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].

Core Viewpoint - Sunrun and Tesla Electric have launched a new home energy plan in Texas that combines solar energy production, battery storage, and a customized electricity retail plan to provide lower rates and enhanced energy independence for homeowners [1][2][4]. Group 1: Partnership Overview - The Tesla Electric + Sunrun Flex plan offers a low, fixed electricity rate and competitive sellback rates for excess solar energy [2]. - This partnership aims to simplify the energy experience for Texas residents by providing a comprehensive solution that aligns solar production and battery management with tailored electricity offerings [3][5]. Group 2: Customer Benefits - Key benefits include predictable monthly payments, managed settings for electric rates and battery usage, and seamless customer service integration between Sunrun and Tesla [7]. - Customers can earn rollover credits for using less energy than their baseline, which can be applied to future months [7]. - The plan includes a performance guarantee with 24/7 system monitoring, free maintenance, and battery health assurances [7]. Group 3: Market Context - Texas has a complex electricity market with over 100 retail providers, making it challenging for homeowners to optimize solar and storage solutions [3]. - The collaboration between Sunrun and Tesla aims to address these challenges by providing a clear and effective energy solution [4].

Core Insights - Sunrun has begun dispatching over 37,000 home batteries to Puerto Rico's grid operator to address power generation shortfalls due to high temperatures [1] - The company's enrolled dispatchable power capacity has increased more than tenfold since last summer, with expectations of over 75 energy shortfall events from July to October [2] - Sunrun's distributed power plants have proven effective in providing on-demand energy, helping to prevent load shedding and maintain grid reliability [3][4] Company Operations - Sunrun's distributed power plants function similarly to natural gas peaker plants, delivering reliable power when the grid needs it most [4] - Customers participating in the distributed power plant can earn a minimum of approximately $200 per battery, with potential for higher earnings by adjusting battery settings [4] - The company has ramped up dispatch capabilities to support the grid in Puerto Rico, highlighting the critical importance of its services amid aging infrastructure and extreme weather [4] Industry Context - The collaboration between Sunrun and LUMA has addressed a generation shortfall of nearly 50 MW, showcasing the impact of distributed energy resources on grid stability [4] - The increasing demand for clean energy solutions and the need for grid reliability are driving the growth of companies like Sunrun in the renewable energy sector [5]

Core Viewpoint - Sunrun has successfully priced its 14th public securitization of leases and power purchase agreements, marking its third issuance in 2025, which reflects the company's strong asset performance and market confidence [1][2]. Group 1: Securitization Details - The third securitization transaction of 2025 involves refinancing a seasoned pool of residential solar assets, with strong execution acknowledged by the CFO [2]. - The transaction includes two classes of A- rated notes (Class A-1 and Class A-2) and one class of BB- rated notes (Class B), with the Class A-1 Notes totaling $331 million and Class A-2 Notes totaling $100 million [2][3]. - Class A Notes carry a coupon of 6.15%, with Class A-1 Notes being oversubscribed and priced at a spread of 240 basis points, yielding 6.374% [2]. Group 2: Asset and Portfolio Information - The securitization is backed by a diversified portfolio of 63,318 solar systems across 12 states and Washington D.C., covering 40 utility service territories [3]. - The weighted average customer FICO score for the portfolio is 757, indicating a strong credit quality of the customer base [3]. Group 3: Transaction Timeline and Partners - The transaction is expected to close by July 30, 2025, with Bank of America serving as the sole structuring agent and joint bookrunner alongside Citigroup, Keybanc, and Truist [3].

Core Viewpoint - Morgan Stanley has adjusted ratings for several U.S. solar stocks due to market and policy changes, downgrading Enphase Energy and SolarEdge Technologies to "Neutral" while favoring Sunrun as a preferred stock [1][2]. Group 1: Enphase Energy - Morgan Stanley downgraded Enphase Energy's rating from "Overweight" to "Neutral" and reduced the target price from $64 to $37, reflecting downward pressure on stock prices and profit margins due to the industry's shift towards third-party systems [1]. - Despite the downgrade, the firm believes that Enphase remains one of the few consistently profitable solar companies with a net cash position [1]. - Analyst Mark Strouse noted that the recent "Inflation Reduction Act" may lead to a lack of positive momentum in the U.S. residential solar market, potentially impacting Enphase's market share and gross margins [1]. Group 2: SolarEdge Technologies - SolarEdge Technologies' rating was also downgraded from "Overweight" to "Neutral," with a target price set at $23, following a 34% increase in the stock's performance this month [2]. - Strouse maintains that SolarEdge holds a relatively favorable position in the U.S. residential inverter market, as the residential solar sector shifts towards third-party ownership models [2]. - New foreign entity regulatory frameworks have reduced competitive pressure in the market [2]. Group 3: Sunrun - Morgan Stanley is optimistic about Sunrun, assigning it an "Overweight" rating and raising the target price from $13 to $16, due to improved visibility in solar leasing and power purchase agreements [2]. - Sunrun is expected to meet the 48E tax credit eligibility by the end of 2027 and continue to benefit from storage incentives until the end of 2032 [2].