Core Insights - Sunrun reported quarterly earnings of $1.07 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.18 per share, marking an earnings surprise of +694.44% [1] - The company achieved revenues of $569.34 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.17% and showing an increase from $523.87 million year-over-year [2] Financial Performance - Over the last four quarters, Sunrun has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $604.9 million, and for the current fiscal year, it is -$0.41 on revenues of $2.26 billion [7] Market Position - Sunrun shares have increased by approximately 1.8% since the beginning of the year, underperforming compared to the S&P 500's gain of 7.1% [3] - The Zacks Industry Rank indicates that the Solar industry is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] Future Outlook - The sustainability of Sunrun's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Sunrun was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - The company generated $1.6 billion in top line aggregate subscriber value, a 40% year-over-year increase, significantly exceeding guidance [7][20] - Contracted net value creation reached $376 million, more than doubling from the previous quarter and well above guidance [8][20] - Cash generation was $27 million, marking the fifth consecutive quarter of positive cash generation, although lower than prior guidance [9][10][29] Business Line Data and Key Metrics Changes - The attachment rate of storage offerings grew to an all-time high of 70% of customer additions during the quarter [8] - Subscriber value increased to approximately $54,000, a 22% increase compared to the prior year, driven by a 16 percentage point increase in storage attachment rate [18] - Net subscriber value grew by 182% year-over-year to $17,000, the highest in the company's history [19] Market Data and Key Metrics Changes - The company represents over 40% of storage installations and more than one-third of subscription volumes nationally [14] - The company expects to have more than 10 gigawatt hours of dispatchable energy online by 2029, indicating significant growth potential in the market [12] Company Strategy and Development Direction - The company is transitioning to lead with storage and provide sophisticated products and services, positioning itself as a major independent power producer [10][11] - The focus remains on running a sustainable business with strong margins and high-quality installations, even as market dynamics present growth opportunities [14] - The company is actively engaged in Washington D.C. to ensure its role in building the nation's largest distributed power plant is recognized [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting cash generation outlook of $200 million to $500 million for the full year despite lower quarterly cash generation [10][29] - The company anticipates continued strong financial returns under enacted legislation, with a focus on energy resilience and independence for homeowners [13][14] - Management noted that the transition to a post-ITC world will require strategic adjustments but remains optimistic about maintaining margins and growth [16][29] Other Important Information - The company paid down $21 million in recourse debt during the quarter, ending with $618 million in unrestricted cash, a $13 million increase from the prior quarter [10][27] - The company has secured approximately $1.2 billion in upfront cash for subscriber additions in Q2, representing about 85% of the aggregate contracted subscriber value [21] Q&A Session Summary Question: Clarification on safe harbor and construction timelines - Management confirmed that safe harbor activities extend the runway for ITC benefits beyond 2028, with a focus on maintaining margins [33][34] Question: Cash generation guidance and working capital - Management indicated that cash generation guidance reflects working capital effects and expectations for the remainder of the year [36][37] Question: Drivers of net value creation increase - Management attributed the increase to higher volume, improved margins, and operational efficiencies, while noting that cash generation may be back-weighted [41][45] Question: Safe harbor spending and future plans - Management plans to continue safe harbor activities, depending on forthcoming treasury guidance [52][96] Question: Recurring revenue from grid services - Management estimated current recurring revenue from enrolled customers at around $20 million per year, with potential for significant growth [53][55] Question: Market dynamics post-25D tax credit - Management anticipates a 25% contraction in the overall market but expects some volume to flow to the company [61][64] Question: Opportunities to re-engage existing customers - Management sees significant potential to market grid services to the existing customer base, particularly those without storage [66][68] Question: Cost savings and efficiencies - Management emphasized ongoing efforts to reduce customer acquisition costs and improve operational efficiencies [71][73] Question: State-level policy and subsidy outlook - Management noted that state-level programs remain stable and may enhance opportunities for growth in renewable energy [80][81]

Financial Data and Key Metrics Changes - The company generated $1.6 billion in top line aggregate subscriber value, a 40% year-over-year increase, significantly exceeding guidance [6][19] - Contracted net value creation reached $376 million, more than doubling from the previous quarter and well above guidance [6][19] - Cash generation was $27 million, marking the fifth consecutive quarter of positive cash generation, although lower than prior guidance [7][8][22] - The company ended the quarter with $618 million in unrestricted cash, a $13 million increase from the prior quarter [9] Business Line Data and Key Metrics Changes - The attachment rate of storage offerings grew to an all-time high of 70% of customer additions [6] - Subscriber value increased to approximately $54,000, a 22% increase compared to the prior year [16] - Net subscriber value grew by 182% year-over-year to $17,000, the highest in the company's history [18] Market Data and Key Metrics Changes - The company represents over 40% of storage installations and more than one-third of subscription volumes nationally [13] - The enrollment in Home to Grid programs grew by 300% year-over-year, with over 71,000 customers participating [10] Company Strategy and Development Direction - The company is transitioning to lead with storage and provide sophisticated products and services, positioning itself as a significant independent power producer [9][10] - The focus remains on running a sustainable business with strong margins and high-quality installations, even as market dynamics present growth opportunities [13] - The company plans to have more than 10 gigawatt hours of dispatchable energy online by 2029 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong financial returns under the new legislation, despite the upcoming sunset of certain tax credits [12][13] - The company anticipates a cash generation outlook of $200 million to $500 million for the full year, reflecting strong operating performance [28] - Management noted that cash generation may be back-weighted in the year due to working capital timing and market activity [42] Other Important Information - The company has paid down $21 million in recourse debt during the quarter and has a plan to pay down $100 million or more in 2025 [26] - The company has secured $1.7 billion in tax equity thus far in 2025, providing a strong capital runway [23] Q&A Session Summary Question: Clarification on safe harbor and construction timelines - Management confirmed that the safe harbor extends the runway beyond 2028 and is working to articulate the loss in margin from the solar ITC [31][32] Question: Cash generation guidance and working capital - Management indicated that cash generation guidance reflects working capital effects and expectations for the balance of the year [34][35] Question: Factors driving net value creation increase - Management attributed the increase to sequential growth in volume, margin expansion from ITC increases, and operating cost efficiencies [40][41] Question: Safe harbor financing needs - Management stated that they are pursuing a capital-light strategy for safe harbor activities and are assessing the impact of executive orders on future plans [45][46] Question: Recurring revenue from grid services - Management noted that current recurring revenue from enrolled customers is around $20 million per year, with expectations for growth as more customers enroll [51][52] Question: State-level subsidies and policy programs - Management highlighted the importance of state-level programs and the potential for enhancements in renewable commitments [79][80] Question: Cost savings and efficiencies - Management emphasized ongoing efforts to reduce customer acquisition costs and improve operational efficiencies, aided by AI innovations [70][71] Question: Market dynamics post-25D tax credit - Management anticipates a 25% contraction in the overall market but believes some volume will flow to the company as partners transition to third-party owned models [60][61]

Financial Performance Highlights - Aggregate Subscriber Value reached $1.6 billion in 2Q25, a 40% year-over-year increase[7] - Contracted Net Value Creation was $376 million in 2Q25, up 316% year-over-year[7] - Cash Generation was $27 million in 2Q25, marking the fifth consecutive quarter of positive cash generation[8] - Upfront Net Subscriber Value exceeded $5.7k, representing an 11% margin, expanding 17 percentage points year-over-year[10] Operational Achievements - Customer Additions grew 15% year-over-year in Q2[14] - Customer Additions with Storage grew 50% year-over-year in Q2, with Storage Attachment Rate reaching 70%[14] - Sunrun dispatched 325 MWs of capacity during peak demand in California dispatches in June 2025[20] - Customer enrollments in home-to-grid distributed power plant programs has grown >300% y/y to more than 71k customers[17] Guidance and Outlook - 3Q 2025 Aggregate Subscriber Value is guided to be $1.5 to $1.6 billion, representing 8% growth year-over-year at the midpoint[81] - Full-year 2025 Contracted Net Value Creation is projected to be $1.0 to $1.3 billion, an increase from the prior guidance of $650 to $850 million, representing 67% growth year-over-year at the midpoint[81]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Sunrun's unaudited consolidated financial statements for Q2 2025, detailing the company's financial position, performance, and cash flows [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of **June 30, 2025**, total assets increased to **$21.23 billion** from **$19.90 billion** at year-end **2024**, with total liabilities rising to **$16.78 billion** from **$15.73 billion**, and total equity growing to **$3.73 billion** from **$3.54 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$21,230,135** | **$19,897,884** | | Cash | $618,057 | $574,956 | | Solar energy systems, net | $16,063,482 | $15,032,115 | | **Total Liabilities** | **$16,783,913** | **$15,733,674** | | Non-recourse debt, net | $13,224,063 | $12,037,846 | | **Total Equity** | **$3,730,637** | **$3,540,051** | - Assets of Variable Interest Entities (VIEs) that can only be used to settle VIE obligations amounted to **$14.46 billion** as of **June 30, 2025**, up from **$13.29 billion** at the end of **2024**[25](index=25&type=chunk) [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) For **Q2 2025**, total revenue grew to **$569.3 million**, while net loss widened to **$279.0 million**, yet net income attributable to common stockholders increased to **$279.8 million** due to noncontrolling interests Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$569,336** | **$523,866** | **$1,073,607** | **$982,054** | | Customer agreements and incentives | $458,000 | $387,825 | $860,920 | $710,792 | | Solar energy systems and product sales | $111,336 | $136,041 | $212,687 | $271,262 | | **Loss from Operations** | **($112,249)** | **($128,048)** | **($227,137)** | **($311,170)** | | **Net Loss** | **($278,984)** | **($259,928)** | **($556,155)** | **($543,078)** | | **Net Income Attributable to Common Stockholders** | **$279,773** | **$139,074** | **$329,784** | **$51,256** | | Diluted EPS | $1.07 | $0.55 | $1.28 | $0.23 | [Consolidated Statements of Cash Flows](index=15&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended **June 30, 2025**, net cash used in operating activities was **$396.9 million** and investing activities was **$1.35 billion**, offset by **$1.81 billion** from financing, resulting in a **$64.7 million** net increase in cash Consolidated Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($396,865) | ($351,638) | | Net cash used in investing activities | ($1,347,842) | ($1,144,249) | | Net cash provided by financing activities | $1,809,368 | $1,550,297 | | **Net change in cash and restricted cash** | **$64,661** | **$54,410** | [Notes to Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including VIE consolidation and revenue recognition, alongside disclosures on financial instruments, debt, derivatives, stock-based compensation, and commitments - The company's primary business is the design, installation, sale, ownership, and maintenance of home battery storage and solar energy systems. It utilizes a partnership-flip legal structure for its financing Funds[39](index=39&type=chunk)[41](index=41&type=chunk) - Revenue from customer agreements is recognized when the system receives permission to operate (PTO), typically on a straight-line basis over the **20 or 25-year** contract term. Revenue from solar energy system sales is recognized upon passing inspection by the local authority[60](index=60&type=chunk)[65](index=65&type=chunk) - As of **June 30, 2025**, the company had total debt of **$14.04 billion**, consisting of **$814.7 million** in recourse debt and **$13.22 billion** in non-recourse debt[82](index=82&type=chunk) - The company uses interest rate swaps to hedge variable interest payments on its debt, with a total notional amount of over **$4.3 billion** as of **June 30, 2025**[89](index=89&type=chunk)[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Sunrun's financial performance, key operating metrics, and liquidity, addressing macroeconomic challenges and regulatory impacts on its solar-plus-storage business [Overview and Market Environment](index=38&type=section&id=Overview%20and%20Market%20Environment) Sunrun, a leading solar-plus-storage provider, navigates macroeconomic headwinds and regulatory shifts like California's NBT and the federal OBBB Act, while pursuing home electrification and grid services opportunities - Sunrun's core offering is a solar-plus-storage service through **20- or 25-year** Customer Agreements, insulating customers from rising retail electricity prices[121](index=121&type=chunk) - The business is impacted by macroeconomic challenges such as rising interest rates, which increase the cost of capital, and trade policy uncertainties, including tariffs on solar components[128](index=128&type=chunk)[129](index=129&type=chunk) - The One Big Beautiful Bill Act (OBBB), signed into law on **July 4, 2025**, presents a significant regulatory challenge by shortening the availability of the Section 48E tax credit for solar facilities to the **end of 2027** and ending the Section 25D residential credit in **2026**[130](index=130&type=chunk) - In California, the Net Billing Tariff (NBT) has enhanced the value proposition for storage offerings, making the state predominantly a solar-plus-storage market for new installations[130](index=130&type=chunk) [Key Operating Metrics](index=43&type=section&id=Key%20Operating%20Metrics) As of **June 30, 2025**, key metrics show Networked Solar Capacity at **7,949 MW**, total customers at **1,105,080**, Gross Earning Assets at **$19.8 billion**, and Q2 subscriber additions of **28,823** with **$1.44 billion** in contracted value Key Metrics as of June 30 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Networked Solar Capacity (MW) | 7,949 | 7,058 | | Customers | 1,105,080 | 984,000 | Gross Earning Assets as of June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Contracted Gross Earning Assets | $15,154,928 | $12,050,938 | | Non-contracted or Upside Gross Earning Assets | $4,630,393 | $3,640,744 | | **Gross Earning Assets** | **$19,785,321** | **$15,691,682** | Subscriber Additions for Q2 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Subscriber Additions | 28,823 | 24,984 | | Contracted Subscriber Value (per Subscriber) | $49,919 | $41,872 | | Aggregate Contracted Subscriber Value (in thousands) | $1,438,803 | $1,046,136 | [Results of Operations](index=50&type=section&id=Results%20of%20Operations) For **Q2 2025**, total revenue increased **9%** to **$569.3 million**, while total operating expenses rose **5%** to **$681.6 million**, resulting in a **$279.0 million** net loss but a **$279.8 million** net income attributable to common stockholders Revenue Comparison - Q2 2025 vs. Q2 2024 (in thousands) | Revenue Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Customer agreements and incentives | $458,000 | $387,825 | $70,175 | 18% | | Solar energy systems and product sales | $111,336 | $136,041 | ($24,705) | (18)% | | **Total Revenue** | **$569,336** | **$523,866** | **$45,470** | **9%** | - The decrease in solar energy systems sales revenue was primarily due to a higher proportion of customers choosing service agreements over outright purchases, likely influenced by increased interest rates[174](index=174&type=chunk) Operating Expense Comparison - Q2 2025 vs. Q2 2024 (in thousands) | Expense Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of customer agreements and incentives | $345,376 | $298,665 | $46,711 | **16%** | | Cost of solar energy systems and product sales | $104,144 | $130,120 | ($25,976) | **(20)%** | | Sales and marketing | $152,459 | $151,657 | $802 | **1%** | | General and administrative | $71,543 | $61,229 | $10,314 | **17%** | | **Total Operating Expenses** | **$681,585** | **$651,914** | **$29,671** | **5%** | - The increase in net loss attributable to noncontrolling interests was primarily due to the addition of **six new investment funds** since **June 30, 2024**, as these funds typically allocate more losses to the noncontrolling interest in their early years[184](index=184&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) As of **June 30, 2025**, Sunrun had **$618.1 million** in cash, with operations primarily financed by investment funds and debt, and management expects sufficient liquidity for the **next 12 months** contingent on external financing - As of **June 30, 2025**, the company had cash of **$618.1 million** and outstanding borrowings of **$336.5 million** on its **$447.5 million** credit facility[199](index=199&type=chunk) - The business model requires substantial outside financing to fund growth. The company anticipates raising additional capital from new and existing investors and believes it has sufficient liquidity for at least the **next 12 months**[200](index=200&type=chunk) - The company has a purchase commitment with a supplier to purchase **$422.4 million** of batteries by the end of **Q4 2025**, which can be canceled without significant penalties[108](index=108&type=chunk)[200](index=200&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on variable-rate debt, which it hedges using derivative instruments, with no material changes since **December 31, 2024** - The company's main market risk is from interest rate fluctuations on its variable-rate debt[208](index=208&type=chunk) - Sunrun uses derivative instruments to hedge its interest rate exposure and does not use them for speculative purposes[208](index=208&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of **June 30, 2025**, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[210](index=210&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the quarter[211](index=211&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings, which management does not currently expect to have a material adverse effect on its financial position - The company is subject to legal proceedings in the ordinary course of business but does not currently expect them to have a material adverse effect[113](index=113&type=chunk)[214](index=214&type=chunk) [Item 1A. Risk Factors](index=59&type=page&id=Item%201A.%20Risk%20Factors) The company faces significant risks from evolving industry dynamics, regulatory changes, financing challenges, operational vulnerabilities, and tax policy uncertainties [Risks Related to the Battery Storage and Solar Industry](index=59&type=section&id=Risks%20Related%20to%20the%20Battery%20Storage%20and%20Solar%20Industry) The company operates in an evolving market, facing intense competition, rising material costs, and adverse changes to government incentives from the new OBBB Act - The business is highly dependent on government incentives. The OBBB Act, signed **July 4, 2025**, adversely changes tax policies by shortening the availability of the Section 48E credit for solar and ending the Section 25D residential credit in **2026**[218](index=218&type=chunk) - The company faces significant competition from traditional utilities, which have greater resources, and from other solar providers[229](index=229&type=chunk)[231](index=231&type=chunk) - Costs for solar panels and raw materials may increase due to supply chain disruptions, inflation, and trade policies, including new tariffs and national security investigations into imported components like polysilicon[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) [Risks Related to Our Operating Structure and Financing Activities](index=63&type=section&id=Risks%20Related%20to%20Our%20Operating%20Structure%20and%20Financing%20Activities) Sunrun's growth depends on raising capital through tax equity funds, which are constrained by tax law changes and rising interest rates, increasing the cost of capital - The company's future success depends on its ability to raise capital at acceptable terms. The OBBB Act is expected to create additional challenges for securing tax equity financing[246](index=246&type=chunk)[247](index=247&type=chunk) - Rising interest rates increase the company's cost of capital, reduce the proceeds from investment funds, and may negatively impact the attractiveness of its offerings to customers[253](index=253&type=chunk) - The company has substantial debt and expects to incur more in the future, which intensifies risks related to servicing debt obligations and complying with financial covenants[256](index=256&type=chunk)[261](index=261&type=chunk) [Risks Related to Regulation and Policy](index=67&type=section&id=Risks%20Related%20to%20Regulation%20and%20Policy) The business is heavily influenced by federal, state, and local regulations, including the OBBB Act and California's NBT, impacting tax policy, customer value, and market demand - The OBBB Act, signed **July 4, 2025**, directly impacts the business by shortening the availability of the Section 48E tax credit for solar facilities and ending the Section 25D residential credit[268](index=268&type=chunk) - Changes in state policies, particularly California's move away from traditional net metering to a Net Billing Tariff (NBT), have altered the economics of residential solar and increased the importance of battery storage[272](index=272&type=chunk)[273](index=273&type=chunk) - The company faces risks from changes in utility rate design, such as the imposition of fixed charges or demand charges, which could reduce customer savings and demand for solar offerings[278](index=278&type=chunk) [Risks Related to Our Business Operations](index=69&type=section&id=Risks%20Related%20to%20Our%20Business%20Operations) Operational risks include supplier dependence, construction challenges, customer cancellations, workforce management, and geographic concentration in California, increasing vulnerability to regional disruptions - The company depends on a limited number of suppliers for solar panels, inverters, and batteries, making it susceptible to shortages, price changes, and quality issues[286](index=286&type=chunk) - As the primary contractor, Sunrun is subject to risks associated with construction, cost overruns, delays, and regulatory compliance for every installation[294](index=294&type=chunk) - The business is geographically concentrated, with over **45% of its customer base** in California as of **June 30, 2025**, increasing its exposure to regional economic, regulatory, and environmental risks[305](index=305&type=chunk) - The company faces risks related to cybersecurity breaches, data privacy regulations, and the need to protect its intellectual property[325](index=325&type=chunk)[329](index=329&type=chunk) [Risks Related to Taxes and Accounting](index=89&type=section&id=Risks%20Related%20to%20Taxes%20and%20Accounting) The company's viability relies on monetizing federal tax benefits through tax equity funds, a model facing uncertainty from the OBBB Act and potential **IRS** challenges to system valuations - The business model relies on monetizing federal ITCs through tax equity investment funds. The OBBB Act has accelerated the sunsetting of certain ITCs and introduced restrictions, which could make this financing more challenging[382](index=382&type=chunk)[385](index=385&type=chunk) - The **IRS** could determine that the creditable basis of the company's solar systems is lower than claimed, which could result in reduced tax credits and significant indemnity payments to fund investors[392](index=392&type=chunk) - The business depends on the availability of various federal, state, and local incentives, including tax credits, rebates, and SRECs, which are subject to expiration, reduction, or elimination[395](index=395&type=chunk) [Risks Related to Ownership of Our Common Stock](index=94&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Ownership of common stock involves risks including price volatility, substantial control by insiders limiting shareholder influence, and anti-takeover provisions deterring acquisitions - Executive officers, directors, and principal stockholders beneficially own approximately **45.2%** of outstanding common stock, giving them substantial control over matters requiring stockholder approval[410](index=410&type=chunk) - The market price of the company's common stock has been and is expected to continue to be volatile[411](index=411&type=chunk) - The company does not expect to declare any dividends in the foreseeable future, so returns on investment may depend solely on stock price appreciation[428](index=428&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or issuer purchases of equity securities during the period - There were no unregistered sales of equity securities during the quarter[433](index=433&type=chunk) [Item 5. Other Information](index=100&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption and modification of Rule 10b5-1 trading plans by company executives, including Jeanna Steele and Lynn Jurich, during the period - On **May 16, 2025**, Jeanna Steele (Chief People and Legal Officer) amended her Rule 10b5-1 trading plan[437](index=437&type=chunk) - On **June 9, 2025**, Lynn Jurich (Co-Executive Chair) adopted a new Rule 10b5-1 trading plan for the sale of up to **800,000 shares**[438](index=438&type=chunk) [Item 6. Exhibits](index=100&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including the company's Restated Certificate of Incorporation, Bylaws, and certifications from the CEO and CFO as required by the Sarbanes-Oxley Act - Lists all exhibits filed with the 10-Q, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act[439](index=439&type=chunk)[441](index=441&type=chunk)

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Sunrun reported strong Q2 2025 financial results, highlighted by significant value creation, positive cash generation, and strategic advancements [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Sunrun reported strong financial results for the second quarter of 2025, highlighted by significant year-over-year growth in value creation and its fifth consecutive quarter of positive Cash Generation Q2 2025 Key Financial Metrics | Metric | Q2 2025 Value | Year-over-Year Growth | | :--- | :--- | :--- | | Aggregate Subscriber Value | $1.6 billion | 40% | | Contracted Net Value Creation | $376 million | 316% | | Contracted Net Value Creation per share | $1.64 | N/A | | Cash Generation | $27 million | N/A | - The company achieved its **fifth consecutive quarter of positive Cash Generation** and reiterated its full-year 2025 guidance of **$200 million to $500 million**[1](index=1&type=chunk)[2](index=2&type=chunk) - Management attributes the strong performance to a focus on underwriting volumes with strong unit margins, cost and efficiency improvements, and scaling its generation business Upfront Net Subscriber Value reached a company record, with margins expanding by **seventeen percentage points** compared to the prior year[2](index=2&type=chunk) - Creation Costs were reduced by **4% year-over-year**, with improvements in installation, sales, and overhead costs exceeding **10%**, which more offsets higher equipment costs from the increased storage attachment rate[2](index=2&type=chunk) [Key Operational & Strategic Updates](index=1&type=section&id=Key%20Operational%20%26%20Strategic%20Updates) Operationally, Sunrun achieved a record 70% storage attachment rate and continued to expand its role as a distributed power plant operator, providing critical grid services - The storage attachment rate reached a record **70% in Q2**, up from **54%** in the prior-year period, with customer additions with storage growing **50% YoY** Sunrun has now installed over **195,000 solar and storage systems**[3](index=3&type=chunk) - Sunrun priced a **$431 million securitization in July 2025**, its third of the year, bringing the year-to-date total to approximately **$1.4 billion**[3](index=3&type=chunk) - The company continues to de-lever, repaying **$21 million of recourse debt in Q2** and a total of **$235 million since March 31, 2024** It expects to pay down recourse debt by **$100 million or more in 2025**[3](index=3&type=chunk) - A new partnership with Tesla Electric was launched to offer the 'Tesla Electric + Sunrun Flex' home energy plan for customers in Texas[3](index=3&type=chunk) - Sunrun's home-to-grid power plants have been actively dispatched to support grid stability, with over **130,000 home batteries activated**, representing **650 megawatts of peak power** This includes a **340-megawatt dispatch event in June** across multiple states and significant support in Puerto Rico during July[5](index=5&type=chunk) [Key Operating Metrics & Outlook](index=2&type=section&id=Key%20Operating%20Metrics%20%26%20Outlook) The company showed strong growth in subscribers and installed capacity, with improved unit economics and an increased full-year outlook for value creation [Q2 2025 Operating Metrics](index=2&type=section&id=Q2%202025%20Operating%20Metrics) In Q2 2025, Sunrun saw double-digit growth in subscriber additions and installed capacity Key value metrics per subscriber showed substantial year-over-year improvement, with Net Subscriber Value increasing by 182% Q2 2025 Subscriber & Capacity Metrics (YoY Growth) | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Subscriber Additions | 28,823 | 15% | | Total Subscribers | 941,701 | 14% | | Storage Capacity Installed | 392 MWh | 48% | | Solar Capacity Installed | 227 MW | 18% | Q2 2025 Per-Subscriber Value Metrics (YoY Growth) | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Subscriber Value | $53,891 | 22% | | Creation Costs | $36,887 | -4% | | Net Subscriber Value | $17,004 | 182% | | Contracted Net Subscriber Value | $13,032 | 261% | - As of June 30, 2025, Contracted Net Earning Assets stood at **$3.0 billion**, or **$13.03 per share**, which includes **$1.0 billion in Total Cash**[10](index=10&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Sunrun provided guidance for Q3 2025 and updated its full-year 2025 outlook, significantly raising its full-year guidance for Contracted Net Value Creation Q3 2025 Guidance | Metric | Q3 2025 Range | Midpoint YoY Growth | | :--- | :--- | :--- | | Aggregate Subscriber Value | $1.5B - $1.6B | 8% | | Contracted Net Value Creation | $275M - $375M | 58% | | Cash Generation | $50M - $100M | N/A | Full-Year 2025 Guidance | Metric | Full-Year 2025 Range | Midpoint YoY Growth | | :--- | :--- | :--- | | Aggregate Subscriber Value | $5.7B - $6.0B (Unchanged) | 14% | | Contracted Net Value Creation | $1.0B - $1.3B (Increased) | 67% | | Cash Generation | $200M - $500M (Unchanged) | N/A | - The guidance for Contracted Net Value Creation for the full year was increased from the prior range of **$650 million to $850 million**[15](index=15&type=chunk) [GAAP Financial Results](index=3&type=section&id=GAAP%20Financial%20Results) Sunrun's Q2 2025 GAAP results show increased revenue and net income, with asset and liability growth from solar systems and non-recourse debt [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, Sunrun reported total revenue of $569.3 million, a 9% increase year-over-year, driven by growth in customer agreements and incentives revenue Q2 2025 Statement of Operations Highlights (in millions, except per share data) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $569.3 | $523.9 | | Customer agreements and incentives | $458.0 | $387.8 | | Solar energy systems and product sales | $111.3 | $136.0 | | Total operating expenses | $681.6 | $651.9 | | Loss from operations | $(112.2) | $(128.0) | | Net income attributable to common stockholders | $279.8 | $139.1 | | Basic EPS | $1.22 | $0.63 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Sunrun's balance sheet showed total assets of $21.2 billion, up from $19.9 billion at the end of 2024 Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,785,811 | $1,722,636 | | Solar energy systems, net | $16,063,482 | $15,032,115 | | **Total assets** | **$21,230,135** | **$19,897,884** | | Total current liabilities | $1,268,642 | $1,334,482 | | Non-recourse debt, net of current portion | $12,945,532 | $11,806,181 | | **Total liabilities** | **$16,783,913** | **$15,733,674** | | **Total equity** | **$3,730,637** | **$3,540,051** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended June 30, 2025, net cash used in operating activities was $292.7 million, and net cash used in investing activities was $692.8 million Q2 2025 Cash Flow Highlights (in thousands) | Activity | Three Months Ended June 30, 2025 | | :--- | :--- | | Net cash used in operating activities | $(292,659) | | Net cash used in investing activities | $(692,821) | | Net cash provided by financing activities | $1,018,654 | | **Net change in cash and restricted cash** | **$33,174** | [Non-GAAP Financial Measures & Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section reconciles key non-GAAP metrics, Aggregate Creation Costs and Cash Generation, for assessing operational and financial performance [Aggregate Creation Costs](index=9&type=section&id=Aggregate%20Creation%20Costs) Aggregate Creation Costs, a non-GAAP measure, totaled $1.063 billion in Q2 2025, used by management to assess operating performance related to system origination and installation Reconciliation to Aggregate Creation Costs (in millions) | Quarter | Q2 2024 | Q1 2025 | Q2 2025 | | :--- | :--- | :--- | :--- | | Total operating expenses | $652 | $619 | $682 | | (+) CapEx for solar energy systems | $605 | $655 | $692 | | (+/-) Other Adjustments | $(306) | $(283) | $(311) | | **Aggregate Creation Costs** | **$956** | **$991** | **$1,063** | [Cash Generation](index=10&type=section&id=Cash%20Generation) Cash Generation, a non-GAAP measure, was $27 million in Q2 2025, marking the fifth consecutive positive quarter, used to assess financial performance related to capital raising and working capital Reconciliation to Cash Generation (in millions) | Quarter | Q2 2024 | Q1 2025 | Q2 2025 | | :--- | :--- | :--- | :--- | | Net change in cash and restricted cash | $259 | $31 | $33 | | (+/-) Adjustments | $(42) | $25 | $(6) | | **Cash Generation** | **$217** | **$56** | **$27** | [Detailed Operating Metrics Tables](index=11&type=section&id=Detailed%20Operating%20Metrics%20Tables) Detailed tables show improved unit economics, significant value creation, and expanded customer base and networked storage capacity [Unit Economics & Value Creation](index=11&type=section&id=Unit%20Economics%20%26%20Value%20Creation) The company's unit economics continued to improve in Q2 2025, with Upfront Net Subscriber Value turning strongly positive at $5,711, driving a significant increase in aggregate value creation metrics Unit Economics per Subscriber Addition | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Subscriber Value | $53,891 | $44,291 | | Creation Costs | $(36,887) | $(38,258) | | Upfront Net Subscriber Value | $5,711 | $(2,140) | Aggregate Value Creation in Period (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Aggregate Subscriber Value | $1,553 | $1,107 | | Aggregate Creation Costs | $(1,063) | $(956) | | Net Value Creation | $490 | $151 | | Contracted Net Value Creation | $376 | $90 | [Volume Additions & Customer Base](index=12&type=section&id=Volume%20Additions%20%26%20Customer%20Base) In Q2 2025, Sunrun added 30,810 total customers, with a 70% storage attachment rate, growing its total customer base to over 1.1 million Volume Additions in Q2 2025 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Customer Additions | 30,810 | 26,687 | | Storage Attachment Rate | 70% | 54% | | Storage Capacity Installed (MWhrs) | 391.5 | 264.5 | | Solar Capacity Installed (MWs) | 227.2 | 192.3 | Customer Base at End of Period | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Customers | 1,105,080 | 984,000 | | Subscribers | 941,701 | 828,129 | | Networked Storage Capacity (MWhrs) | 3,250 | 1,796 | | Net Earning Assets ($ millions) | $7,632 | $5,675 | [Appendix](index=3&type=section&id=Appendix) The appendix includes forward-looking statements and a comprehensive glossary of key financial and operational terms used in the report [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains standard safe harbor language, cautioning that the report includes forward-looking statements regarding the company's financial guidance, business plans, market trends, and other expectations - The report includes forward-looking statements concerning financial guidance, business strategy, market leadership, financing activities, and the legislative environment[22](index=22&type=chunk) - Key risks and uncertainties include the ability to manage costs, availability of financing, economic conditions, changes in policies and regulations, supply chain risks, and competition[24](index=24&type=chunk) [Glossary of Terms](index=14&type=section&id=Glossary%20of%20Terms) The glossary provides detailed definitions for key volume-related, value-based, and operational terms used throughout the earnings release - Defines volume-related terms such as Deployments, Subscribers, Customer Additions, and Storage Attachment Rate[50](index=50&type=chunk)[51](index=51&type=chunk)[57](index=57&type=chunk) - Defines value and cost terms including Subscriber Value, Creation Costs, Net Subscriber Value, and Net Value Creation[58](index=58&type=chunk)[65](index=65&type=chunk)[71](index=71&type=chunk) - Defines terms related to the existing customer base, such as Gross Earning Assets and Net Earning Assets[75](index=75&type=chunk)[77](index=77&type=chunk)

SAN FRANCISCO, Aug. 04, 2025 (GLOBE NEWSWIRE) -- A new analysis by The Brattle Group found that Sunrun's (Nasdaq: RUN) fleet of home batteries across California was the largest contributor to a historic distributed power plant dispatch event that delivered an average of 535 megawatts to the grid—enough to power more than half of the city of San Francisco. A new analysis confirms Sunrun's leading position as the largest operator in California's statewide distributed power plant, delivering 360 megawatts to t ...

Core Viewpoint - Sunrun Inc. (RUN) is expected to report its second-quarter 2025 results on August 6, with a focus on sales growth driven by solar demand and challenges from increased costs [1][4]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for Sunrun's Q2 sales is $557.2 million, reflecting a 6.4% increase from the previous year [4][9]. - The earnings estimate for the upcoming quarter is a loss of 18 cents per share, a decline from earnings of 55 cents per share reported in the same quarter last year [4][9]. Group 2: Factors Influencing Results - Strong sales volume for solar energy systems and products, along with a growing customer base and increased storage attachment rates, are expected to positively impact revenues [2]. - However, rising expenses due to higher battery hardware and installation labor costs from increased storage attachment rates may negatively affect overall earnings [3]. Group 3: Earnings Prediction Insights - The current Earnings ESP for Sunrun is -47.26%, indicating a low probability of an earnings beat this quarter [5]. - Sunrun holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook compared to other stocks in the sector [6].

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1 ...

Core Viewpoint - The market anticipates a year-over-year decline in Sunrun's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Company Summary - Sunrun is expected to report a quarterly loss of $0.18 per share, reflecting a year-over-year change of -132.7% [3]. - Revenue for the upcoming quarter is projected to be $557.23 million, which is a 6.4% increase from the same quarter last year [3]. - The consensus EPS estimate has been revised down by 104.15% over the last 30 days, indicating a significant reassessment by analysts [4]. Earnings Prediction Insights - The Zacks Earnings ESP for Sunrun is -47.26%, suggesting a bearish outlook from analysts regarding the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. - Historically, Sunrun has beaten consensus EPS estimates three out of the last four quarters, with a notable surprise of +190.91% in the last reported quarter [13][14]. Industry Context - In the broader solar industry, Shoals Technologies Group is expected to report earnings of $0.08 per share, indicating a year-over-year decline of -20% [18]. - Shoals Technologies' revenue is anticipated to be $104.44 million, up 5.2% from the previous year [18]. - The consensus EPS estimate for Shoals has been revised up by 1.7% over the last 30 days, but it still has an Earnings ESP of -10.91%, complicating predictions for an earnings beat [19].