Financial Data and Key Metrics Changes - In Q1 2025, the company generated $56 million in cash, marking the fourth consecutive quarter of positive cash generation [5] - The unrestricted cash balance increased by $30 million from the previous quarter, reaching $605 million [5] - The subscriber value increased to approximately $52,000, a 15% increase compared to the prior year [25] - Aggregate subscriber value was $1.2 billion in Q1, a 23% increase from the prior year [26] - Net value creation was $246 million, approximately $1.09 per share, with contracted net value creation at $164 million, a 104% increase from last year [27] Business Line Data and Key Metrics Changes - Customer additions grew by 6% year-over-year, with a record high storage attachment rate of 69%, up by over 46% from Q1 of last year [8][9] - The company has nearly quadrupled its solar and storage business in the last two years, achieving a market share of approximately 19% for new solar installations and 45% for new storage installations [10] - The storage attachment rate increased by 19 percentage points to 69%, contributing to a 66% year-over-year growth in net subscriber value [25][26] Market Data and Key Metrics Changes - Demand for residential solar and storage remains strong, with favorable trends such as increasing grid instability and utility rate escalation [9] - The company is experiencing strong demand across channels, leading to a forecast of mid-single-digit growth in subscriber additions for the year [36] Company Strategy and Development Direction - The company is focused on delivering innovative products, such as Sunrun Flex, which allows customers to plan for their growing energy needs flexibly and affordably [18][19] - The strategy includes leveraging AI for operational efficiencies and cost discipline, which has contributed to market share gains [7][16] - The company is actively working on scenario planning regarding potential changes in tax and tariff policies, indicating readiness to adapt to regulatory changes [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating meaningful cash this year despite uncertainties in tax policy and tariffs [6] - The company expects tariff impacts to create cost headwinds of approximately $1,000 to $3,000 per subscriber in 2025, which could affect cash generation guidance [36] - For the full year, the company introduced guidance for aggregate subscriber value between $5.7 billion and $6 billion, representing 14% growth at the midpoint [35] Other Important Information - The company repaid $27 million of borrowings under its working capital facility during Q1 and has paid down $214 million in recourse debt since March of last year [34] - The company is exploring further capital allocation options to maximize shareholder value based on market conditions [34] Q&A Session Summary Question: Can you bridge the contracted net value creation for Q2 and the full year? - Management indicated that the impact of tariffs will be more pronounced in the second half of the year, affecting the full-year guidance [41][42] Question: What is the sourcing strategy regarding tariffs? - Management noted that manufacturing has increasingly moved onshore, and they are prepared to adjust pricing and go-to-market strategies as needed [44] Question: How is customer demand responding to potential price increases? - Management stated that demand remains strong, particularly in uncertain economic conditions, which drives interest in their offerings [52] Question: What is the impact of potential changes to the ITC? - Management acknowledged that a reduction in the ITC would impact cash generation but emphasized their ability to mitigate some effects through pricing and operational efficiencies [78] Question: How does the company plan to handle safe harboring ahead of potential IRA modifications? - Management is focused on generating cash and maintaining substantial unrestricted cash on hand while being prepared to safe harbor if necessary [60] Question: How is the company managing competition in light of tariff impacts? - Management emphasized a focus on differentiation and innovation rather than competing solely on price, which has helped maintain market share [95]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated $56 million in cash, marking the fourth consecutive quarter of positive cash generation [4] - The unrestricted cash balance increased by $30 million from the previous quarter, ending Q1 with $605 million [4] - The company paid down $27 million in parent debt, continuing its deleveraging efforts [4] - Subscriber value increased to approximately $52,000, a 15% increase compared to the prior year [24] - Aggregate subscriber value reached $1.2 billion, a 23% increase from the prior year [25] - Contracted net value creation was $164 million, a 104% increase from last year [26] Business Line Data and Key Metrics Changes - Customer additions grew by 6% year-over-year, with storage customer additions increasing by over 46% [6][7] - The storage attachment rate reached a record high of 69% [7] - The company has nearly quadrupled its solar and storage business in the last two years [8] Market Data and Key Metrics Changes - The company has gained considerable market share, achieving approximately 19% of new solar installations and about 45% of new storage installations across the country [8] - Demand for residential solar and storage remains strong, with the industry only penetrating about 6% of households [8] Company Strategy and Development Direction - The company is focused on delivering innovative products, such as Sunrun Flex, which allows customers to plan for their growing energy needs flexibly and affordably [16][17] - The strategy includes leveraging AI for operational efficiencies and quality enhancements [6] - The company is actively working on scenario planning regarding potential changes in tax and tariff policies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating meaningful cash this year despite uncertainties in tax policy and tariffs [5] - The company anticipates that tariff impacts will create cost headwinds of approximately $1,000 to $3,000 per subscriber in 2025 [35] - For the full year, the company expects aggregate subscriber value to be between $5.7 billion and $6 billion, representing 14% growth at the midpoint [34] Other Important Information - The company has increased its unrestricted cash balance by $118 million and grown net earning assets by $1.6 billion over the past year [33] - The company is exploring further capital allocation options to maximize shareholder value based on market conditions [33] Q&A Session Summary Question: Can you bridge the contracted net value creation for Q2 and the full year? - Management indicated that the impact of tariffs will be more pronounced in the second half of the year, affecting the full-year guidance [40] Question: What is the sourcing strategy regarding tariffs? - Management noted that manufacturing has increasingly moved onshore, which may help mitigate tariff impacts [44] Question: How is customer demand responding to potential price increases? - Management stated that demand remains strong, particularly in uncertain economic conditions, as consumers seek price certainty [50] Question: What is the expected impact of tariffs on pricing? - Management indicated that the gross impact of tariffs could lead to a 10% increase in costs later in the year, primarily driven by battery costs [104] Question: How does the company plan to manage potential changes in tax credit transferability? - Management emphasized that they would rely more on the traditional tax equity market if transferability were removed, but they remain confident in their ability to adapt [85] Question: What is the expected trend for ITC levels throughout the year? - Management expects to maintain a mid-forty percent ITC level for the remainder of the year [97]

Financial Performance Highlights - Aggregate Subscriber Value reached $1.2 billion in 1Q25, a 23% year-over-year increase[6] - Contracted Net Value Creation was $164 million in 1Q25, up 104% year-over-year[6] - Cash Generation was $56 million in 1Q25, marking the fourth consecutive quarter of positive cash generation[6] - Contracted Net Earning Assets stood at $2.6 billion as of March 31, 2025, which includes $605 million of unrestricted cash[7] Subscriber and Storage Growth - Customer Additions with Storage grew 46% year-over-year in Q1, with Storage Attachment Rate reaching 69%[11] - Contracted Subscriber Value increased 14% year-over-year to $48,727 in Q1 2025 due to higher-value Storage customers[11] - Subscriber Additions were 23,692 in 1Q25, a 74% year-over-year increase[44] Unit Economics and Value Creation - Net Subscriber Value expanded year-over-year to $10,390, driven by a record-high Storage Attachment Rate of 69% and ITC levels of 44%[44] - Aggregate Subscriber Value increased 23% year-over-year to $1.2 billion, while Aggregate Creation Costs increased 14% to $991 million[50] Capital Management and Debt - The company is planning to allocate $100 million or more of Cash Generation to repaying parent debt in 2025[68] - The company repaid or repurchased $27 million of recourse debt during Q1 and $214 million over the last four quarters[68] Guidance - The company expects Aggregate Subscriber Value of $1.3 to $1.375 billion for 2Q 2025, representing 21% year-over-year growth at the midpoint, and $5.7 to $6.0 billion for full-year 2025, representing 14% year-over-year growth at the midpoint[70]

Company Overview - As of March 31, 2025, Sunrun operates the largest fleet of residential solar energy systems in the U.S. with a Networked Solar Energy Capacity of 7,721 megawatts (MW) and Gross Earning Assets of approximately $18.5 billion[119]. - The company has experienced substantial growth since its inception in 2007 and through the acquisition of Vivint Solar on October 8, 2020[119]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $504.3 million, a 10% increase from $458.2 million in the same period of 2024[162]. - Revenue from customer agreements and incentives increased by $80.0 million, or 25%, to $402.9 million, driven by new systems placed in service[163]. - Revenue from solar energy systems and product sales decreased by $33.9 million, or 25%, to $101.4 million, primarily due to a shift towards customer agreements[163]. - Operating expenses totaled $619.2 million, a decrease of 3% from $641.3 million in the prior year[165]. - The cost of customer agreements and incentives decreased to 77% of revenue from 83% in the prior year, indicating improved pricing strategies[166]. - Net loss attributable to common stockholders was $50.0 million, compared to a loss of $87.8 million in the prior year[162]. - Basic net income per share attributable to common stockholders was $0.22, a recovery from a loss of $0.40 per share in the previous year[162]. Subscriber and Asset Growth - As of March 31, 2025, the company reported Subscriber Additions of 23,692, an increase from 22,058 in the same period of 2024, representing a growth of approximately 7.4%[138]. - The Contracted Subscriber Value per Subscriber increased to $48,727 as of March 31, 2025, up from $42,871 in 2024, reflecting a growth of about 13.5%[138]. - The Aggregate Contracted Subscriber Value reached $1,154,440,000 as of March 31, 2025, compared to $945,649,000 in 2024, indicating a year-over-year increase of approximately 22.1%[138]. - The company's Networked Solar Capacity grew to 7,721 megawatts as of March 31, 2025, up from 6,866 megawatts in 2024, marking an increase of about 12.4%[138]. - Total Gross Earning Assets amounted to $18,536,222,000 as of March 31, 2025, compared to $15,037,540,000 in 2024, representing a growth of approximately 23.3%[138]. - Contracted Gross Earning Assets were reported at $14,294,083,000 as of March 31, 2025, an increase from $11,545,364,000 in 2024, reflecting a growth of about 23.8%[138]. - Non-contracted or Upside Gross Earning Assets increased to $4,242,139,000 as of March 31, 2025, compared to $3,492,176,000 in 2024, indicating a growth of approximately 21.4%[138]. Market and Regulatory Environment - Market uncertainties, including rising interest rates and inflation, have impacted financing structures, potentially decreasing available capital for new solar energy system deployments[121]. - California's new net billing tariff (NBT) has limited the financial attractiveness of solar-only systems, shifting the market towards solar plus storage offerings[123]. - Since the implementation of NBT, originations in California have remained below pre-transition levels, potentially affecting new installations and financial performance[125]. - The recent transition in U.S. government may create regulatory uncertainties that could impact the residential solar industry, including federal tax credits and tariffs[132]. Financing and Capital Management - As of March 31, 2025, Sunrun had 64 active Funds to monetize customer agreements and related solar energy systems, providing a low weighted average cost of capital[134]. - The company emphasized the importance of financing systems with Fund investors to provide solar service offerings economically[136]. - The company anticipates raising additional capital from new and existing investors to meet future cash needs[176]. - Committed and available capital for solar energy systems as of March 31, 2025, was approximately $617.7 million[183]. - The company generated $790.7 million from financing activities in Q1 2025, compared to $473.9 million in Q1 2024[181]. - Cash used in investing activities was $655.0 million in Q1 2025, primarily for solar energy systems, up from $535.4 million in Q1 2024[180]. - Net cash used in operating activities was $(104.2) million in Q1 2025, an improvement from $(143.1) million in Q1 2024[178]. - As of March 31, 2025, cash totaled $604.9 million, with outstanding borrowings of $358.5 million on a $447.5 million credit facility[175]. Future Outlook and Strategy - Sunrun aims to capitalize on the electrification of U.S. households with renewable energy, expanding into EV chargers, battery retrofits, and home energy management services[129]. - The company plans to pursue acquisitions of previously installed solar systems opportunistically to enhance future upsell and retrofit opportunities[130]. - The company’s future cash flows are projected based on assumptions of a 30-year customer relationship and a 90% renewal rate after the initial contract term[139]. Other Financial Metrics - Interest expense increased by $35.3 million, or 18%, primarily due to additional non-recourse debt[171]. - The estimated production shortfall reduced revenue by approximately $2.1 million more than the prior year's period[151]. - If assumptions for redeemable noncontrolling interests were 10% higher, the impact would be a reduction of $22.4 million as of March 31, 2025[160]. - Other (expense) income decreased by $135.3 million, primarily due to losses on derivatives recognized in Q1 2025[172]. - Income tax benefit increased by $108.3 million, primarily from transferring investment tax credits, resulting in a benefit of $(2,201) in Q1 2025 compared to $(110,550) in Q1 2024[173]. - Net loss attributable to noncontrolling interests increased by 68% to $(327,182) in Q1 2025, attributed to the addition of eight new investment funds since March 31, 2024[174].

Exhibit 99.1 Sunrun Reports First Quarter 2025 Financial Results Aggregate Subscriber Value of $1.2 billion in Q1, 23% growth year-over-year Contracted Net Value Creation of $164 million, or $0.72 per share, 104% growth year-over-year Cash Generation of $56 million in Q1, the fourth consecutive quarter of positive Cash Generation Paid down $27 million of recourse debt in Q1 with excess cash Reiterating Cash Generation guidance of $200 million to $500 million in 2025 Customer Additions with Storage grew 46% ...

Core Insights - Sunrun reported a strong first quarter in 2025, achieving an aggregate subscriber value of $1.2 billion, reflecting a 23% year-over-year growth [1] - The company generated a contracted net value creation of $164 million, or $0.72 per share, marking a 104% increase year-over-year [1][8] - Cash generation reached $56 million, representing the fourth consecutive quarter of positive cash generation [1][10] Financial Performance - Total revenue for Q1 2025 was $504.3 million, a 10% increase from Q1 2024 [14] - Customer agreements and incentives revenue increased by 25% to $402.9 million, while solar energy systems and product sales revenue decreased by 25% to $101.4 million [14] - The total cost of revenue decreased by 5% year-over-year to $405.4 million, and total operating expenses decreased by 3% to $619.2 million [15] Subscriber Metrics - Subscriber additions totaled 23,692, a 7% increase compared to Q1 2024, bringing the total number of subscribers to 912,878, which is a 14% increase year-over-year [5] - The storage attachment rate reached a record 69%, up from 50% in the prior year, with customer additions with storage growing by 46% [3][6] - Subscriber value increased by 15% to $52,206, while contracted subscriber value rose by 14% to $48,727 [6] Debt Management - The company paid down $27 million of recourse debt in Q1 2025, contributing to a total reduction of $214 million over the last four quarters [9] - Sunrun has no near-term corporate debt maturities and expects to pay down an additional $100 million or more in recourse debt in 2025 [9] Market Position and Strategy - Sunrun's CEO highlighted the company's focus on delivering high-quality products, optimizing market routes, and leveraging AI for operational efficiencies [2] - The introduction of Sunrun Flex, a new solar-plus-storage subscription, aims to adapt to changing household energy needs, marking a significant innovation in the solar industry [9] - The CalReady distributed power plant has expanded significantly, providing critical energy to California's grid during peak demand periods [9] Outlook - For Q2 2025, aggregate subscriber value is expected to range from $1.3 billion to $1.375 billion, representing a 21% growth compared to Q2 2024 [11] - Contracted net value creation is projected to be between $125 million and $200 million for Q2 2025, indicating an 80% growth compared to the same period last year [11] - Full-year 2025 cash generation is expected to remain between $200 million and $500 million, consistent with previous guidance [13]

Core Viewpoint - Sunrun has introduced Sunrun Flex™, a solar and battery storage solution that adapts to customers' changing energy needs, marking a significant innovation in the solar industry since 2007 [1][4]. Product Features - Sunrun Flex is designed to accommodate increased energy consumption due to life events, such as family growth or electric vehicle purchases, offering a predictable monthly payment structure [2][5]. - Customers benefit from battery backup during outages and can earn Sunrun Rollover Credits, a unique feature in the solar industry [3][5]. - The system is sized above a customer's pre-solar usage to meet future energy needs, allowing customers to pay a minimum monthly bill and purchase additional electricity at a locked-in Flex Rate if they exceed their baseline [5][6]. Customer Benefits - Sunrun Flex provides cost predictability with affordable monthly payments and the ability to adjust energy usage as life changes, ensuring clarity on cost per kilowatt hour [7]. - Customers can earn Rollover Credits for using less energy than their baseline, which can be applied in future months when energy consumption exceeds the baseline [7]. - The offering includes premium battery storage for backup during outages and helps customers avoid peak utility rates by utilizing stored solar power [7]. Company Background - Sunrun Inc. revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to renewable energy, positioning itself as the leading provider of clean energy as a subscription service [9].

Core Insights - Sunrun's CalReady power plant has significantly expanded, now providing critical energy support to California's grid during peak demand periods [1][3] - The company emphasizes its role in transforming the energy grid towards a more reliable and independent energy source for consumers [2][4] Group 1: Expansion and Capacity - CalReady has more than quadrupled its power output, expected to deliver an average of 250 megawatts per two-hour event, with a peak capacity of 375 megawatts, sufficient to power approximately 280,000 homes [3][4] - In 2024, CalReady enrolled over 16,000 households, delivering an average of 48 megawatts during summer heat waves [3] Group 2: Customer Benefits and Compensation - Sunrun customers participating in CalReady can earn up to $150 per battery for sharing stored solar energy, with total expected compensation nearing $10 million this year [4][5] - The program has delivered over $1.5 million in value to customers last year, contributing to lower costs and grid stability [4] Group 3: Strategic Importance and Market Position - CalReady is recognized as the largest home storage aggregation in California's Demand Side Grid Support program, showcasing Sunrun's leadership in the virtual power plant space [2][4] - The storage-first strategy has led to over 60% of new customers opting for battery storage, with nearly 90% in California [6] Group 4: Operational Efficiency - Sunrun actively manages and dispatches the participating batteries, ensuring a seamless experience for customers while maintaining a backup reserve for outages [7]

Company Performance - Sunrun's stock closed at $7.50, reflecting a gain of 1.49% from the previous trading session, outperforming the S&P 500's daily gain of 0.06% [1] - Over the past month, Sunrun's shares have appreciated by 24.41%, contrasting with the Oils-Energy sector's loss of 10.24% and the S&P 500's loss of 4.29% [1] Upcoming Earnings - Sunrun is set to release its earnings report on May 7, 2025, with an expected EPS of -$0.22, indicating a 45% growth compared to the same quarter last year [2] - The consensus estimate for revenue is $493.97 million, representing a 7.81% increase from the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of -$0.47 per share and revenue of $2.22 billion, reflecting changes of -135.34% and +9.15% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Sunrun indicate short-term business trends, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system, which assesses estimate changes, indicates that these revisions can correlate with stock price performance [5] Zacks Rank - Sunrun currently holds a Zacks Rank of 2 (Buy), with a consensus EPS projection that has increased by 24.46% in the past 30 days [6] - The Zacks Rank system has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [6] Industry Context - The solar industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 171, placing it in the bottom 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Sunrun has launched three new solar installations in affordable housing communities in Orange County, California, aimed at providing significant utility bill savings to low-income residents, thereby addressing rising living costs and promoting clean energy [6][8][11]. Group 1: Project Details - The solar installation at Arroyo Vista features a 368-kilowatt system that will offset approximately 80% of the community's energy usage, resulting in about $60 in monthly savings for each apartment [2][10]. - Collectively, the new solar projects will provide 748 kilowatts of electricity, benefiting around 800 low-income residents across three apartment complexes: Arroyo Vista, Villa Plumosa, and Yorba Linda Palms [8][11]. - Over the next 20 years, the solar installation at Arroyo Vista is projected to save low-income renters over $3.5 million on their electric bills [11]. Group 2: Economic and Community Impact - The projects are expected to create local jobs and stimulate economic activity in the community, while also providing financial relief to families struggling with energy costs [5][17]. - The solar installations are part of California's Solar On Multifamily Affordable Housing (SOMAH) program, which allows residents to benefit from solar energy at no cost, funded by polluters under the state's cap-and-trade program [16][17]. - Sunrun currently serves over 21,000 households in low-income multifamily properties, contributing to community stability and opportunity through reduced energy costs [17]. Group 3: Company Overview - Sunrun is the leading provider of clean energy as a subscription service in the U.S., having revolutionized the solar industry by removing financial barriers and democratizing access to renewable energy [18]. - The company offers residential solar and storage solutions with no upfront costs, enhancing customer value while managing energy services that benefit communities and the electric grid [18].