Sunrun Reports Third Quarter 2025 Financial Results
Sunrun (Nasdaq: RUN) reported third quarter 2025 results showing continued growth and improving cash metrics. Q3 revenue was $724.6M (+35% YoY) and net income was $16.6M (basic EPS $0.07). Aggregate Subscriber Value reached $1.6B (+10% YoY) and Contracted Net Value Creation was $279M (+35% YoY). Cash Generation was $108M, the sixth consecutive quarter of positive Cash Generation; 2025 Cash Generation midpoint reiterated at $350M. Key operating metrics: 971,805 subscribers, storage attachment 70%, storage capacity installed 412 MWh (Q3).
Capital markets activity included ~$1.4B of securitizations in Q3 and ~$2.8B of non-recourse debt YTD.
Sunrun (Nasdaq: RUN) ha pubblicato i risultati del terzo trimestre 2025 mostrando una crescita continua e metriche di cassa in miglioramento. Il fatturato del Q3 è stato di $724.6M (+35% YoY) e l’utile netto è stato di $16.6M (EPS base $0.07). Aggregate Subscriber Value ha raggiunto $1.6B (+10% YoY) e Contracted Net Value Creation è stato di $279M (+35% YoY). Cash Generation è stata di $108M, il sesto trimestre consecutivo di Cash Generation positivo; il punto medio di Cash Generation per il 2025 è stato riconfermato a $350M. Metriche operative chiave: 971.805 abbonati, storage attachment 70%, capacità di storage installata 412 MWh (Q3).
Attività dei mercati dei capitali incluse circa $1.4B di securitizzazioni nel Q3 e circa $2.8B di debito non ricorrente da inizio anno (YTD).
Sunrun (Nasdaq: RUN) informó resultados del tercer trimestre de 2025 que muestran crecimiento continuo y métricas de caja en mejora. Los ingresos del T3 fueron de $724.6M (+35% interanual) y la utilidad neta fue de $16.6M (EPS básico $0.07). Aggregate Subscriber Value alcanzó $1.6B (+10% interanual) y Contracted Net Value Creation fue de $279M (+35% interanual). Cash Generation fue de $108M, el sexto trimestre consecutivo de generación de caja positiva; el punto medio de Cash Generation para 2025 se reiteró en $350M. Métricas operativas clave: 971,805 suscriptores, tasa de adjunto de almacenamiento 70%, capacidad de almacenamiento instalada 412 MWh (T3). La actividad de mercados de capitales incluyó ~$1.4B de securitizaciones en Q3 y ~$2.8B de deuda sin recurso YTD.
Sunrun (Nasdaq: RUN) 는 2025년 3분기 결과를 발표하며 지속적인 성장과 개선된 현금지표를 보였다. 3분기 매출은 $724.6M (+35% YoY) 이고 순이익은 $16.6M (기본 EPS $0.07) 이다. Aggregate Subscriber Value은 $1.6B (+10% YoY)에 도달했고 Contracted Net Value Creation은 $279M (+35% YoY) 이다. Cash Generation은 $108M로, 현금창출이 양호한 여섯 번째 분기로 기록되었다; 2025년 현금창출의 중간값은 $350M으로 재확정되었다. 주요 운영지표: 구독자 971,805명, 저장 첨부율 70%, 설치 저장용량 412 MWh (Q3). 자본시장 활동으로 Q3에 약 $1.4B의 유동화와 연간 비담보 부채(YTD) 약 $2.8B가 포함되었다.
Sunrun (Nasdaq : RUN) a publié les résultats du troisième trimestre 2025 montrant une croissance continue et des métriques de trésorerie en amélioration. Le chiffre d’affaires du T3 était de $724.6M (+35 % sur un an) et le résultat net était de $16.6M (EPS de base $0.07). Aggregate Subscriber Value a atteint $1.6B (+10 % sur un an) et Contracted Net Value Creation était de $279M (+35 % sur un an). Cash Generation était de $108M, le sixième trimestre consécutif de génération de trésorerie positive; le point médian de Cash Generation pour 2025 a été réitéré à $350M. Indicateurs opérationnels clés : 971 805 abonnés, taux d’attachement de stockage 70 %, capacité de stockage installée 412 MWh (T3). L’activité des marchés de capitaux comprenait environ $1.4B de titrisations au T3 et environ $2.8B de dette non-récourse YTD.
Sunrun (Nasdaq: RUN) berichtete über die Ergebnisse des dritten Quartals 2025, die weiteres Wachstum und verbesserte Cash-Metriken zeigen. Der Umsatz im Q3 betrug 724,6 Mio. USD (+35% YoY) und der Nettogewinn betrug 16,6 Mio. USD (basises EPS 0,07). Aggregate Subscriber Value erreichte 1,6 Mrd. USD (+10% YoY) und Contracted Net Value Creation betrug 279 Mio. USD (+35% YoY). Cash Generation betrug 108 Mio. USD, das sechste aufeinanderfolgende Quartal positiver Cash Generation; der Mittelpunktswert 2025 für Cash Generation wurde erneut auf 350 Mio. USD festgelegt. Wichtige Betriebskennzahlen: 971.805 Abonnenten, Storage Attachment 70%, installierte Speicherkapazität 412 MWh (Q3). Kapitalmarktatigkeit umfasste ~1,4 Mrd. USD an Verbriefungen im Q3 und ~2,8 Mrd. USD nicht-rekursives Schulden-YTD.
Sunrun (ناسداك: RUN) أبلغت عن نتائج الربع الثالث من عام 2025 التي تُظهر نمواً مستمراً وتحسيناً في مقاييس السيولة. بلغ إيرادات الربع الثالث $724.6M (+35% على أساس سنوي) وبلغ صافي الدخل $16.6M (EPS الأساسي 0.07$). بلغت قيمة المشترِك الإجمالية $1.6B (+10% على أساس سنوي) وبلغ خلق القيمة الصافية العقدية $279M (+35% على أساس سنوي). بلغت توليد النقد $108M، وهو الرباع العاشر من ستة الأرباع المتتالية للنقد المولّد بإيجابية؛ تم إعادة تأكيد نقطة الوسط لتوليد النقد لعام 2025 عند $350M. المؤشرات التشغيلية الرئيسية: 971,805 مشترك، نسبة ربط التخزين 70%، قدرة التخزين المركبة 412 ميغاواط-ساعة (Q3). أشارت أنشطة أسواق رأس المال إلى نحو $1.4B من الإصدارات المُسندة في Q3 ونحو $2.8B من الدين غير القابل للتحصيل حتى تاريخه (YTD).
- Revenue +35% YoY to $724.6M in Q3 2025
- Aggregate Subscriber Value $1.6B, +10% YoY
- Contracted Net Value Creation $279M, +35% YoY
- Cash Generation $108M, sixth consecutive positive quarter
- Raised approximately $1.4B in Q3 securitizations
- Subscriber additions fell 1% YoY to 30,104 in Q3 2025
- Q4 2025 Aggregate Subscriber Value guidance midpoint is 5% lower YoY
Insights
Sunrun showed stronger cash generation, rising subscriber economics, and continued capital markets access, supporting a positive operational trajectory.
Sunrun reported
Key dependencies and risks remain clearly stated: continued securitizations (approximately
Aggregate Subscriber Value of
Contracted Net Value Creation of
Net change in cash and restricted cash of
Cash Generation guidance for 2025 of
SAN FRANCISCO, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), America’s largest provider of home battery storage, solar, and home-to-grid power plants, today announced financial results for the quarter ended September 30, 2025.
“Our strategic focus on providing Americans a way to achieve energy independence is yielding strong results. We are generating cash while growing our customer base at a healthy rate. We are continuing to lead the industry with superior energy offerings for our customers, allowing them to power through grid outages and protect their households from rising energy costs, while we are also building critical energy infrastructure the country needs as energy demand grows at a rapid rate,” said Mary Powell, Sunrun’s Chief Executive Officer.
“We delivered our sixth consecutive quarter of positive Cash Generation and are reiterating the midpoint of our Cash Generation outlook for 2025,” said Danny Abajian, Sunrun’s Chief Financial Officer.1 “Our disciplined margin management allowed us to generate strong Upfront Net Subscriber Values, representing a
Third Quarter Updates
- Leading with Storage-First Strategy: Customer Additions with storage grew
20% during the quarter compared to the prior-year period. Storage Attachment Rate was70% in Q3, up from60% in the prior-year period. Sunrun has installed more than 217,000 storage and solar systems, representing approximately 3.7 Gigawatt hours of Networked Storage Capacity. - Continued Strong Capital Markets Execution: During the third quarter, Sunrun priced three securitizations of leases and power purchase agreements, raising approximately
$1.4 billion in senior non-recourse debt. The publicly-placed tranche of our most recent$510 million securitization in September priced at6.21% yield, reflecting a spread of 240 basis points, in-line with the spread of our prior securitization that priced in July. Year-to-date, Sunrun has raised approximately$2.8 billion of non-recourse debt in 2025, including$2.4 billion of senior debt across five securitizations and additional subordinated financings supporting the asset portfolios. These transactions were placed across public and private investor groups, including several first-time buyers, demonstrating the strength and expanded diversity of our capital markets access. - Paying Down Recourse Debt: We continue to pay down parent recourse debt. During the third quarter, we repaid
$17 million of recourse debt, reducing our borrowings under our Working Capital Facility. Since December 31, 2024, we have paid down recourse debt by$66 million , primarily by reducing borrowings under our recourse Working Capital Facility. We have also increased our unrestricted cash balance by$134 million and grown Net Earning Assets by$1.5 billion over this time period. Aside from the$5.5 million outstanding of our 2026 Convertible Notes, we have no recourse debt maturities until March 2027. - Improving grid stability with home-to-grid dispatchable power plants: Sunrun had over 106,000 customers enrolled in home-to-grid distributed power plant programs at the end of the third quarter, representing more than
300% growth year-over-year. Sunrun’s dispatchable power plants have provided hundreds of megawatts of peak power to the grid in several states this year, improving reliability and helping avoid blackouts. A recent Sunrun Survey administered by Wakefield Research revealed that rising energy demand from AI and data centers, coupled with worsening extreme weather, is deepening American homeowners’ anxiety about the reliability and affordability of their electricity. The survey found that nearly92% would be willing to share excess energy with neighbors and their community during peak demand, offering a glimpse at how distributed power plants could shape America’s energy future. - Nation’s First Vehicle-To-Grid Grid Distributed Power Plant Activated: Sunrun, in partnership with Maryland’s largest utility, Baltimore Gas and Electric Company (BGE), activated the nation’s first residential vehicle-to-grid distributed power plant program. This pilot program is dispatching energy from participating customers’ all-electric Ford F-150 Lightning trucks to support the grid during periods of peak demand and demonstrates the critical role batteries can play in powering the nation’s grid.
Key Operating Metrics
In the third quarter of 2025, Subscriber Additions were 30,104, a
Storage Capacity Installed was 412 megawatt hours in the third quarter of 2025, a
Subscriber Value was
Creation Costs per Subscriber Addition were
Net Subscriber Value was
Aggregate Subscriber Value was
Cash Generation was
Contracted Net Earning Assets were
Outlook
Aggregate Subscriber Value is expected to be in a range of
Contracted Net Value Creation is expected to be in a range of
Cash Generation is expected to be in a range of
For the full-year 2025, Aggregate Subscriber Value is expected to be in a range of
Contracted Net Value Creation is expected to be in a range of
Cash Generation is now expected to be in a range of
Third Quarter 2025 GAAP Results
Total revenue was
Total cost of revenue was
Net income attributable to common stockholders was
Conference Call Information
Sunrun is hosting a conference call for analysts and investors to discuss its third quarter 2025 results and business outlook at 1:30 p.m. Pacific Time today, November 6, 2025. A live audio webcast of the conference call along with supplemental financial information will be accessible via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com. The conference call can also be accessed live over the phone by dialing (877) 407-5989 (toll free) or (201) 689-8434 (toll). An audio replay will be available following the call on the Sunrun Investor Relations website for approximately one month.
Footnotes
(1) Cash Generation and Aggregate Creation Costs are non-GAAP financial measures. See “Non-GAAP Financial Measures” below for a discussion of these measures and reconciliations to the most directly comparable GAAP measures. Net change in cash and restricted cash was
About Sunrun
Sunrun Inc. (Nasdaq: RUN) is America’s largest provider of home battery storage, solar, and home-to-grid power plants. As the pioneer of home energy systems offered through a no-upfront-cost subscription model, Sunrun empowers customers nationwide with greater energy control, security, and independence. Sunrun supports the grid by providing on-demand dispatchable power that helps prevent blackouts and lower energy costs. Learn more at www.sunrun.com.
Forward Looking Statements
This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company’s financial and operating guidance and expectations; the Company’s business plan, trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company’s momentum in its business strategies including expectations regarding market share, total addressable market, growth in certain geographies, customer value proposition, market penetration, growth of certain divisions, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the Company’s discussion of new products, including Sunrun Flex; the growth of the storage and solar industry; the Company’s financing activities and expectations to refinance, amend, and/or extend any financing facilities; trends or potential trends within the storage and solar industry, our business, customer base, and market; the Company’s ability to derive value from the anticipated benefits of partnerships, new technologies, and pilot programs, including contract renewal and repowering programs; anticipated demand, market acceptance, and market adoption of the Company’s offerings, including new products, services, and technologies; the Company’s strategy to be a margin-focused, multi-product, customer-oriented Company; the ability to increase margins based on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, home-to-grid distributed power plants, and distributed energy resources; the Company’s ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains including reliance on specific countries for critical components; the Company’s leadership team and talent development; the legislative and regulatory environment of the storage and solar industry and the potential impacts of proposed, amended, and newly adopted legislation and regulation on the storage and solar industry and our business, including federal and state-level storage and solar incentive programs (such as the One Big Beautiful Bill Act and Investment Tax Credit), net metering policies, and utility rate structures; the ongoing expectations regarding the Company’s storage and energy services businesses and anticipated emissions reductions due to utilization of the Company’s solar energy systems; and factors outside of the Company’s control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company’s current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include: the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the solar industry and our business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks, including restrictions on components and materials sourced from designated foreign entities of concern and our reliance on specific countries for critical components, tariff and trade policy impacts, and raw material availability for solar panels and batteries; realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the Company’s leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in the Company’s investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law.
Citations to industry and market statistics used herein may be found in our Investor Presentation, available via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com.
| Consolidated Balance Sheets (In Thousands) | ||||||
| September 30, 2025 | December 31, 2024 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 709,148 | $ | 574,956 | ||
| Restricted cash | 446,460 | 372,312 | ||||
| Accounts receivable, net | 248,279 | 170,706 | ||||
| Inventories | 569,987 | 402,083 | ||||
| Prepaid expenses and other current assets | 96,597 | 202,579 | ||||
| Total current assets | 2,070,471 | 1,722,636 | ||||
| Restricted cash | 148 | 148 | ||||
| Solar energy systems, net | 16,599,888 | 15,032,115 | ||||
| Property and equipment, net | 86,813 | 121,239 | ||||
| Other assets | 3,468,162 | 3,021,746 | ||||
| Total assets | $ | 22,225,482 | $ | 19,897,884 | ||
| Liabilities and total equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 336,547 | $ | 354,214 | ||
| Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 44,122 | 41,464 | ||||
| Accrued expenses and other liabilities | 539,419 | 543,752 | ||||
| Deferred revenue, current portion | 159,623 | 129,442 | ||||
| Deferred grants, current portion | 4,178 | 7,900 | ||||
| Finance lease obligations, current portion | 25,360 | 26,045 | ||||
| Non-recourse debt, current portion | 311,531 | 231,665 | ||||
| Total current liabilities | 1,420,780 | 1,334,482 | ||||
| Deferred revenue, net of current portion | 1,321,558 | 1,208,905 | ||||
| Deferred grants, net of current portion | 191,340 | 196,535 | ||||
| Finance lease obligations, net of current portion | 44,336 | 66,139 | ||||
| Convertible senior notes | 473,234 | 479,420 | ||||
| Line of credit | 319,210 | 384,226 | ||||
| Non-recourse debt, net of current portion | 13,517,611 | 11,806,181 | ||||
| Other liabilities | 169,324 | 119,846 | ||||
| Deferred tax liabilities | 123,510 | 137,940 | ||||
| Total liabilities | 17,580,903 | 15,733,674 | ||||
| Redeemable noncontrolling interests | 729,861 | 624,159 | ||||
| Total stockholders’ equity | 2,983,902 | 2,554,207 | ||||
| Noncontrolling interests | 930,816 | 985,844 | ||||
| Total equity | 3,914,718 | 3,540,051 | ||||
| Total liabilities, redeemable noncontrolling interests and total equity | $ | 22,225,482 | $ | 19,897,884 | ||
| Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Customer agreements and incentives | $ | 491,600 | $ | 405,861 | $ | 1,352,520 | $ | 1,116,653 | ||||||||
| Solar energy systems and product sales | 232,957 | 131,312 | 445,644 | 402,574 | ||||||||||||
| Total revenue | 724,557 | 537,173 | 1,798,164 | 1,519,227 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of customer agreements and incentives | 315,811 | 308,382 | 969,816 | 876,581 | ||||||||||||
| Cost of solar energy systems and product sales | 165,480 | 125,312 | 366,422 | 411,591 | ||||||||||||
| Sales and marketing | 164,798 | 162,490 | 463,247 | 466,411 | ||||||||||||
| Research and development | 9,267 | 8,180 | 27,309 | 30,510 | ||||||||||||
| General and administrative | 65,550 | 60,587 | 194,856 | 173,082 | ||||||||||||
| Total operating expenses | 720,906 | 664,951 | 2,021,650 | 1,958,175 | ||||||||||||
| Income (Loss) from operations | 3,651 | (127,778 | ) | (223,486 | ) | (438,948 | ) | |||||||||
| Interest expense, net | (265,788 | ) | (215,615 | ) | (740,359 | ) | (614,981 | ) | ||||||||
| Other (expense) income, net | (17,880 | ) | (82,598 | ) | (77,807 | ) | 71,710 | |||||||||
| Loss before income taxes | (280,017 | ) | (425,991 | ) | (1,041,652 | ) | (982,219 | ) | ||||||||
| Income tax benefit | (2,172 | ) | (13,803 | ) | (207,652 | ) | (26,953 | ) | ||||||||
| Net loss | (277,845 | ) | (412,188 | ) | (834,000 | ) | (955,266 | ) | ||||||||
| Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (294,434 | ) | (328,422 | ) | (1,180,373 | ) | (922,756 | ) | ||||||||
| Net income (loss) attributable to common stockholders | $ | 16,589 | $ | (83,766 | ) | $ | 346,373 | $ | (32,510 | ) | ||||||
| Net income (loss) per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | 0.07 | $ | (0.37 | ) | $ | 1.51 | $ | (0.15 | ) | ||||||
| Diluted | $ | 0.06 | $ | (0.37 | ) | $ | 1.33 | $ | (0.15 | ) | ||||||
| Weighted average shares used to compute net income (loss) per share attributable to common stockholders | ||||||||||||||||
| Basic | 230,980 | 223,695 | 228,868 | 222,078 | ||||||||||||
| Diluted | 267,473 | 223,695 | 262,196 | 222,078 | ||||||||||||
| Consolidated Statements of Cash Flows (In Thousands) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net loss | $ | (277,845 | ) | $ | (412,188 | ) | $ | (834,000 | ) | $ | (955,266 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
| Depreciation and amortization, net of amortization of deferred grants | 181,546 | 155,528 | 541,149 | 458,533 | ||||||||||||
| Income tax benefit | (999 | ) | (13,803 | ) | (207,652 | ) | (26,953 | ) | ||||||||
| Stock-based compensation expense | 29,591 | 26,992 | 79,620 | 83,956 | ||||||||||||
| Interest on pass-through financing obligations | — | — | — | 8,837 | ||||||||||||
| Reduction in pass-through financing obligations | — | (1,599 | ) | — | (20,787 | ) | ||||||||||
| Unrealized loss on derivatives | 16,079 | 73,870 | 78,704 | 2,311 | ||||||||||||
| Other noncash items | 79,288 | 65,436 | 218,094 | 105,259 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (68,609 | ) | (7,113 | ) | (95,748 | ) | (20,715 | ) | ||||||||
| Inventories | (78,838 | ) | 10,777 | (167,904 | ) | 117,398 | ||||||||||
| Prepaid expenses and other assets | (189,579 | ) | (199,993 | ) | (443,908 | ) | (470,617 | ) | ||||||||
| Accounts payable | (71,446 | ) | 45,217 | (35,082 | ) | 36,379 | ||||||||||
| Accrued expenses and other liabilities | 10,696 | 68,707 | 11,679 | 76,406 | ||||||||||||
| Deferred revenue | 55,370 | 32,013 | 143,437 | 97,465 | ||||||||||||
| Deferred tax liabilities | 193,223 | — | 193,223 | — | ||||||||||||
| Net cash used in operating activities | (121,523 | ) | (156,156 | ) | (518,388 | ) | (507,794 | ) | ||||||||
| Investing activities: | ||||||||||||||||
| Payments for the costs of solar energy systems | (742,152 | ) | (764,161 | ) | (2,088,932 | ) | (1,907,667 | ) | ||||||||
| Purchases of property and equipment, net | (1,489 | ) | (202 | ) | (2,551 | ) | (945 | ) | ||||||||
| Net cash used in investing activities | (743,641 | ) | (764,363 | ) | (2,091,483 | ) | (1,908,612 | ) | ||||||||
| Financing activities: | ||||||||||||||||
| Proceeds from state tax credits, net of recapture | — | — | 9,668 | 5,203 | ||||||||||||
| Proceeds from trade receivable financing | 95,758 | — | 167,081 | — | ||||||||||||
| Repayment of trade receivable financing | (71,323 | ) | — | (195,584 | ) | — | ||||||||||
| Proceeds from line of credit | 49,800 | 161,824 | 200,486 | 305,556 | ||||||||||||
| Repayment of line of credit | (67,112 | ) | (160,229 | ) | (265,502 | ) | (452,534 | ) | ||||||||
| Proceeds from issuance of convertible senior notes, net of capped call transaction | — | — | — | 444,822 | ||||||||||||
| Repurchase of convertible senior notes | — | (45,562 | ) | (2,124 | ) | (229,346 | ) | |||||||||
| Proceeds from issuance of non-recourse debt | 1,847,950 | 749,700 | 3,896,379 | 3,364,956 | ||||||||||||
| Repayment of non-recourse debt | (1,256,945 | ) | (238,489 | ) | (2,170,694 | ) | (1,692,214 | ) | ||||||||
| Payment of debt fees | (35,672 | ) | (10,723 | ) | (63,930 | ) | (93,747 | ) | ||||||||
| Proceeds from pass-through financing and other obligations, net | — | 1,192 | — | 4,795 | ||||||||||||
| Early repayment of pass-through financing obligation | — | — | — | (240,288 | ) | |||||||||||
| Payment of finance lease obligations | (6,251 | ) | (6,884 | ) | (19,037 | ) | (20,635 | ) | ||||||||
| Contributions received from noncontrolling interests and redeemable noncontrolling interests | 524,815 | 494,569 | 1,460,099 | 1,290,486 | ||||||||||||
| Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (58,299 | ) | (55,985 | ) | (177,099 | ) | (238,388 | ) | ||||||||
| Acquisition of noncontrolling interests | (14,485 | ) | (1,501 | ) | (30,704 | ) | (21,434 | ) | ||||||||
| Proceeds from transfer of investment tax credits | 295,778 | 222,891 | 1,156,652 | 557,111 | ||||||||||||
| Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits | (295,778 | ) | (222,891 | ) | (1,156,652 | ) | (557,111 | ) | ||||||||
| Net proceeds related to stock-based award activities | 607 | 976 | 9,172 | 11,953 | ||||||||||||
| Net cash provided by financing activities | 1,008,843 | 888,888 | 2,818,211 | 2,439,185 | ||||||||||||
| Net change in cash and restricted cash | 143,679 | (31,631 | ) | 208,340 | 22,779 | |||||||||||
| Cash and restricted cash, beginning of period | 1,012,077 | 1,042,248 | 947,416 | 987,838 | ||||||||||||
| Cash and restricted cash, end of period | $ | 1,155,756 | $ | 1,010,617 | $ | 1,155,756 | $ | 1,010,617 | ||||||||
| Non-GAAP Financial Measures |
This press release includes the Company’s non-GAAP financial measures: Aggregate Creation Costs and Cash Generation. The Company utilizes these non-GAAP measures to analyze the Company’s performance and for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s financial results as reported under GAAP. Additionally, these non-GAAP measures may not be comparable to similarly titled measures presented by other companies, thus reducing their usefulness. Accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company is not able to provide reconciliations of certain forward-looking financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted without unreasonable effort. The Company encourages investors to review our GAAP financial measures and to not rely on any single financial measure to evaluate our business.
Aggregate Creation Costs is a Non-GAAP measure that management utilizes to assess the operating performance of our ongoing operations associated with the origination and installation of solar and storage systems. Aggregate Creation Costs represent total operating expenses, adjusted for certain items consistent with management’s use as a performance measure, and capital expenditures. The adjusting items are detailed in the Reconciliation of Total Operating Expenses to Aggregate Creation Costs table below. The Company believes that Aggregate Creation Costs, when viewed together with the corresponding GAAP financial measure, provides meaningful information to our investors by measuring our operating performance with respect to costs associated with the origination and installation of storage and solar systems. When evaluating performance, investors should consider Aggregate Creation Costs in addition to, though not as a substitute for, the Company’s financial results as reported under GAAP, including total operating expenses.
| Reconciliation of Total Operating Expenses to Aggregate Creation Costs | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | |||||||||||||
| $ millions, unless otherwise noted | ||||||||||||||||||
| Total operating expenses | $ | 665 | $ | 3,775 | $ | 619 | $ | 682 | $ | 721 | ||||||||
| (-) | Fleet servicing costs in COGS | $ | (73 | ) | $ | (65 | ) | $ | (60 | ) | $ | (61 | ) | $ | (58 | ) | ||
| (-) | Depreciation & Amortization | $ | (156 | ) | $ | (162 | ) | $ | 170 | ) | $ | (190 | ) | $ | (182 | ) | ||
| (-) | Non-cash impairment of solar energy systems, net | $ | (21 | ) | $ | (4 | ) | $ | (11 | ) | $ | (21 | ) | $ | (1 | ) | ||
| (-) | Cost of solar energy systems and product sales | $ | (125 | ) | $ | (128 | ) | $ | (97 | ) | $ | (104 | ) | $ | (165 | ) | ||
| (+) | Non-Retained or Partially Retained Subscribers COGS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 61 | |||||||
| (-) | Gross profit from System & Product Sales (Excluding Non-Retained or Partially Retained Subscribers) as contra cost | $ | (6 | ) | $ | (2 | ) | $ | (5 | ) | $ | (7 | ) | $ | (14 | ) | ||
| (-) | Amortization of CTOC (sales commissions) in S&M expense | $ | (21 | ) | $ | (21 | ) | $ | (22 | ) | $ | (23 | ) | $ | (26 | ) | ||
| (+) | Additions to capitalized CTOC (sales commissions) | $ | 146 | $ | 138 | $ | 110 | $ | 126 | $ | 133 | |||||||
| (-) | Non-cash stock based compensation expense | $ | (27 | ) | $ | (29 | ) | $ | (25 | ) | $ | (25 | ) | $ | (30 | ) | ||
| (-) | Goodwill impairment | $ | 0 | $ | (3,122 | ) | $ | 0 | $ | 0 | $ | 0 | ||||||
| (-) | Amortization of intangible assets | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||
| (-) | Other adjustments (e.g., restructuring) | $ | (1 | ) | $ | (3 | ) | $ | (5 | ) | $ | (6 | ) | $ | (2 | ) | ||
| (+) | CapEx for solar energy systems | $ | 764 | $ | 792 | $ | 655 | $ | 692 | $ | 742 | |||||||
| (+) | CapEx for corporate property & equipment | $ | 0 | $ | 1 | $ | 0 | $ | 1 | $ | 1 | |||||||
| Aggregate Creation Costs | $ | 1,146 | $ | 1,169 | $ | 991 | $ | 1,063 | $ | 1,181 | ||||||||
Cash Generation is a Non-GAAP measure that management utilizes to assess the Company’s financial performance as it relates to raising capital from non-recourse capital sources relative to the cost of originating new customers, working capital management, and other cash flows associated with Sunrun's business activities. Cash Generation represents the net change in cash and restricted cash less change in restricted cash and adjusting for certain items consistent with management’s use as a performance measure. The adjusting items are detailed in the Reconciliation of Net Change in Cash and Restricted Cash to Cash Generation below. The Company believes that Cash Generation, when viewed together with the corresponding GAAP financial measure, provides meaningful information to our investors by measuring our financial performance with respect to our ability to raise capital and effectively balance working capital requirements associated with our ongoing operations associated with the origination and installation of solar and storage systems. The Company uses Cash Generation as one of the performance metrics in its executive incentive compensation plan, underscoring management's focus on delivering sustainable cash flow while continuing to grow the business. When evaluating performance, investors should consider Cash Generation in addition to, though not as a substitute for, the Company’s financial results as reported under GAAP, including net change in cash and restricted cash.
| Reconciliation of Net Change in Cash and Restricted Cash to Cash Generation | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | |||||||||||||
| $ millions, unless otherwise noted | ||||||||||||||||||
| Net change in cash and restricted cash | $ | (32 | ) | $ | (63 | ) | $ | 31 | $ | 33 | $ | 144 | ||||||
| (-) | Change in restricted cash | $ | (142 | ) | $ | 104 | $ | (2 | ) | $ | (20 | ) | $ | (53 | ) | |||
| (+) | End of period consolidated restricted cash balance pertaining to 2026 convertible note balance outstanding | $ | 133 | $ | 8 | $ | 5 | $ | 5 | $ | 5 | |||||||
| (-) | End of prior period consolidated restricted cash balance pertaining to 2026 convertible note balance outstanding | $ | 0 | $ | (133 | ) | $ | (8 | ) | $ | (5 | ) | $ | (5 | ) | |||
| (-) | Net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt) | $ | 44 | $ | 126 | $ | 28 | $ | 22 | $ | 17 | |||||||
| (-) | Primary equity issuances (or plus any stock buybacks or dividends paid to common stockholders) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||
| (-) | Net proceeds derived from employee stock award activities | $ | (1 | ) | $ | (7 | ) | $ | (0 | ) | $ | (9 | ) | $ | (1 | ) | ||
| (+) | Equity investments in non-consolidated external businesses (or less dividends or distributions received in connection with such equity investments) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||
| (-) | Net proceeds from long-term asset or business divestitures | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||
| Cash Generation | $ | 2 | $ | 34 | $ | 56 | $ | 27 | $ | 108 | ||||||||
| Key Operating and Financial Metrics |
The following operating metrics are used by management to evaluate the performance of the business. Management believes these metrics, when taken together with other information contained in our filings with the SEC and within this press release, provide investors with helpful information to determine the economic performance of the business activities in a period that would otherwise not be observable from historic GAAP measures. Management believes that it is helpful to investors to evaluate the present value of cash flows expected from subscribers over the full expected relationship with such subscribers (“Subscriber Value”, more fully defined in the definitions appendix below) in comparison to the costs associated with adding these customers, regardless of whether or not the costs are expensed or capitalized in the period (“Creation Cost”, more fully defined in the definitions appendix below). The Company also believes that Subscriber Value, Aggregate Subscriber Value, Creation Costs, Aggregate Creation Costs, Net Subscriber Value, Contracted Net Subscriber Value, Upfront Net Subscriber Value, Net Value Creation, Contracted Net Value Creation, and Upfront Value Creation are useful metrics for investors because they present an unlevered and levered view of all of the costs associated with new customers in a period compared to the expected future cash flows from these customers over a 30-year period, based on contracted pricing terms with its customers, which is not observable in any current or historic GAAP-derived metric. Management believes it is useful for investors to also evaluate the future expected cash flows from all customers that have been deployed through the respective measurement date, less estimated costs to maintain such systems and estimated distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to project equity investors (“Gross Earning Assets”, more fully defined in the definitions appendix below). The Company also believes Gross Earning Assets is useful for management and investors because it represents the remaining future expected cash flows from existing customers, which is not derivable from a current or historic GAAP-derived measure.
Various assumptions are made when calculating these metrics. Subscriber Value metrics are calculated using a discount rate based on the observed project-level capital costs in the period. Gross Earning Assets utilize a
| KEY OPERATING METRICS | ||||||||||||||||
| Unit Economics in Period | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | |||||||||||
| $ per Subscriber Addition, unless otherwise noted | ||||||||||||||||
| Subscriber Additions in period | 30,348 | 30,709 | 23,692 | 28,823 | 30,104 | |||||||||||
| Subscriber Value | $ | 47,335 | $ | 50,998 | $ | 52,206 | $ | 53,891 | $ | 52,446 | ||||||
| Discount rate (observed project-level capital costs) | 7.1 | % | 7.3 | % | 7.5 | % | 7.4 | % | 7.3 | % | ||||||
| Contracted Subscriber Value | $ | 44,551 | $ | 48,273 | $ | 48,727 | $ | 49,919 | $ | 48,507 | ||||||
| x Advance Rate on Contracted Subscriber Value (estimated) | 87.2 | % | 85.9 | % | 86.9 | % | 85.3 | % | 88.2 | % | ||||||
| = Upfront Proceeds (estimated) | $ | 38,869 | $ | 41,486 | $ | 42,339 | $ | 42,598 | $ | 42,763 | ||||||
| - Creation Costs | $ | (37,756 | ) | $ | (38,071 | ) | $ | (41,817 | ) | $ | (36,887 | ) | $ | (39,241 | ) | |
| = Upfront Net Subscriber Value | $ | 1,113 | $ | 3,415 | $ | 523 | $ | 5,711 | $ | 3,522 | ||||||
| Upfront Net Subscriber Value margin as a % of Contracted Subscriber Value | 2.5 | % | 7.1 | % | 1.1 | % | 11.4 | % | 7.3 | % | ||||||
| Aggregate Gross, Net & Upfront Value Creation in Period | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | |||||||||||
| $ millions, unless otherwise noted | ||||||||||||||||
| Aggregate Subscriber Value | $ | 1,437 | $ | 1,566 | $ | 1,237 | $ | 1,553 | $ | 1,579 | ||||||
| Aggregate Contracted Subscriber Value | $ | 1,352 | $ | 1,482 | $ | 1,154 | $ | 1,439 | $ | 1,460 | ||||||
| Aggregate Upfront Proceeds (estimated) | $ | 1,180 | $ | 1,274 | $ | 1,003 | $ | 1,228 | $ | 1,287 | ||||||
| Less Aggregate Creation Costs2 | $ | (1,146 | ) | $ | (1,169 | ) | $ | (991 | ) | $ | (1,063 | ) | $ | (1,181 | ) | |
| Net Value Creation | $ | 291 | $ | 397 | $ | 246 | $ | 490 | $ | 398 | ||||||
| Contracted Net Value Creation | $ | 206 | $ | 313 | $ | 164 | $ | 376 | $ | 279 | ||||||
| Upfront Net Value Creation | $ | 34 | $ | 105 | $ | 12 | $ | 165 | $ | 106 | ||||||
| Cash Generation2 | $ | 2 | $ | 34 | $ | 56 | $ | 27 | $ | 108 | ||||||
| Net Value Creation per share | $ | 1.30 | $ | 1.77 | $ | 1.09 | $ | 2.14 | $ | 1.72 | ||||||
| Contracted Net Value Creation per share | $ | 0.92 | $ | 1.39 | $ | 0.72 | $ | 1.64 | $ | 1.21 | ||||||
| Upfront Net Value Creation per share | $ | 0.15 | $ | 0.47 | $ | 0.05 | $ | 0.72 | $ | 0.46 | ||||||
| Volume Additions in Period | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | |||||||||||
| Storage Capacity Installed (MWhrs) | 336.3 | 392.0 | 333.7 | 391.5 | 412.0 | |||||||||||
| Solar Capacity Installed (MWs) | 229.7 | 242.4 | 190.9 | 227.2 | 239.2 | |||||||||||
| Solar Capacity Installed with Storage (MWs) | 127.0 | 142.5 | 126.7 | 157.7 | 172.4 | |||||||||||
| Solar Capacity Installed without Storage (MWs) | 102.7 | 100.0 | 64.2 | 69.5 | 66.8 | |||||||||||
| Customer Additions | 31,910 | 32,932 | 25,428 | 30,810 | 32,833 | |||||||||||
| Customer Additions with Storage | 18,988 | 20,405 | 17,501 | 21,626 | 22,822 | |||||||||||
| Customer Additions without Storage | 12,922 | 12,527 | 7,927 | 9,184 | 10,011 | |||||||||||
| Storage Attachment Rate | 60 | % | 62 | % | 69 | % | 70 | % | 70 | % | ||||||
| Subscriber Additions (included within Customer Additions) | 30,348 | 30,709 | 23,692 | 28,823 | 30,104 | |||||||||||
| Subscriber Additions as % of Customer Additions | 95 | % | 93 | % | 93 | % | 94 | % | 92 | % | ||||||
| Customer Base Value & Energy Capacity at End of Period | 9/30/2024 | 12/31/2024 | 3/31/2025 | 6/30/2025 | 9/30/2025 | |||||||||||
| Net Earning Assets ($ millions) | $ | 6,231 | $ | 6,766 | $ | 6,825 | $ | 7,632 | $ | 8,241 | ||||||
| Net Earning Assets per share | $ | 27.81 | $ | 29.99 | $ | 30.02 | $ | 33.13 | $ | 35.58 | ||||||
| Contracted Net Earning Assets ($ millions) | $ | 2,416 | $ | 2,723 | $ | 2,583 | $ | 3,001 | $ | 3,373 | ||||||
| Contracted Net Earning Assets per share | $ | 10.78 | $ | 12.07 | $ | 11.36 | $ | 13.03 | $ | 14.56 | ||||||
| Customers | 1,015,910 | 1,048,842 | 1,074,270 | 1,105,080 | 1,137,913 | |||||||||||
| Subscribers (included within Customers) | 858,477 | 889,186 | 912,878 | 941,701 | 971,805 | |||||||||||
| Networked Storage Capacity (MWhrs) | 2,133 | 2,525 | 2,858 | 3,250 | 3,662 | |||||||||||
| Networked Solar Capacity (MWs) | 7,288 | 7,531 | 7,721 | 7,949 | 8,188 | |||||||||||
| Basic Shares Outstanding | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | |||||||||||
| Basic shares outstanding at end of period (in millions) | 224.1 | 225.7 | 227.3 | 230.3 | 231.6 | |||||||||||
| Weighted average basic shares outstanding in period (in millions) | 223.7 | 224.9 | 226.4 | 229.2 | 231.0 | |||||||||||
Figures presented above may not sum due to rounding. In-period per share figures are calculated using the weighted average basic shares outstanding while end of period per share figures are calculated using the corresponding basic shares outstanding as of the measurement date. For adjustments related to Subscriber Value and Creation Costs, please see the supplemental materials available on the Sunrun Investor Relations website at investors.sunrun.com.
(2) Cash Generation and Aggregate Creation Costs are non-GAAP financial measures. See “Non-GAAP Financial Measures” above for a discussion of these measures and reconciliations to the most directly comparable GAAP measures.
Glossary of Terms*
Definitions for Volume-related Terms
Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least
Customer Agreements refer to, collectively, solar and/or storage power purchase agreements and leases.
Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments and recognized as solar energy systems on Sunrun’s consolidated balance sheet, whether or not they continue to be active.
Non-Retained or Partially Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments whereby the assets have been fully or partially sold to one or more investors and not presented as a solar energy system on Sunrun’s consolidated balance sheet.
Subscribers represent aggregate Retained Subscribers and Non-Retained or Partially Retained Subscribers.
Purchase Customers represent customers who purchased, whether outright or with proceeds from third-party loans, solar and/or storage systems that have been recognized as Deployments.
Customers represent aggregate Subscribers and Purchase Customers.
Subscriber Additions represent the number of Subscribers added in a period.
Purchase Customer Additions represent the number of Purchase Customers added in a period.
Customer Additions represent Subscriber Additions plus Purchase Customer Additions.
Solar Capacity Installed represents the aggregate megawatt production capacity of solar energy systems that were recognized as Deployments in a period.
Storage Capacity Installed represents the aggregate megawatt hour capacity of storage systems that were recognized as Deployments in a period.
Networked Solar Capacity represents the cumulative Solar Capacity Installed from the company’s inception through the measurement date.
Networked Storage Capacity represents the cumulative Storage Capacity Installed from the company’s inception through the measurement date.
Storage Attachment Rate represents Customer Additions with storage divided by total Customer Additions.
Definitions for Unit-based and Aggregate Value, Costs and Margin Terms
Subscriber Value represents Contracted Subscriber Value plus Non-contracted or Upside Subscriber Value.
Contracted Subscriber Value represents the per Subscriber present value of estimated upfront and future Contracted Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period.
Non-contracted or Upside Subscriber Value represents the per Subscriber present value of estimated future Non-contracted or Upside Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period.
Contracted Cash Flows represent, (A) for Retained Subscribers, (x) (1) scheduled payments from Subscribers during the initial terms of the Customer Agreements (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, only the minimum contracted payment is included in Contracted Cash Flows), (2) net proceeds from tax equity partners, (3) payments from government and utility incentive and rebate programs, (4) contracted net cash flows from grid services programs with utilities or grid operators, and (5) contracted or defined (i.e., with fixed pricing) cash flows from the sale of renewable energy credits, less (y) (1) estimated operating and maintenance costs to service the systems and replace equipment over the initial terms of the Customer Agreements, consistent with estimates by independent engineers, (2) distributions to tax equity partners in consolidated joint venture partnership flip structures, and (3) distributions to any project equity investors, and (B) for Non-Retained or Partially Retained Subscribers, (x) contracted proceeds from the full or partial sale of related assets, plus (y) the share of Contracted Cash Flows described in clause (A) of this definition which are allocated to Sunrun pursuant to the terms of each sale agreement or partnership agreement.
Non-contracted or Upside Cash Flows represent (A) for Retained Subscribers the (1) net cash flows realized from either the purchase of systems at the end of the Customer Agreement initial terms or renewals of Customer Agreements beyond the initial terms, estimated in both cases to have equivalent value, assuming only a 30-year relationship and a contract renewal rate equal to
Aggregate Creation Costs (Non-GAAP measure) represent total operating expenses, adjusted for certain items consistent with management’s use as a performance measure, and capital expenditures, all of which are itemized in the Non-GAAP reconciliation table as provided in the Company’s quarterly earnings release. Aggregate Creation Costs may also be derived through the direct summation of certain operating expenses and capital expenditures incurred in a period, including: (A) the following items from the cash flow statement: (i) payments for the costs of solar energy systems, plus (ii) purchases of property and equipment, less (iii) net depreciation and amortization, less (iv) stock based compensation expense; (B) the following items from the income statement: (i) cost of customer agreements and incentives revenue, adjusted to exclude fleet servicing costs and non-cash net impairment of solar energy systems, plus (ii) cost of solar energy systems sales for Non-Retained or Partially Retained Subscribers, plus (iii) sales and marketing expenses, adjusted to exclude amortization of cost to obtain customer contracts (which is the amortization of previously capitalized sales commissions), plus (iv) general and administrative expenses, plus (v) research and development expenses; and (C) gross additions to capitalized costs to obtain contracts (i.e., sales commissions), which are presented on the balance sheet within Other Assets. Because the sales, marketing, general and administrative costs are for activities related to the entire business, including solar energy system and product sales, the gross margin on solar energy system and product sales excluding Non-Retained or Partially Retained Subscribers is reflected as a contra cost. Costs associated with certain restructuring activities and one-time items are identified and excluded.
Creation Costs represent Aggregate Creation Costs divided by Subscriber Additions.
Net Subscriber Value represents Subscriber Value less Creation Costs.
Contracted Net Subscriber Value represents Contracted Subscriber Value less Creation Costs.
Upfront Net Subscriber Value represents Contracted Subscriber Value multiplied by Advance Rate less Creation Costs.
Advance Rate or Advance Rate on Contracted Subscriber Value represents the company’s estimated upfront proceeds, expressed as a percentage of Contracted Subscriber Value or Aggregate Contracted Subscriber Value, from project-level capital, proceeds from Non-Retained or Partially Retained Subscribers, and other upfront cash flows, based on market terms and observed cost of capital in a period.
Aggregate Subscriber Value represents Subscriber Value multiplied by Subscriber Additions.
Aggregate Contracted Subscriber Value represents Contracted Subscriber Value multiplied by Subscriber Additions.
Aggregate Upfront Proceeds represent Aggregate Contracted Subscriber Value multiplied by Advance Rate. Actual project financing transaction timing for portfolios of Subscribers may occur in a period different from the period in which Subscribers are recognized, and may be executed at different terms. As such, Aggregate Upfront Proceeds are an estimate based on capital markets conditions present during each period and may differ from ultimate Proceeds Realized in respect of such period’s Retained Subscribers and ultimate proceeds obtained from such period’s Non-Retained or Partially Retained Subscribers.
Proceeds Realized From Retained Subscribers represents cash flows received in respect of Retained Subscribers from non-recourse financing partners in addition to upfront customer prepayments, incentives and rebates. It is calculated as the proceeds from non-controlling interests on the cash flow statement, plus the net proceeds from non-recourse debt (excluding normal non-recourse debt amortization for existing debt, as such debt is serviced by cash flows from existing solar and storage assets), plus the gross additions to deferred revenue which represents customer payments for prepaid Customer Agreements along with local rebates and incentive programs.
Net Value Creation represents Aggregate Subscriber Value less Aggregate Creation Costs.
Contracted Net Value Creation represents Aggregate Contracted Subscriber Value less Aggregate Creation Costs.
Upfront Net Value Creation represents Aggregate Upfront Proceeds less Aggregate Creation Costs.
Cash Generation (Non-GAAP measure) represents the net change in cash and restricted cash less change in restricted cash and adjusting for certain items consistent with management’s use as a performance measure, as provided in the Company’s quarterly earnings release. Cash Generation may also be derived through calculating the change in our unrestricted cash balance from our consolidated balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt), and less any primary equity issuances or net proceeds derived from employee stock award activity (or plus any stock buybacks or dividends paid to common stockholders) as presented on the Company’s consolidated statement of cash flows. The Company expects to continue to raise proceeds from tax equity and asset-level non-recourse debt, and proceeds from the sale of Non-Retained or Partially Retained Subscribers, to fund growth, and as such, these sources of cash are included in the definition of Cash Generation. Cash Generation also excludes long-term asset or business divestitures (aside from transactions relating to Non-Retained or Partially Retained Subscribers) and equity investments in external non-consolidated businesses (or less dividends or distributions received in connection with such equity investments). Restricted cash in a reserve account with a balance equal to the amount outstanding of 2026 convertible notes is considered unrestricted cash for the purposes of calculating Cash Generation.
Definitions for Gross and Net Value from Existing Customer Base Terms
Gross Earning Assets is calculated as Contracted Gross Earning Assets plus Non-contracted or Upside Gross Earning Assets.
Contracted Gross Earning Assets represents, as of any measurement date, the present value of estimated remaining Contracted Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at
Non-contracted or Upside Gross Earning Assets represents, as of any measurement date, the present value of estimated Non-contracted or Upside Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at
Net Earning Assets represents Gross Earning Assets, plus Total Cash, less adjusted debt and lease pass-through financing obligations, as of the measurement date. Debt is adjusted to exclude a pro-rata share of non-recourse debt associated with funds with project equity structures for Retained Subscribers along with debt associated with the company’s ITC safe harboring equipment inventory facility. Because estimated cash distributions to our project equity partners for Retained Subscribers are deducted from Gross Earning Assets, a proportional share of the corresponding project level non-recourse debt is deducted from Net Earning Assets, as such debt would be serviced from cash flows already excluded from Gross Earning Assets.
Contracted Net Earning Assets represents Net Earning Assets less Non-contracted or Upside Gross Earning Assets.
Non-contracted or Upside Net Earning Assets represents Net Earning Assets less Contracted Net Earning Assets.
Total Cash represents the total of the restricted cash balance and unrestricted cash balance from our consolidated balance sheet.
Other Terms
Annual Recurring Revenue represents revenue arising from Customer Agreements over the following twelve months for Retained Subscribers that have met initial revenue recognition criteria as of the measurement date.
Average Contract Life Remaining represents the average number of years remaining in the initial term of Customer Agreements for Retained Subscribers that have met revenue recognition criteria as of the measurement date.
Households Served in Low-Income Multifamily Properties represent the number of individual rental units served in low-income multi-family properties from shared solar energy systems deployed by Sunrun. Households are counted when the solar energy system has interconnected with the grid, which may differ from Deployment recognition criteria.
Positive Environmental Impact from Customers represents the estimated reduction in carbon emissions as a result of energy produced from our Networked Solar Capacity over the trailing twelve months. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.
Positive Expected Lifetime Environmental Impact from Customer Additions represents the estimated reduction in carbon emissions over thirty years as a result of energy produced from solar energy systems that were recognized as Deployments in a period. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis, leveraging our estimated production figures for such systems, which degrade over time, and is extrapolated for 30 years. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.
Per Share Operational Metrics
The Company presents certain operating metrics on a per share basis to aid investors in understanding the scale of such operational metrics in relation to the outstanding basic share count in each period. These metrics are operational in nature and not a financial metric. These metrics are not a substitute for GAAP financials, liquidity related measures, or any financial performance metrics.
Net Value Creation, Contracted Net Value Creation, and Upfront Net Value Creation are also presented on a per share basis, calculated by dividing each metric by the weighted average basic shares outstanding for each period, as presented on the Company’s Consolidated Statements of Operations.
Net Earning Assets and Contracted Net Earning Assets are also presented on a per share basis, calculated by dividing each metric by the basic shares outstanding as of the end of each period, as presented on the Company’s Consolidated Balance Sheets.
*For our third quarter of 2025, the definitions listed below have been modified, and the changes to these definitions had no impact on previously reported quarters: Subscribers, Contracted Cash Flows, Non-contracted or Upside Cash Flows, Aggregate Creation Costs, Advance Rate or Advance Rate on Contracted Subscriber Value, Aggregate Upfront Proceeds, Proceeds Realized From Retained Subscribers, Cash Generation, Net Earning Assets, Annual Recurring Revenue, Average Contract Life Remaining. Retained Subscribers, and Non-Retained or Partially Retained Subscribers are new definitions.
Investor & Analyst Contacts:
Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com
Bronson Fleig
Director, Finance & Investor Relations
investors@sunrun.com
Media Contact:
Wyatt Semanek
Director, Corporate Communications
press@sunrun.com
FAQ
What were Sunrun (RUN) Q3 2025 revenue and EPS?
How much Cash Generation did Sunrun (RUN) report in Q3 2025 and what is 2025 guidance?
What is Sunrun's (RUN) Aggregate Subscriber Value and quarterly trend in Q3 2025?
How many subscribers did Sunrun (RUN) have at September 30, 2025?
What securitization and capital markets activity did Sunrun (RUN) complete in Q3 2025?
What was Sunrun's (RUN) storage attachment rate and installed storage in Q3 2025?
