Sunrun Inc.

What they do

Sunrun designs, installs, owns and maintains residential energy systems in the United States, primarily selling the power they produce to homeowners under Customer Agreements (leases and PPAs) with typical 20- or 25-year terms. It also offers battery storage in select markets, sells systems outright for cash, and sells panels and products such as racking to resellers. More than 45% of cumulative systems deployed are in California. It finances installations through tax equity, non-recourse debt and project equity structures.

Revenue drivers

• Customer Agreements (leases and PPAs) — Core offering: Sunrun installs, owns, monitors, maintains and insures systems on customer homes, collecting predictable recurring payments for typically 20 or 25 years. Most customers choose this over an outright purchase.
• Storage and solar installations — Battery attachment rate reached a record 74% in Q2 2026, up from 70% a year earlier; Storage Capacity Installed was 332 MWh and Solar Capacity Installed 174 MW in the quarter.
• Cash system sales and reseller products — Sunrun sells energy systems directly to customers for cash and sells solar panels and other products such as racking to resellers.
• Tax and incentive monetization — Sunrun monetizes Commercial ITCs, accelerated tax depreciation and other incentives through tax equity investment funds and sales of energy systems to third-party investors.

Recent performance

Q2 2026 revenue was $870.0M, up from $724.6M in Q2 2025 (quarter ended 2025-09-30: $724.6M; 2026-03-31: $722.2M). FY2025 revenue was $2.96B versus $2.04B in 2024. Subscriber Additions fell 31% year-over-year to 19,793, while total Subscribers grew 10% to 1,034,738 as of June 30, 2026. Net cash used in operating activities was -$186M in Q2 2026, with Cash Generation of $23M ($45M excluding $22M of net equipment safe harbor investments). Aggregate Subscriber Value was approximately $1.2B in Q2.

Strategy

Sunrun is leading with a storage-first offering, reaching a record 74% attachment rate in Q2 2026. It continues to fund growth through asset-level capital markets activity: approximately $1.5B of non-recourse asset-level debt raised year-to-date 2026, including a $267M securitization in August 2026. It is positioning its distributed fleet to serve AI and data center demand, including a June 2026 non-binding letter of intent with Renew Home and Tesla for more than 16 GW of flexible capacity and a July 2026 distributed AI data center pilot placing compute nodes in homes. Management also cites expansion of its sales force and new talent as it scales.

Risks

• Policy and tax credit changes — The OBBB signed July 4, 2025 makes adverse changes to tax policies Sunrun relies on, including eligibility for incentives underpinning its economics.
• High leverage — Long-term debt was $15.16B against $3.49B of shareholder equity at June 30, 2026, and results depend on continued access to tax equity and non-recourse financing.
• Customer cancellations and demand softness — Customer Agreements can be cancelled before installation; Subscriber Additions fell 31% year-over-year in Q2 2026, and management tied revised guidance to reduced affiliate channel volumes and delayed direct sales ramp.
• Concentration and emerging market — More than 45% of cumulative systems deployed are in California, and the battery storage and solar industry is described as emerging and still dependent on rebates, tax credits and other incentives.

Outlook

Management revised 2026 Cash Generation guidance to $200M to $375M, excluding equipment safe harbor investments, citing reduced affiliate channel volumes, a delayed ramp in direct sales and modestly higher capital costs than previously forecasted. It states customer demand remains strong and expects to exit the year at a robust growth rate and higher unit margins as the expanded sales force reaches full productivity, and it aims to monetize the existing network through distributed power plant programs and emerging data center and grid edge applications.