UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________________ FORM 10-Q _______________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ...

Second Quarter 2021 Earnings July 28, 2021 sunnova" Legal Disclaimer 2 • This presentation and the accompanying oral presentations contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain word ...

Sunnova Energy International, Inc. (NYSE:NOVA) Q2 2021 Results Conference Call July 29, 2021 8:30 AM ET Company Participants Rodney McMahan - VP IR John Berger - Chairman & CEO Robert Lane - EVP and CFO Conference Call Participants Brian Lee - Goldman Sachs Mark Strouse - JPMorgan Philip Shen - ROTH Capital Partner Ben Kallo - Baird Sophie Karp - KeyBanc Pavel Molchanov - Raymond James Sean Morgan - Evercore Operator Good morning and welcome to Sunnova???s Second Quarter 2021 Earnings Conference Call. Today ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________________ FORM 10-Q _______________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Sunnova Energy International Inc. (NYSE:NOVA) Q1 2021 Earnings Conference Call April 29, 2021 8:30 AM ET Company Participants Rodney McMahan - Vice President, Investor Relations William J. Berger - Chairman, President, and CEO Robert L. Lane - EVP and CFO Conference Call Participants Unidentified Analyst - Philip Shen - ROTH Capital Partners Brian Lee - Goldman Sachs & Co. Benjamin Kallo - Robert W. Baird Julien Dumoulin-Smith - Bank of America Michael Weinstein - Credit Suisse Mark Strouse - J.P. Morgan U ...

First Quarter 2021 Earnings April 28, 2021 Legal Disclaimer • This presentation and the accompanying oral presentations contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as " ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________________ FORM 10-Q _______________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fro ...

Financial Data and Key Metrics Changes - Sunnova reported a year-over-year revenue increase of 22% and adjusted EBITDA growth of 23% for 2020 [22] - The net contracted customer value (NCCV) rose from $1.2 billion at the end of 2019 to $1.7 billion at the end of 2020, translating to approximately $17 per share, a 20% increase year-over-year [17][18] - The company raised over $2 billion in new financing in 2020, including $800 million in securitizations and $415 million in tax equity funds [23] Business Line Data and Key Metrics Changes - Sunnova added approximately 29,000 customers in 2020, a 57% increase from 2019, driven by a significant expansion of its dealer network [10] - The storage penetration rate nearly tripled in 2020 to 9.2%, with expectations to reach mid to upper teens by the end of 2021 [14] - The company performed over 1,100 battery retrofits, an increase of 226 from the previous quarter [12] Market Data and Key Metrics Changes - The company experienced record customer growth in Q4 2020, adding more customers than any other quarter in its history [8] - There was a notable increase in demand for storage solutions, particularly in markets affected by recent natural disasters, such as Texas [71][87] Company Strategy and Development Direction - Sunnova's acquisition of SunStreet aims to significantly increase customer growth and reduce costs per customer while positioning the company as a leader in the development of microgrids [50][51] - The company plans to scale its operations to deliver grid services and develop community microgrids, enhancing energy savings and resilience [54][56] - Sunnova is focused on optimizing recurring operational cash flow through exceptional customer growth and declining costs [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2021 targets, citing strong visibility with approximately 82% of targeted revenue already contracted [45] - The company anticipates a 75% increase in adjusted EBITDA for 2022 compared to 2021, driven by the SunStreet acquisition and upselling opportunities [44][40] - Management noted that the transition to distributed solar and energy storage technologies is a significant trend, with Sunnova positioned at the forefront [58][62] Other Important Information - Sunnova's adjusted operating expense per customer declined by nearly 10% in 2020, with expectations for a further 25% reduction by 2022 [47][48] - The company plans to spend approximately $30 million on integration and transaction costs related to the SunStreet acquisition over 2021 and 2022 [42] Q&A Session Summary Question: What is driving the increased customer growth guidance for 2021? - Management attributed the growth to a significant increase in dealer and subdealer additions, as well as the introduction of new technologies [66] Question: Can you provide insights on the recent dealer additions? - The dealer additions were a mix of large, mid-sized, and smaller dealers, with significant growth observed primarily in the West [70] Question: What impact do you expect from the 2017 ABS refinancing? - Management expects to see improved cash flow and a reduction in interest rates from the refinancing, potentially enhancing shareholder value [75] Question: How do you see storage trends evolving in the next quarters? - Management anticipates a significant increase in storage attachment rates, driven by heightened consumer demand following recent events in Texas [78] Question: What are the expectations for NCCV growth post-SunStreet acquisition? - Management expects to see an increase in NCCV driven by upsell opportunities from the new customer base acquired through SunStreet [88]

Fourth Quarter and 2020 Full Year Earnings February 24, 2021 SUNNOVA Legal Disclaimer • This presentation and the accompanying oral presentations contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating performance. In some cases, you can identify forward-looking statements because th ...

PART I [Business](index=8&type=section&id=Item%201.%20Business) Sunnova Energy International Inc. is a leading residential solar and energy storage service provider in the U.S. and its territories, serving over 107,000 customers through a differentiated dealer network model - As of December 31, 2020, Sunnova served over **107,000 customers** across more than **20 U.S. states and territories**, operating over **790 megawatts** of generation capacity[27](index=27&type=chunk)[32](index=32&type=chunk) - In February 2021, Sunnova agreed to acquire **SunStreet**, Lennar Corporation's residential solar platform, including a four-year exclusivity agreement for Lennar's new home communities[22](index=22&type=chunk)[24](index=24&type=chunk) Customer Agreement Mix (as of Dec 31, 2020) | Agreement Type | Percentage of Customers | | :--- | :--- | | Power Purchase Agreements (PPAs) | ~51% | | Lease Agreements | ~31% | | Loan Agreements | ~17% | | Other (Service/Roof) | <1% | - The company operates through a dealer network model, with its top two dealers, Trinity Solar, Inc. and Infinity Energy, Inc., accounting for approximately **28%** and **12%** of net originations for the year ended December 31, 2020[40](index=40&type=chunk)[42](index=42&type=chunk) - Sunnova's business model is capital-intensive, having raised over **$6.7 billion** in capital commitments from equity, debt, and tax equity investors since its inception through December 31, 2020[30](index=30&type=chunk)[137](index=137&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) The company identifies significant risks across its business, operations, regulatory environment, and financial structure, including the COVID-19 pandemic, reliance on its dealer network, and potential changes to government incentives - The COVID-19 pandemic has caused disruptions, including an initial decline in new contract originations, and poses ongoing risks to operations, capital access, and customer payment ability[106](index=106&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - The business is highly dependent on its dealer network, with Trinity Solar accounting for **28%** of net originations in 2020, creating a concentration risk[135](index=135&type=chunk) - Changes to net metering policies, which allow customers to receive credits for excess energy sent to the grid, could significantly reduce demand for residential solar systems, with several key markets reviewing or changing their rules[263](index=263&type=chunk)[266](index=266&type=chunk)[272](index=272&type=chunk) - The business depends on government incentives, especially the federal ITC, which is scheduled to decrease from **26%** for projects starting in 2020-2022 to **22%** in 2023 and **10%** thereafter, potentially impacting financing and growth[278](index=278&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - The company has a history of operating and net losses, reporting a net loss of **$307.8 million** for the year ended December 31, 2020, and may not achieve or sustain profitability in the future[111](index=111&type=chunk) - Business operations are geographically concentrated, with approximately **22%** of systems in New Jersey, **24%** in California, and **15%** in Puerto Rico as of December 31, 2020, increasing exposure to region-specific risks[211](index=211&type=chunk) [Unresolved Staff Comments](index=71&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - Not applicable[328](index=328&type=chunk) [Properties](index=71&type=section&id=Item%202.%20Properties) Sunnova's corporate headquarters is leased in Houston, Texas, with additional smaller leased offices in Guam, New York, and Puerto Rico, and no owned real property - The company's principal executive offices are leased in Houston, Texas, under a lease that expires in July 2029[329](index=329&type=chunk) [Legal Proceedings](index=72&type=section&id=Item%203.%20Legal%20Proceedings) The company is not a party to any litigation or governmental proceeding expected to have a material adverse impact on its financial position or results of operations - Sunnova is involved in ordinary course litigation and claims but does not believe any will have a material adverse impact[331](index=331&type=chunk) [Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[332](index=332&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=73&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Sunnova's common stock trades on the NYSE under "NOVA" since its IPO on July 25, 2019, with no cash dividends declared or expected due to the need to retain funds and credit agreement restrictions - The company's common stock began trading on the NYSE under the symbol "**NOVA**" on July 25, 2019[335](index=335&type=chunk) - Sunnova has never paid cash dividends and does not expect to in the foreseeable future, with future earnings intended to be retained for business operations[337](index=337&type=chunk) [Selected Financial Data](index=74&type=section&id=Item%206.%20Selected%20Financial%20Data) The company presents selected consolidated financial data for 2017-2020, showing consistent revenue growth from **$76.9 million** to **$160.8 million**, but also widening net losses from **$90.2 million** to **$307.8 million**, reflecting the capital-intensive nature of the business Selected Consolidated Financial Data (in thousands) | | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $160,820 | $131,556 | $104,382 | $76,856 | | **Net loss** | $(307,818) | $(133,434) | $(68,409) | $(90,182) | | **Total assets** | $3,587,582 | $2,487,067 | $1,665,085 | $1,328,788 | | **Long-term debt, net** | $1,924,653 | $1,346,419 | $916,430 | $723,697 | | **Total equity** | $1,144,557 | $691,111 | $501,118 | $371,183 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=75&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results, highlighting customer growth to **107,500**, a **22%** revenue increase, and a significant widening of net loss to **$307.8 million** primarily due to a **$142.8 million** non-cash loss on convertible debt extinguishment, while confirming sufficient liquidity for the next 12 months - The number of customers grew by **28,900**, from **78,600** at the end of 2019 to **107,500** at the end of 2020[375](index=375&type=chunk) Key Performance Metrics (2020 vs 2019) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | $160.8M | $131.6M | | Net Loss | $(307.8)M | $(133.4)M | | Adjusted EBITDA | $59.6M | $48.3M | - The increase in net loss in 2020 was primarily driven by a **$142.8 million** loss on the extinguishment of long-term debt related to the conversion of convertible senior notes[424](index=424&type=chunk)[435](index=435&type=chunk) - As of December 31, 2020, the company had **$377.9 million** in total cash (**$209.9 million** unrestricted) and **$402.4 million** of available borrowing capacity under its financing arrangements[440](index=440&type=chunk) - Estimated Gross Contracted Customer Value, a forward-looking metric, increased to **$2.61 billion** at a **6% discount rate** as of year-end 2020, up from **$1.88 billion** at year-end 2019[395](index=395&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=104&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure from variable-rate debt, which it manages using derivative instruments like interest rate swaps, with a hypothetical **10%** rate increase resulting in an additional **$2.6 million** in interest expense for 2020 - The company's main market risk is interest rate risk from variable-rate debt, which it hedges using interest rate swaps[493](index=493&type=chunk) - A hypothetical **10%** increase in interest rates would have increased interest expense by **$2.6 million** for the year ended December 31, 2020[493](index=493&type=chunk) [Financial Statements and Supplementary Data](index=105&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the company's audited consolidated financial statements for 2018-2020, with an unqualified opinion from PricewaterhouseCoopers LLP, and identifies a critical audit matter related to the initial accounting assessment of new Tax Equity Partnerships (TEPs) - The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2020[499](index=499&type=chunk) - A Critical Audit Matter was identified related to the initial accounting assessment of new Tax Equity Partnerships (TEPs), involving significant judgment in determining if Sunnova is the primary beneficiary and in applying the hypothetical liquidation at book value (HLBV) method[506](index=506&type=chunk)[507](index=507&type=chunk) Consolidated Balance Sheet Highlights (as of Dec 31, 2020) | Account | Amount (in thousands) | | :--- | :--- | | Total Assets | $3,587,582 | | *Property and equipment, net* | *$2,323,169* | | *Customer notes receivable, net* | *$513,386* | | Total Liabilities | $2,306,901 | | *Long-term debt, net* | *$1,924,653* | | Total Equity | $1,144,557 | Consolidated Statement of Operations Highlights (Year ended Dec 31, 2020) | Account | Amount (in thousands) | | :--- | :--- | | Revenue | $160,820 | | Total operating expense, net | $196,598 | | Operating loss | $(35,778) | | Net loss | $(307,818) | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=161&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[749](index=749&type=chunk) [Controls and Procedures](index=161&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the fourth quarter of 2020 - Management concluded that disclosure controls and procedures were effective as of December 31, 2020[750](index=750&type=chunk) - Management assessed internal control over financial reporting as effective as of December 31, 2020, and this assessment was audited by PricewaterhouseCoopers LLP[753](index=753&type=chunk) [Other Information](index=161&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[754](index=754&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=162&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding the company's directors, executive officers, and corporate governance practices is incorporated by reference from its definitive Proxy Statement - Information is incorporated by reference from the company's Proxy Statement to be filed within 120 days after the fiscal year-end[756](index=756&type=chunk) [Executive Compensation](index=162&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement - Information is incorporated by reference from the company's Proxy Statement[757](index=757&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=162&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information concerning security ownership by certain beneficial owners and management, as well as related stockholder matters, is incorporated by reference from the company's definitive Proxy Statement - Information is incorporated by reference from the company's Proxy Statement[758](index=758&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=162&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Details regarding certain relationships, related-party transactions, and director independence are incorporated by reference from the company's definitive Proxy Statement - Information is incorporated by reference from the company's Proxy Statement[759](index=759&type=chunk) [Principal Accounting Fees and Services](index=162&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information about the fees paid to the principal independent registered public accounting firm and the services provided is incorporated by reference from the company's definitive Proxy Statement - Information is incorporated by reference from the company's Proxy Statement[760](index=760&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=162&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Annual Report on Form 10-K, including consolidated financial statements, schedules, and a comprehensive list of exhibits such as key corporate documents, material contracts, debt indentures, and certifications - This section contains the index to the consolidated financial statements and a list of all exhibits filed with the report[762](index=762&type=chunk) - Key exhibits filed include the Merger Agreement for the SunStreet acquisition, various debt indentures and credit agreements, and executive certifications[764](index=764&type=chunk)[766](index=766&type=chunk)[771](index=771&type=chunk)