Sunrun Reports Fourth Quarter and Full Year 2025 Financial Results

San Francisco, CA – Sunrun (Nasdaq: RUN), America’s largest provider of home battery storage, solar, and home-to-grid power plants, announced financial results for the fourth quarter and full year ended December 31, 2025.

Highlights:

• Net change in cash and restricted cash of $290 million and Cash Generation¹ of $377 million in 2025
• Outlook for positive Cash Generation² in the range of $250 million to $450 million for full year 2026
• Aggregate Subscriber Value of $1.3 billion in Q4
• Contracted Net Value Creation of $176 million in Q4, or $0.76 per share
• Storage Attachment Rate reached record 71% in Q4
• Paid down $81 million of recourse debt in Q4 with excess cash

Mary Powell, Sunrun’s Chief Executive Officer, said:

“Sunrun is delivering innovative, storage-first energy offerings that protect American families from rising utility costs and an increasingly unreliable power grid. As we continue to scale our network of over one million customers, we are building a distributed power plant that we believe is critical in meeting the nation’s urgent demand for more power. We are executing on this vital mission from a position of financial strength – generating strong margins and structurally generating cash.” 

“We exceeded the midpoint of our Cash Generation guidance for the year and are on track for another strong year in 2026,” 

said Danny Abajian, Sunrun’s Chief Financial Officer.¹

“Our disciplined margin management allowed us to generate strong Upfront Net Subscriber Values, representing a 7% margin for the full-year, a 6 percentage point improvement compared to the prior year. We have continued to strengthen our balance sheet, paying down $148 million of recourse debt while increasing our unrestricted cash balance by $248 million in the year.”

Fourth Quarter Updates

• Leading with Storage-First Strategy:
  Storage Attachment Rate was 71% in Q4, up from 62% in the prior-year period. Sunrun has installed more than 237,000 storage and solar systems, representing approximately 4.0 Gigawatt hours of Networked Storage Capacity.
• Continued Strong Capital Markets Execution:
  • In December 2025, Sunrun extended the maturity of its working capital facility by one year to March 2028. The amendment provides for potential future reductions in commitments, in line with our commitment to continue to pay down parent recourse debt.
  • In December 2025, Sunrun closed on an innovative joint venture with Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI) to finance over 300 megawatts of capacity across more than 40,000 home power plants. Under the agreement, HASI will make a structured equity investment into the joint venture of up to $500 million over an 18-month period.
• Paying Down Recourse Debt:
  We continued to pay down parent recourse debt. During the fourth quarter, we repaid $81 million of recourse debt, reducing our borrowings under our Working Capital Facility. Since December 31, 2024, we have paid down recourse debt by $148 million, primarily by reducing borrowings under our recourse Working Capital Facility. We have also increased our unrestricted cash balance by $248 million and grown Net Earning Assets by $1.8 billion over this time period. We have no recourse debt maturities until March 2028.
• Improving grid stability with home-to-grid dispatchable power plants:
  In 2025, Sunrun successfully scaled the nation’s largest distributed power plant, increasing customer enrollment fivefold over the prior year, reaching more than 100,000 enrolled customers. Our network dispatched nearly 18 gigawatt-hours of energy to support grids across America – enough to power 15 million homes for one hour – with a combined peak output of over 400 megawatts. These dispatches supported grids during critical hours and helped avoid power outages while putting downward pressure on energy costs for all ratepayers. As of the end of the fourth quarter, Sunrun had over 106,000 customers enrolled across 18 distributed power plant programs.
• Sunrun and NRG maximize the value of storage in Texas:
  In December 2025, Sunrun and NRG Energy, Inc. (NYSE: NRG) announced a multi-year partnership to deliver complete home energy solutions in Texas, pairing Sunrun’s solar-plus-storage systems with optimized rate plans and smart battery programming through NRG’s retail electricity provider, Reliant. Aggregated capacity from new and existing Sunrun customers that enroll with Reliant will support NRG’s goal of creating a 1 GW virtual power plant by 2035. Sunrun will be paid for aggregating the capacity and participating Reliant customers will be compensated by Sunrun for sharing their stored solar energy.
• Sunrun and PG&E use distributed power plants to alleviate constrained local grids:
  In Q4, Sunrun completed a first-of-its-kind distributed power plant dispatch season with Pacific Gas and Electric Company (NYSE: PCG), using more than 1,000 home storage-plus-solar systems to supply targeted power to neighborhoods with highly-constrained electric grids. From July through Oct. 2025, the batteries dispatched more than 50 times across two dozen constrained power lines and substations—totaling over 1,200 hours—with nearly 99% dispatch accuracy. The goal of the precise, location-specific load relief is to help PG&E avoid or defer distribution upgrades while generating net savings for all utility customers. Participating homeowners received $150 per enrolled battery, and Sunrun was compensated for coordinating dispatches.

Key Operating Metrics

In the fourth quarter of 2025, Subscriber Additions were 25,475, a 17% decrease compared to the fourth quarter of 2024. As of December 31, 2025, Sunrun had 997,280 Subscribers. Subscribers as of December 31, 2025 grew 12% compared to December 31, 2024.

Storage Capacity Installed was 371 megawatt hours in the fourth quarter of 2025, a 5% decrease from the fourth quarter of 2024. Solar Capacity Installed was 216 megawatts in the fourth quarter of 2025, an 11% decrease from the fourth quarter of 2024.

Subscriber Value was $50,165 in the fourth quarter of 2025, a 2% decrease compared to the fourth quarter of 2024. Contracted Subscriber Value was $47,988 in the fourth quarter of 2025, a 1% decrease compared to the fourth quarter of 2024. Subscriber Value figures for the fourth quarter of 2025 reflect a 7.1% discount rate based on observed project-level capital costs, compared to 7.3% in the prior year period. Subscriber Value reflects an average Investment Tax Credit of 42.4% in the fourth quarter of 2025 compared to 39.8% in the prior year period. Storage Attachment Rate was 71% in the fourth quarter of 2025 compared to 62% in the prior year period.

Creation Costs per Subscriber Addition were $41,067 in the fourth quarter of 2025, an 8% increase compared to the fourth quarter of 2024.

Net Subscriber Value was $9,098 in the fourth quarter of 2025, a 30% decrease compared to $12,927 in the fourth quarter of 2024. Contracted Net Subscriber Value was $6,921 in the fourth quarter of 2025, a 32% decrease compared to $10,202 in the fourth quarter of 2024.

Aggregate Subscriber Value was $1.3 billion in the fourth quarter of 2025, an 18% decrease compared to the fourth quarter of 2024. Total Operating Expenses were $1,061 million in the fourth quarter of 2025; Aggregate Creation Costs¹ were $1.0 billion in the fourth quarter of 2025, an 11% decrease compared to the fourth quarter of 2024. Contracted Net Value Creation was $176 million in the fourth quarter of 2025, a decrease of 44% compared to the fourth quarter of 2024, and representing $0.76 per weighted average basic share outstanding in the period.

Net change in cash and restricted cash was $81 million and Cash Generation was $187 million in the fourth quarter of 2025.

Contracted Net Earning Assets were $3.6 billion, or $15.28 per share, which included $1.2 billion in Total Cash, as of December 31, 2025.

Outlook

Aggregate Subscriber Value is expected to be in a range of $850 million to $950 million in the first quarter of 2026.

Contracted Net Value Creation is expected to be in a range of $25 million to $125 million in the first quarter of 2026.

Cash Generation² is expected to be positive in the first quarter of 2026.

For the full-year 2026, Aggregate Subscriber Value is expected to be in a range of $4.8 billion to $5.2 billion.

Contracted Net Value Creation is expected to be in a range of $650 million to $1,050 million for the full-year 2026.

Cash Generation² is expected to be in a range of $250 million to $450 million for the full-year 2026, excluding potential investment related to safe harbor strategies.

Fourth Quarter 2025 GAAP Results

Total revenue was $1,158.8 million in the fourth quarter of 2025, up $640.3 million, or 124%, from the fourth quarter of 2024. Customer agreements and incentives revenue was $466.5 million, an increase of $77.9 million, or 20%, compared to the fourth quarter of 2024. Energy systems and product sales revenue was $692.3 million, an increase of $562.4 million, or 433%, compared to the fourth quarter of 2024. The increase in Energy systems and product sales revenue is primarily due to a transaction that Sunrun entered into in the third quarter of 2025 whereby certain storage and solar energy systems subject to newly originated Customer Agreements are sold to a third-party. Sunrun continues to maintain the customer experience and servicing relationships and can sell future goods and services to these customers.

Total cost of revenue was $723.5 million, an increase of 72% year-over-year. Total operating expenses were $1,061.5 million, a decrease of 72% compared to the fourth quarter of 2024 which was impacted by $3,122.2 million of non-cash goodwill impairment.

Net income attributable to common stockholders was $103.6 million, or $0.45 per basic share and $0.38 per diluted share, in the fourth quarter of 2025.

Full Year 2025 GAAP Results

Total revenue was $2,957.0 million in the full year 2025, up $919.3 million, or 45%, from the full year 2024. Customer agreements and incentives revenue was $1,819.0 million, an increase of $313.8 million, or 21%, compared to the full year 2024. Energy systems and product sales revenue was $1,138.0 million, an increase of $605.5 million, or 114%, compared to the full year 2024. The increase in Energy systems and product sales revenue is primarily due to a transaction that Sunrun entered into in the third quarter of 2025 whereby certain storage and solar energy systems subject to newly originated Customer Agreements are sold to a third-party. Sunrun continues to maintain the customer experience and servicing relationships and can sell future goods and services to these customers.

Total cost of revenue was $2,059.7 million, an increase of 21% year-over-year. Total operating expenses were $3,083.1 million, a decrease of 46% compared to the full year 2024 which was impacted by $3,122.2 million of non-cash goodwill impairment.

Net income attributable to common stockholders was $449.9 million, or $1.96 per basic share and $1.71 per diluted share for the full year 2025.

To view the full report, visit Sunrun.com

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 $81 million and Cash Generation of $187 million in Q4, which represents the fourth consecutive quarter of positive change in cash and restricted cash and the seventh consecutive quarter of positive Cash Generation.

(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.