Sunrun(RUN) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights Sunrun reported strong Q2 2025 financial results, highlighted by significant value creation, positive cash generation, and strategic advancements Q2 2025 Performance Summary 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][2] - 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] - 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] Key Operational & Strategic Updates 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] - 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] - 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] - A new partnership with Tesla Electric was launched to offer the 'Tesla Electric + Sunrun Flex' home energy plan for customers in Texas[3] - 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] Key Operating Metrics & Outlook 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 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] Financial Outlook 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] GAAP Financial Results 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 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 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 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 This section reconciles key non-GAAP metrics, Aggregate Creation Costs and Cash Generation, for assessing operational and financial performance Aggregate Creation Costs 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 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 Detailed tables show improved unit economics, significant value creation, and expanded customer base and networked storage capacity Unit Economics & Value Creation 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 | $90 | Volume Additions & Customer Base In Q2 2025, Sunrun added 30,810 total customers, with a 70% storage attachment rate, growing its total customer base to over 1.1 million Volume Additions in Q2 2025 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Customer Additions | 30,810 | 26,687 | | Storage Attachment Rate | 70% | 54% | | Storage Capacity Installed (MWhrs) | 391.5 | 264.5 | | Solar Capacity Installed (MWs) | 227.2 | 192.3 | Customer Base at End of Period | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Customers | 1,105,080 | 984,000 | | Subscribers | 941,701 | 828,129 | | Networked Storage Capacity (MWhrs) | 3,250 | 1,796 | | Net Earning Assets ($ millions) | $7,632 | $5,675 | Appendix The appendix includes forward-looking statements and a comprehensive glossary of key financial and operational terms used in the report Forward-Looking Statements 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] - 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] Glossary of Terms 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][51][57] - Defines value and cost terms including Subscriber Value, Creation Costs, Net Subscriber Value, and Net Value Creation[58][65][71] - Defines terms related to the existing customer base, such as Gross Earning Assets and Net Earning Assets[75][77]