Solar Energy Capacity and Assets - As of December 31, 2024, the company operated a Networked Solar Energy Capacity of 7,531 megawatts, representing the largest fleet of residential solar energy systems in the United States[30] - Gross Earning Assets as of December 31, 2024, were approximately $17.8 billion[30] Financing and Investment - The company has raised tax equity investment funds since inception to finance the installation of solar energy systems[31] - Federal, state, and local government incentives, including tax credits and rebates, help lower the price charged to customers, promoting solar energy adoption[54] - The Residential Clean Energy Credit is set at 30% for solar facilities placed in service from January 1, 2022, through December 31, 2032[55] - The Commercial ITC is 30% for solar facilities placed in service in 2022 and prior to January 1, 2025, assuming apprenticeship and prevailing wage requirements are met[57] Sales and Customer Engagement - The company offers solar service through three channels: direct-to-consumer, solar partnerships, and strategic partnerships, enhancing market reach and customer acquisition efficiency[32][36] - Customer Agreements typically have an initial term of 20 or 25 years, with options for fixed or escalated pricing, ensuring competitive pricing below utility rates[38] - The company has a multi-channel sales strategy that includes online, retail, and partner networks, which enhances customer engagement and sales volume[42][37] - The company compensates solar integrators, sales partners, and installation partners on a per solar energy system basis, creating a flexible and efficient operational model[35] Competition and Market Position - The company faces competition primarily from traditional utilities and other solar companies, but believes its unique multi-channel approach provides a competitive advantage[46][47] Employee and Workplace Initiatives - As of December 31, 2024, the company had approximately 11,058 full-time employees, with 81% being frontline sales and installation employees[62] - The company has launched a wellbeing strategy in 2024 to enhance employees' mental, physical, social, financial, and career wellbeing[60] - The company is focused on inclusion and diversity, requiring diverse interview panels for all new management-level roles[61] - The company has invested in a career mobility platform and education benefits to develop future leaders[60] - The company has not experienced any work stoppages and none of its employees are covered by collective bargaining agreements[62] Financial Risks - A hypothetical 10% increase in interest rates on variable rate debt facilities would have increased interest expense by $14.8 million for the year ended December 31, 2024[420] - The company is exposed to market risks, particularly interest rate changes, which could impact operating expenses and capital investments[420] - The U.S. Treasury is expected to issue final rules on ITC bonus credits in 2025, which may be subject to Congressional Review Act challenges[56] Innovation and Intellectual Property - The company has 61 issued patents and 11 filed patent applications in the United States as of December 31, 2024, indicating a strong focus on innovation[49]

4Q 2024 Financial Results Mary Powell CEO 3 Sunrun delivered rapid top-line Subscriber value growth, net value growth, strong Cash Generation & increased book value of our customer base $1.6 billion Aggregate Subscriber Value(1) February 27, 2025 Safe harbor & forward looking statements This communication contains forward-looking statements related to Sunrun (the "Company") within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private ...

Financial Performance - Cash Generation was $34 million in Q4 2024, marking the third consecutive quarter of positive Cash Generation[2] - Total revenue for Q4 2024 was $518.5 million, a slight increase of $1.9 million from Q4 2023[16] - Total revenue for Q4 2024 was $518.5 million, a slight increase from $516.6 million in Q4 2023, while total revenue for the year ended December 31, 2024, was $2.04 billion, down from $2.26 billion in 2023[34] - Net loss for Q4 2024 was $3.40 billion, compared to a net loss of $535.4 million in Q4 2023, with a net loss attributable to common stockholders of $2.81 billion for the quarter[34] - The company reported a significant increase in operating expenses, totaling $3.77 billion for Q4 2024, compared to $714.1 million in Q4 2023, largely due to a goodwill impairment of $3.12 billion[34] - The company reported a net loss of $3,399,951 for the three months ended December 31, 2024, compared to a net loss of $535,406 for the same period in 2023[36] Assets and Liabilities - Net Earning Assets increased to $6.8 billion, including $947 million in Total Cash as of December 31, 2024[2] - Cash and cash equivalents decreased to $575.0 million as of December 31, 2024, down from $678.8 million at the end of 2023[32] - Total assets decreased to $19.90 billion as of December 31, 2024, from $20.45 billion in 2023[32] - The company’s total liabilities increased to $15.73 billion in 2024, compared to $13.54 billion in 2023[32] Customer Growth and Revenue - Customer Additions totaled 32,932 in Q4 2024, with a 12% growth in total Customers year-over-year[7] - Annual Recurring Revenue from Subscribers was approximately $1.6 billion as of December 31, 2024[8] - Customer agreements and incentives revenue increased to $388.6 million in Q4 2024, up from $321.6 million in Q4 2023[34] - Subscriber Value increased by 11% to $55,811 in Q4 2024 compared to Q4 2023[8] - The annual recurring revenue was reported at $1,644 million as of December 31, 2024[43] Capacity and Growth Metrics - Storage Capacity Installed reached 392 Megawatt hours in Q4 2024, representing a 78% year-over-year growth[10] - Solar Energy Capacity Installed was 242 Megawatts in Q4 2024, a 7% increase compared to Q4 2023[11] - Solar energy capacity installed reached 242.4 megawatts for the three months ended December 31, 2024[43] Future Outlook and Strategy - The company expects Cash Generation to be between $200 million and $500 million for the full year 2025[13] - The company aims to focus on margin improvement and multi-product offerings to enhance customer value and market penetration[28] - Future expectations include growth in home electrification and distributed energy resources, alongside anticipated demand for new products and technologies[28] - The company is actively managing its supply chain and workforce to mitigate risks associated with market conditions and regulatory changes[28] Impairments and Non-Cash Charges - A non-cash goodwill impairment charge of approximately $3.1 billion was recorded in Q4 2024, impacting net loss figures[21] - The company incurred a goodwill impairment of $3,122,168 for the year ended December 31, 2024[36] Cash Flow and Financing - Total cash used in operating activities was $258,359 for the three months ended December 31, 2024, compared to $116,007 for the same period in 2023[36] - Net cash provided by financing activities was $987,570 for the three months ended December 31, 2024[36] Value Metrics - The company achieved a total value generated of $588.9 million during the three months ended December 31, 2024[43] - Gross earning assets amounted to $17,834 million as of December 31, 2024[43] - Gross Earning Assets include both the contracted and renewal periods, representing the present value of future cash flows from Subscribers[53][54] - Total Value Generated is the product of Net Subscriber Value and Subscriber Additions[50] Environmental Impact - Positive Environmental Impact from Customers is estimated at millions of metric tons of avoided carbon emissions due to energy produced from Networked Solar Energy Capacity[60]

Cash Generation of $34 million in Q4 after safe harbor equipment purchases, third consecutive quarter of positive Cash Generation Paid down $132 million of recourse debt in Q4 with excess cash Cash Generation guidance of $200 million to $500 million in 2025 Cash Generation guidance of $40 to $50 million in Q1 Net Earning Assets increased to $6.8 billion, including $947 million of Total Cash Storage Capacity Installed of 392 Megawatt hours in Q4, exceeding high-end of guidance range and representing 78% year ...

Core Viewpoint - Analysts expect Sunrun to report a quarterly loss of $0.27 per share, reflecting a year-over-year increase of 79.7%, with revenues projected at $538.42 million, up 4.2% from the previous year [1] Revenue Estimates - The consensus estimate for 'Revenue- Customer agreements and incentives' is $375.17 million, indicating a year-over-year increase of 16.7% [4] - Analysts project 'Revenue- Solar energy systems and product sales' to be $158.65 million, showing a decline of 18.7% year over year [4] - 'Revenue- Solar energy systems' is expected to be $72.53 million, down 19% year over year [5] - 'Revenue- Incentives' is forecasted to reach $39.43 million, reflecting a 17% increase from the year-ago quarter [5] - 'Revenue- Products' is projected at $88.70 million, indicating a decrease of 15.9% from the previous year [5] - 'Revenue- Customer agreements' is estimated at $353.72 million, suggesting a year-over-year increase of 22.9% [6] Capacity and Profitability Metrics - Analysts expect 'Solar Energy Capacity Installed for Subscribers' to be 248.89 MW, compared to 208.2 MW reported in the same quarter last year [6] - 'Networked Solar Energy Capacity' is forecasted at 7,562.94 MW, up from 6,689 MW in the same quarter of the previous year [7] - 'Gross Profit- Customer Agreements and Incentives' is projected to reach $62.21 million, compared to $33.78 million reported in the same quarter last year [7] Cost Estimates - The 'Cost of solar energy systems and product sales' is expected to be $152.12 million, down from $194.81 million in the same quarter last year [8] - 'Cost of customer agreements and incentives' is projected to reach $307.94 million, compared to $287.78 million in the previous year [8] Stock Performance - Over the past month, Sunrun shares have declined by 17.7%, while the Zacks S&P 500 composite has decreased by 0.5% [9] - Sunrun currently holds a Zacks Rank 3 (Hold), indicating that its performance may align with the overall market in the near future [9]

Company Overview - Sunrun is expected to report a quarterly loss of $0.27 per share, reflecting a year-over-year change of +79.7% [3] - Revenues are anticipated to be $538.42 million, which is a 4.2% increase from the same quarter last year [3] - The consensus EPS estimate has been revised 4.24% lower in the last 30 days, indicating a reassessment by analysts [4] Earnings Expectations - The upcoming earnings report is scheduled for February 27, and the stock may rise if actual results exceed expectations [2] - Conversely, if results fall short, the stock may decline [2] - The Earnings ESP for Sunrun is -174.62%, suggesting analysts have become bearish on the company's earnings prospects [10][11] Historical Performance - In the last reported quarter, Sunrun was expected to post a loss of $0.16 per share but actually reported a loss of $0.37, resulting in a surprise of -131.25% [12] - Over the past four quarters, Sunrun has beaten consensus EPS estimates two times [13] Industry Context - In the Zacks Solar industry, First Solar is expected to report earnings of $4.69 per share, indicating a year-over-year change of +44.3% [17] - First Solar's revenue is projected to be $1.47 billion, up 26.9% from the previous year [17] - The consensus EPS estimate for First Solar has been revised 3% lower, resulting in an Earnings ESP of -1.72% [18]

Core Insights - Sunrun has established itself as the leading provider of clean energy as a subscription service, with a significant portfolio of virtual power plants (VPPs) that supported power grids across the U.S. in 2024, achieving a combined peak capacity of nearly 80 megawatts, surpassing many traditional fossil-fuel power plants [1][3][6] Group 1: Virtual Power Plant Initiatives - In 2024, over 20,000 Sunrun customers participated in 16 VPP programs across nine states and territories, providing stored solar energy during critical energy events [2][4] - The CalReady program in California involved over 16,000 customers, delivering an average of 48 megawatts of stored solar energy, peaking at 54 megawatts, enough to power approximately 48,000 homes [5] - The PowerOn Puerto Rico program saw over 4,000 customers providing backup energy during more than 70 energy shortfall events, helping to prevent rolling blackouts [5] Group 2: Strategic Partnerships and Innovations - Sunrun partnered with Tesla Electric and Vistra in Texas to leverage home batteries for peak consumption reserves, offering customers an annual payment of $400 per Powerwall [5] - In New York, Sunrun activated the state's largest residential VPP, providing stored solar energy during peak demand events, with customers receiving free or discounted home batteries [5] - The company launched the first bidirectional electric vehicle-to-home VPP in Maryland, utilizing customer-owned Ford F-150 Lightnings, allowing participants to earn several hundred dollars by sharing energy [5] Group 3: Market Position and Growth - Sunrun's storage-first approach has positioned it as one of the largest distributed power providers in the U.S., serving as a vital resource for utilities and grid operators [6] - Customer enrollment in Sunrun's power-sharing programs grew approximately 100% year-over-year in 2024, indicating strong market demand [6] - The company aims to monetize more battery assets and secure additional recurring revenue streams in 2025 [4][6]

Core Insights - Sunrun's virtual power plants (VPPs) supported power grids with a combined peak capacity of nearly 80 megawatts in 2024, surpassing many traditional fossil-fuel power plants [1][3] - Over 20,000 customers participated in 16 VPP programs across nine states, providing stored solar energy during critical energy events [2][4] - The company is positioned to enhance grid reliability, lower emissions, and reduce costs for electricity customers [4][6] Group 1: Virtual Power Plant Performance - Sunrun's VPP initiatives in California delivered an average of 48 megawatts of stored solar energy, peaking at 54 megawatts, enough to power approximately 48,000 homes [5] - In Puerto Rico, over 4,000 customers' batteries provided backup energy during more than 70 energy shortfall events, helping to avoid rolling blackouts [5] - The Texas program, in partnership with Tesla Electric, offers customers an annual payment of $400 per Powerwall, while Sunrun benefits from recurring revenue [5] Group 2: Strategic Importance and Market Position - The CEO highlighted the increasing demand for electricity and the inability of utilities to keep pace, positioning Sunrun as a critical resource for grid support [3] - Sunrun's storage-first approach has led to a 100% year-over-year growth in customer enrollment in power-sharing programs [6] - The company aims to monetize more battery assets and secure additional revenue streams in 2025 [4][6] Group 3: Innovative Programs and Collaborations - Sunrun launched the first bidirectional electric vehicle-to-home VPP in Maryland, utilizing customer-owned Ford F-150 Lightnings [5] - Collaborations with utilities like Orange & Rockland in New York have activated the state's largest residential VPP, enhancing energy supply during peak demand [5] - The company's innovative solutions are designed to democratize access to renewable energy and provide energy security for customers [8]

Core Insights - Sunrun has successfully priced its first securitization transaction of 2025, marking the second largest in the industry's history, showcasing strong execution in capital markets [2][3] - The transaction includes three classes of A rated notes and one class of BB rated notes, with a total of $628.5 million in Class A notes and a retention of Class B notes [3][4] - The Class A-1 and Class A-2A notes were oversubscribed, with coupons of 5.99% and 6.41% respectively, reflecting a 42 basis points improvement from the previous securitization in September 2024 [3] Securitization Details - The Class A-1 notes amount to $102.0 million, while Class A-2A notes total $276.5 million, and Class A-2B notes are privately placed at $250.0 million [3] - The weighted average spread for Class A notes is 192 basis points, with an expected weighted average life of 4.58 years for Class A-1 and 7.12 years for Class A-2A [3] - The anticipated repayment date for both classes of notes is April 30, 2032, with a final maturity date of April 30, 2060 [3] Asset Backing and Portfolio - The notes are backed by a diversified portfolio of 39,458 systems across 20 states, Washington D.C., and Puerto Rico, covering 83 utility service territories [5] - The weighted average customer FICO score for the portfolio is 738, indicating a strong credit quality [5] Strategic Partnerships - ATLAS SP Partners served as the sole structuring agent and joint bookrunner for the securitization, highlighting a strong partnership with Sunrun [6][7] - The collaboration aims to enhance the efficiency of large transactions in the capital markets, supporting the growth of the solar industry [7]

Core Viewpoint - Sunrun has successfully priced its first securitization of 2025, marking the second largest transaction in the industry's history, showcasing its strong execution in capital markets and ability to access competitively priced capital to support growth [2][3]. Securitization Details - The securitization consists of three classes of A rated notes (Class A-1, Class A-2A, and Class A-2B) and one class of BB rated notes (Class B) [3]. - Class A-1 notes total $102.0 million with a coupon of 5.99%, while Class A-2A notes total $276.5 million with a coupon of 6.41% [3]. - Class A-1 notes priced at a spread of 170 basis points and a yield of 6.035%, while Class A-2A notes priced at a spread of 200 basis points and a yield of 6.465% [3]. - The weighted average spread for Class A notes improved by 42 basis points compared to the previous securitization in September 2024 [3]. - The initial balance of Class A notes represents a 65.3% advance rate on the Securitization Share of ADSAB [3]. Portfolio and Customer Metrics - The notes are backed by a diversified portfolio of 39,458 systems across 20 states, Washington D.C., and Puerto Rico, covering 83 utility service territories [5]. - The weighted average customer FICO score is 738, indicating a strong credit profile among customers [5]. Transaction Timeline and Structure - The transaction is expected to close by February 5, 2025 [5]. - Sunrun plans to raise additional subordinated subsidiary-level non-recourse financing secured by distributions from the retained Class B notes, which is anticipated to increase the cumulative advance rate [4]. Involvement of Financial Institutions - ATLAS SP Partners served as the sole structuring agent and joint bookrunner alongside BofA Securities, Morgan Stanley, MUFG, and TD Securities [6].