Page 1

NEW YORK , N.Y. and CHARLOTTE , N.C. November 15 , 2021 - Sunlight Financial Holdings Inc. ( " Sunlight Financial " , " Sunlight " or the " Company " ) ( NYSE : SUNL ) , a premier , technology - enabled point - of - sale financing company , today provided financial results for the third quarter ended September 30 , 2021 . Sunlight Financial Sunlight Financial Reports Third Quarter 2021 Results -Year - over - Year Funded Loan Volume up 77 % to $ 639 Million - Year - over - Year Total Revenue up 72 % to $ 30 Million - GAAP Net Loss of $ ( 22.2 ) Million - - Adjusted EBITDA nearly doubles to $ 11.4 Million - " Sunlight continued to see outstanding year - over - year growth in the third quarter of 2021 with Funded Loan Volume up 77 % to $ 639 million , " said Matt Potere , Chief Executive Officer of Sunlight . " Although industry - wide issues with supply chains , labor shortages and permitting delays lengthened project installation timelines and impacted funded loans , an increase in our Total Platform Fee Margin to 4.3 % partially offset this impact , leading to record - high Total Revenue of $ 30 million in the third quarter of 2021. " - " Our industry - leading credit quality enabled us to add three new capital providers and improve pricing with our existing capital providers this quarter , driving margin improvement and allowing us to offer more attractive pricing to our contractors , " added Mr. Potere . " We also launched non - prime solar and home improvement products and improved operational efficiency in Orange through Robotic Process Automation . Through these and other efforts to build contractor loyalty , we have signed exclusive first look and volume commitments representing over $ 1 billion of expected funded loan volume in 2022 , positioning Sunlight for continued , sustainable growth . " All financial and operating results included in this release reflect the summation of results of the accounting predecessor , Sunlight Financial LLC , from July 1 through July 9 and the successor , Sunlight Financial Holdings Inc. , from July 10 through September 30 , to reflect the completion of the business combination with Spartan Acquisition Corp. II ( " Spartan " ) , which occurred on July 9 , 2021 . ■ Third Quarter 2021 Key Financial Metrics ■ ■ Total Funded Loans of $ 639 million , up 77 % from the prior - year period Total Revenue of $ 30.0 million , a 72 % increase from the prior - year period GAAP Net Loss of $ ( 22.2 ) million , relative to GAAP Net Income of $ 4.1 million in the prior - year period , driven by non - cash business combination - related accounting Adjusted EBITDA of $ 11.4 million , a 97 % increase from $ 5.8 million in the prior - year period Adjusted EBITDA Margin of 37.9 % , up materially from 33.1 % in the prior - year period Total Platform Fee Margin of 4.3 % ( up from 4.0 % in the prior quarter ) and Direct Channel Platform Fee Margin of 5.0 % ( up from 4.3 % in the prior quarter ) Free Cash Flow of $ 4.8 million and cumulative year - to - date Free Cash Flow of $ 28.8 million Third Quarter 2021 Key Operational Metrics Number of borrowers increased to 18,189 , up 65 % from 11,020 borrowers in the prior - year period 1