Shares of Altus Power (AMPS 1.18%) plunged more than 15% by 10:45 a.m. ET on Monday. Its third-quarter results and lower-end outlook are weighing on the clean electrification company.
Altus Power generated $30.4 million in revenue in the third quarter, a 51% increase. However, it posted a GAAP net loss of $96.6 million, or $0.63 per share, in the period. That was much deeper than its $1.3 million net loss in the year-ago period. It also missed analysts' expectations by $0.65 per share.
The primary culprit was a $102 million noncash loss from the fair value remeasurement of warrants and alignment shares. The company must remeasure those shares each quarter based on its stock price.
That GAAP loss aside, Altus Power had its best quarter for revenue and adjusted EBITDA in its history, with its adjusted EBITDA surging 66% to $19.4 million. It also significantly expanded its operating portfolio of commercial-scale solar energy assets. It increased its portfolio by 100 megawatts (MW) since the second quarter, primarily driven by the acquisition of 88 MW from D.E. Shaw Renewable Investments.
However, the timing of the acquisition will impact the company's full-year forecast. Because it took longer than expected to close that deal, Altus now expects its 2022 adjusted EBITDA to be at the low end of its previous guidance range.
Altus Power is still in the early stages of its growth. While that makes it riskier, it has over 1 gigawatt of potential operating acquisitions and development projects in its pipeline. Meanwhile, it has several partners to help drive its growth.
All this means Altus could continue growing its revenue and adjusted EBITDA at a rapid rate in the future. That makes it a potentially compelling option for risk-tolerant investors seeking a high-upside opportunity in the clean energy space.