Sunrun Reports Third Quarter 2026 Financial Results
Revenue growth coincided with fewer subscriber additions and full-year targets reduced to the bottom of prior guidance ranges.
Sentiment and the balance of points
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Rhea-AI Summary
Sunrun (RUN) reported third-quarter 2026 revenue of $1,099.5 million, up 52% year over year, alongside lower subscriber additions and reduced guidance. Net income attributable to common stockholders was $153.2 million, or $0.56 per diluted share, versus $16.6 million and $0.06 a year earlier. Operating cash flow turned positive at $301 million.
Subscriber additions fell 24% to 22,957, although direct-business installations increased 9%. Storage attachment reached 75%, versus 70% a year earlier. Aggregate Subscriber Value declined 20% to $1.3 billion, and Net Subscriber Value fell 28% to $9,462. Non-GAAP Cash Generation was $6 million, or $56 million excluding $50 million of equipment safe harbor investments. Sunrun now expects full-year Aggregate Subscriber Value of approximately $4.6 billion and Cash Generation of approximately $200 million excluding equipment safe harbor investments, both at the bottom of prior guidance ranges.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 revenue rose 52% year over year to $1,099.5 million.
- Moderate pointQ3 common-stockholder net income reached $153.2 million, versus $16.6 million; diluted EPS rose to $0.56 from $0.06.
- Moderate pointQ3 operating income reached $153.482 million, versus $3.651 million a year earlier.
- Moderate pointQ3 operating cash flow reached $301.380 million, versus $121.523 million used a year earlier.
- Moderate pointSubscribers increased 9% year over year to 1,057,695 as of September 30, 2026.
- Moderate pointStorage attachment reached 75% in Q3, versus 70% a year earlier.
- Moderate pointSubscriber Value increased 6% year over year to $55,342 in Q3.
13 minor points
- Minor pointQ3 customer agreements and incentives revenue increased 13% year over year to $553.5 million.
- Minor pointQ3 energy systems and product sales revenue increased 134% year over year to $546.0 million.
- Minor pointDirect-business installations increased 9% year over year in Q3.
- Minor pointContracted Subscriber Value increased 8% year over year to $52,525 in Q3.
- Minor pointQ3 Cash Generation was $6 million, or $56 million excluding $50 million of equipment safe harbor investments.
- Minor pointQ3 investing cash outflow decreased 44% year over year to $420 million.
- Minor pointCreation Costs Reflected in Capital Expenditures decreased 49% year over year to $444 million in Q3.
- Minor pointContracted Net Earning Assets were $3.7 billion, including $1.1 billion in Total Cash, on September 30, 2026.
- Minor pointNine-month revenue reached $2,691.717 million, versus $1,798.164 million in the prior-year period.
- Minor pointNine-month common-stockholder net income reached $436.042 million, versus $346.373 million; diluted EPS increased to $1.60 from $1.33.
- Minor pointNine-month operating income reached $144.760 million, versus a $223.486 million loss a year earlier.
- Minor pointNine-month operating cash flow reached $125.824 million, versus $518.388 million used a year earlier.
- Minor pointLine-of-credit balance declined to $135.077 million at September 30, 2026, from $238.323 million at December 31, 2025.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.2026 Cash Generation guidance reduced to approximately $200 million, excluding equipment safe harbor investments, from $200–$375 million.
- Moderate pointQ3 subscriber additions decreased 24% year over year to 22,957.
- Moderate pointQ3 Aggregate Subscriber Value decreased 20% year over year to $1.3 billion.
- Moderate pointQ3 Net Subscriber Value decreased 28% year over year to $9,462 from $13,205.
- Moderate pointQ3 solar capacity installed decreased 15% year over year to 204 megawatts.
- Moderate pointQ3 storage capacity installed decreased 9% year over year to 374 megawatt hours.
- Moderate pointQ3 Creation Costs Reflected in Operating Expenses increased 100% year over year to $610 million.
- Moderate pointQ3 cost of revenue increased 31% year over year to $629.9 million.
- Moderate pointNine-month net loss was $418.533 million, narrowing from $834.000 million a year earlier.
8 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 Aggregate Subscriber Value guidance reduced to approximately $4.6 billion, from $4.6–$4.9 billion.
- Minor pointQ3 Contracted Net Subscriber Value decreased 28% year over year to $6,645 from $9,266.
- Minor pointQ3 sales and marketing expense rose to $240.042 million, from $164.798 million a year earlier.
- Minor pointQ3 research and development expense rose to $10.144 million, from $9.267 million a year earlier.
- Minor pointQ3 general and administrative expense rose to $65.931 million, from $65.550 million a year earlier.
- Minor pointQ3 net interest expense increased to $276.003 million, from $265.788 million a year earlier.
- Minor pointCash declined to $699.428 million at September 30, 2026, from $823.380 million at December 31, 2025.
- Minor pointNon-recourse debt increased in both current and long-term portions between December 31, 2025, and September 30, 2026.
News Explained
In the reported third quarter, Sunrun’s energy-systems and product-sales revenue was
Details
Market Reaction – RUN
On Nov 4, the day this news came out, the latest delayed price for RUN is 7.33% above the previous close. Argus tracked a peak move of +9.8% during the session. Argus tracked a trough of -6.3% from its starting point during tracking. Our momentum scanner has recorded 48 alerts for this stock so far that day. The latest delayed price is $9.43. Relative volume is very high at 3.6x what this stock usually trades by this time of day.
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Key Figures
- Full-year Cash Generation guidance
- Approximately $200 million
- 2026; excluding equipment safe harbor investments, revised from $200 million to $375 million
- Full-year Aggregate Subscriber Value guidance
- Approximately $4.6 billion
- 2026; revised from prior guidance of $4.6 billion to $4.9 billion
- Revenue
- $1,099.5 million
- Q3 2026; up 52% year over year
- Net income attributable to common stockholders
- $153.2 million
- Q3 2026; diluted earnings per share was $0.56
- Cash Generation
- $6 million
- Q3 2026; $56 million excluding $50 million of equipment safe harbor investments
- Subscriber Additions
- 22,957
- Q3 2026; down 24% compared with Q3 2025
- Net Subscriber Value
- $9,462
- Q3 2026; down 28% from $13,205 in Q3 2025
- Storage Attachment Rate
- 75%
- Q3 2026; compared with 70% in the prior-year period
Previous Earnings Reports
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Subscriber additions and aggregate subscriber value fell; the company lowered full-year guidance.
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Revenue grew 35%, Cash Generation was $108 million, and storage attachment reached 70%.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial measures financial
investment tax credit financial
gaap financial
non-recourse debt financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Robust sales growth continued in our direct business
Aggregate Subscriber Value of approximately
Storage Attachment Rate reached record
Net cash provided by operating activities was
Revised Cash Generation1,2 guidance to approximately
SAN FRANCISCO, Nov. 04, 2026 (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 third quarter ended September 30, 2026.
“Sunrun has returned its direct business to growth, with installations increasing
“Q3 marked an important inflection point as we returned to growth in our direct business and expanded our Upfront Net Subscriber Value margins considerably. We delivered
Third Quarter Updates and Recent Developments
- Leading with Storage-First Strategy: Storage Attachment Rate was
75% in Q3, up from70% in the prior-year period. As of September 30, 2026, Sunrun has installed more than 284,000 storage and solar systems, representing approximately 5.0 Gigawatt hours of Networked Storage Capacity. - Recognized for Commitment to Customer Satisfaction, innovation, and industry leadership: In July 2026, Sunrun was awarded the exclusive 2026 Preferred Partner Award and Platinum Solar Award by BestCompany.com to recognize the company’s commitment to customer satisfaction, product innovation and industry leadership. Sunrun has received the Platinum Solar Award for three consecutive years and Preferred Partner Award for two consecutive years.
- Three Consecutive Record-setting Residential Distributed Power Plant Dispatch Events: In September, Sunrun participated in a 580 MW dispatch event contributing 320+ MW (
56% ), which marks the dispatch event as the largest in history. In October, Sunrun participated in two additional record setting dispatch events on back-to-back days on October 5th and 6th. On October 5, Sunrun contributed 400+ MW (61% ) in a 669 MW dispatch event and 430+ MW (58% ) of the 745 MW dispatch event that took place on October 6.
Key Operating Metrics
In the third quarter of 2026, Subscriber Additions were 22,957, a
Storage Capacity Installed was 374 megawatt hours in the third quarter of 2026, a
Subscriber Value was
Net Subscriber Value was
Aggregate Subscriber Value was
Total Operating Expenses were
Net cash provided by operating activities was
Contracted Net Earning Assets were
Outlook
For the full-year 2026, Aggregate Subscriber Value is now expected to be approximately
Cash Generation1,2 is now expected to be approximately
Third Quarter 2026 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 2026 results and business outlook at 1:30 p.m. Pacific Time today, November 4, 2026. 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, Creation Costs Reflected in Operating Expenses, and Creation Costs Reflected in Capital Expenditures 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.
(2) The Company is not able to provide reconciliations to certain of its forward-looking 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 its GAAP financial measures and to not rely on any single financial measure to evaluate our business.
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 lowers 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 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, growth 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 expectation regarding its growth trajectory in installations exiting the year; the Company’s momentum in its business strategies including expectations regarding its direct business and market share growth in certain geographies, customer value proposition, market penetration, growth of certain divisions and ability to scale offerings, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the Company’s discussion of new products, offerings, and applications, including monetization of the Company’s network for grid programs and emerging data center and grid edge applications; the trajectory of the storage and solar industry; the Company’s business, customer base, and market; and anticipated demand, market acceptance, and market adoption of the Company’s offerings; the Company’s expectations regarding its allocations of and ability to create new streams of Cash Generation; and the Company’s aim to leverage its existing energy infrastructure to serve AI-driven electricity demand and create new, high-margin revenue opportunities. 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 the Company’s business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks, including the Company’s and its energy system partners’ dependence on a limited number of suppliers of solar panels, batteries, and other system components and any shortage, bottlenecks, delays, detentions, or component price changes from these suppliers, restrictions on components and materials sourced from designated foreign entities of concern and the Company’s 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; regulators imposing rules on the type of electricians qualified to install and service the Company’s solar and battery systems in California, which may result in workforce shortages, operational delays, and increased costs; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives, and the risk that if the IRS makes determinations that the creditable basis of the Company’s energy systems is materially lower than what it has claimed, it may have to pay significant amounts to its fund investors; the Company’s risk of additional taxes owed in respect of lost ITCs and the availability of related insurance coverage; the availability of solar panels, batteries, and other components and raw materials; the Company’s failure or perceived failure to comply with existing or future laws, regulations, contracts, self‑regulatory schemes, standards, and other obligations related to data privacy and security (including security incidents), including where compliance or the actual or perceived failure to comply could increase the costs of its products and services, limit their use or adoption, and otherwise negatively affect our operating results and business; 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, 2026 | December 31, 2025 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 699,428 | $ | 823,380 | ||
| Restricted cash | 421,757 | 413,460 | ||||
| Accounts receivable, net | 289,933 | 262,627 | ||||
| Inventories | 709,656 | 501,286 | ||||
| Prepaid expenses and other current assets | 183,805 | 155,216 | ||||
| Total current assets | 2,304,579 | 2,155,969 | ||||
| Restricted cash | 148 | 148 | ||||
| Energy systems, net | 17,410,940 | 16,817,863 | ||||
| Property and equipment, net | 55,505 | 75,692 | ||||
| Other assets | 4,199,515 | 3,560,924 | ||||
| Total assets | $ | 23,970,687 | $ | 22,610,596 | ||
| Liabilities and total equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 419,673 | $ | 271,021 | ||
| Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 52,155 | 47,072 | ||||
| Accrued expenses and other liabilities | 498,389 | 518,835 | ||||
| Deferred revenue, current portion | 166,651 | 162,839 | ||||
| Deferred grants, current portion | 8,991 | 8,681 | ||||
| Finance lease obligations, current portion | 22,727 | 24,557 | ||||
| Non-recourse debt, current portion | 350,362 | 269,510 | ||||
| Total current liabilities | 1,518,948 | 1,302,515 | ||||
| Deferred revenue, net of current portion | 1,416,115 | 1,350,494 | ||||
| Deferred grants, net of current portion | 187,985 | 196,726 | ||||
| Finance lease obligations, net of current portion | 20,026 | 36,908 | ||||
| Convertible senior notes | 475,314 | 473,749 | ||||
| Line of credit | 135,077 | 238,323 | ||||
| Non-recourse debt, net of current portion | 14,310,006 | 13,708,532 | ||||
| Other liabilities | 202,053 | 156,199 | ||||
| Deferred tax liabilities | 293,606 | 163,176 | ||||
| Total liabilities | 18,559,130 | 17,626,622 | ||||
| Redeemable noncontrolling interests | 765,551 | 709,255 | ||||
| Total stockholders’ equity | 3,692,139 | 3,132,484 | ||||
| Noncontrolling interests | 953,867 | 1,142,235 | ||||
| Total equity | 4,646,006 | 4,274,719 | ||||
| Total liabilities, redeemable noncontrolling interests and total equity | $ | 23,970,687 | $ | 22,610,596 | ||
| Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue: | ||||||||||||||||
| Customer agreements and incentives | $ | 553,451 | $ | 491,600 | $ | 1,565,003 | $ | 1,352,520 | ||||||||
| Energy systems and product sales | 546,047 | 232,957 | 1,126,714 | 445,644 | ||||||||||||
| Total revenue | 1,099,498 | 724,557 | 2,691,717 | 1,798,164 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of customer agreements and incentives | 325,306 | 315,811 | 982,500 | 969,816 | ||||||||||||
| Cost of energy systems and product sales | 304,593 | 165,480 | 691,593 | 366,422 | ||||||||||||
| Sales and marketing | 240,042 | 164,798 | 609,256 | 463,247 | ||||||||||||
| Research and development | 10,144 | 9,267 | 30,521 | 27,309 | ||||||||||||
| General and administrative | 65,931 | 65,550 | 233,087 | 194,856 | ||||||||||||
| Total operating expenses | 946,016 | 720,906 | 2,546,957 | 2,021,650 | ||||||||||||
| Income (loss) from operations | 153,482 | 3,651 | 144,760 | (223,486 | ) | |||||||||||
| Interest expense, net | (276,003 | ) | (265,788 | ) | (804,374 | ) | (740,359 | ) | ||||||||
| Other income (expense), net | 164,328 | (17,880 | ) | 199,009 | (77,807 | ) | ||||||||||
| Income (loss) before income taxes | 41,807 | (280,017 | ) | (460,605 | ) | (1,041,652 | ) | |||||||||
| Income tax benefit | (45,166 | ) | (2,172 | ) | (42,072 | ) | (207,652 | ) | ||||||||
| Net income (loss) | 86,973 | (277,845 | ) | (418,533 | ) | (834,000 | ) | |||||||||
| Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (66,273 | ) | (294,434 | ) | (854,575 | ) | (1,180,373 | ) | ||||||||
| Net income attributable to common stockholders | $ | 153,246 | $ | 16,589 | $ | 436,042 | $ | 346,373 | ||||||||
| Net income per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | 0.64 | $ | 0.07 | $ | 1.83 | $ | 1.51 | ||||||||
| Diluted | $ | 0.56 | $ | 0.06 | $ | 1.60 | $ | 1.33 | ||||||||
| Weighted average shares used to compute net income per share attributable to common stockholders | ||||||||||||||||
| Basic | 240,914 | 230,980 | 238,189 | 228,868 | ||||||||||||
| Diluted | 274,525 | 267,473 | 273,650 | 262,196 | ||||||||||||
| Consolidated Statements of Cash Flows (In Thousands) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net income (loss) | $ | 86,973 | $ | (277,845 | ) | $ | (418,533 | ) | $ | (834,000 | ) | |||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
| Depreciation and amortization, net of amortization of deferred grants | 196,660 | 181,546 | 579,004 | 541,149 | ||||||||||||
| Deferred income taxes | (45,167 | ) | (999 | ) | (42,073 | ) | (207,652 | ) | ||||||||
| Stock-based compensation expense | 19,284 | 29,591 | 66,705 | 79,620 | ||||||||||||
| Unrealized (gain) loss on derivatives | (152,936 | ) | 16,079 | (196,253 | ) | 78,704 | ||||||||||
| Other noncash items | 95,778 | 79,288 | 268,814 | 218,094 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (69,582 | ) | (68,609 | ) | (57,428 | ) | (95,748 | ) | ||||||||
| Inventories | (28,325 | ) | (78,838 | ) | (98,820 | ) | (167,904 | ) | ||||||||
| Prepaid expenses and other assets | (111,622 | ) | (189,579 | ) | (361,607 | ) | (443,908 | ) | ||||||||
| Accounts payable | 89,532 | (71,446 | ) | 158,822 | (35,082 | ) | ||||||||||
| Accrued expenses and other liabilities | 54,317 | 10,696 | 1,584 | 11,679 | ||||||||||||
| Deferred revenue | 38,920 | 55,370 | 67,442 | 143,437 | ||||||||||||
| Deferred tax liabilities | 127,548 | 193,223 | 158,167 | 193,223 | ||||||||||||
| Net cash provided by (used in) operating activities | 301,380 | (121,523 | ) | 125,824 | (518,388 | ) | ||||||||||
| Investing activities: | ||||||||||||||||
| Payments for the costs of energy systems | (375,457 | ) | (742,152 | ) | (1,229,242 | ) | (2,088,932 | ) | ||||||||
| Purchase of equity investment | (42,280 | ) | — | (61,533 | ) | — | ||||||||||
| Purchases of property and equipment, net | (2,158 | ) | (1,489 | ) | (6,854 | ) | (2,551 | ) | ||||||||
| Net cash used in investing activities | (419,895 | ) | (743,641 | ) | (1,297,629 | ) | (2,091,483 | ) | ||||||||
| Financing activities: | ||||||||||||||||
| Proceeds from state tax credits, net of recapture | — | — | 12,384 | 9,668 | ||||||||||||
| 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 | 184,000 | 200,486 | ||||||||||||
| Repayment of line of credit | (18,623 | ) | (67,112 | ) | (287,245 | ) | (265,502 | ) | ||||||||
| Repurchase of convertible senior notes | — | — | (5,457 | ) | (2,124 | ) | ||||||||||
| Proceeds from issuance of non-recourse debt | 731,899 | 1,847,950 | 2,991,055 | 3,896,379 | ||||||||||||
| Repayment of non-recourse debt | (655,567 | ) | (1,256,945 | ) | (2,494,890 | ) | (2,170,694 | ) | ||||||||
| Payment of debt fees | (19,379 | ) | (35,672 | ) | (62,326 | ) | (63,930 | ) | ||||||||
| Payment of finance lease obligations | (6,010 | ) | (6,251 | ) | (18,276 | ) | (19,037 | ) | ||||||||
| Contributions received from noncontrolling interests and redeemable noncontrolling interests | 140,099 | 524,815 | 961,655 | 1,460,099 | ||||||||||||
| Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (68,956 | ) | (58,299 | ) | (217,241 | ) | (177,099 | ) | ||||||||
| Acquisition of noncontrolling interests | — | (14,485 | ) | (16,878 | ) | (30,704 | ) | |||||||||
| Proceeds from transfer of investment tax credits | 325,942 | 295,778 | 972,556 | 1,156,652 | ||||||||||||
| Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits | (325,942 | ) | (295,778 | ) | (972,556 | ) | (1,156,652 | ) | ||||||||
| Net proceeds related to stock-based award activities | — | 607 | 9,369 | 9,172 | ||||||||||||
| Net cash provided by financing activities | 103,463 | 1,008,843 | 1,056,150 | 2,818,211 | ||||||||||||
| Net change in cash and restricted cash | (15,052 | ) | 143,679 | (115,655 | ) | 208,340 | ||||||||||
| Cash and restricted cash, beginning of period | 1,136,385 | 1,012,077 | 1,236,988 | 947,416 | ||||||||||||
| Cash and restricted cash, end of period | $ | 1,121,333 | $ | 1,155,756 | $ | 1,121,333 | $ | 1,155,756 | ||||||||
Non-GAAP Financial Measures
This press release includes the Company’s non-GAAP financial measures: Creation Costs Reflected in Operating Expenses, Creation Costs Reflected in Capital Expenditures, 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.
Creation Costs Reflected in Operating Expenses 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. Creation Costs Reflected in Operating Expenses represent total operating expenses, adjusted for certain items consistent with management’s use as a performance measure. The adjusting items are detailed in the Reconciliation of Total Operating Expenses to Creation Costs Reflected in Operating Expenses table below. The Company believes that Creation Costs Reflected in Operating Expenses, 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 Creation Costs Reflected in Operating Expenses 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 Creation Costs Reflected in Operating Expenses | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | ||||||||||||||
| $ millions, unless otherwise noted | |||||||||||||||||||
| Total Operating Expenses | $ | 721 | $ | 1,061 | $ | 766 | $ | 835 | $ | 946 | |||||||||
| (-) | Fleet servicing cost in COGS | $ | (58 | ) | $ | (56 | ) | $ | (46 | ) | $ | (57 | ) | $ | (52 | ) | |||
| (-) | Non-cash impairment of energy systems, net | $ | (1 | ) | $ | (28 | ) | $ | (12 | ) | $ | (15 | ) | $ | (24 | ) | |||
| (-) | Depreciation & Amortization | $ | (182 | ) | $ | (184 | ) | $ | (190 | ) | $ | (193 | ) | $ | (197 | ) | |||
| (-) | Amortization of CTOC (sales commissions) in S&M expense | $ | (26 | ) | $ | (24 | ) | $ | (26 | ) | $ | (27 | ) | $ | (28 | ) | |||
| (-) | Cost of Energy Systems and Product Sales (Excluding Non-Retained or Partially Retained Subscribers) | $ | (104 | ) | $ | (109 | ) | $ | (80 | ) | $ | (54 | ) | $ | (60 | ) | |||
| (-) | Gross profit from Systems & Product Sales (Excluding Non-Retained or Partially Retained Subscribers) as contra cost | $ | (14 | ) | $ | (15 | ) | $ | (1 | ) | $ | (5 | ) | $ | 12 | ||||
| (-) | Non-cash stock based compensation expense | $ | (30 | ) | $ | (28 | ) | $ | (26 | ) | $ | (21 | ) | $ | (19 | ) | |||
| (-) | Goodwill impairment | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| (-) | Amortization of intangible assets | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| (-) | Other adjustments (e.g., restructuring, legal) | $ | (2 | ) | $ | (1 | ) | $ | (16 | ) | $ | (13 | ) | $ | (4 | ) | |||
| (+) | Adjustments to reflect purchase price adjustment for Non-Retained or Partially Retained Subscribers owing to consigned inventory usage | $ | - | $ | - | $ | - | $ | 19 | $ | 35 | ||||||||
| Creation Costs Reflected in Operating Expenses | $ | 305 | $ | 617 | $ | 368 | $ | 469 | $ | 610 | |||||||||
| Note: Creation Costs Reflected in Operating Expenses uses inputs from the Company’s GAAP income statement, and as such, is presented on an accrual basis. | |||||||||||||||||||
Creation Costs Reflected in Capital Expenditures 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. Creation Costs Reflected in Capital Expenditures represent Net cash used in investing activities, adjusted for certain items consistent with management’s use as a performance measure. The adjusting items are detailed in the Reconciliation of Net Cash Used in Investing Activities to Creation Costs Reflected in Capital Expenditures table below. The Company believes that Creation Costs Reflected in Capital Expenditures, 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 Creation Costs Reflected in Capital Expenditures in addition to, though not as a substitute for, the Company’s financial results as reported under GAAP, including Net cash used in investing activities.
| Reconciliation of Net Cash Used in Investing Activities to Creation Costs Reflected in Capital Expenditures | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | ||||||||||||||
| $ millions, unless otherwise noted | |||||||||||||||||||
| Net cash used in investing activities | $ | 744 | $ | 409 | $ | 429 | $ | 449 | $ | 420 | |||||||||
| (+) | Additions to capitalized CTOC (sales commissions) | $ | 133 | $ | 21 | $ | 79 | $ | 85 | $ | 66 | ||||||||
| (-) | Purchase of equity method investment | $ | - | $ | - | $ | (4 | ) | $ | (16 | ) | $ | (42 | ) | |||||
| Creation Costs Reflected in Capital Expenditures | $ | 877 | $ | 430 | $ | 503 | $ | 519 | $ | 444 | |||||||||
| Note: Creation Costs Reflected in Capital Expenditures uses inputs from the Company’s Statement of Cash Flows, and as such, is presented using a cash basis of accounting. | |||||||||||||||||||
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 Net cash provided by (used in) operating activities, adjusted for certain items consistent with management’s use as a performance measure. The adjusting items are detailed in the Reconciliation of Cash Provided by Operating Activities to Cash Generation table 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 cash provided by (used in) operating activities.
| Reconciliation of Cash Provided by Operating Activities to Cash Generation | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | ||||||||||||||
| $ millions, unless otherwise noted | |||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (122 | ) | $ | 97 | $ | 11 | $ | (186 | ) | $ | 301 | |||||||
| (-) | Payments for the costs of energy systems | $ | (742 | ) | $ | (410 | ) | $ | (424 | ) | $ | (429 | ) | $ | (375 | ) | |||
| (-) | Purchase of equity investment | $ | - | $ | - | $ | (4 | ) | $ | (16 | ) | $ | (42 | ) | |||||
| (-) | Purchases of property and equipment, net | $ | (1 | ) | $ | 1 | $ | (0 | ) | $ | (4 | ) | $ | (2 | ) | ||||
| (+) | Proceeds from state tax credits, net of recapture | $ | - | $ | - | $ | 12 | $ | - | $ | - | ||||||||
| (+) | Proceeds from trade receivables financing | $ | 96 | $ | - | $ | - | $ | - | $ | - | ||||||||
| (-) | Repayment of trade receivable financing | $ | (71 | ) | $ | (96 | ) | $ | - | $ | - | $ | - | ||||||
| (+) | Proceeds from issuance of non-recourse debt | $ | 1,848 | $ | 215 | $ | 808 | $ | 1,451 | $ | 732 | ||||||||
| (-) | Repayment of non-recourse debt | $ | (1,257 | ) | $ | (115 | ) | $ | (666 | ) | $ | (1,174 | ) | $ | (656 | ) | |||
| (-) | Payment of debt fees | $ | (36 | ) | $ | (4 | ) | $ | (18 | ) | $ | (25 | ) | $ | (19 | ) | |||
| (+) | Proceeds from pass-through financing and other obligations, net | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| (-) | Repayment of pass-through financing obligation | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| (-) | Payment of finance lease obligations | $ | (6 | ) | $ | (6 | ) | $ | (6 | ) | $ | (6 | ) | $ | (6 | ) | |||
| (+) | Contributions received from noncontrolling interests and redeemable noncontrolling interests | $ | 525 | $ | 542 | $ | 306 | $ | 516 | $ | 140 | ||||||||
| (-) | Distributions paid to noncontrolling interest and redeemable noncontrolling interests | $ | (58 | ) | $ | (70 | ) | $ | (76 | ) | $ | (73 | ) | $ | (69 | ) | |||
| (-) | Acquisition of noncontrolling interest | $ | (14 | ) | $ | (0 | ) | $ | - | $ | (17 | ) | $ | - | |||||
| (+) | Proceeds from transfer of investment tax credits | $ | 296 | $ | 446 | $ | 340 | $ | 307 | $ | 326 | ||||||||
| (+) | Payments to redeemable noncontrolling interest and noncontrolling interests of investment tax credits | $ | (296 | ) | $ | (446 | ) | $ | (340 | ) | $ | (307 | ) | $ | (326 | ) | |||
| (-) | Increase / (+) decrease in Restricted Cash | $ | (53 | ) | $ | 33 | $ | 4 | $ | (14 | ) | $ | 2 | ||||||
| (+/-) | Changes in 2026 convertible senior notes reserve balance | $ | - | $ | - | $ | (5 | ) | $ | - | $ | - | |||||||
| Cash Generation ($ millions) | $ | 108 | $ | 187 | $ | (59 | ) | $ | 23 | $ | 6 | ||||||||
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). The Company also believes that Subscriber Value, Aggregate Subscriber Value, Creation Costs Reflected in Operating Expenses, Creation Costs Reflected in Capital Expenditures, Net Subscriber Value, Contracted Net Subscriber Value and Upfront Net Subscriber Value are useful metrics for investors because they present a view of unit economics the Company uses to assess customers originated in a period, inclusive of 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 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | |||||||||||
| $ per Subscriber Addition, unless otherwise noted | ||||||||||||||||
| Subscriber Additions in period | 30,104 | 25,475 | 17,665 | 19,793 | 22,957 | |||||||||||
| Subscriber Value | $ | 52,446 | $ | 50,165 | $ | 61,240 | $ | 59,377 | $ | 55,342 | ||||||
| Discount rate (observed project-level capital costs) | 7.3 | % | 7.1 | % | 6.3 | % | 7.3 | % | 8.4 | % | ||||||
| Contracted Subscriber Value | $ | 48,507 | $ | 47,988 | $ | 55,464 | $ | 55,033 | $ | 52,525 | ||||||
| x Advance Rate on Contracted Subscriber Value (estimated) | 88.2 | % | 91.2 | % | 98.2 | % | 94.4 | % | 94.4 | % | ||||||
| = Upfront Proceeds (estimated) | $ | 42,763 | $ | 43,758 | $ | 54,484 | $ | 51,949 | $ | 49,597 | ||||||
| = Upfront Net Subscriber Value | $ | 3,522 | $ | 2,692 | $ | 5,136 | $ | 2,016 | $ | 3,718 | ||||||
| Upfront Net Subscriber Value margin as a % of Contracted Subscriber Value | 7.3 | % | 5.6 | % | 9.3 | % | 3.7 | % | 7.1 | % | ||||||
| Aggregate Gross Value and Costs in Period | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | |||||||||||
| $ millions, unless otherwise noted | ||||||||||||||||
| Aggregate Subscriber Value | $ | 1,579 | $ | 1,278 | $ | 1,082 | $ | 1,175 | $ | 1,270 | ||||||
| Aggregate Contracted Subscriber Value | $ | 1,460 | $ | 1,222 | $ | 980 | $ | 1,089 | $ | 1,206 | ||||||
| Aggregate Upfront Proceeds (estimated) | $ | 1,287 | $ | 1,115 | $ | 962 | $ | 1,028 | $ | 1,139 | ||||||
| Creation Costs Reflected in Operating Expenses1 | $ | 305 | $ | 617 | $ | 368 | $ | 469 | $ | 610 | ||||||
| Creation Costs Reflected in Capital Expenditures1 | $ | 877 | $ | 430 | $ | 503 | $ | 519 | $ | 444 | ||||||
| Cash Generation1 | $ | 108 | $ | 187 | $ | (59 | ) | $ | 23 | $ | 6 | |||||
| Volume Additions in Period | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | |||||||||||
| Storage Capacity Installed (MWhrs) | 412.0 | 371.1 | 282.3 | 332.0 | 374.4 | |||||||||||
| Solar Capacity Installed (MWs) | 239.2 | 216.2 | 154.2 | 174.3 | 203.7 | |||||||||||
| Solar Capacity Installed with Storage (MWs) | 172.4 | 157.1 | 115.9 | 133.8 | 151.5 | |||||||||||
| Solar Capacity Installed without Storage (MWs) | 66.8 | 59.1 | 38.2 | 40.5 | 52.1 | |||||||||||
| Customer Additions | 32,833 | 27,773 | 18,948 | 20,979 | 24,096 | |||||||||||
| Customer Additions with Storage | 22,822 | 19,639 | 13,789 | 15,531 | 18,081 | |||||||||||
| Customer Additions without Storage | 10,011 | 8,134 | 5,159 | 5,448 | 6,015 | |||||||||||
| Storage Attachment Rate | 70 | % | 71 | % | 73 | % | 74 | % | 75 | % | ||||||
| Subscriber Additions (included within Customer Additions) | 30,104 | 25,475 | 17,665 | 19,793 | 22,957 | |||||||||||
| Subscriber Additions as % of Customer Additions | 92 | % | 92 | % | 93 | % | 94 | % | 95 | % | ||||||
| Customer Base Value & Energy Capacity at End of Period | 9/30/2025 | 12/31/2025 | 3/31/2026 | 6/30/2026 | 9/30/2026 | |||||||||||
| Net Earning Assets ($ millions) | $ | 8,241 | $ | 8,538 | $ | 8,872 | $ | 9,004 | $ | 9,032 | ||||||
| Contracted Net Earning Assets ($ millions) | $ | 3,373 | $ | 3,571 | $ | 3,701 | $ | 3,677 | $ | 3,710 | ||||||
| Customers | 1,137,913 | 1,165,686 | 1,184,634 | 1,205,613 | 1,229,709 | |||||||||||
| Subscribers (included within Customers) | 971,805 | 997,280 | 1,014,945 | 1,034,738 | 1,057,695 | |||||||||||
| Networked Storage Capacity (MWhrs) | 3,662 | 4,033 | 4,315 | 4,647 | 5,022 | |||||||||||
| Networked Solar Capacity (MWs) | 8,188 | 8,404 | 8,558 | 8,732 | 8,936 | |||||||||||
| Basic Shares Outstanding | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | |||||||||||
| Basic shares outstanding at end of period (in millions) | 231.6 | 233.6 | 235.5 | 240.1 | 241.2 | |||||||||||
| Weighted average basic shares outstanding in period (in millions) | 231.0 | 232.6 | 234.6 | 239.0 | 240.9 | |||||||||||
Figures presented above may not sum due to rounding. For adjustments related to Subscriber Value, Creation Costs Reflected in Operating Expenses, and Creation Costs Reflected in Capital Expenditures, please see the supplemental materials available on the Sunrun Investor Relations website at investors.sunrun.com.
(1) Creation Costs Reflected in Operating Expenses, Creation Costs Reflected in Capital Expenditures, and Cash Generation 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 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 an 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, before any price adjustments related to consigned inventory usage, 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
Creation Costs Reflected In Operating Expenses (Non-GAAP measure) represent total operating expenses, adjusted for certain items consistent with management’s use as a performance measure, all of which are itemized in the Non-GAAP reconciliation table as provided in the Company’s earnings release. Creation Costs Reflected In Operating Expenses may be derived by taking total operating expenses incurred in a period, and adjusting by: (A) excluding the following items: (i) fleet servicing costs; (ii) non-cash net impairment of energy systems; (iii) depreciation and amortization expense; (iv) amortization of costs to obtain contracts, which represents the amortization expense of sales commissions; (v) cost of energy system and product sales not pertaining to Non-retained or Partially Retained Subscribers; (vi) gross profit from system & product sales not pertaining to Non-retained or Partially Retained Subscribers; (vii) stock based compensation expense; (viii) goodwill impairment expense; (ix) amortization of intangible assets; and (x) costs associated with certain restructuring activities, amortization of previously capitalized insurance costs associated with tax credit transfer agreements, and one-time items are identified and excluded; and (B) including any purchase price adjustments for Non-retained or Partially Retained Subscribers owing to consigned inventory usage. When presented on a per Subscriber Addition basis, Creation Costs Reflected in Operating Expenses is divided by the Subscriber Additions for the corresponding period.
Creation Costs Reflected In Capital Expenditures (Non-GAAP measure) represent total capital expenditures, adjusted for certain items consistent with management’s use as a performance measure, all of which are itemized in the Non-GAAP reconciliation table as provided in the Company’s earnings release. Creation Costs Reflected In Capital Expenditures may be derived by taking net cash used in investing activities and adjusting to include the gross additions to capitalized costs to obtain contracts (i.e., sales commissions) and to exclude cash used for the purchase of equity investments. As such, this measure represents the sum of the following items: (i) payments for the costs of energy systems, (ii) net purchases of property and equipment, and (iii) gross additions to capitalized costs to obtain contracts (i.e., sales commissions). When presented on a per Subscriber Addition basis, Creation Costs Reflected in Capital Expenditures is divided by the Subscriber Additions for the corresponding period.
Net Subscriber Value represents Subscriber Value less the summation of the following items divided by Subscriber Additions: (A) payments for the costs of energy systems; (B) net purchases of property and equipment; (C) gross additions to capitalized costs to obtain contracts (i.e., sales commissions); (D) total operating expenses, adjusted to exclude the following items: (i) fleet servicing costs; (ii) non-cash net impairment of energy systems; (iii) depreciation and amortization expense; (iv) amortization of costs to obtain contracts, which represents the amortization expense of sales commissions; (v) cost of energy system and product sales not pertaining to Non-retained or Partially Retained Subscribers; (vi) gross profit from system & product sales not pertaining to Non-retained or Partially Retained Subscribers; (vii) stock based compensation expense; (viii) goodwill impairment expense; (ix) amortization of intangible assets; and (x) costs associated with certain restructuring activities, amortization of previously capitalized insurance costs associated with tax credit transfer agreements, and one-time items are identified and excluded; and to include any purchase price adjustments for Non-retained or Partially Retained Subscribers owing to consigned inventory usage.
Contracted Net Subscriber Value represents Contracted Subscriber Value less the summation of the following items divided by Subscriber Additions: (A) payments for the costs of energy systems; (B) net purchases of property and equipment; (C) gross additions to capitalized costs to obtain contracts (i.e., sales commissions); (D) total operating expenses, adjusted to exclude the following items: (i) fleet servicing costs; (ii) non-cash net impairment of energy systems; (iii) depreciation and amortization expense; (iv) amortization of costs to obtain contracts, which represents the amortization expense of sales commissions; (v) cost of energy system and product sales not pertaining to Non-retained or Partially Retained Subscribers; (vi) gross profit from system & product sales not pertaining to Non-retained or Partially Retained Subscribers; (vii) stock based compensation expense; (viii) goodwill impairment expense; (ix) amortization of intangible assets; and (x) costs associated with certain restructuring activities, amortization of previously capitalized insurance costs associated with tax credit transfer agreements, and one-time items are identified and excluded; and to include any purchase price adjustments for Non-retained or Partially Retained Subscribers owing to consigned inventory usage.
Upfront Net Subscriber Value represents Contracted Subscriber Value multiplied by Advance Rate less the summation of the following items divided by Subscriber Additions: (A) payments for the costs of energy systems; (B) net purchases of property and equipment; (C) gross additions to capitalized costs to obtain contracts (i.e., sales commissions); (D) total operating expenses, adjusted to exclude the following items: (i) fleet servicing costs; (ii) non-cash net impairment of energy systems; (iii) depreciation and amortization expense; (iv) amortization of costs to obtain contracts, which represents the amortization expense of sales commissions; (v) cost of energy system and product sales not pertaining to Non-retained or Partially Retained Subscribers; (vi) gross profit from system & product sales not pertaining to Non-retained or Partially Retained Subscribers; (vii) stock based compensation expense; (viii) goodwill impairment expense; (ix) amortization of intangible assets; and (x) costs associated with certain restructuring activities, amortization of previously capitalized insurance costs associated with tax credit transfer agreements, and one-time items are identified and excluded; and to include any purchase price adjustments for Non-retained or Partially Retained Subscribers owing to consigned inventory usage.
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.
Cash Generation (Non-GAAP measure) represents Net cash provided by operating activities, less cash used in investing activities, less increases in restricted cash (or plus decreases in restricted cash), plus the following items: (i) net proceeds from non-recourse debt financings; (ii) net proceeds from tax equity (non-controlling interests and proceeds from sale of investment tax credits); (iii) net proceeds from state tax credits; (iv) net proceeds from trade receivable financings; and (v) net proceeds from pass-through financing obligations and finance lease obligations. Cash Generation can also be calculated through 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 proceeds from 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 not related to Non-Retained or Partially Retained Subscribers (or less dividends or distributions received in connection with such equity investments).
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.
Investor & Analyst Contacts:
Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com
Media Contact:
Wyatt Semanek
Sr. Director, Corporate Communications
press@sunrun.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What drove Sunrun's Q3 2026 energy systems and product sales revenue growth?
The increase primarily reflected a transaction entered into in Q3 2025 under which certain storage and energy systems tied to newly originated customer agreements are sold to a third party. Sunrun retains the customer experience and servicing relationships and can sell future goods and services to those customers.
What assumptions did Sunrun use for Q3 2026 Subscriber Value?
Q3 2026 Subscriber Value used an 8.4% discount rate based on observed project-level capital costs, compared with 7.3% a year earlier. The metric also reflected an average Investment Tax Credit of 43.4%, compared with 42.4% in the prior-year period.
How much networked storage capacity did Sunrun have at September 30, 2026?
Sunrun had approximately 5.0 gigawatt-hours of Networked Storage Capacity as of September 30, 2026. It had installed more than 284,000 storage and solar systems.
How much power did Sunrun contribute to the October 2026 distributed power plant dispatch events?
Sunrun contributed 400+ megawatts, or 61%, to the 669-megawatt event on October 5 and 430+ megawatts, or 58%, to the 745-megawatt event on October 6. These followed a September event in which Sunrun contributed 320+ megawatts, or 56%, of 580 megawatts.