124,000 megawatt-hours. The operating solar fleet shrank by 174 assets and 263 megawatts of capacity compared to March 2025. Wind production declined more modestly, falling 13 percent to about 321,000 megawatt-hours, partly due to less favorable wind conditions during the quarter.

Despite these declines, the company’s operating fleet still encompasses 220 renewable energy projects totaling approximately 2.7 gigawatts of capacity, evenly split between operational and pre-operational assets.

Investment management revenue also softened, dropping 23 percent to $2.5 million, primarily because of a lower aggregate net asset value at the GREC II managed fund, which is used to calculate monthly fee rates.

Operating Expenses Drop Sharply

The narrower loss was substantially aided by a 36 percent reduction in total operating expenses, which fell to $48.7 million from $76.3 million. Notably, impairment charges plunged from $13.7 million in the prior-year quarter to just $463,000 this period. General and administrative expenses also declined nearly 30 percent, reflecting headcount reductions across the company’s segments.

Direct operating costs fell roughly 19 percent, while depreciation and amortization expenses dropped 22 percent — both consequences of the smaller operating fleet following the 2025 divestitures.

Interest expense, net, declined dramatically from $36.6 million to $12.1 million, primarily because of favorable changes in the fair value of interest rate swaps and increased capitalized interest tied to the under-construction Cider solar project.

Cider Project Advances With Major Tax Equity Commitment

The Cider Solar project — a roughly 680-megawatt development asset acquired in 2024 — continues to be a focal point of Greenbacker’s growth strategy. In late December 2025, the company entered into an Equity Capital Contribution Agreement under which two counterparties committed up to $440 million in tax equity investment through mid-2027.

On March 31, 2026, the company amended the agreement’s terms, agreeing to pay an amended structuring fee of $6.5 million in two installments due in April and May 2026, plus an additional $0.8 million structuring fee to a separate counterparty.

In a related development, the company on April 13, 2026 fully repaid and terminated its $81 million Cider Solar Construction Owner facility, using proceeds from the Cider Solar AcquisitionCo tax equity bridge loan to refinance the debt. Total outstanding debt rose modestly to $1.32 billion as of the quarter’s end.

Adjusted EBITDA and Funds From Operations

Management’s preferred non-GAAP metrics showed the underlying business performance in clearer focus:

• Adjusted EBITDA: $10.6 million, down from $14.4 million year over year
• Funds from operations: $1.8 million, up from $1.2 million
• IPP segment adjusted EBITDA: $15.3 million, down from $22.5 million
• IPP operating margin: 44 percent, compressed from 51 percent

Legal Headwinds Multiply

The quarter brought several notable legal developments. On April 16, 2026, the Chapter 7 trustee for Eagle Valley Clean Energy LLC, a former subsidiary that filed for bankruptcy in April 2024, filed an adversary complaint in the U.S. Bankruptcy Court for the District of Colorado seeking recovery of payments allegedly transferred to Greenbacker before EVCE’s bankruptcy filing. The company intends to vigorously defend against the claims and has not recorded any liability for the matter.

Separately, on March 11, 2026, a third party filed a complaint in the Southern District of New York against a Greenbacker subsidiary, alleging breach of contract under a March 2023 membership interest purchase agreement related to a planned acquisition of a solar and battery storage project in Montana. The company filed a demand for arbitration the following day, asserting that arbitration is the appropriate forum for the dispute.

The company also continues to pursue litigation against McKesson Corporation seeking at least $18 million in damages over a rooftop solar facility dispute, as well as arbitration against an engineering, procurement and construction contractor over module performance issues at a utility-scale solar project, with hearings proposed for September 2027.

Liquidity and Capital Position

Greenbacker ended the quarter with $50.7 million in cash and cash equivalents, down from $66.6 million at the end of 2025. Restricted cash fell to $8.2 million from $18.6 million. The company reported $199.2 million in available revolver capacity and a weighted average interest rate on outstanding debt of approximately 2.59 percent after accounting for swap agreements and capitalized interest.

The company recorded an income tax expense of $6.2 million for the quarter, compared with a benefit of $10.4 million a year earlier. The shift was primarily driven by changes in the estimated annual effective tax rate, including a $17.4 million decrease in the valuation allowance attributable to expected contributions from counterparties under the Cider Solar tax equity agreement.

Outlook and Strategic Positioning

Greenbacker continues to operate without a public trading market for its shares, and shareholder distributions remain suspended following the May 2024 halt. The share repurchase program also continues to be limited to requests tied to shareholder death, disability, or incompetence. In April 2026, the company granted approximately 2.2 million restricted share units and performance share units covering up to 2.3 million additional shares under its 2023 Equity Incentive Plan.

With 220 projects spanning solar, wind, and battery storage, and a major construction project advancing toward expected completion in the second half of 2026, Greenbacker faces both the operational challenge of executing on its pipeline and the strategic challenge of adapting to a federal policy environment that continues to evolve.