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, a 316% year-over-year increase[7] - Cash Generation was $27 million in 2Q25, marking the fifth consecutive quarter of positive cash generation[8] - Trailing four-quarter Cash Generation totaled $119 million[9] - Contracted Net Earning Assets, inclusive of net debt, stood at $3.0 billion as of June 30, 2025, or $13.03 per share[9] - Upfront Net Subscriber Value exceeded $5.7k, representing an 11% margin, expanding 17 percentage points year-over-year[10] Operational Metrics - Customer Additions grew 15% year-over-year in Q2[14] - Customer Additions with Storage grew 50% year-over-year in Q2, with a Storage Attachment Rate reaching 70%[14] - Net Subscriber Value increased to a record high of $17,004, a 22% year-over-year increase[48] - Aggregate Subscriber Value increased 40% year-over-year to $1.6 billion, while Aggregate Creation Costs increased 11% to $1.1 billion[59] Home-to-Grid Distributed Power Plant - Over 71,000 customers are enrolled in grid service programs, representing a growth of over 300% year-over-year[17] - Sunrun delivered 354 MW of power during dispatches over the last year[16] - Networked Storage Capacity reached 3.2 GWhr[16] - Sunrun expects to have over 10 GWhrs of dispatchable capacity online by 2029[17] Investment Tax Credit (ITC) - The 48E Investment Tax Credits (ITC) are maintained for the storage portion of projects through 2033 at 30%+, while ITCs for the solar portion are maintained through 2027[23] - Subscriptions represented 94% of Sunrun's 2Q25 volume[27]

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]

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].

Financial Data and Key Metrics Changes - In Q1 2025, the company generated $56 million in cash, marking the fourth consecutive quarter of positive cash generation [5] - The unrestricted cash balance increased by $30 million from the previous quarter, reaching $605 million [5] - The subscriber value increased to approximately $52,000, a 15% increase compared to the prior year [25] - Aggregate subscriber value was $1.2 billion in Q1, a 23% increase from the prior year [26] - Net value creation was $246 million, approximately $1.09 per share, with contracted net value creation at $164 million, a 104% increase from last year [27] Business Line Data and Key Metrics Changes - Customer additions grew by 6% year-over-year, with a record high storage attachment rate of 69%, up by over 46% from Q1 of last year [8][9] - The company has nearly quadrupled its solar and storage business in the last two years, achieving a market share of approximately 19% for new solar installations and 45% for new storage installations [10] - The storage attachment rate increased by 19 percentage points to 69%, contributing to a 66% year-over-year growth in net subscriber value [25][26] Market Data and Key Metrics Changes - Demand for residential solar and storage remains strong, with favorable trends such as increasing grid instability and utility rate escalation [9] - The company is experiencing strong demand across channels, leading to a forecast of mid-single-digit growth in subscriber additions for the year [36] Company Strategy and Development Direction - The company is focused on delivering innovative products, such as Sunrun Flex, which allows customers to plan for their growing energy needs flexibly and affordably [18][19] - The strategy includes leveraging AI for operational efficiencies and cost discipline, which has contributed to market share gains [7][16] - The company is actively working on scenario planning regarding potential changes in tax and tariff policies, indicating readiness to adapt to regulatory changes [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating meaningful cash this year despite uncertainties in tax policy and tariffs [6] - The company expects tariff impacts to create cost headwinds of approximately $1,000 to $3,000 per subscriber in 2025, which could affect cash generation guidance [36] - For the full year, the company introduced guidance for aggregate subscriber value between $5.7 billion and $6 billion, representing 14% growth at the midpoint [35] Other Important Information - The company repaid $27 million of borrowings under its working capital facility during Q1 and has paid down $214 million in recourse debt since March of last year [34] - The company is exploring further capital allocation options to maximize shareholder value based on market conditions [34] Q&A Session Summary Question: Can you bridge the contracted net value creation for Q2 and the full year? - Management indicated that the impact of tariffs will be more pronounced in the second half of the year, affecting the full-year guidance [41][42] Question: What is the sourcing strategy regarding tariffs? - Management noted that manufacturing has increasingly moved onshore, and they are prepared to adjust pricing and go-to-market strategies as needed [44] Question: How is customer demand responding to potential price increases? - Management stated that demand remains strong, particularly in uncertain economic conditions, which drives interest in their offerings [52] Question: What is the impact of potential changes to the ITC? - Management acknowledged that a reduction in the ITC would impact cash generation but emphasized their ability to mitigate some effects through pricing and operational efficiencies [78] Question: How does the company plan to handle safe harboring ahead of potential IRA modifications? - Management is focused on generating cash and maintaining substantial unrestricted cash on hand while being prepared to safe harbor if necessary [60] Question: How is the company managing competition in light of tariff impacts? - Management emphasized a focus on differentiation and innovation rather than competing solely on price, which has helped maintain market share [95]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated $56 million in cash, marking the fourth consecutive quarter of positive cash generation [4] - The unrestricted cash balance increased by $30 million from the previous quarter, ending Q1 with $605 million [4] - The company paid down $27 million in parent debt, continuing its deleveraging efforts [4] - Subscriber value increased to approximately $52,000, a 15% increase compared to the prior year [24] - Aggregate subscriber value reached $1.2 billion, a 23% increase from the prior year [25] - Contracted net value creation was $164 million, a 104% increase from last year [26] Business Line Data and Key Metrics Changes - Customer additions grew by 6% year-over-year, with storage customer additions increasing by over 46% [6][7] - The storage attachment rate reached a record high of 69% [7] - The company has nearly quadrupled its solar and storage business in the last two years [8] Market Data and Key Metrics Changes - The company has gained considerable market share, achieving approximately 19% of new solar installations and about 45% of new storage installations across the country [8] - Demand for residential solar and storage remains strong, with the industry only penetrating about 6% of households [8] Company Strategy and Development Direction - The company is focused on delivering innovative products, such as Sunrun Flex, which allows customers to plan for their growing energy needs flexibly and affordably [16][17] - The strategy includes leveraging AI for operational efficiencies and quality enhancements [6] - The company is actively working on scenario planning regarding potential changes in tax and tariff policies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating meaningful cash this year despite uncertainties in tax policy and tariffs [5] - The company anticipates that tariff impacts will create cost headwinds of approximately $1,000 to $3,000 per subscriber in 2025 [35] - For the full year, the company expects aggregate subscriber value to be between $5.7 billion and $6 billion, representing 14% growth at the midpoint [34] Other Important Information - The company has increased its unrestricted cash balance by $118 million and grown net earning assets by $1.6 billion over the past year [33] - The company is exploring further capital allocation options to maximize shareholder value based on market conditions [33] Q&A Session Summary Question: Can you bridge the contracted net value creation for Q2 and the full year? - Management indicated that the impact of tariffs will be more pronounced in the second half of the year, affecting the full-year guidance [40] Question: What is the sourcing strategy regarding tariffs? - Management noted that manufacturing has increasingly moved onshore, which may help mitigate tariff impacts [44] Question: How is customer demand responding to potential price increases? - Management stated that demand remains strong, particularly in uncertain economic conditions, as consumers seek price certainty [50] Question: What is the expected impact of tariffs on pricing? - Management indicated that the gross impact of tariffs could lead to a 10% increase in costs later in the year, primarily driven by battery costs [104] Question: How does the company plan to manage potential changes in tax credit transferability? - Management emphasized that they would rely more on the traditional tax equity market if transferability were removed, but they remain confident in their ability to adapt [85] Question: What is the expected trend for ITC levels throughout the year? - Management expects to maintain a mid-forty percent ITC level for the remainder of the year [97]

Financial Performance Highlights - Aggregate Subscriber Value reached $1.2 billion in 1Q25, a 23% year-over-year increase[6] - Contracted Net Value Creation was $164 million in 1Q25, up 104% year-over-year[6] - Cash Generation was $56 million in 1Q25, marking the fourth consecutive quarter of positive cash generation[6] - Contracted Net Earning Assets stood at $2.6 billion as of March 31, 2025, which includes $605 million of unrestricted cash[7] Subscriber and Storage Growth - Customer Additions with Storage grew 46% year-over-year in Q1, with Storage Attachment Rate reaching 69%[11] - Contracted Subscriber Value increased 14% year-over-year to $48,727 in Q1 2025 due to higher-value Storage customers[11] - Subscriber Additions were 23,692 in 1Q25, a 74% year-over-year increase[44] Unit Economics and Value Creation - Net Subscriber Value expanded year-over-year to $10,390, driven by a record-high Storage Attachment Rate of 69% and ITC levels of 44%[44] - Aggregate Subscriber Value increased 23% year-over-year to $1.2 billion, while Aggregate Creation Costs increased 14% to $991 million[50] Capital Management and Debt - The company is planning to allocate $100 million or more of Cash Generation to repaying parent debt in 2025[68] - The company repaid or repurchased $27 million of recourse debt during Q1 and $214 million over the last four quarters[68] Guidance - The company expects Aggregate Subscriber Value of $1.3 to $1.375 billion for 2Q 2025, representing 21% year-over-year growth at the midpoint, and $5.7 to $6.0 billion for full-year 2025, representing 14% year-over-year growth at the midpoint[70]

Core Insights - Sunrun reported a strong first quarter in 2025, achieving an aggregate subscriber value of $1.2 billion, reflecting a 23% year-over-year growth [1] - The company generated a contracted net value creation of $164 million, or $0.72 per share, marking a 104% increase year-over-year [1][8] - Cash generation reached $56 million, representing the fourth consecutive quarter of positive cash generation [1][10] Financial Performance - Total revenue for Q1 2025 was $504.3 million, a 10% increase from Q1 2024 [14] - Customer agreements and incentives revenue increased by 25% to $402.9 million, while solar energy systems and product sales revenue decreased by 25% to $101.4 million [14] - The total cost of revenue decreased by 5% year-over-year to $405.4 million, and total operating expenses decreased by 3% to $619.2 million [15] Subscriber Metrics - Subscriber additions totaled 23,692, a 7% increase compared to Q1 2024, bringing the total number of subscribers to 912,878, which is a 14% increase year-over-year [5] - The storage attachment rate reached a record 69%, up from 50% in the prior year, with customer additions with storage growing by 46% [3][6] - Subscriber value increased by 15% to $52,206, while contracted subscriber value rose by 14% to $48,727 [6] Debt Management - The company paid down $27 million of recourse debt in Q1 2025, contributing to a total reduction of $214 million over the last four quarters [9] - Sunrun has no near-term corporate debt maturities and expects to pay down an additional $100 million or more in recourse debt in 2025 [9] Market Position and Strategy - Sunrun's CEO highlighted the company's focus on delivering high-quality products, optimizing market routes, and leveraging AI for operational efficiencies [2] - The introduction of Sunrun Flex, a new solar-plus-storage subscription, aims to adapt to changing household energy needs, marking a significant innovation in the solar industry [9] - The CalReady distributed power plant has expanded significantly, providing critical energy to California's grid during peak demand periods [9] Outlook - For Q2 2025, aggregate subscriber value is expected to range from $1.3 billion to $1.375 billion, representing a 21% growth compared to Q2 2024 [11] - Contracted net value creation is projected to be between $125 million and $200 million for Q2 2025, indicating an 80% growth compared to the same period last year [11] - Full-year 2025 cash generation is expected to remain between $200 million and $500 million, consistent with previous guidance [13]

Core Viewpoint - Sunrun has introduced Sunrun Flex™, a solar and battery storage solution that adapts to customers' changing energy needs, marking a significant innovation in the solar industry since 2007 [1][4]. Product Features - Sunrun Flex is designed to accommodate increased energy consumption due to life events, such as family growth or electric vehicle purchases, offering a predictable monthly payment structure [2][5]. - Customers benefit from battery backup during outages and can earn Sunrun Rollover Credits, a unique feature in the solar industry [3][5]. - The system is sized above a customer's pre-solar usage to meet future energy needs, allowing customers to pay a minimum monthly bill and purchase additional electricity at a locked-in Flex Rate if they exceed their baseline [5][6]. Customer Benefits - Sunrun Flex provides cost predictability with affordable monthly payments and the ability to adjust energy usage as life changes, ensuring clarity on cost per kilowatt hour [7]. - Customers can earn Rollover Credits for using less energy than their baseline, which can be applied in future months when energy consumption exceeds the baseline [7]. - The offering includes premium battery storage for backup during outages and helps customers avoid peak utility rates by utilizing stored solar power [7]. Company Background - Sunrun Inc. revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to renewable energy, positioning itself as the leading provider of clean energy as a subscription service [9].