[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].

Core Viewpoint - The "One Big Beautiful Bill" (OBBB) introduced by President Trump is significantly impacting the U.S. renewable energy sector, shifting market expectations and prompting analysts to downgrade several solar companies while creating "winners" and "losers" in the industry [1] Winners and Losers - Companies favored under the new policy include First Solar (FSLR.US), Bloom Energy (BE.US), and Sunrun (RUN.US), which are expected to benefit from expanded subsidy policies and favorable technology licensing [2] - Conversely, Fluence Energy (FLNC.US), Nextracker (NXT.US), Shoals Technologies (SHLS.US), and Enlight Renewable Energy (ENLT.US) face greater policy resistance and market saturation risks, leading to rating downgrades for these firms [2] Utility Solar Outlook - The outlook for utility-scale solar projects appears bleak, as the bill accelerates the expiration of tax incentives for solar and wind energy, with potential construction deadlines and grid access bottlenecks limiting project deployment [3] - Nextracker and Shoals have had their ratings downgraded from "outperform" to "neutral," with Nextracker's target price reduced by 3% to $65 [3] Manufacturing and Storage Boost - Domestic clean energy manufacturers are expected to be the biggest beneficiaries of the OBBB, with the 45X manufacturing tax credit retained and restrictions placed on foreign entities from receiving subsidies [4] - Target prices for Canadian Solar (CSIQ.US) and First Solar have been adjusted upward, reflecting their eligibility for subsidies due to U.S. manufacturing [4] Fuel Cells and Nuclear Energy Favor - The bill reinstates a 30% investment tax credit for natural gas fuel cells, benefiting companies like Bloom Energy, which sees its target price raised by 19% to $31 [5] - New nuclear technologies also receive extended tax credit support until 2033, positioning the nuclear sector as a long-term winner under the OBBB [5] Broad Impact on Clean Energy Technology - While the OBBB retains manufacturing subsidies and storage incentives, the accelerated exit of solar and wind support policies may lead to a short-term demand surge followed by uncertainty [7] - The bill significantly restricts opportunities for Chinese companies to receive U.S. clean energy subsidies, posing challenges for firms reliant on Chinese manufacturing for batteries or solar panels [7]