Aggregate Subscriber Value of approximately
Storage Attachment Rate reached record 74% in Q2 and Networked Storage Capacity reaches 4.6 Gigawatt-hours as of
Net cash used in operating activities was -
Revised Cash Generation1,2 guidance to a range of
“The need for affordable, reliable power has never been more evident, and our storage-first offering is meeting it — customers attached batteries at the highest rate in our history this quarter. We are positioning the business for strong growth, bringing on some of the best talent in the industry and scaling deliberately, with a focus on customer experience and asset quality. And as that engine scales, we're aiming to unlock new ways to monetize the network we've already built, from distributed power plant programs to emerging data center and grid edge applications, creating new streams of Cash Generation,” said
“We are revising our full-year Cash Generation outlook to
Second Quarter Updates and Recent Developments
- Leading with Storage-First Strategy: Storage Attachment Rate was 74% in Q2, up from 70% in the prior-year period. As of
June 30, 2026 ,Sunrun has installed more than 266,000 storage and solar systems, representing approximately 4.6 Gigawatt hours of Networked Storage Capacity. - Continued Strong Capital Markets Execution:
- In
August 2026 ,Sunrun placed a$267 million securitization of seasoned residential solar and battery systems. The publicly-placed A- rated Class A Notes priced at a yield of 6.33%, reflecting a spread of 200 basis points, a 20 basis point improvement to the public Class A-1 Notes in Sunrun’sApril 2026 securitization. - Year-to-date,
Sunrun has raised approximately$1.5 billion of non-recourse asset-level debt financing, inclusive of ourAugust 2026 securitization noted above, which is expected to close this month.
- In
- Industry-Leading Customer Experience Recognized: In
May 2026 ,Sunrun earned four 2026 Buyer's Choice Awards from ConsumerAffairs — Best in Customer Service, Best Installation Experience, Best Equipment, and Best Value — based on verified customer reviews. This recognition followsSunrun's ranking of No. 5 on TIME's inaugural list of The World's Most Impactful Companies, underscoring our commitment to delivering an industry-leading customer experience. - Positioning Our Distributed Fleet to Serve AI and Data Center Demand: In
June 2026 ,Sunrun , Renew Home, and Tesla announced a non-binding letter of intent to deliver more than 16 gigawatts of fast, flexible energy capacity to hyperscalers and utilities — which, together, would form the largest distributed power plant in the country. InJuly 2026 , we launched a distributed AI data center pilot, which places compute nodes in homes withSunrun solar and storage systems. These initiatives aim to leverageSunrun's existing energy infrastructure to serve AI-driven electricity demand and create new, high-margin revenue opportunities.
Key Operating Metrics
In the second quarter of 2026, Subscriber Additions were 19,793, a 31% decrease compared to the second quarter of 2025. As of
Storage Capacity Installed was 332 megawatt hours in the second quarter of 2026, a 15% decrease from the second quarter of 2025. Solar Capacity Installed was 174 megawatts in the second quarter of 2026, a 23% decrease from the second quarter of 2025.
Subscriber Value was
Net Subscriber Value was
Aggregate Subscriber Value was
Total Operating Expenses were
Net cash used in operating activities was
Contracted Net Earning Assets were
Outlook
For the full-year 2026, Aggregate Subscriber Value is now expected to be in a range of
Cash Generation1,2 is now expected to be in a range of
Second Quarter 2026 GAAP Results
Total revenue was
Total cost of revenue was
Net income attributable to common stockholders was
Conference Call Information
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
Forward Looking Statements
This communication contains forward-looking statements related to
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) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 712,425 | $ | 823,380 | ||
| Restricted cash | 423,812 | 413,460 | ||||
| Accounts receivable, net | 235,421 | 262,627 | ||||
| Inventories | 649,853 | 501,286 | ||||
| Prepaid expenses and other current assets | 144,997 | 155,216 | ||||
| Total current assets | 2,166,508 | 2,155,969 | ||||
| Restricted cash | 148 | 148 | ||||
| Energy systems, net | 17,245,212 | 16,817,863 | ||||
| Property and equipment, net | 61,400 | 75,692 | ||||
| Other assets | 3,886,099 | 3,560,924 | ||||
| Total assets | $ | 23,359,367 | $ | 22,610,596 | ||
| Liabilities and total equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 321,422 | $ | 271,021 | ||
| Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 49,123 | 47,072 | ||||
| Accrued expenses and other liabilities | 444,439 | 518,835 | ||||
| Deferred revenue, current portion | 162,902 | 162,839 | ||||
| Deferred grants, current portion | 9,004 | 8,681 | ||||
| Finance lease obligations, current portion | 23,162 | 24,557 | ||||
| Non-recourse debt, current portion | 513,397 | 269,510 | ||||
| Total current liabilities | 1,523,449 | 1,302,515 | ||||
| Deferred revenue, net of current portion | 1,380,846 | 1,350,494 | ||||
| Deferred grants, net of current portion | 190,933 | 196,726 | ||||
| Finance lease obligations, net of current portion | 24,914 | 36,908 | ||||
| Convertible senior notes | 474,780 | 473,749 | ||||
| Line of credit | 153,700 | 238,323 | ||||
| Non-recourse debt, net of current portion | 14,016,021 | 13,708,532 | ||||
| Other liabilities | 188,276 | 156,199 | ||||
| Deferred tax liabilities | 198,783 | 163,176 | ||||
| Total liabilities | 18,151,702 | 17,626,622 | ||||
| Redeemable noncontrolling interests | 816,076 | 709,255 | ||||
| Total stockholders’ equity | 3,490,084 | 3,132,484 | ||||
| Noncontrolling interests | 901,505 | 1,142,235 | ||||
| Total equity | 4,391,589 | 4,274,719 | ||||
| Total liabilities, redeemable noncontrolling interests and total equity | $ | 23,359,367 | $ | 22,610,596 | ||
| Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue: | ||||||||||||||||
| Customer agreements and incentives | $ | 543,730 | $ | 458,000 | $ | 1,011,552 | $ | 860,920 | ||||||||
| Energy systems and product sales | 326,258 | 111,336 | 580,667 | 212,687 | ||||||||||||
| Total revenue | 869,988 | 569,336 | 1,592,219 | 1,073,607 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of customer agreements and incentives | 342,452 | 345,376 | 657,194 | 654,005 | ||||||||||||
| Cost of energy systems and product sales | 199,312 | 104,144 | 387,000 | 200,942 | ||||||||||||
| Sales and marketing | 190,681 | 152,459 | 369,214 | 298,449 | ||||||||||||
| Research and development | 10,234 | 8,063 | 20,377 | 18,042 | ||||||||||||
| General and administrative | 92,521 | 71,543 | 167,156 | 129,306 | ||||||||||||
| Total operating expenses | 835,200 | 681,585 | 1,600,941 | 1,300,744 | ||||||||||||
| Income (loss) from operations | 34,788 | (112,249 | ) | (8,722 | ) | (227,137 | ) | |||||||||
| Interest expense, net | (264,428 | ) | (247,137 | ) | (528,371 | ) | (474,571 | ) | ||||||||
| Other income (expense), net | 17,495 | (14,528 | ) | 34,681 | (59,927 | ) | ||||||||||
| Loss before income taxes | (212,145 | ) | (373,914 | ) | (502,412 | ) | (761,635 | ) | ||||||||
| Income tax (benefit) expense | (3,972 | ) | (94,930 | ) | 3,094 | (205,480 | ) | |||||||||
| Net loss | (208,173 | ) | (278,984 | ) | (505,506 | ) | (556,155 | ) | ||||||||
| Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (323,325 | ) | (558,757 | ) | (788,302 | ) | (885,939 | ) | ||||||||
| Net income attributable to common stockholders | $ | 115,152 | $ | 279,773 | $ | 282,796 | $ | 329,784 | ||||||||
| Net income per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | 0.48 | $ | 1.22 | $ | 1.19 | $ | 1.45 | ||||||||
| Diluted | $ | 0.42 | $ | 1.07 | $ | 1.04 | $ | 1.28 | ||||||||
| Weighted average shares used to compute net income per share attributable to common stockholders | ||||||||||||||||
| Basic | 238,997 | 229,167 | 236,804 | 227,794 | ||||||||||||
| Diluted | 273,999 | 261,152 | 273,189 | 259,539 | ||||||||||||
| Consolidated Statements of Cash Flows (In Thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net loss | $ | (208,173 | ) | $ | (278,984 | ) | $ | (505,506 | ) | $ | (556,155 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
| Depreciation and amortization, net of amortization of deferred grants | 192,788 | 189,713 | 382,344 | 359,603 | ||||||||||||
| Deferred income taxes | (3,973 | ) | (96,103 | ) | 3,094 | (206,653 | ) | |||||||||
| Stock-based compensation expense | 21,119 | 25,024 | 47,421 | 50,029 | ||||||||||||
| Unrealized (gain) loss on derivatives | (24,951 | ) | 17,555 | (43,317 | ) | 62,625 | ||||||||||
| Other noncash items | 93,239 | 77,307 | 173,036 | 138,806 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (9,932 | ) | (20,233 | ) | 12,154 | (27,139 | ) | |||||||||
| Inventories | (101,391 | ) | (76,748 | ) | (70,495 | ) | (89,066 | ) | ||||||||
| Prepaid expenses and other assets | (112,096 | ) | (208,568 | ) | (249,985 | ) | (254,329 | ) | ||||||||
| Accounts payable | (9,420 | ) | 51,982 | 69,290 | 36,364 | |||||||||||
| Accrued expenses and other liabilities | (36,626 | ) | (26,927 | ) | (52,733 | ) | 983 | |||||||||
| Deferred revenue | 11,279 | 53,323 | 28,522 | 88,067 | ||||||||||||
| Deferred tax liabilities | 1,958 | — | 30,619 | — | ||||||||||||
| Net cash used in operating activities | (186,179 | ) | (292,659 | ) | (175,556 | ) | (396,865 | ) | ||||||||
| Investing activities: | ||||||||||||||||
| Payments for the costs of energy systems | (429,357 | ) | (691,978 | ) | (853,785 | ) | (1,346,780 | ) | ||||||||
| Purchase of equity investment | (15,536 | ) | — | (19,253 | ) | — | ||||||||||
| Purchases of property and equipment, net | (4,287 | ) | (843 | ) | (4,696 | ) | (1,062 | ) | ||||||||
| Net cash used in investing activities | (449,180 | ) | (692,821 | ) | (877,734 | ) | (1,347,842 | ) | ||||||||
| Financing activities: | ||||||||||||||||
| Proceeds from state tax credits, net of recapture | — | 9,668 | 12,384 | 9,668 | ||||||||||||
| Proceeds from trade receivable financing | — | 71,323 | — | 71,323 | ||||||||||||
| Repayment of trade receivable financing | — | (99,519 | ) | — | (124,261 | ) | ||||||||||
| Proceeds from line of credit | 1,500 | 1,862 | 184,000 | 150,686 | ||||||||||||
| Repayment of line of credit | — | (23,833 | ) | (268,622 | ) | (198,390 | ) | |||||||||
| Repurchase of convertible senior notes | — | — | (5,457 | ) | (2,124 | ) | ||||||||||
| Proceeds from issuance of non-recourse debt | 1,451,151 | 527,800 | 2,259,156 | 2,048,429 | ||||||||||||
| Repayment of non-recourse debt | (1,173,649 | ) | (75,266 | ) | (1,839,323 | ) | (913,749 | ) | ||||||||
| Payment of debt fees | (24,709 | ) | (240 | ) | (42,947 | ) | (28,258 | ) | ||||||||
| Payment of finance lease obligations | (6,145 | ) | (6,303 | ) | (12,266 | ) | (12,786 | ) | ||||||||
| Contributions received from noncontrolling interests and redeemable noncontrolling interests | 515,744 | 679,384 | 821,556 | 935,284 | ||||||||||||
| Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (72,635 | ) | (58,547 | ) | (148,285 | ) | (118,800 | ) | ||||||||
| Acquisition of noncontrolling interests | (16,878 | ) | (16,219 | ) | (16,878 | ) | (16,219 | ) | ||||||||
| Proceeds from transfer of investment tax credits | 306,504 | 236,098 | 646,614 | 860,874 | ||||||||||||
| Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits | (306,504 | ) | (236,098 | ) | (646,614 | ) | (860,874 | ) | ||||||||
| Net proceeds related to stock-based award activities | 8,094 | 8,544 | 9,369 | 8,565 | ||||||||||||
| Net cash provided by financing activities | 682,473 | 1,018,654 | 952,687 | 1,809,368 | ||||||||||||
| Net change in cash and restricted cash | 47,114 | 33,174 | (100,603 | ) | 64,661 | |||||||||||
| Cash and restricted cash, beginning of period | 1,089,271 | 978,903 | 1,236,988 | 947,416 | ||||||||||||
| Cash and restricted cash, end of period | $ | 1,136,385 | $ | 1,012,077 | $ | 1,136,385 | $ | 1,012,077 | ||||||||
| 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 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | |||||||||||||
| $ millions, unless otherwise noted | ||||||||||||||||||
| Total Operating Expenses | $ | 682 | $ | 721 | $ | 1,061 | $ | 766 | $ | 835 | ||||||||
| (-) | Fleet servicing cost in COGS | $ | (61 | ) | $ | (58 | ) | $ | (56 | ) | $ | (46 | ) | $ | (57 | ) | ||
| (-) | Non-cash impairment of energy systems, net | $ | (21 | ) | $ | (1 | ) | $ | (28 | ) | $ | (12 | ) | $ | (15 | ) | ||
| (-) | Depreciation & Amortization | $ | (190 | ) | $ | (182 | ) | $ | (184 | ) | $ | (190 | ) | $ | (193 | ) | ||
| (-) | Amortization of CTOC (sales commissions) in S&M expense | $ | (23 | ) | $ | (26 | ) | $ | (24 | ) | $ | (26 | ) | $ | (27 | ) | ||
| (-) | Cost of Energy Systems and Product Sales (Excluding Non-Retained or Partially Retained Subscribers) | $ | (104 | ) | $ | (104 | ) | $ | (109 | ) | $ | (80 | ) | $ | (54 | ) | ||
| (-) | Gross profit from Systems & Product Sales (Excluding Non-Retained or Partially Retained Subscribers) as contra cost | $ | (7 | ) | $ | (14 | ) | $ | (15 | ) | $ | (1 | ) | $ | (5 | ) | ||
| (-) | Non-cash stock based compensation expense | $ | (25 | ) | $ | (30 | ) | $ | (28 | ) | $ | (26 | ) | $ | (21 | ) | ||
| (-) | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| (-) | Amortization of intangible assets | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
| (-) | Other adjustments (e.g., restructuring, legal) | $ | (6 | ) | $ | (2 | ) | $ | (1 | ) | $ | (16 | ) | $ | (13 | ) | ||
| (+) | Adjustments to reflect purchase price adjustment for Non-Retained or Partially Retained Subscribers owing to consigned inventory usage | $ | - | $ | - | $ | - | $ | - | $ | 19 | |||||||
| Creation Costs Reflected in Operating Expenses | $ | 245 | $ | 305 | $ | 617 | $ | 368 | $ | 469 | ||||||||
| 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
| Reconciliation of | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | ||||||||||
| $ millions, unless otherwise noted | |||||||||||||||
| Net cash used in investing activities | $ | 693 | $ | 744 | $ | 409 | $ | 429 | $ | 449 | |||||
| (+) | Additions to capitalized CTOC (sales commissions) | $ | 126 | $ | 133 | $ | 21 | $ | 79 | $ | 85 | ||||
| (-) | Purchase of equity method investment | $ | - | $ | - | $ | - | $ | (4 | ) | $ | (16 | ) | ||
| Creation Costs Reflected in Capital Expenditures | $ | 818 | $ | 877 | $ | 430 | $ | 503 | $ | 519 | |||||
| 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
| Reconciliation of Cash Provided by Operating Activities to Cash Generation | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | |||||||||||||
| $ millions, unless otherwise noted | ||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (293 | ) | $ | (122 | ) | $ | 97 | $ | 11 | $ | (186 | ) | |||||
| (-) | Payments for the costs of energy systems | $ | (692 | ) | $ | (742 | ) | $ | (410 | ) | $ | (424 | ) | $ | (429 | ) | ||
| (-) | Purchase of equity investment | $ | - | $ | - | $ | - | $ | (4 | ) | $ | (16 | ) | |||||
| (-) | Purchases of property and equipment, net | $ | (1 | ) | $ | (1 | ) | $ | 1 | $ | (0 | ) | $ | (4 | ) | |||
| (+) | Proceeds from state tax credits, net of recapture | $ | 10 | $ | - | $ | - | $ | 12 | $ | - | |||||||
| (+) | Proceeds from trade receivables financing | $ | 71 | $ | 96 | $ | - | $ | - | $ | - | |||||||
| (-) | Repayment of trade receivable financing | $ | (100 | ) | $ | (71 | ) | $ | (96 | ) | $ | - | $ | - | ||||
| (+) | Proceeds from issuance of non-recourse debt | $ | 528 | $ | 1,848 | $ | 215 | $ | 808 | $ | 1,451 | |||||||
| (-) | Repayment of non-recourse debt | $ | (75 | ) | $ | (1,257 | ) | $ | (115 | ) | $ | (666 | ) | $ | (1,174 | ) | ||
| (-) | Payment of debt fees | $ | (0 | ) | $ | (36 | ) | $ | (4 | ) | $ | (18 | ) | $ | (25 | ) | ||
| (+) | 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 | $ | 679 | $ | 525 | $ | 542 | $ | 306 | $ | 516 | |||||||
| (-) | Distributions paid to noncontrolling interest and redeemable noncontrolling interests | $ | (59 | ) | $ | (58 | ) | $ | (70 | ) | $ | (76 | ) | $ | (73 | ) | ||
| (-) | Acquisition of noncontrolling interest | $ | (16 | ) | $ | (14 | ) | $ | (0 | ) | $ | - | $ | (17 | ) | |||
| (+) | Proceeds from transfer of investment tax credits | $ | 236 | $ | 296 | $ | 446 | $ | 340 | $ | 307 | |||||||
| (+) | Payments to redeemable noncontrolling interest and noncontrolling interests of investment tax credits | $ | (236 | ) | $ | (296 | ) | $ | (446 | ) | $ | (340 | ) | $ | (307 | ) | ||
| (-) | Increase / (+) decrease in Restricted Cash | $ | (20 | ) | $ | (53 | ) | $ | 33 | $ | 4 | $ | (14 | ) | ||||
| (+/-) | Changes in 2026 convertible senior notes reserve balance | $ | - | $ | - | $ | - | $ | (5 | ) | $ | - | ||||||
| Cash Generation ($ millions) | $ | 27 | $ | 108 | $ | 187 | $ | (59 | ) | $ | 23 | |||||||
| 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
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 6% rate to discount future cash flows to the present period. Furthermore, these metrics assume that Subscribers renew after the initial contract period at a rate equal to 90% of the rate in effect at the end of the initial contract term, or purchase their systems at equal values. For Customer Agreements with 25-year initial contract terms, a 5-year renewal period is assumed. For a 20-year initial contract term, a 10-year renewal period is assumed. In all instances, we assume a 30-year customer relationship, although the customer may renew for additional years, or purchase the system. Estimated cost of servicing assets has been deducted and is estimated based on the service agreements underlying each fund.
| KEY OPERATING METRICS | ||||||||||||||||
| Unit Economics in Period | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | |||||||||||
| $ per Subscriber Addition, unless otherwise noted | ||||||||||||||||
| Subscriber Additions in period | 28,823 | 30,104 | 25,475 | 17,665 | 19,793 | |||||||||||
| Subscriber Value | $ | 53,891 | $ | 52,446 | $ | 50,165 | $ | 61,240 | $ | 59,377 | ||||||
| Discount rate (observed project-level capital costs) | 7.4 | % | 7.3 | % | 7.1 | % | 6.3 | % | 7.3 | % | ||||||
| Contracted Subscriber Value | $ | 49,919 | $ | 48,507 | $ | 47,988 | $ | 55,464 | $ | 55,033 | ||||||
| x Advance Rate on Contracted Subscriber Value (estimated) | 85.3 | % | 88.2 | % | 91.2 | % | 98.2 | % | 94.4 | % | ||||||
| = Upfront Proceeds (estimated) | $ | 42,598 | $ | 42,763 | $ | 43,758 | $ | 54,484 | $ | 51,949 | ||||||
| = Upfront Net Subscriber Value | $ | 5,711 | $ | 3,522 | $ | 2,692 | $ | 5,136 | $ | 2,016 | ||||||
| Upfront Net Subscriber Value margin as a % of Contracted Subscriber Value | 11.4 | % | 7.3 | % | 5.6 | % | 9.3 | % | 3.7 | % | ||||||
| Aggregate Gross Value and Costs in Period | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | |||||||||||
| $ millions, unless otherwise noted | ||||||||||||||||
| Aggregate Subscriber Value | $ | 1,553 | $ | 1,579 | $ | 1,278 | $ | 1,082 | $ | 1,175 | ||||||
| Aggregate Contracted Subscriber Value | $ | 1,439 | $ | 1,460 | $ | 1,222 | $ | 980 | $ | 1,089 | ||||||
| Aggregate Upfront Proceeds (estimated) | $ | 1,228 | $ | 1,287 | $ | 1,115 | $ | 962 | $ | 1,028 | ||||||
| Creation Costs Reflected in Operating Expenses1 | $ | 245 | $ | 305 | $ | 617 | $ | 368 | $ | 469 | ||||||
| Creation Costs Reflected in Capital Expenditures1 | $ | 818 | $ | 877 | $ | 430 | $ | 503 | $ | 519 | ||||||
| Cash Generation1 | $ | 27 | $ | 108 | $ | 187 | $ | (59 | ) | $ | 23 | |||||
| Volume Additions in Period | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | |||||||||||
| Storage Capacity Installed (MWhrs) | 391.5 | 412.0 | 371.1 | 282.3 | 332.0 | |||||||||||
| Solar Capacity Installed (MWs) | 227.2 | 239.2 | 216.2 | 154.2 | 174.3 | |||||||||||
| Solar Capacity Installed with Storage (MWs) | 157.7 | 172.4 | 157.1 | 115.9 | 133.8 | |||||||||||
| Solar Capacity Installed without Storage (MWs) | 69.5 | 66.8 | 59.1 | 38.2 | 40.5 | |||||||||||
| Customer Additions | 30,810 | 32,833 | 27,773 | 18,948 | 20,979 | |||||||||||
| Customer Additions with Storage | 21,626 | 22,822 | 19,639 | 13,789 | 15,531 | |||||||||||
| Customer Additions without Storage | 9,184 | 10,011 | 8,134 | 5,159 | 5,448 | |||||||||||
| Storage Attachment Rate | 70 | % | 70 | % | 71 | % | 73 | % | 74 | % | ||||||
| Subscriber Additions (included within Customer Additions) | 28,823 | 30,104 | 25,475 | 17,665 | 19,793 | |||||||||||
| Subscriber Additions as % of Customer Additions | 94 | % | 92 | % | 92 | % | 93 | % | 94 | % | ||||||
| Customer Base Value & Energy Capacity at End of Period | ||||||||||||||||
| Net Earning Assets ($ millions) | $ | 7,632 | $ | 8,241 | $ | 8,538 | $ | 8,872 | $ | 9,004 | ||||||
| Contracted Net Earning Assets ($ millions) | $ | 3,001 | $ | 3,373 | $ | 3,571 | $ | 3,701 | $ | 3,677 | ||||||
| Customers | 1,105,080 | 1,137,913 | 1,165,686 | 1,184,634 | 1,205,613 | |||||||||||
| Subscribers (included within Customers) | 941,701 | 971,805 | 997,280 | 1,014,945 | 1,034,738 | |||||||||||
| Networked Storage Capacity (MWhrs) | 3,250 | 3,662 | 4,033 | 4,315 | 4,647 | |||||||||||
| Networked Solar Capacity (MWs) | 7,949 | 8,188 | 8,404 | 8,558 | 8,732 | |||||||||||
| Basic Shares Outstanding | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | |||||||||||
| Basic shares outstanding at end of period (in millions) | 230.3 | 231.6 | 233.6 | 235.5 | 240.1 | |||||||||||
| Weighted average basic shares outstanding in period (in millions) | 229.2 | 231.0 | 232.6 | 234.6 | 239.0 | |||||||||||
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 80% of the expected project cost (inclusive of acquisitions of installed systems). A portion of customers have subsequently entered into Customer Agreements to obtain, or have directly purchased, additional solar or storage systems at the same host customer site, and since these represent separate assets, they are considered separate Deployments.
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
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 90% of each Subscriber’s contractual rate in effect at the end of the initial contract term, (2) non-contracted net cash flows from grid service programs with utilities and grid operators, (3) non-contracted net cash flows from the sale of renewable energy credits, and (4) contracted cash flows from Flex Customer Agreements exceeding the minimum contracted payment (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, an assumption is made that each Subscriber’s electricity consumption increases by approximately 2% per year through the end of the initial term of the Customer Agreement and into the renewal period (if renewed), resulting in billings in excess of the minimum contracted amount (which minimums are included in Contracted Cash Flows)), and (B) for Non-Retained or Partially Retained Subscribers, the share of Non-contracted or Upside Cash Flows described in clause (A) of this definition which are allocated 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 6%.
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 6%.
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
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
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
*For our second quarter of 2026, the definitions listed below have been modified, and the changes to these definitions had no impact on previously reported quarters: Net Subscriber Value, Contracted Net Subscriber Value, Upfront Net Subscriber Value, and Cash Generation.
Investor & Analyst Contacts:
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com
Director, Finance & Investor Relations
investors@sunrun.com
Media Contact:
Sr. Director, Corporate Communications
press@sunrun.com
