{"success":true,"data":{"pressRelease":{"id":"109938","rtpr_id":"nGNX76dnk0","ticker":"RUN","exchange":"NASDAQ","all_tickers":["RUN"],"title":"Sunrun Reports Second Quarter 2026 Financial Results","author":"Globe Newswire","published_at":"2026-08-05T20:01:02.534Z","article_body":"Aggregate Subscriber Value of approximately $1.2 billion in Q2\n\nStorage Attachment Rate reached record 74% in Q2 and Networked Storage\nCapacity reaches 4.6 Gigawatt-hours as of June 30, 2026\n\nNet cash used in operating activities was -$186 million in Q2 and Cash\nGeneration was $23 million, or $45 million if excluding $22 million of net\ninvestments in equipment safe harbor\n\nRevised Cash Generation(1,2) guidance to a range of $200 million to $375\nmillion in 2026, excluding investments in equipment safe harbor\n\nSAN FRANCISCO, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN),\nAmerica’s largest provider of home battery storage, solar, and home-to-grid\npower plants, today announced financial results for the second quarter ended\nJune 30, 2026.\n\n“The need for affordable, reliable power has never been more evident, and\nour storage-first offering is meeting it — customers attached batteries at\nthe highest rate in our history this quarter. We are positioning the business\nfor strong growth, bringing on some of the best talent in the industry and\nscaling deliberately, with a focus on customer experience and asset quality.\nAnd as that engine scales, we're aiming to unlock new ways to monetize the\nnetwork we've already built, from distributed power plant programs to emerging\ndata center and grid edge applications, creating new streams of Cash\nGeneration,” said Mary Powell, Sunrun’s Chief Executive Officer.\n\n“We are revising our full-year Cash Generation outlook to $200 million to\n$375 million, excluding equipment safe harbor investments, reflecting reduced\naffiliate channel volumes, a delayed ramp in direct sales activities, and\nmodestly higher capital costs than previously forecasted. Customer demand for\nour offering remains strong, and as our expanded sales force reaches full\nproductivity, we believe that we will exit the year at a robust growth rate\nand higher unit margins,” said Danny Abajian, Sunrun’s Chief Financial\nOfficer.(1)\n\nSecond Quarter Updates and Recent Developments\n* Leading with Storage-First Strategy: Storage Attachment Rate was 74% in Q2,\nup from 70% in the prior-year period. As of June 30, 2026, Sunrun has\ninstalled more than 266,000 storage and solar systems, representing\napproximately 4.6 Gigawatt hours of Networked Storage Capacity.\n* Continued Strong Capital Markets Execution: * In August 2026, Sunrun placed\na $267 million securitization of seasoned residential solar and battery\nsystems. The publicly-placed A- rated Class A Notes priced at a yield of\n6.33%, reflecting a spread of 200 basis points, a 20 basis point improvement\nto the public Class A-1 Notes in Sunrun’s April 2026 securitization.\n* Year-to-date, Sunrun has raised approximately $1.5 billion of non-recourse\nasset-level debt financing, inclusive of our August 2026 securitization noted\nabove, which is expected to close this month.\n \n* Industry-Leading Customer Experience Recognized: In May 2026, Sunrun earned\nfour 2026 Buyer's Choice Awards from ConsumerAffairs — Best in Customer\nService, Best Installation Experience, Best Equipment, and Best Value —\nbased on verified customer reviews. This recognition follows Sunrun's ranking\nof No. 5 on TIME's inaugural list of The World's Most Impactful Companies,\nunderscoring our commitment to delivering an industry-leading customer\nexperience.\n* Positioning Our Distributed Fleet to Serve AI and Data Center Demand: In\nJune 2026, Sunrun, Renew Home, and Tesla announced a non-binding letter of\nintent to deliver more than 16 gigawatts of fast, flexible energy capacity to\nhyperscalers and utilities — which, together, would form the largest\ndistributed power plant in the country. In July 2026, we launched a\ndistributed AI data center pilot, which places compute nodes in homes with\nSunrun solar and storage systems. These initiatives aim to leverage Sunrun's\nexisting energy infrastructure to serve AI-driven electricity demand and\ncreate new, high-margin revenue opportunities.\nKey Operating Metrics\n\nIn the second quarter of 2026, Subscriber Additions were 19,793, a 31%\ndecrease compared to the second quarter of 2025. As of June 30, 2026, Sunrun\nhad 1,034,738 Subscribers. Subscribers as of June 30, 2026 grew 10% compared\nto June 30, 2025.\n\nStorage Capacity Installed was 332 megawatt hours in the second quarter of\n2026, a 15% decrease from the second quarter of 2025. Solar Capacity Installed\nwas 174 megawatts in the second quarter of 2026, a 23% decrease from the\nsecond quarter of 2025.\n\nSubscriber Value was $59,377 in the second quarter of 2026, a 10% increase\ncompared to the second quarter of 2025. Contracted Subscriber Value was\n$55,033 in the second quarter of 2026, a 10% increase compared to the second\nquarter of 2025. Subscriber Value figures for the second quarter of 2026\nreflect a 7.3% discount rate based on observed project-level capital costs,\ncompared to 7.4% in the prior year period. Subscriber Value reflects an\naverage Investment Tax Credit of 44.0% in the second quarter of 2026 compared\nto 42.6% in the prior year period. Storage Attachment Rate was 74% in the\nsecond quarter of 2026 compared to 70% in the prior year period.\n\nNet Subscriber Value was $9,444 in the second quarter of 2026, a 44% decrease\ncompared to $17,004 in the second quarter of 2025. Contracted Net Subscriber\nValue was $5,100 in the second quarter of 2026, a 61% decrease compared to\n$13,032 in the second quarter of 2025.\n\nAggregate Subscriber Value was $1.2 billion in the second quarter of 2026, a\n24% decrease compared to the second quarter of 2025.\n\nTotal Operating Expenses were $835 million in the second quarter of 2026, an\nincrease of 23% compared to the prior year period. Creation Costs Reflected in\nOperating Expenses were $469 million in the second quarter of 2026, a 92%\nincrease compared to the second quarter of 2025. Net cash used in investing\nactivities was $449 million in the second quarter of 2026, a 35% decrease\ncompared to the prior year period. Creation Costs Reflected in Capital\nExpenditures were $519 million in the second quarter of 2026, a 37% decrease\ncompared to the second quarter of 2025.\n\nNet cash used in operating activities was $(186) million in the second quarter\nof 2026, while Cash Generation was $23 million. Cash Generation would have\nbeen $45 million excluding the effects of equipment safe harbor investments\nthat totaled $22 million in the second quarter of 2026.\n\nContracted Net Earning Assets were $3.7 billion, which included $1.1 billion\nin Total Cash, as of June 30, 2026.\n\nOutlook\n\nFor the full-year 2026, Aggregate Subscriber Value is now expected to be in a\nrange of $4.6 billion to $4.9 billion, compared to the company’s prior\nguidance of $4.8 billion to $5.2 billion.\n\nCash Generation(1,)(2 )is now expected to be in a range of $200 million to\n$375 million for the full-year 2026, excluding potential investment related to\nequipment safe harboring, compared to the company’s prior guidance of $250\nmillion to $450 million.\n\nSecond Quarter 2026 GAAP Results\n\nTotal revenue was $870.0 million in the second quarter of 2026, up $300.7\nmillion, or 53%, from the second quarter of 2025. Customer agreements and\nincentives revenue was $543.7 million, an increase of $85.7 million, or 19%,\ncompared to the second quarter of 2025. Energy systems and product sales\nrevenue was $326.3 million, an increase of $214.9 million, or 193%, compared\nto the second quarter of 2025. The increase in Energy systems and product\nsales revenue is primarily due to a transaction that Sunrun entered into in\nthe third quarter of 2025 whereby certain storage and energy systems subject\nto newly originated Customer Agreements are sold to a third party. Sunrun\ncontinues to maintain the customer experience and servicing relationships and\ncan sell future goods and services to these customers.\n\nTotal cost of revenue was $541.8 million, an increase of 21% year-over-year.\nTotal operating expenses were $835.2 million, an increase of 23% compared to\nthe second quarter of 2025.\n\nNet income attributable to common stockholders was $115.2 million, or $0.48\nper basic share and $0.42 per diluted share, in the second quarter of 2026.\n\nConference Call Information\n\nSunrun is hosting a conference call for analysts and investors to discuss its\nsecond quarter 2026 results and business outlook at 1:30 p.m. Pacific Time\ntoday, August 5, 2026. A live audio webcast of the conference call along with\nsupplemental financial information will be accessible via the “Investor\nRelations” section of Sunrun’s website at https://investors.sunrun.com.\nThe conference call can also be accessed live over the phone by dialing (877)\n407-5989 (toll-free) or (201) 689-8434 (toll). An audio replay will be\navailable following the call on the Sunrun Investor Relations website for\napproximately one month.\n\nFootnotes\n\n(1) Cash Generation, Creation Costs Reflected in Operating Expenses, and\nCreation Costs Reflected in Capital Expenditures are non-GAAP financial\nmeasures. See “Non-GAAP Financial Measures” below for a discussion of\nthese measures and reconciliations to the most directly comparable GAAP\nmeasures.\n\n(2) The Company is not able to provide reconciliations to certain of its\nforward-looking measures to comparable GAAP measures because certain items\nrequired for such reconciliations are outside of the Company’s control\nand/or cannot be reasonably predicted without unreasonable effort. The Company\nencourages investors to review its GAAP financial measures and to not rely on\nany single financial measure to evaluate our business.\n\nAbout Sunrun\n\nSunrun Inc. (Nasdaq: RUN) is America’s largest provider of home battery\nstorage, solar, and home-to-grid power plants. As the pioneer of home energy\nsystems offered through a no-upfront-cost subscription model, Sunrun empowers\ncustomers nationwide with greater energy control, security, and independence.\nSunrun supports the grid by providing on-demand dispatchable power that helps\nprevent blackouts and lowers energy costs. Learn more at www.sunrun.com.\n\nForward Looking Statements\n\nThis communication contains forward-looking statements related to Sunrun (the\n“Company”) within the meaning of the Private Securities Litigation Reform\nAct of 1995. Such forward-looking statements include, but are not limited to,\nstatements related to: the Company’s financial and operating guidance and\nexpectations; the Company’s business plan, growth trajectory, expectations,\nmarket leadership, competitive advantages, operational and financial results\nand metrics (and the assumptions related to the calculation of such metrics);\nthe Company’s expectation that it will exit the year at a robust growth rate\nand higher unit margins; the Company’s momentum in its business strategies\nincluding expectations regarding market share growth in certain geographies,\ncustomer value proposition, market penetration, growth of certain divisions\nand ability to scale offerings, financing activities, financing capacity,\nproduct mix, and ability to manage cash flow and liquidity; the Company’s\ndiscussion of new products, offerings, and applications, including\nmonetization of the Company’s network for grid programs and emerging data\ncenter and grid edge applications; the trajectory of the storage and solar\nindustry; the Company’s business, customer base, and market; and anticipated\ndemand, market acceptance, and market adoption of the Company’s offerings;\nthe Company’s expectations regarding its allocations of and ability to\ncreate new streams of Cash Generation; the closing of the Company’s August\nsecuritization; and the Company’s aim to leverage its existing energy\ninfrastructure to serve AI-driven electricity demand and create new,\nhigh-margin revenue opportunities.  These statements are not guarantees of\nfuture performance; they reflect the Company’s current views with respect to\nfuture events and are based on assumptions and estimates and are subject to\nknown and unknown risks, uncertainties and other factors that may cause actual\nresults, performance or achievements to be materially different from\nexpectations or results projected or implied by forward-looking statements.\nThe risks and uncertainties that could cause the Company’s results to differ\nmaterially from those expressed or implied by such forward-looking statements\ninclude: the Company’s continued ability to manage costs and compete\neffectively; the availability of additional financing on acceptable terms;\nworldwide economic conditions, including slow or negative growth rates and\ninflation; volatile or rising interest rates; changes in policies and\nregulations, including net metering, interconnection limits, and fixed fees,\nor caps and licensing restrictions and the impact of these changes on the\nsolar industry and the Company’s business; the Company’s ability to\nattract and retain the Company’s business partners; supply chain risks,\nincluding the Company’s and its energy system partners’ dependence on a\nlimited number of suppliers of solar panels, batteries, and other system\ncomponents and any shortage, bottlenecks, delays, detentions, or component\nprice changes from these suppliers, restrictions on components and materials\nsourced from designated foreign entities of concern and the Company’s\nreliance on specific countries for critical components, tariff and trade\npolicy impacts, and raw material availability for solar panels and batteries;\nrealizing the anticipated benefits of past or future investments,\npartnerships, strategic transactions, or acquisitions, and integrating those\nacquisitions; the Company’s leadership team and ability to attract and\nretain key employees; regulators imposing rules on the type of electricians\nqualified to install and service the Company’s solar and battery systems in\nCalifornia, which may result in workforce shortages, operational delays, and\nincreased costs; changes in the retail prices of traditional utility generated\nelectricity; the availability of rebates, tax credits and other incentives,\nand the risk that if the IRS makes determinations that the creditable basis of\nthe Company’s energy systems is materially lower than what it has claimed,\nit may have to pay significant amounts to its fund investors; the Company’s\nrisk of additional taxes owed in respect of lost ITCs and the availability of\nrelated insurance coverage; the availability of solar panels, batteries, and\nother components and raw materials; the Company’s failure or perceived\nfailure to comply with existing or future laws, regulations, contracts,\nself‑regulatory schemes, standards, and other obligations related to data\nprivacy and security (including security incidents), including where\ncompliance or the actual or perceived failure to comply could increase the\ncosts of its products and services, limit their use or adoption, and otherwise\nnegatively affect our operating results and business; the Company’s business\nplan and the Company’s ability to effectively manage the Company’s growth\nand labor constraints; the Company’s ability to meet the covenants in the\nCompany’s investment funds and debt facilities; factors impacting the home\nelectrification and solar industry generally, and such other risks and\nuncertainties identified in the reports that we file with the U.S. Securities\nand Exchange Commission from time to time. All forward-looking statements used\nherein are based on information available to us as of the date hereof, and we\nassume no obligation to update publicly these forward-looking statements for\nany reason, except as required by law.\n\nCitations to industry and market statistics used herein may be found in our\nInvestor Presentation, available via the “Investor Relations” section of\nSunrun’s website at https://investors.sunrun.com.\n\n\n\n Consolidated Balance Sheets \n (In Thousands) \n \n June 30, 2026 December 31, 2025 \n \n Assets \n Current assets: \n Cash $ 712,425 $ 823,380 \n Restricted cash 423,812 413,460 \n Accounts receivable, net 235,421 262,627 \n Inventories 649,853 501,286 \n Prepaid expenses and other current assets 144,997 155,216 \n Total current assets 2,166,508 2,155,969 \n Restricted cash 148 148 \n Energy systems, net 17,245,212 16,817,863 \n Property and equipment, net 61,400 75,692 \n Other assets 3,886,099 3,560,924 \n Total assets $ 23,359,367 $ 22,610,596 \n Liabilities and total equity \n Current liabilities: \n Accounts payable $ 321,422 $ 271,021 \n Distributions payable to noncontrolling interests and redeemable noncontrolling interests 49,123 47,072 \n Accrued expenses and other liabilities 444,439 518,835 \n Deferred revenue, current portion 162,902 162,839 \n Deferred grants, current portion 9,004 8,681 \n Finance lease obligations, current portion 23,162 24,557 \n Non-recourse debt, current portion 513,397 269,510 \n Total current liabilities 1,523,449 1,302,515 \n Deferred revenue, net of current portion 1,380,846 1,350,494 \n Deferred grants, net of current portion 190,933 196,726 \n Finance lease obligations, net of current portion 24,914 36,908 \n Convertible senior notes 474,780 473,749 \n Line of credit 153,700 238,323 \n Non-recourse debt, net of current portion 14,016,021 13,708,532 \n Other liabilities 188,276 156,199 \n Deferred tax liabilities 198,783 163,176 \n Total liabilities 18,151,702 17,626,622 \n Redeemable noncontrolling interests 816,076 709,255 \n Total stockholders’ equity 3,490,084 3,132,484 \n Noncontrolling interests 901,505 1,142,235 \n Total equity 4,391,589 4,274,719 \n Total liabilities, redeemable noncontrolling interests and total equity $ 23,359,367 $ 22,610,596 \n\n\n\n Consolidated Statements of Operations \n (In Thousands, Except Per Share Amounts) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Revenue: \n Customer agreements and incentives $ 543,730 $ 458,000 $ 1,011,552 $ 860,920 \n Energy systems and product sales 326,258 111,336 580,667 212,687 \n Total revenue 869,988 569,336 1,592,219 1,073,607 \n Operating expenses: \n Cost of customer agreements and incentives 342,452 345,376 657,194 654,005 \n Cost of energy systems and product sales 199,312 104,144 387,000 200,942 \n Sales and marketing 190,681 152,459 369,214 298,449 \n Research and development 10,234 8,063 20,377 18,042 \n General and administrative 92,521 71,543 167,156 129,306 \n Total operating expenses 835,200 681,585 1,600,941 1,300,744 \n Income (loss) from operations 34,788 (112,249 ) (8,722 ) (227,137 ) \n Interest expense, net (264,428 ) (247,137 ) (528,371 ) (474,571 ) \n Other income (expense), net 17,495 (14,528 ) 34,681 (59,927 ) \n Loss before income taxes (212,145 ) (373,914 ) (502,412 ) (761,635 ) \n Income tax (benefit) expense (3,972 ) (94,930 ) 3,094 (205,480 ) \n Net loss (208,173 ) (278,984 ) (505,506 ) (556,155 ) \n Net loss attributable to noncontrolling interests and redeemable noncontrolling interests (323,325 ) (558,757 ) (788,302 ) (885,939 ) \n Net income attributable to common stockholders $ 115,152 $ 279,773 $ 282,796 $ 329,784 \n Net income per share attributable to common stockholders \n Basic $ 0.48 $ 1.22 $ 1.19 $ 1.45 \n Diluted $ 0.42 $ 1.07 $ 1.04 $ 1.28 \n Weighted average shares used to compute net income per share attributable to common stockholders \n Basic 238,997 229,167 236,804 227,794 \n Diluted 273,999 261,152 273,189 259,539 \n\n\n\n Consolidated Statements of Cash Flows (In Thousands) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Operating activities: \n Net loss $ (208,173 ) $ (278,984 ) $ (505,506 ) $ (556,155 ) \n Adjustments to reconcile net loss to net cash used in operating activities: \n Depreciation and amortization, net of amortization of deferred grants 192,788 189,713 382,344 359,603 \n Deferred income taxes (3,973 ) (96,103 ) 3,094 (206,653 ) \n Stock-based compensation expense 21,119 25,024 47,421 50,029 \n Unrealized (gain) loss on derivatives (24,951 ) 17,555 (43,317 ) 62,625 \n Other noncash items 93,239 77,307 173,036 138,806 \n Changes in operating assets and liabilities: \n Accounts receivable (9,932 ) (20,233 ) 12,154 (27,139 ) \n Inventories (101,391 ) (76,748 ) (70,495 ) (89,066 ) \n Prepaid expenses and other assets (112,096 ) (208,568 ) (249,985 ) (254,329 ) \n Accounts payable (9,420 ) 51,982 69,290 36,364 \n Accrued expenses and other liabilities (36,626 ) (26,927 ) (52,733 ) 983 \n Deferred revenue 11,279 53,323 28,522 88,067 \n Deferred tax liabilities 1,958 — 30,619 — \n Net cash used in operating activities (186,179 ) (292,659 ) (175,556 ) (396,865 ) \n Investing activities: \n Payments for the costs of energy systems (429,357 ) (691,978 ) (853,785 ) (1,346,780 ) \n Purchase of equity investment (15,536 ) — (19,253 ) — \n Purchases of property and equipment, net (4,287 ) (843 ) (4,696 ) (1,062 ) \n Net cash used in investing activities (449,180 ) (692,821 ) (877,734 ) (1,347,842 ) \n Financing activities: \n Proceeds from state tax credits, net of recapture — 9,668 12,384 9,668 \n Proceeds from trade receivable financing — 71,323 — 71,323 \n Repayment of trade receivable financing — (99,519 ) — (124,261 ) \n Proceeds from line of credit 1,500 1,862 184,000 150,686 \n Repayment of line of credit — (23,833 ) (268,622 ) (198,390 ) \n Repurchase of convertible senior notes — — (5,457 ) (2,124 ) \n Proceeds from issuance of non-recourse debt 1,451,151 527,800 2,259,156 2,048,429 \n Repayment of non-recourse debt (1,173,649 ) (75,266 ) (1,839,323 ) (913,749 ) \n Payment of debt fees (24,709 ) (240 ) (42,947 ) (28,258 ) \n Payment of finance lease obligations (6,145 ) (6,303 ) (12,266 ) (12,786 ) \n Contributions received from noncontrolling interests and redeemable noncontrolling interests 515,744 679,384 821,556 935,284 \n Distributions paid to noncontrolling interests and redeemable noncontrolling interests (72,635 ) (58,547 ) (148,285 ) (118,800 ) \n Acquisition of noncontrolling interests (16,878 ) (16,219 ) (16,878 ) (16,219 ) \n Proceeds from transfer of investment tax credits 306,504 236,098 646,614 860,874 \n Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits (306,504 ) (236,098 ) (646,614 ) (860,874 ) \n Net proceeds related to stock-based award activities 8,094 8,544 9,369 8,565 \n Net cash provided by financing activities 682,473 1,018,654 952,687 1,809,368 \n Net change in cash and restricted cash 47,114 33,174 (100,603 ) 64,661 \n Cash and restricted cash, beginning of period 1,089,271 978,903 1,236,988 947,416 \n Cash and restricted cash, end of period $ 1,136,385 $ 1,012,077 $ 1,136,385 $ 1,012,077 \n\n\n\n Non-GAAP Financial Measures \n \n\nThis press release includes the Company’s non-GAAP financial measures:\nCreation Costs Reflected in Operating Expenses, Creation Costs Reflected in\nCapital Expenditures, and Cash Generation. The Company utilizes these non-GAAP\nmeasures to analyze the Company’s performance and for internal planning and\nforecasting purposes. These non-GAAP financial measures should not be\nconsidered in isolation or as a substitute for the Company’s financial\nresults as reported under GAAP. Additionally, these non-GAAP measures may not\nbe comparable to similarly titled measures presented by other companies, thus\nreducing their usefulness. Accompanying schedules provide reconciliations of\nthese non-GAAP financial measures to their most directly comparable GAAP\nmeasures. The Company is not able to provide reconciliations of certain\nforward-looking financial measures to comparable GAAP measures because certain\nitems required for such reconciliations are outside of the Company's control\nand/or cannot be reasonably predicted without unreasonable effort. The Company\nencourages investors to review our GAAP financial measures and to not rely on\nany single financial measure to evaluate our business.\n\nCreation Costs Reflected in Operating Expenses is a Non-GAAP measure that\nmanagement utilizes to assess the operating performance of our ongoing\noperations associated with the origination and installation of solar and\nstorage systems. Creation Costs Reflected in Operating Expenses represent\ntotal operating expenses, adjusted for certain items consistent with\nmanagement’s use as a performance measure. The adjusting items are detailed\nin the Reconciliation of Total Operating Expenses to Creation Costs Reflected\nin Operating Expenses table below. The Company believes that Creation Costs\nReflected in Operating Expenses, when viewed together with the corresponding\nGAAP financial measure, provides meaningful information to our investors by\nmeasuring our operating performance with respect to costs associated with the\norigination and installation of storage and solar systems. When evaluating\nperformance, investors should consider Creation Costs Reflected in Operating\nExpenses in addition to, though not as a substitute for, the Company’s\nfinancial results as reported under GAAP, including total operating expenses.\n\n Reconciliation of Total Operating Expenses to Creation Costs Reflected in Operating Expenses 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Total Operating Expenses $ 682 $ 721 $ 1,061 $ 766 $ 835 \n (-) Fleet servicing cost in COGS $ (61 ) $ (58 ) $ (56 ) $ (46 ) $ (57 ) \n (-) Non-cash impairment of energy systems, net $ (21 ) $ (1 ) $ (28 ) $ (12 ) $ (15 ) \n (-) Depreciation & Amortization $ (190 ) $ (182 ) $ (184 ) $ (190 ) $ (193 ) \n (-) Amortization of CTOC (sales commissions) in S&M expense $ (23 ) $ (26 ) $ (24 ) $ (26 ) $ (27 ) \n (-) Cost of Energy Systems and Product Sales (Excluding Non-Retained or Partially Retained Subscribers) $ (104 ) $ (104 ) $ (109 ) $ (80 ) $ (54 ) \n (-) Gross profit from Systems & Product Sales (Excluding Non-Retained or Partially Retained Subscribers) as contra cost $ (7 ) $ (14 ) $ (15 ) $ (1 ) $ (5 ) \n (-) Non-cash stock based compensation expense $ (25 ) $ (30 ) $ (28 ) $ (26 ) $ (21 ) \n (-) Goodwill impairment $ - $ - $ - $ - $ - \n (-) Amortization of intangible assets $ - $ - $ - $ - $ - \n (-) Other adjustments (e.g., restructuring, legal) $ (6 ) $ (2 ) $ (1 ) $ (16 ) $ (13 ) \n (+) Adjustments to reflect purchase price adjustment for Non-Retained or Partially Retained Subscribers owing to consigned inventory usage $ - $ - $ - $ - $ 19 \n Creation Costs Reflected in Operating Expenses $ 245 $ 305 $ 617 $ 368 $ 469 \n 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. \n \n\nCreation Costs Reflected in Capital Expenditures is a Non-GAAP measure that\nmanagement utilizes to assess the operating performance of our ongoing\noperations associated with the origination and installation of solar and\nstorage systems. Creation Costs Reflected in Capital Expenditures represent\nNet cash used in investing activities, adjusted for certain items consistent\nwith management’s use as a performance measure. The adjusting items are\ndetailed in the Reconciliation of Net Cash Used in Investing Activities to\nCreation Costs Reflected in Capital Expenditures table below. The Company\nbelieves that Creation Costs Reflected in Capital Expenditures, when viewed\ntogether with the corresponding GAAP financial measure, provides meaningful\ninformation to our investors by measuring our operating performance with\nrespect to costs associated with the origination and installation of storage\nand solar systems. When evaluating performance, investors should consider\nCreation Costs Reflected in Capital Expenditures in addition to, though not as\na substitute for, the Company’s financial results as reported under GAAP,\nincluding Net cash used in investing activities.\n\n Reconciliation of Net Cash Used in Investing Activities to Creation Costs Reflected in Capital Expenditures 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Net cash used in investing activities $ 693 $ 744 $ 409 $ 429 $ 449 \n (+) Additions to capitalized CTOC (sales commissions) $ 126 $ 133 $ 21 $ 79 $ 85 \n (-) Purchase of equity method investment $ - $ - $ - $ (4 ) $ (16 ) \n Creation Costs Reflected in Capital Expenditures $ 818 $ 877 $ 430 $ 503 $ 519 \n 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. \n \n\nCash Generation is a Non-GAAP measure that management utilizes to assess the\nCompany’s financial performance as it relates to raising capital from\nnon-recourse capital sources relative to the cost of originating new\ncustomers, working capital management, and other cash flows associated with\nSunrun's business activities. Cash Generation represents Net cash provided by\n(used in) operating activities, adjusted for certain items consistent with\nmanagement’s use as a performance measure. The adjusting items are detailed\nin the Reconciliation of Cash Provided by Operating Activities to Cash\nGeneration table below. The Company believes that Cash Generation, when viewed\ntogether with the corresponding GAAP financial measure, provides meaningful\ninformation to our investors by measuring our financial performance with\nrespect to our ability to raise capital and effectively balance working\ncapital requirements associated with our ongoing operations associated with\nthe origination and installation of solar and storage systems. The Company\nuses Cash Generation as one of the performance metrics in its executive\nincentive compensation plan, underscoring management's focus on delivering\nsustainable cash flow while continuing to grow the business. When evaluating\nperformance, investors should consider Cash Generation in addition to, though\nnot as a substitute for, the Company’s financial results as reported under\nGAAP, including Net cash provided by (used in) operating activities.\n\n Reconciliation of Cash Provided by Operating Activities to Cash Generation 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Net cash provided by (used in) operating activities $ (293 ) $ (122 ) $ 97 $ 11 $ (186 ) \n (-) Payments for the costs of energy systems $ (692 ) $ (742 ) $ (410 ) $ (424 ) $ (429 ) \n (-) Purchase of equity investment $ - $ - $ - $ (4 ) $ (16 ) \n (-) Purchases of property and equipment, net $ (1 ) $ (1 ) $ 1 $ (0 ) $ (4 ) \n (+) Proceeds from state tax credits, net of recapture $ 10 $ - $ - $ 12 $ - \n (+) Proceeds from trade receivables financing $ 71 $ 96 $ - $ - $ - \n (-) Repayment of trade receivable financing $ (100 ) $ (71 ) $ (96 ) $ - $ - \n (+) Proceeds from issuance of non-recourse debt $ 528 $ 1,848 $ 215 $ 808 $ 1,451 \n (-) Repayment of non-recourse debt $ (75 ) $ (1,257 ) $ (115 ) $ (666 ) $ (1,174 ) \n (-) Payment of debt fees $ (0 ) $ (36 ) $ (4 ) $ (18 ) $ (25 ) \n (+) Proceeds from pass-through financing and other obligations, net $ - $ - $ - $ - $ - \n (-) Repayment of pass-through financing obligation $ - $ - $ - $ - $ - \n (-) Payment of finance lease obligations $ (6 ) $ (6 ) $ (6 ) $ (6 ) $ (6 ) \n (+) Contributions received from noncontrolling interests and redeemable noncontrolling interests $ 679 $ 525 $ 542 $ 306 $ 516 \n (-) Distributions paid to noncontrolling interest and redeemable noncontrolling interests $ (59 ) $ (58 ) $ (70 ) $ (76 ) $ (73 ) \n (-) Acquisition of noncontrolling interest $ (16 ) $ (14 ) $ (0 ) $ - $ (17 ) \n (+) Proceeds from transfer of investment tax credits $ 236 $ 296 $ 446 $ 340 $ 307 \n (+) Payments to redeemable noncontrolling interest and noncontrolling interests of investment tax credits $ (236 ) $ (296 ) $ (446 ) $ (340 ) $ (307 ) \n (-) Increase / (+) decrease in Restricted Cash $ (20 ) $ (53 ) $ 33 $ 4 $ (14 ) \n (+/-) Changes in 2026 convertible senior notes reserve balance $ - $ - $ - $ (5 ) $ - \n Cash Generation ($ millions) $ 27 $ 108 $ 187 $ (59 ) $ 23 \n\n\n\n Key Operating and Financial Metrics \n \n\nThe following operating metrics are used by management to evaluate the\nperformance of the business. Management believes these metrics, when taken\ntogether with other information contained in our filings with the SEC and\nwithin this press release, provide investors with helpful information to\ndetermine the economic performance of the business activities in a period that\nwould otherwise not be observable from historic GAAP measures. Management\nbelieves that it is helpful to investors to evaluate the present value of cash\nflows expected from subscribers over the full expected relationship with such\nsubscribers (“Subscriber Value”, more fully defined in the definitions\nappendix below). The Company also believes that Subscriber Value, Aggregate\nSubscriber Value, Creation Costs Reflected in Operating Expenses, Creation\nCosts Reflected in Capital Expenditures, Net Subscriber Value, Contracted Net\nSubscriber Value and Upfront Net Subscriber Value are useful metrics for\ninvestors because they present a view of unit economics the Company uses to\nassess customers originated in a period, inclusive of expected future cash\nflows from these customers over a 30-year period, based on contracted pricing\nterms with its customers, which is not observable in any current or historic\nGAAP-derived metric. Management believes it is useful for investors to also\nevaluate the future expected cash flows from all customers that have been\ndeployed through the respective measurement date, less estimated costs to\nmaintain such systems and estimated distributions to tax equity partners in\nconsolidated joint venture partnership flip structures, and distributions to\nproject equity investors (“Gross Earning Assets”, more fully defined in\nthe definitions appendix below). The Company also believes Gross Earning\nAssets is useful for management and investors because it represents the\nremaining future expected cash flows from existing customers, which is not\nderivable from a current or historic GAAP-derived measure.\n\nVarious assumptions are made when calculating these metrics. Subscriber Value\nmetrics are calculated using a discount rate based on the observed\nproject-level capital costs in the period. Gross Earning Assets utilize a 6%\nrate to discount future cash flows to the present period. Furthermore, these\nmetrics assume that Subscribers renew after the initial contract period at a\nrate equal to 90% of the rate in effect at the end of the initial contract\nterm, or purchase their systems at equal values. For Customer Agreements with\n25-year initial contract terms, a 5-year renewal period is assumed. For a\n20-year initial contract term, a 10-year renewal period is assumed. In all\ninstances, we assume a 30-year customer relationship, although the customer\nmay renew for additional years, or purchase the system. Estimated cost of\nservicing assets has been deducted and is estimated based on the service\nagreements underlying each fund.\n\n KEY OPERATING METRICS \n Unit Economics in Period 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ per Subscriber Addition, unless otherwise noted \n Subscriber Additions in period 28,823 30,104 25,475 17,665 19,793 \n Subscriber Value $ 53,891 $ 52,446 $ 50,165 $ 61,240 $ 59,377 \n Discount rate (observed project-level capital costs) 7.4 % 7.3 % 7.1 % 6.3 % 7.3 % \n Contracted Subscriber Value $ 49,919 $ 48,507 $ 47,988 $ 55,464 $ 55,033 \n x Advance Rate on Contracted Subscriber Value (estimated) 85.3 % 88.2 % 91.2 % 98.2 % 94.4 % \n = Upfront Proceeds (estimated) $ 42,598 $ 42,763 $ 43,758 $ 54,484 $ 51,949 \n \n = Upfront Net Subscriber Value $ 5,711 $ 3,522 $ 2,692 $ 5,136 $ 2,016 \n Upfront Net Subscriber Value margin as a % of Contracted Subscriber Value 11.4 % 7.3 % 5.6 % 9.3 % 3.7 % \n Aggregate Gross Value and Costs in Period 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Aggregate Subscriber Value $ 1,553 $ 1,579 $ 1,278 $ 1,082 $ 1,175 \n Aggregate Contracted Subscriber Value $ 1,439 $ 1,460 $ 1,222 $ 980 $ 1,089 \n Aggregate Upfront Proceeds (estimated) $ 1,228 $ 1,287 $ 1,115 $ 962 $ 1,028 \n \n Creation Costs Reflected in Operating Expenses (1) $ 245 $ 305 $ 617 $ 368 $ 469 \n Creation Costs Reflected in Capital Expenditures (1) $ 818 $ 877 $ 430 $ 503 $ 519 \n \n Cash Generation (1) $ 27 $ 108 $ 187 $ (59 ) $ 23 \n Volume Additions in Period 2Q25 3Q25 4Q25 1Q26 2Q26 \n Storage Capacity Installed (MWhrs) 391.5 412.0 371.1 282.3 332.0 \n Solar Capacity Installed (MWs) 227.2 239.2 216.2 154.2 174.3 \n Solar Capacity Installed with Storage (MWs) 157.7 172.4 157.1 115.9 133.8 \n Solar Capacity Installed without Storage (MWs) 69.5 66.8 59.1 38.2 40.5 \n Customer Additions 30,810 32,833 27,773 18,948 20,979 \n Customer Additions with Storage 21,626 22,822 19,639 13,789 15,531 \n Customer Additions without Storage 9,184 10,011 8,134 5,159 5,448 \n Storage Attachment Rate 70 % 70 % 71 % 73 % 74 % \n Subscriber Additions (included within Customer Additions) 28,823 30,104 25,475 17,665 19,793 \n Subscriber Additions as % of Customer Additions 94 % 92 % 92 % 93 % 94 % \n Customer Base Value & Energy Capacity at End of Period 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 \n Net Earning Assets ($ millions) $ 7,632 $ 8,241 $ 8,538 $ 8,872 $ 9,004 \n Contracted Net Earning Assets ($ millions) $ 3,001 $ 3,373 $ 3,571 $ 3,701 $ 3,677 \n Customers 1,105,080 1,137,913 1,165,686 1,184,634 1,205,613 \n Subscribers (included within Customers) 941,701 971,805 997,280 1,014,945 1,034,738 \n Networked Storage Capacity (MWhrs) 3,250 3,662 4,033 4,315 4,647 \n Networked Solar Capacity (MWs) 7,949 8,188 8,404 8,558 8,732 \n Basic Shares Outstanding 2Q25 3Q25 4Q25 1Q26 2Q26 \n Basic shares outstanding at end of period (in millions) 230.3 231.6 233.6 235.5 240.1 \n Weighted average basic shares outstanding in period (in millions) 229.2 231.0 232.6 234.6 239.0 \n \n\nFigures presented above may not sum due to rounding. For adjustments related\nto Subscriber Value, Creation Costs Reflected in Operating Expenses, and\nCreation Costs Reflected in Capital Expenditures, please see the supplemental\nmaterials available on the Sunrun Investor Relations website at\ninvestors.sunrun.com.\n\n(1) Creation Costs Reflected in Operating Expenses, Creation Costs Reflected\nin Capital Expenditures, and Cash Generation are non-GAAP financial measures.\nSee “Non-GAAP Financial Measures” above for a discussion of these measures\nand reconciliations to the most directly comparable GAAP measures.\n\nGlossary of Terms*\n\nDefinitions for Volume-related Terms\n\nDeployments represent solar or storage systems, whether sold directly to\ncustomers or subject to executed Customer Agreements (i) for which we have\nconfirmation that the systems are installed, subject to final inspection, or\n(ii) in the case of certain system installations by our partners, for which we\nhave accrued at least 80% of the expected project cost (inclusive of\nacquisitions of installed systems). A portion of customers have subsequently\nentered into Customer Agreements to obtain, or have directly purchased,\nadditional solar or storage systems at the same host customer site, and since\nthese represent separate assets, they are considered separate Deployments.\n\nCustomer Agreements refer to, collectively, solar and/or storage power\npurchase agreements and leases.\n\nRetained Subscribers represent customers subject to Customer Agreements for\nsolar and/or storage systems that have been recognized as Deployments and\nrecognized as energy systems on Sunrun’s consolidated balance sheet, whether\nor not they continue to be active.\n\nNon-Retained or Partially Retained Subscribers represent customers subject to\nCustomer Agreements for solar and/or storage systems that have been recognized\nas Deployments whereby the assets have been fully or partially sold to one or\nmore investors and not presented as an energy system on Sunrun’s\nconsolidated balance sheet.\n\nSubscribers represent aggregate Retained Subscribers and Non-Retained or\nPartially Retained Subscribers.\n\nPurchase Customers represent customers who purchased, whether outright or with\nproceeds from third-party loans, solar and/or storage systems that have been\nrecognized as Deployments.\n\nCustomers represent aggregate Subscribers and Purchase Customers.\n\nSubscriber Additions represent the number of Subscribers added in a period.\n\nPurchase Customer Additions represent the number of Purchase Customers added\nin a period.\n\nCustomer Additions represent Subscriber Additions plus Purchase Customer\nAdditions.\n\nSolar Capacity Installed represents the aggregate megawatt production capacity\nof solar energy systems that were recognized as Deployments in a period.\n\nStorage Capacity Installed represents the aggregate megawatt hour capacity of\nstorage systems that were recognized as Deployments in a period.\n\nNetworked Solar Capacity represents the cumulative Solar Capacity Installed\nfrom the company’s inception through the measurement date.\n\nNetworked Storage Capacity represents the cumulative Storage Capacity\nInstalled from the company’s inception through the measurement date.\n\nStorage Attachment Rate represents Customer Additions with storage divided by\ntotal Customer Additions.\n\nDefinitions for Unit-based and Aggregate Value, Costs and Margin Terms\n\nSubscriber Value represents Contracted Subscriber Value plus Non-contracted or\nUpside Subscriber Value.\n\nContracted Subscriber Value represents the per Subscriber present value of\nestimated upfront and future Contracted Cash Flows from Subscriber Additions\nin a period, discounted at the observed cost of capital in the period.\n\nNon-contracted or Upside Subscriber Value represents the per Subscriber\npresent value of estimated future Non-contracted or Upside Cash Flows from\nSubscriber Additions in a period, discounted at the observed cost of capital\nin the period.\n\nContracted Cash Flows represent, (A) for Retained Subscribers, (x) (1)\nscheduled payments from Subscribers during the initial terms of the Customer\nAgreements (provided, that for Flex Customer Agreements that allow variable\nbillings based on the amount of electricity consumed by the Subscriber, only\nthe minimum contracted payment is included in Contracted Cash Flows), (2) net\nproceeds from tax equity partners, (3) payments from government and utility\nincentive and rebate programs, (4) contracted net cash flows from grid\nservices programs with utilities or grid operators, and (5) contracted or\ndefined (i.e., with fixed pricing) cash flows from the sale of renewable\nenergy credits, less (y) (1) estimated operating and maintenance costs to\nservice the systems and replace equipment over the initial terms of the\nCustomer Agreements, consistent with estimates by independent engineers, (2)\ndistributions to tax equity partners in consolidated joint venture partnership\nflip structures, and (3) distributions to any project equity investors, and\n(B) for Non-Retained or Partially Retained Subscribers, (x) contracted\nproceeds from the full or partial sale of related assets, before any price\nadjustments related to consigned inventory usage, plus (y) the share of\nContracted Cash Flows described in clause (A) of this definition which are\nallocated to Sunrun pursuant to the terms of each sale agreement or\npartnership agreement.\n\nNon-contracted or Upside Cash Flows represent (A) for Retained Subscribers the\n(1) net cash flows realized from either the purchase of systems at the end of\nthe Customer Agreement initial terms or renewals of Customer Agreements beyond\nthe initial terms, estimated in both cases to have equivalent value, assuming\nonly a 30-year relationship and a contract renewal rate equal to 90% of each\nSubscriber’s contractual rate in effect at the end of the initial contract\nterm, (2) non-contracted net cash flows from grid service programs with\nutilities and grid operators, (3) non-contracted net cash flows from the sale\nof renewable energy credits, and (4) contracted cash flows from Flex Customer\nAgreements exceeding the minimum contracted payment (provided, that for Flex\nCustomer Agreements that allow variable billings based on the amount of\nelectricity consumed by the Subscriber, an assumption is made that each\nSubscriber’s electricity consumption increases by approximately 2% per year\nthrough the end of the initial term of the Customer Agreement and into the\nrenewal period (if renewed), resulting in billings in excess of the minimum\ncontracted amount (which minimums are included in Contracted Cash Flows)), and\n(B) for Non-Retained or Partially Retained Subscribers, the share of\nNon-contracted or Upside Cash Flows described in clause (A) of this definition\nwhich are allocated to Sunrun pursuant to the terms of each sale agreement or\npartnership agreement. After the initial contract term, our Customer\nAgreements typically automatically renew on an annual basis and the rate is\ninitially set at up to a 10% discount to then-prevailing utility power prices.\n\nCreation Costs Reflected In Operating Expenses (Non-GAAP measure) represent\ntotal operating expenses, adjusted for certain items consistent with\nmanagement’s use as a performance measure, all of which are itemized in the\nNon-GAAP reconciliation table as provided in the Company’s earnings release.\nCreation Costs Reflected In Operating Expenses may be derived by taking total\noperating expenses incurred in a period, and adjusting by: (A) excluding the\nfollowing items: (i) fleet servicing costs; (ii) non-cash net impairment of\nenergy systems; (iii) depreciation and amortization expense; (iv) amortization\nof costs to obtain contracts, which represents the amortization expense of\nsales commissions; (v) cost of energy system and product sales not pertaining\nto Non-retained or Partially Retained Subscribers; (vi) gross profit from\nsystem & product sales not pertaining to Non-retained or Partially Retained\nSubscribers; (vii) stock based compensation expense; (viii) goodwill\nimpairment expense; (ix) amortization of intangible assets; and (x) costs\nassociated with certain restructuring activities, amortization of previously\ncapitalized insurance costs associated with tax credit transfer agreements,\nand one-time items are identified and excluded; and (B) including any purchase\nprice adjustments for Non-retained or Partially Retained Subscribers owing to\nconsigned inventory usage. When presented on a per Subscriber Addition basis,\nCreation Costs Reflected in Operating Expenses is divided by the Subscriber\nAdditions for the corresponding period.\n\nCreation Costs Reflected In Capital Expenditures (Non-GAAP measure) represent\ntotal capital expenditures, adjusted for certain items consistent with\nmanagement’s use as a performance measure, all of which are itemized in the\nNon-GAAP reconciliation table as provided in the Company’s earnings release.\nCreation Costs Reflected In Capital Expenditures may be derived by taking net\ncash used in investing activities and adjusting to include the gross additions\nto capitalized costs to obtain contracts (i.e., sales commissions) and to\nexclude cash used for the purchase of equity investments. As such, this\nmeasure represents the sum of the following items: (i) payments for the costs\nof energy systems, (ii) net purchases of property and equipment, and (iii)\ngross additions to capitalized costs to obtain contracts (i.e., sales\ncommissions). When presented on a per Subscriber Addition basis, Creation\nCosts Reflected in Capital Expenditures is divided by the Subscriber Additions\nfor the corresponding period.\n\nNet Subscriber Value represents Subscriber Value less the summation of the\nfollowing items divided by Subscriber Additions: (A) payments for the costs of\nenergy systems; (B) net purchases of property and equipment; (C) gross\nadditions to capitalized costs to obtain contracts (i.e., sales commissions);\n(D) total operating expenses, adjusted to exclude the following items: (i)\nfleet servicing costs; (ii) non-cash net impairment of energy systems; (iii)\ndepreciation and amortization expense; (iv) amortization of costs to obtain\ncontracts, which represents the amortization expense of sales commissions; (v)\ncost of energy system and product sales not pertaining to Non-retained or\nPartially Retained Subscribers; (vi) gross profit from system & product sales\nnot pertaining to Non-retained or Partially Retained Subscribers; (vii) stock\nbased compensation expense; (viii) goodwill impairment expense; (ix)\namortization of intangible assets; and (x) costs associated with certain\nrestructuring activities, amortization of previously capitalized insurance\ncosts associated with tax credit transfer agreements, and one-time items are\nidentified and excluded; and to include any purchase price adjustments for\nNon-retained or Partially Retained Subscribers owing to consigned inventory\nusage.\n\nContracted Net Subscriber Value represents Contracted Subscriber Value less\nthe summation of the following items divided by Subscriber Additions: (A)\npayments for the costs of energy systems; (B) net purchases of property and\nequipment; (C) gross additions to capitalized costs to obtain contracts (i.e.,\nsales commissions); (D) total operating expenses, adjusted to exclude the\nfollowing items: (i) fleet servicing costs; (ii) non-cash net impairment of\nenergy systems; (iii) depreciation and amortization expense; (iv) amortization\nof costs to obtain contracts, which represents the amortization expense of\nsales commissions; (v) cost of energy system and product sales not pertaining\nto Non-retained or Partially Retained Subscribers; (vi) gross profit from\nsystem & product sales not pertaining to Non-retained or Partially Retained\nSubscribers; (vii) stock based compensation expense; (viii) goodwill\nimpairment expense; (ix) amortization of intangible assets; and (x) costs\nassociated with certain restructuring activities, amortization of previously\ncapitalized insurance costs associated with tax credit transfer agreements,\nand one-time items are identified and excluded; and to include any purchase\nprice adjustments for Non-retained or Partially Retained Subscribers owing to\nconsigned inventory usage.\n\nUpfront Net Subscriber Value represents Contracted Subscriber Value multiplied\nby Advance Rate less the summation of the following items divided by\nSubscriber Additions: (A) payments for the costs of energy systems; (B) net\npurchases of property and equipment; (C) gross additions to capitalized costs\nto obtain contracts (i.e., sales commissions); (D) total operating expenses,\nadjusted to exclude the following items: (i) fleet servicing costs; (ii)\nnon-cash net impairment of energy systems; (iii) depreciation and amortization\nexpense; (iv) amortization of costs to obtain contracts, which represents the\namortization expense of sales commissions; (v) cost of energy system and\nproduct sales not pertaining to Non-retained or Partially Retained\nSubscribers; (vi) gross profit from system & product sales not pertaining to\nNon-retained or Partially Retained Subscribers; (vii) stock based compensation\nexpense; (viii) goodwill impairment expense; (ix) amortization of intangible\nassets; and (x) costs associated with certain restructuring activities,\namortization of previously capitalized insurance costs associated with tax\ncredit transfer agreements, and one-time items are identified and excluded;\nand to include any purchase price adjustments for Non-retained or Partially\nRetained Subscribers owing to consigned inventory usage.\n\nAdvance Rate or Advance Rate on Contracted Subscriber Value represents the\ncompany’s estimated upfront proceeds, expressed as a percentage of\nContracted Subscriber Value or Aggregate Contracted Subscriber Value, from\nproject-level capital, proceeds from Non-Retained or Partially Retained\nSubscribers, and other upfront cash flows, based on market terms and observed\ncost of capital in a period.\n\nAggregate Subscriber Value represents Subscriber Value multiplied by\nSubscriber Additions.\n\nAggregate Contracted Subscriber Value represents Contracted Subscriber Value\nmultiplied by Subscriber Additions.\n\nAggregate Upfront Proceeds represent Aggregate Contracted Subscriber Value\nmultiplied by Advance Rate. Actual project financing transaction timing for\nportfolios of Subscribers may occur in a period different from the period in\nwhich Subscribers are recognized, and may be executed at different terms. As\nsuch, Aggregate Upfront Proceeds are an estimate based on capital markets\nconditions present during each period and may differ from ultimate Proceeds\nRealized in respect of such period’s Retained Subscribers and ultimate\nproceeds obtained from such period’s Non-Retained or Partially Retained\nSubscribers.\n\nProceeds Realized From Retained Subscribers represents cash flows received in\nrespect of Retained Subscribers from non-recourse financing partners in\naddition to upfront customer prepayments, incentives and rebates. It is\ncalculated as the proceeds from non-controlling interests on the cash flow\nstatement, plus the net proceeds from non-recourse debt (excluding normal\nnon-recourse debt amortization for existing debt, as such debt is serviced by\ncash flows from existing solar and storage assets), plus the gross additions\nto deferred revenue which represents customer payments for prepaid Customer\nAgreements along with local rebates and incentive programs.\n\nCash Generation (Non-GAAP measure) represents Net cash provided by operating\nactivities, less cash used in investing activities, less increases in\nrestricted cash (or plus decreases in restricted cash), plus the following\nitems: (i) net proceeds from non-recourse debt financings; (ii) net proceeds\nfrom tax equity (non-controlling interests and proceeds from sale of\ninvestment tax credits); (iii) net proceeds from state tax credits; (iv) net\nproceeds from trade receivable financings; and (v) net proceeds from\npass-through financing obligations and finance lease obligations. Cash\nGeneration can also be calculated through the change in our unrestricted cash\nbalance from our consolidated balance sheet, less net proceeds (or plus net\nrepayments) from all recourse debt (inclusive of convertible debt), and less\nany primary equity issuances or net proceeds derived from employee stock award\nactivity (or plus any stock buybacks or dividends paid to common stockholders)\nas presented on the Company’s consolidated statement of cash flows. The\nCompany expects to continue to raise proceeds from tax equity and asset-level\nnon-recourse debt, and proceeds from the sale of Non-Retained or Partially\nRetained Subscribers, to fund growth, and as such, these sources of cash are\nincluded in the definition of Cash Generation. Cash Generation also excludes\nproceeds from long-term asset or business divestitures (aside from\ntransactions relating to Non-Retained or Partially Retained Subscribers) and\nequity investments in external non-consolidated businesses not related to\nNon-Retained or Partially Retained Subscribers (or less dividends or\ndistributions received in connection with such equity investments).\n\nDefinitions for Gross and Net Value from Existing Customer Base Terms\n\nGross Earning Assets is calculated as Contracted Gross Earning Assets plus\nNon-contracted or Upside Gross Earning Assets.\n\nContracted Gross Earning Assets represents, as of any measurement date, the\npresent value of estimated remaining Contracted Cash Flows that we expect to\nreceive in future periods in relation to Subscribers as of the measurement\ndate, discounted at 6%.\n\nNon-contracted or Upside Gross Earning Assets represents, as of any\nmeasurement date, the present value of estimated Non-contracted or Upside Cash\nFlows that we expect to receive in future periods in relation to Subscribers\nas of the measurement date, discounted at 6%.\n\nNet Earning Assets represents Gross Earning Assets, plus Total Cash, less\nadjusted debt and lease pass-through financing obligations, as of the\nmeasurement date. Debt is adjusted to exclude a pro-rata share of non-recourse\ndebt associated with funds with project equity structures for Retained\nSubscribers along with debt associated with the company’s ITC safe harboring\nequipment inventory facility. Because estimated cash distributions to our\nproject equity partners for Retained Subscribers are deducted from Gross\nEarning Assets, a proportional share of the corresponding project level\nnon-recourse debt is deducted from Net Earning Assets, as such debt would be\nserviced from cash flows already excluded from Gross Earning Assets.\n\nContracted Net Earning Assets represents Net Earning Assets less\nNon-contracted or Upside Gross Earning Assets.\n\nNon-contracted or Upside Net Earning Assets represents Net Earning Assets less\nContracted Net Earning Assets.\n\nTotal Cash represents the total of the restricted cash balance and\nunrestricted cash balance from our consolidated balance sheet.\n\nOther Terms\n\nAnnual Recurring Revenue represents revenue arising from Customer Agreements\nover the following twelve months for Retained Subscribers that have met\ninitial revenue recognition criteria as of the measurement date.\n\nAverage Contract Life Remaining represents the average number of years\nremaining in the initial term of Customer Agreements for Retained Subscribers\nthat have met revenue recognition criteria as of the measurement date.\n\nHouseholds Served in Low-Income Multifamily Properties represent the number of\nindividual rental units served in low-income multi-family properties from\nshared solar energy systems deployed by Sunrun. Households are counted when\nthe solar energy system has interconnected with the grid, which may differ\nfrom Deployment recognition criteria.\n\nPositive Environmental Impact from Customers represents the estimated\nreduction in carbon emissions as a result of energy produced from our\nNetworked Solar Capacity over the trailing twelve months. The figure is\npresented in millions of metric tons of avoided carbon emissions and is\ncalculated using the Environmental Protection Agency’s AVERT tool. The\nfigure is calculated using the most recent published tool from the EPA, using\nthe current-year avoided emission factor for distributed resources on a state\nby state basis. The environmental impact is estimated based on the system,\nregardless of whether or not Sunrun continues to own the system or any\nassociated renewable energy credits.\n\nPositive Expected Lifetime Environmental Impact from Customer Additions\nrepresents the estimated reduction in carbon emissions over thirty years as a\nresult of energy produced from solar energy systems that were recognized as\nDeployments in a period. The figure is presented in millions of metric tons of\navoided carbon emissions and is calculated using the Environmental Protection\nAgency’s AVERT tool. The figure is calculated using the most recent\npublished tool from the EPA, using the current-year avoided emission factor\nfor distributed resources on a state by state basis, leveraging our estimated\nproduction figures for such systems, which degrade over time, and is\nextrapolated for 30 years. The environmental impact is estimated based on the\nsystem, regardless of whether or not Sunrun continues to own the system or any\nassociated renewable energy credits.\n\n*For our second quarter of 2026, the definitions listed below have been\nmodified, and the changes to these definitions had no impact on previously\nreported quarters: Net Subscriber Value, Contracted Net Subscriber Value,\nUpfront Net Subscriber Value, and Cash Generation.\n\nInvestor & Analyst Contacts:\n\nPatrick Jobin\nSVP, Deputy CFO & Investor Relations Officer\ninvestors@sunrun.com\n\nBronson Fleig\nDirector, Finance & Investor Relations\ninvestors@sunrun.com\n\nMedia Contact:\n\nWyatt Semanek\nSr. Director, Corporate Communications\npress@sunrun.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/5e4df695-28b9-4854-b8eb-5102dfc50d77)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX76dnk0","title":"Sunrun Reports Second Quarter 2026 Financial Results","author":"Globe Newswire","ticker":"RUN","created":"2026-08-05T20:01:02.534Z","tickers":["RUN"],"exchange":"NASDAQ","article_body":"Aggregate Subscriber Value of approximately $1.2 billion in Q2\n\nStorage Attachment Rate reached record 74% in Q2 and Networked Storage\nCapacity reaches 4.6 Gigawatt-hours as of June 30, 2026\n\nNet cash used in operating activities was -$186 million in Q2 and Cash\nGeneration was $23 million, or $45 million if excluding $22 million of net\ninvestments in equipment safe harbor\n\nRevised Cash Generation(1,2) guidance to a range of $200 million to $375\nmillion in 2026, excluding investments in equipment safe harbor\n\nSAN FRANCISCO, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN),\nAmerica’s largest provider of home battery storage, solar, and home-to-grid\npower plants, today announced financial results for the second quarter ended\nJune 30, 2026.\n\n“The need for affordable, reliable power has never been more evident, and\nour storage-first offering is meeting it — customers attached batteries at\nthe highest rate in our history this quarter. We are positioning the business\nfor strong growth, bringing on some of the best talent in the industry and\nscaling deliberately, with a focus on customer experience and asset quality.\nAnd as that engine scales, we're aiming to unlock new ways to monetize the\nnetwork we've already built, from distributed power plant programs to emerging\ndata center and grid edge applications, creating new streams of Cash\nGeneration,” said Mary Powell, Sunrun’s Chief Executive Officer.\n\n“We are revising our full-year Cash Generation outlook to $200 million to\n$375 million, excluding equipment safe harbor investments, reflecting reduced\naffiliate channel volumes, a delayed ramp in direct sales activities, and\nmodestly higher capital costs than previously forecasted. Customer demand for\nour offering remains strong, and as our expanded sales force reaches full\nproductivity, we believe that we will exit the year at a robust growth rate\nand higher unit margins,” said Danny Abajian, Sunrun’s Chief Financial\nOfficer.(1)\n\nSecond Quarter Updates and Recent Developments\n* Leading with Storage-First Strategy: Storage Attachment Rate was 74% in Q2,\nup from 70% in the prior-year period. As of June 30, 2026, Sunrun has\ninstalled more than 266,000 storage and solar systems, representing\napproximately 4.6 Gigawatt hours of Networked Storage Capacity.\n* Continued Strong Capital Markets Execution: * In August 2026, Sunrun placed\na $267 million securitization of seasoned residential solar and battery\nsystems. The publicly-placed A- rated Class A Notes priced at a yield of\n6.33%, reflecting a spread of 200 basis points, a 20 basis point improvement\nto the public Class A-1 Notes in Sunrun’s April 2026 securitization.\n* Year-to-date, Sunrun has raised approximately $1.5 billion of non-recourse\nasset-level debt financing, inclusive of our August 2026 securitization noted\nabove, which is expected to close this month.\n \n* Industry-Leading Customer Experience Recognized: In May 2026, Sunrun earned\nfour 2026 Buyer's Choice Awards from ConsumerAffairs — Best in Customer\nService, Best Installation Experience, Best Equipment, and Best Value —\nbased on verified customer reviews. This recognition follows Sunrun's ranking\nof No. 5 on TIME's inaugural list of The World's Most Impactful Companies,\nunderscoring our commitment to delivering an industry-leading customer\nexperience.\n* Positioning Our Distributed Fleet to Serve AI and Data Center Demand: In\nJune 2026, Sunrun, Renew Home, and Tesla announced a non-binding letter of\nintent to deliver more than 16 gigawatts of fast, flexible energy capacity to\nhyperscalers and utilities — which, together, would form the largest\ndistributed power plant in the country. In July 2026, we launched a\ndistributed AI data center pilot, which places compute nodes in homes with\nSunrun solar and storage systems. These initiatives aim to leverage Sunrun's\nexisting energy infrastructure to serve AI-driven electricity demand and\ncreate new, high-margin revenue opportunities.\nKey Operating Metrics\n\nIn the second quarter of 2026, Subscriber Additions were 19,793, a 31%\ndecrease compared to the second quarter of 2025. As of June 30, 2026, Sunrun\nhad 1,034,738 Subscribers. Subscribers as of June 30, 2026 grew 10% compared\nto June 30, 2025.\n\nStorage Capacity Installed was 332 megawatt hours in the second quarter of\n2026, a 15% decrease from the second quarter of 2025. Solar Capacity Installed\nwas 174 megawatts in the second quarter of 2026, a 23% decrease from the\nsecond quarter of 2025.\n\nSubscriber Value was $59,377 in the second quarter of 2026, a 10% increase\ncompared to the second quarter of 2025. Contracted Subscriber Value was\n$55,033 in the second quarter of 2026, a 10% increase compared to the second\nquarter of 2025. Subscriber Value figures for the second quarter of 2026\nreflect a 7.3% discount rate based on observed project-level capital costs,\ncompared to 7.4% in the prior year period. Subscriber Value reflects an\naverage Investment Tax Credit of 44.0% in the second quarter of 2026 compared\nto 42.6% in the prior year period. Storage Attachment Rate was 74% in the\nsecond quarter of 2026 compared to 70% in the prior year period.\n\nNet Subscriber Value was $9,444 in the second quarter of 2026, a 44% decrease\ncompared to $17,004 in the second quarter of 2025. Contracted Net Subscriber\nValue was $5,100 in the second quarter of 2026, a 61% decrease compared to\n$13,032 in the second quarter of 2025.\n\nAggregate Subscriber Value was $1.2 billion in the second quarter of 2026, a\n24% decrease compared to the second quarter of 2025.\n\nTotal Operating Expenses were $835 million in the second quarter of 2026, an\nincrease of 23% compared to the prior year period. Creation Costs Reflected in\nOperating Expenses were $469 million in the second quarter of 2026, a 92%\nincrease compared to the second quarter of 2025. Net cash used in investing\nactivities was $449 million in the second quarter of 2026, a 35% decrease\ncompared to the prior year period. Creation Costs Reflected in Capital\nExpenditures were $519 million in the second quarter of 2026, a 37% decrease\ncompared to the second quarter of 2025.\n\nNet cash used in operating activities was $(186) million in the second quarter\nof 2026, while Cash Generation was $23 million. Cash Generation would have\nbeen $45 million excluding the effects of equipment safe harbor investments\nthat totaled $22 million in the second quarter of 2026.\n\nContracted Net Earning Assets were $3.7 billion, which included $1.1 billion\nin Total Cash, as of June 30, 2026.\n\nOutlook\n\nFor the full-year 2026, Aggregate Subscriber Value is now expected to be in a\nrange of $4.6 billion to $4.9 billion, compared to the company’s prior\nguidance of $4.8 billion to $5.2 billion.\n\nCash Generation(1,)(2 )is now expected to be in a range of $200 million to\n$375 million for the full-year 2026, excluding potential investment related to\nequipment safe harboring, compared to the company’s prior guidance of $250\nmillion to $450 million.\n\nSecond Quarter 2026 GAAP Results\n\nTotal revenue was $870.0 million in the second quarter of 2026, up $300.7\nmillion, or 53%, from the second quarter of 2025. Customer agreements and\nincentives revenue was $543.7 million, an increase of $85.7 million, or 19%,\ncompared to the second quarter of 2025. Energy systems and product sales\nrevenue was $326.3 million, an increase of $214.9 million, or 193%, compared\nto the second quarter of 2025. The increase in Energy systems and product\nsales revenue is primarily due to a transaction that Sunrun entered into in\nthe third quarter of 2025 whereby certain storage and energy systems subject\nto newly originated Customer Agreements are sold to a third party. Sunrun\ncontinues to maintain the customer experience and servicing relationships and\ncan sell future goods and services to these customers.\n\nTotal cost of revenue was $541.8 million, an increase of 21% year-over-year.\nTotal operating expenses were $835.2 million, an increase of 23% compared to\nthe second quarter of 2025.\n\nNet income attributable to common stockholders was $115.2 million, or $0.48\nper basic share and $0.42 per diluted share, in the second quarter of 2026.\n\nConference Call Information\n\nSunrun is hosting a conference call for analysts and investors to discuss its\nsecond quarter 2026 results and business outlook at 1:30 p.m. Pacific Time\ntoday, August 5, 2026. A live audio webcast of the conference call along with\nsupplemental financial information will be accessible via the “Investor\nRelations” section of Sunrun’s website at https://investors.sunrun.com.\nThe conference call can also be accessed live over the phone by dialing (877)\n407-5989 (toll-free) or (201) 689-8434 (toll). An audio replay will be\navailable following the call on the Sunrun Investor Relations website for\napproximately one month.\n\nFootnotes\n\n(1) Cash Generation, Creation Costs Reflected in Operating Expenses, and\nCreation Costs Reflected in Capital Expenditures are non-GAAP financial\nmeasures. See “Non-GAAP Financial Measures” below for a discussion of\nthese measures and reconciliations to the most directly comparable GAAP\nmeasures.\n\n(2) The Company is not able to provide reconciliations to certain of its\nforward-looking measures to comparable GAAP measures because certain items\nrequired for such reconciliations are outside of the Company’s control\nand/or cannot be reasonably predicted without unreasonable effort. The Company\nencourages investors to review its GAAP financial measures and to not rely on\nany single financial measure to evaluate our business.\n\nAbout Sunrun\n\nSunrun Inc. (Nasdaq: RUN) is America’s largest provider of home battery\nstorage, solar, and home-to-grid power plants. As the pioneer of home energy\nsystems offered through a no-upfront-cost subscription model, Sunrun empowers\ncustomers nationwide with greater energy control, security, and independence.\nSunrun supports the grid by providing on-demand dispatchable power that helps\nprevent blackouts and lowers energy costs. Learn more at www.sunrun.com.\n\nForward Looking Statements\n\nThis communication contains forward-looking statements related to Sunrun (the\n“Company”) within the meaning of the Private Securities Litigation Reform\nAct of 1995. Such forward-looking statements include, but are not limited to,\nstatements related to: the Company’s financial and operating guidance and\nexpectations; the Company’s business plan, growth trajectory, expectations,\nmarket leadership, competitive advantages, operational and financial results\nand metrics (and the assumptions related to the calculation of such metrics);\nthe Company’s expectation that it will exit the year at a robust growth rate\nand higher unit margins; the Company’s momentum in its business strategies\nincluding expectations regarding market share growth in certain geographies,\ncustomer value proposition, market penetration, growth of certain divisions\nand ability to scale offerings, financing activities, financing capacity,\nproduct mix, and ability to manage cash flow and liquidity; the Company’s\ndiscussion of new products, offerings, and applications, including\nmonetization of the Company’s network for grid programs and emerging data\ncenter and grid edge applications; the trajectory of the storage and solar\nindustry; the Company’s business, customer base, and market; and anticipated\ndemand, market acceptance, and market adoption of the Company’s offerings;\nthe Company’s expectations regarding its allocations of and ability to\ncreate new streams of Cash Generation; the closing of the Company’s August\nsecuritization; and the Company’s aim to leverage its existing energy\ninfrastructure to serve AI-driven electricity demand and create new,\nhigh-margin revenue opportunities.  These statements are not guarantees of\nfuture performance; they reflect the Company’s current views with respect to\nfuture events and are based on assumptions and estimates and are subject to\nknown and unknown risks, uncertainties and other factors that may cause actual\nresults, performance or achievements to be materially different from\nexpectations or results projected or implied by forward-looking statements.\nThe risks and uncertainties that could cause the Company’s results to differ\nmaterially from those expressed or implied by such forward-looking statements\ninclude: the Company’s continued ability to manage costs and compete\neffectively; the availability of additional financing on acceptable terms;\nworldwide economic conditions, including slow or negative growth rates and\ninflation; volatile or rising interest rates; changes in policies and\nregulations, including net metering, interconnection limits, and fixed fees,\nor caps and licensing restrictions and the impact of these changes on the\nsolar industry and the Company’s business; the Company’s ability to\nattract and retain the Company’s business partners; supply chain risks,\nincluding the Company’s and its energy system partners’ dependence on a\nlimited number of suppliers of solar panels, batteries, and other system\ncomponents and any shortage, bottlenecks, delays, detentions, or component\nprice changes from these suppliers, restrictions on components and materials\nsourced from designated foreign entities of concern and the Company’s\nreliance on specific countries for critical components, tariff and trade\npolicy impacts, and raw material availability for solar panels and batteries;\nrealizing the anticipated benefits of past or future investments,\npartnerships, strategic transactions, or acquisitions, and integrating those\nacquisitions; the Company’s leadership team and ability to attract and\nretain key employees; regulators imposing rules on the type of electricians\nqualified to install and service the Company’s solar and battery systems in\nCalifornia, which may result in workforce shortages, operational delays, and\nincreased costs; changes in the retail prices of traditional utility generated\nelectricity; the availability of rebates, tax credits and other incentives,\nand the risk that if the IRS makes determinations that the creditable basis of\nthe Company’s energy systems is materially lower than what it has claimed,\nit may have to pay significant amounts to its fund investors; the Company’s\nrisk of additional taxes owed in respect of lost ITCs and the availability of\nrelated insurance coverage; the availability of solar panels, batteries, and\nother components and raw materials; the Company’s failure or perceived\nfailure to comply with existing or future laws, regulations, contracts,\nself‑regulatory schemes, standards, and other obligations related to data\nprivacy and security (including security incidents), including where\ncompliance or the actual or perceived failure to comply could increase the\ncosts of its products and services, limit their use or adoption, and otherwise\nnegatively affect our operating results and business; the Company’s business\nplan and the Company’s ability to effectively manage the Company’s growth\nand labor constraints; the Company’s ability to meet the covenants in the\nCompany’s investment funds and debt facilities; factors impacting the home\nelectrification and solar industry generally, and such other risks and\nuncertainties identified in the reports that we file with the U.S. Securities\nand Exchange Commission from time to time. All forward-looking statements used\nherein are based on information available to us as of the date hereof, and we\nassume no obligation to update publicly these forward-looking statements for\nany reason, except as required by law.\n\nCitations to industry and market statistics used herein may be found in our\nInvestor Presentation, available via the “Investor Relations” section of\nSunrun’s website at https://investors.sunrun.com.\n\n\n\n Consolidated Balance Sheets \n (In Thousands) \n \n June 30, 2026 December 31, 2025 \n \n Assets \n Current assets: \n Cash $ 712,425 $ 823,380 \n Restricted cash 423,812 413,460 \n Accounts receivable, net 235,421 262,627 \n Inventories 649,853 501,286 \n Prepaid expenses and other current assets 144,997 155,216 \n Total current assets 2,166,508 2,155,969 \n Restricted cash 148 148 \n Energy systems, net 17,245,212 16,817,863 \n Property and equipment, net 61,400 75,692 \n Other assets 3,886,099 3,560,924 \n Total assets $ 23,359,367 $ 22,610,596 \n Liabilities and total equity \n Current liabilities: \n Accounts payable $ 321,422 $ 271,021 \n Distributions payable to noncontrolling interests and redeemable noncontrolling interests 49,123 47,072 \n Accrued expenses and other liabilities 444,439 518,835 \n Deferred revenue, current portion 162,902 162,839 \n Deferred grants, current portion 9,004 8,681 \n Finance lease obligations, current portion 23,162 24,557 \n Non-recourse debt, current portion 513,397 269,510 \n Total current liabilities 1,523,449 1,302,515 \n Deferred revenue, net of current portion 1,380,846 1,350,494 \n Deferred grants, net of current portion 190,933 196,726 \n Finance lease obligations, net of current portion 24,914 36,908 \n Convertible senior notes 474,780 473,749 \n Line of credit 153,700 238,323 \n Non-recourse debt, net of current portion 14,016,021 13,708,532 \n Other liabilities 188,276 156,199 \n Deferred tax liabilities 198,783 163,176 \n Total liabilities 18,151,702 17,626,622 \n Redeemable noncontrolling interests 816,076 709,255 \n Total stockholders’ equity 3,490,084 3,132,484 \n Noncontrolling interests 901,505 1,142,235 \n Total equity 4,391,589 4,274,719 \n Total liabilities, redeemable noncontrolling interests and total equity $ 23,359,367 $ 22,610,596 \n\n\n\n Consolidated Statements of Operations \n (In Thousands, Except Per Share Amounts) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Revenue: \n Customer agreements and incentives $ 543,730 $ 458,000 $ 1,011,552 $ 860,920 \n Energy systems and product sales 326,258 111,336 580,667 212,687 \n Total revenue 869,988 569,336 1,592,219 1,073,607 \n Operating expenses: \n Cost of customer agreements and incentives 342,452 345,376 657,194 654,005 \n Cost of energy systems and product sales 199,312 104,144 387,000 200,942 \n Sales and marketing 190,681 152,459 369,214 298,449 \n Research and development 10,234 8,063 20,377 18,042 \n General and administrative 92,521 71,543 167,156 129,306 \n Total operating expenses 835,200 681,585 1,600,941 1,300,744 \n Income (loss) from operations 34,788 (112,249 ) (8,722 ) (227,137 ) \n Interest expense, net (264,428 ) (247,137 ) (528,371 ) (474,571 ) \n Other income (expense), net 17,495 (14,528 ) 34,681 (59,927 ) \n Loss before income taxes (212,145 ) (373,914 ) (502,412 ) (761,635 ) \n Income tax (benefit) expense (3,972 ) (94,930 ) 3,094 (205,480 ) \n Net loss (208,173 ) (278,984 ) (505,506 ) (556,155 ) \n Net loss attributable to noncontrolling interests and redeemable noncontrolling interests (323,325 ) (558,757 ) (788,302 ) (885,939 ) \n Net income attributable to common stockholders $ 115,152 $ 279,773 $ 282,796 $ 329,784 \n Net income per share attributable to common stockholders \n Basic $ 0.48 $ 1.22 $ 1.19 $ 1.45 \n Diluted $ 0.42 $ 1.07 $ 1.04 $ 1.28 \n Weighted average shares used to compute net income per share attributable to common stockholders \n Basic 238,997 229,167 236,804 227,794 \n Diluted 273,999 261,152 273,189 259,539 \n\n\n\n Consolidated Statements of Cash Flows (In Thousands) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Operating activities: \n Net loss $ (208,173 ) $ (278,984 ) $ (505,506 ) $ (556,155 ) \n Adjustments to reconcile net loss to net cash used in operating activities: \n Depreciation and amortization, net of amortization of deferred grants 192,788 189,713 382,344 359,603 \n Deferred income taxes (3,973 ) (96,103 ) 3,094 (206,653 ) \n Stock-based compensation expense 21,119 25,024 47,421 50,029 \n Unrealized (gain) loss on derivatives (24,951 ) 17,555 (43,317 ) 62,625 \n Other noncash items 93,239 77,307 173,036 138,806 \n Changes in operating assets and liabilities: \n Accounts receivable (9,932 ) (20,233 ) 12,154 (27,139 ) \n Inventories (101,391 ) (76,748 ) (70,495 ) (89,066 ) \n Prepaid expenses and other assets (112,096 ) (208,568 ) (249,985 ) (254,329 ) \n Accounts payable (9,420 ) 51,982 69,290 36,364 \n Accrued expenses and other liabilities (36,626 ) (26,927 ) (52,733 ) 983 \n Deferred revenue 11,279 53,323 28,522 88,067 \n Deferred tax liabilities 1,958 — 30,619 — \n Net cash used in operating activities (186,179 ) (292,659 ) (175,556 ) (396,865 ) \n Investing activities: \n Payments for the costs of energy systems (429,357 ) (691,978 ) (853,785 ) (1,346,780 ) \n Purchase of equity investment (15,536 ) — (19,253 ) — \n Purchases of property and equipment, net (4,287 ) (843 ) (4,696 ) (1,062 ) \n Net cash used in investing activities (449,180 ) (692,821 ) (877,734 ) (1,347,842 ) \n Financing activities: \n Proceeds from state tax credits, net of recapture — 9,668 12,384 9,668 \n Proceeds from trade receivable financing — 71,323 — 71,323 \n Repayment of trade receivable financing — (99,519 ) — (124,261 ) \n Proceeds from line of credit 1,500 1,862 184,000 150,686 \n Repayment of line of credit — (23,833 ) (268,622 ) (198,390 ) \n Repurchase of convertible senior notes — — (5,457 ) (2,124 ) \n Proceeds from issuance of non-recourse debt 1,451,151 527,800 2,259,156 2,048,429 \n Repayment of non-recourse debt (1,173,649 ) (75,266 ) (1,839,323 ) (913,749 ) \n Payment of debt fees (24,709 ) (240 ) (42,947 ) (28,258 ) \n Payment of finance lease obligations (6,145 ) (6,303 ) (12,266 ) (12,786 ) \n Contributions received from noncontrolling interests and redeemable noncontrolling interests 515,744 679,384 821,556 935,284 \n Distributions paid to noncontrolling interests and redeemable noncontrolling interests (72,635 ) (58,547 ) (148,285 ) (118,800 ) \n Acquisition of noncontrolling interests (16,878 ) (16,219 ) (16,878 ) (16,219 ) \n Proceeds from transfer of investment tax credits 306,504 236,098 646,614 860,874 \n Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits (306,504 ) (236,098 ) (646,614 ) (860,874 ) \n Net proceeds related to stock-based award activities 8,094 8,544 9,369 8,565 \n Net cash provided by financing activities 682,473 1,018,654 952,687 1,809,368 \n Net change in cash and restricted cash 47,114 33,174 (100,603 ) 64,661 \n Cash and restricted cash, beginning of period 1,089,271 978,903 1,236,988 947,416 \n Cash and restricted cash, end of period $ 1,136,385 $ 1,012,077 $ 1,136,385 $ 1,012,077 \n\n\n\n Non-GAAP Financial Measures \n \n\nThis press release includes the Company’s non-GAAP financial measures:\nCreation Costs Reflected in Operating Expenses, Creation Costs Reflected in\nCapital Expenditures, and Cash Generation. The Company utilizes these non-GAAP\nmeasures to analyze the Company’s performance and for internal planning and\nforecasting purposes. These non-GAAP financial measures should not be\nconsidered in isolation or as a substitute for the Company’s financial\nresults as reported under GAAP. Additionally, these non-GAAP measures may not\nbe comparable to similarly titled measures presented by other companies, thus\nreducing their usefulness. Accompanying schedules provide reconciliations of\nthese non-GAAP financial measures to their most directly comparable GAAP\nmeasures. The Company is not able to provide reconciliations of certain\nforward-looking financial measures to comparable GAAP measures because certain\nitems required for such reconciliations are outside of the Company's control\nand/or cannot be reasonably predicted without unreasonable effort. The Company\nencourages investors to review our GAAP financial measures and to not rely on\nany single financial measure to evaluate our business.\n\nCreation Costs Reflected in Operating Expenses is a Non-GAAP measure that\nmanagement utilizes to assess the operating performance of our ongoing\noperations associated with the origination and installation of solar and\nstorage systems. Creation Costs Reflected in Operating Expenses represent\ntotal operating expenses, adjusted for certain items consistent with\nmanagement’s use as a performance measure. The adjusting items are detailed\nin the Reconciliation of Total Operating Expenses to Creation Costs Reflected\nin Operating Expenses table below. The Company believes that Creation Costs\nReflected in Operating Expenses, when viewed together with the corresponding\nGAAP financial measure, provides meaningful information to our investors by\nmeasuring our operating performance with respect to costs associated with the\norigination and installation of storage and solar systems. When evaluating\nperformance, investors should consider Creation Costs Reflected in Operating\nExpenses in addition to, though not as a substitute for, the Company’s\nfinancial results as reported under GAAP, including total operating expenses.\n\n Reconciliation of Total Operating Expenses to Creation Costs Reflected in Operating Expenses 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Total Operating Expenses $ 682 $ 721 $ 1,061 $ 766 $ 835 \n (-) Fleet servicing cost in COGS $ (61 ) $ (58 ) $ (56 ) $ (46 ) $ (57 ) \n (-) Non-cash impairment of energy systems, net $ (21 ) $ (1 ) $ (28 ) $ (12 ) $ (15 ) \n (-) Depreciation & Amortization $ (190 ) $ (182 ) $ (184 ) $ (190 ) $ (193 ) \n (-) Amortization of CTOC (sales commissions) in S&M expense $ (23 ) $ (26 ) $ (24 ) $ (26 ) $ (27 ) \n (-) Cost of Energy Systems and Product Sales (Excluding Non-Retained or Partially Retained Subscribers) $ (104 ) $ (104 ) $ (109 ) $ (80 ) $ (54 ) \n (-) Gross profit from Systems & Product Sales (Excluding Non-Retained or Partially Retained Subscribers) as contra cost $ (7 ) $ (14 ) $ (15 ) $ (1 ) $ (5 ) \n (-) Non-cash stock based compensation expense $ (25 ) $ (30 ) $ (28 ) $ (26 ) $ (21 ) \n (-) Goodwill impairment $ - $ - $ - $ - $ - \n (-) Amortization of intangible assets $ - $ - $ - $ - $ - \n (-) Other adjustments (e.g., restructuring, legal) $ (6 ) $ (2 ) $ (1 ) $ (16 ) $ (13 ) \n (+) Adjustments to reflect purchase price adjustment for Non-Retained or Partially Retained Subscribers owing to consigned inventory usage $ - $ - $ - $ - $ 19 \n Creation Costs Reflected in Operating Expenses $ 245 $ 305 $ 617 $ 368 $ 469 \n 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. \n \n\nCreation Costs Reflected in Capital Expenditures is a Non-GAAP measure that\nmanagement utilizes to assess the operating performance of our ongoing\noperations associated with the origination and installation of solar and\nstorage systems. Creation Costs Reflected in Capital Expenditures represent\nNet cash used in investing activities, adjusted for certain items consistent\nwith management’s use as a performance measure. The adjusting items are\ndetailed in the Reconciliation of Net Cash Used in Investing Activities to\nCreation Costs Reflected in Capital Expenditures table below. The Company\nbelieves that Creation Costs Reflected in Capital Expenditures, when viewed\ntogether with the corresponding GAAP financial measure, provides meaningful\ninformation to our investors by measuring our operating performance with\nrespect to costs associated with the origination and installation of storage\nand solar systems. When evaluating performance, investors should consider\nCreation Costs Reflected in Capital Expenditures in addition to, though not as\na substitute for, the Company’s financial results as reported under GAAP,\nincluding Net cash used in investing activities.\n\n Reconciliation of Net Cash Used in Investing Activities to Creation Costs Reflected in Capital Expenditures 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Net cash used in investing activities $ 693 $ 744 $ 409 $ 429 $ 449 \n (+) Additions to capitalized CTOC (sales commissions) $ 126 $ 133 $ 21 $ 79 $ 85 \n (-) Purchase of equity method investment $ - $ - $ - $ (4 ) $ (16 ) \n Creation Costs Reflected in Capital Expenditures $ 818 $ 877 $ 430 $ 503 $ 519 \n 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. \n \n\nCash Generation is a Non-GAAP measure that management utilizes to assess the\nCompany’s financial performance as it relates to raising capital from\nnon-recourse capital sources relative to the cost of originating new\ncustomers, working capital management, and other cash flows associated with\nSunrun's business activities. Cash Generation represents Net cash provided by\n(used in) operating activities, adjusted for certain items consistent with\nmanagement’s use as a performance measure. The adjusting items are detailed\nin the Reconciliation of Cash Provided by Operating Activities to Cash\nGeneration table below. The Company believes that Cash Generation, when viewed\ntogether with the corresponding GAAP financial measure, provides meaningful\ninformation to our investors by measuring our financial performance with\nrespect to our ability to raise capital and effectively balance working\ncapital requirements associated with our ongoing operations associated with\nthe origination and installation of solar and storage systems. The Company\nuses Cash Generation as one of the performance metrics in its executive\nincentive compensation plan, underscoring management's focus on delivering\nsustainable cash flow while continuing to grow the business. When evaluating\nperformance, investors should consider Cash Generation in addition to, though\nnot as a substitute for, the Company’s financial results as reported under\nGAAP, including Net cash provided by (used in) operating activities.\n\n Reconciliation of Cash Provided by Operating Activities to Cash Generation 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Net cash provided by (used in) operating activities $ (293 ) $ (122 ) $ 97 $ 11 $ (186 ) \n (-) Payments for the costs of energy systems $ (692 ) $ (742 ) $ (410 ) $ (424 ) $ (429 ) \n (-) Purchase of equity investment $ - $ - $ - $ (4 ) $ (16 ) \n (-) Purchases of property and equipment, net $ (1 ) $ (1 ) $ 1 $ (0 ) $ (4 ) \n (+) Proceeds from state tax credits, net of recapture $ 10 $ - $ - $ 12 $ - \n (+) Proceeds from trade receivables financing $ 71 $ 96 $ - $ - $ - \n (-) Repayment of trade receivable financing $ (100 ) $ (71 ) $ (96 ) $ - $ - \n (+) Proceeds from issuance of non-recourse debt $ 528 $ 1,848 $ 215 $ 808 $ 1,451 \n (-) Repayment of non-recourse debt $ (75 ) $ (1,257 ) $ (115 ) $ (666 ) $ (1,174 ) \n (-) Payment of debt fees $ (0 ) $ (36 ) $ (4 ) $ (18 ) $ (25 ) \n (+) Proceeds from pass-through financing and other obligations, net $ - $ - $ - $ - $ - \n (-) Repayment of pass-through financing obligation $ - $ - $ - $ - $ - \n (-) Payment of finance lease obligations $ (6 ) $ (6 ) $ (6 ) $ (6 ) $ (6 ) \n (+) Contributions received from noncontrolling interests and redeemable noncontrolling interests $ 679 $ 525 $ 542 $ 306 $ 516 \n (-) Distributions paid to noncontrolling interest and redeemable noncontrolling interests $ (59 ) $ (58 ) $ (70 ) $ (76 ) $ (73 ) \n (-) Acquisition of noncontrolling interest $ (16 ) $ (14 ) $ (0 ) $ - $ (17 ) \n (+) Proceeds from transfer of investment tax credits $ 236 $ 296 $ 446 $ 340 $ 307 \n (+) Payments to redeemable noncontrolling interest and noncontrolling interests of investment tax credits $ (236 ) $ (296 ) $ (446 ) $ (340 ) $ (307 ) \n (-) Increase / (+) decrease in Restricted Cash $ (20 ) $ (53 ) $ 33 $ 4 $ (14 ) \n (+/-) Changes in 2026 convertible senior notes reserve balance $ - $ - $ - $ (5 ) $ - \n Cash Generation ($ millions) $ 27 $ 108 $ 187 $ (59 ) $ 23 \n\n\n\n Key Operating and Financial Metrics \n \n\nThe following operating metrics are used by management to evaluate the\nperformance of the business. Management believes these metrics, when taken\ntogether with other information contained in our filings with the SEC and\nwithin this press release, provide investors with helpful information to\ndetermine the economic performance of the business activities in a period that\nwould otherwise not be observable from historic GAAP measures. Management\nbelieves that it is helpful to investors to evaluate the present value of cash\nflows expected from subscribers over the full expected relationship with such\nsubscribers (“Subscriber Value”, more fully defined in the definitions\nappendix below). The Company also believes that Subscriber Value, Aggregate\nSubscriber Value, Creation Costs Reflected in Operating Expenses, Creation\nCosts Reflected in Capital Expenditures, Net Subscriber Value, Contracted Net\nSubscriber Value and Upfront Net Subscriber Value are useful metrics for\ninvestors because they present a view of unit economics the Company uses to\nassess customers originated in a period, inclusive of expected future cash\nflows from these customers over a 30-year period, based on contracted pricing\nterms with its customers, which is not observable in any current or historic\nGAAP-derived metric. Management believes it is useful for investors to also\nevaluate the future expected cash flows from all customers that have been\ndeployed through the respective measurement date, less estimated costs to\nmaintain such systems and estimated distributions to tax equity partners in\nconsolidated joint venture partnership flip structures, and distributions to\nproject equity investors (“Gross Earning Assets”, more fully defined in\nthe definitions appendix below). The Company also believes Gross Earning\nAssets is useful for management and investors because it represents the\nremaining future expected cash flows from existing customers, which is not\nderivable from a current or historic GAAP-derived measure.\n\nVarious assumptions are made when calculating these metrics. Subscriber Value\nmetrics are calculated using a discount rate based on the observed\nproject-level capital costs in the period. Gross Earning Assets utilize a 6%\nrate to discount future cash flows to the present period. Furthermore, these\nmetrics assume that Subscribers renew after the initial contract period at a\nrate equal to 90% of the rate in effect at the end of the initial contract\nterm, or purchase their systems at equal values. For Customer Agreements with\n25-year initial contract terms, a 5-year renewal period is assumed. For a\n20-year initial contract term, a 10-year renewal period is assumed. In all\ninstances, we assume a 30-year customer relationship, although the customer\nmay renew for additional years, or purchase the system. Estimated cost of\nservicing assets has been deducted and is estimated based on the service\nagreements underlying each fund.\n\n KEY OPERATING METRICS \n Unit Economics in Period 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ per Subscriber Addition, unless otherwise noted \n Subscriber Additions in period 28,823 30,104 25,475 17,665 19,793 \n Subscriber Value $ 53,891 $ 52,446 $ 50,165 $ 61,240 $ 59,377 \n Discount rate (observed project-level capital costs) 7.4 % 7.3 % 7.1 % 6.3 % 7.3 % \n Contracted Subscriber Value $ 49,919 $ 48,507 $ 47,988 $ 55,464 $ 55,033 \n x Advance Rate on Contracted Subscriber Value (estimated) 85.3 % 88.2 % 91.2 % 98.2 % 94.4 % \n = Upfront Proceeds (estimated) $ 42,598 $ 42,763 $ 43,758 $ 54,484 $ 51,949 \n \n = Upfront Net Subscriber Value $ 5,711 $ 3,522 $ 2,692 $ 5,136 $ 2,016 \n Upfront Net Subscriber Value margin as a % of Contracted Subscriber Value 11.4 % 7.3 % 5.6 % 9.3 % 3.7 % \n Aggregate Gross Value and Costs in Period 2Q25 3Q25 4Q25 1Q26 2Q26 \n $ millions, unless otherwise noted \n Aggregate Subscriber Value $ 1,553 $ 1,579 $ 1,278 $ 1,082 $ 1,175 \n Aggregate Contracted Subscriber Value $ 1,439 $ 1,460 $ 1,222 $ 980 $ 1,089 \n Aggregate Upfront Proceeds (estimated) $ 1,228 $ 1,287 $ 1,115 $ 962 $ 1,028 \n \n Creation Costs Reflected in Operating Expenses (1) $ 245 $ 305 $ 617 $ 368 $ 469 \n Creation Costs Reflected in Capital Expenditures (1) $ 818 $ 877 $ 430 $ 503 $ 519 \n \n Cash Generation (1) $ 27 $ 108 $ 187 $ (59 ) $ 23 \n Volume Additions in Period 2Q25 3Q25 4Q25 1Q26 2Q26 \n Storage Capacity Installed (MWhrs) 391.5 412.0 371.1 282.3 332.0 \n Solar Capacity Installed (MWs) 227.2 239.2 216.2 154.2 174.3 \n Solar Capacity Installed with Storage (MWs) 157.7 172.4 157.1 115.9 133.8 \n Solar Capacity Installed without Storage (MWs) 69.5 66.8 59.1 38.2 40.5 \n Customer Additions 30,810 32,833 27,773 18,948 20,979 \n Customer Additions with Storage 21,626 22,822 19,639 13,789 15,531 \n Customer Additions without Storage 9,184 10,011 8,134 5,159 5,448 \n Storage Attachment Rate 70 % 70 % 71 % 73 % 74 % \n Subscriber Additions (included within Customer Additions) 28,823 30,104 25,475 17,665 19,793 \n Subscriber Additions as % of Customer Additions 94 % 92 % 92 % 93 % 94 % \n Customer Base Value & Energy Capacity at End of Period 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 \n Net Earning Assets ($ millions) $ 7,632 $ 8,241 $ 8,538 $ 8,872 $ 9,004 \n Contracted Net Earning Assets ($ millions) $ 3,001 $ 3,373 $ 3,571 $ 3,701 $ 3,677 \n Customers 1,105,080 1,137,913 1,165,686 1,184,634 1,205,613 \n Subscribers (included within Customers) 941,701 971,805 997,280 1,014,945 1,034,738 \n Networked Storage Capacity (MWhrs) 3,250 3,662 4,033 4,315 4,647 \n Networked Solar Capacity (MWs) 7,949 8,188 8,404 8,558 8,732 \n Basic Shares Outstanding 2Q25 3Q25 4Q25 1Q26 2Q26 \n Basic shares outstanding at end of period (in millions) 230.3 231.6 233.6 235.5 240.1 \n Weighted average basic shares outstanding in period (in millions) 229.2 231.0 232.6 234.6 239.0 \n \n\nFigures presented above may not sum due to rounding. For adjustments related\nto Subscriber Value, Creation Costs Reflected in Operating Expenses, and\nCreation Costs Reflected in Capital Expenditures, please see the supplemental\nmaterials available on the Sunrun Investor Relations website at\ninvestors.sunrun.com.\n\n(1) Creation Costs Reflected in Operating Expenses, Creation Costs Reflected\nin Capital Expenditures, and Cash Generation are non-GAAP financial measures.\nSee “Non-GAAP Financial Measures” above for a discussion of these measures\nand reconciliations to the most directly comparable GAAP measures.\n\nGlossary of Terms*\n\nDefinitions for Volume-related Terms\n\nDeployments represent solar or storage systems, whether sold directly to\ncustomers or subject to executed Customer Agreements (i) for which we have\nconfirmation that the systems are installed, subject to final inspection, or\n(ii) in the case of certain system installations by our partners, for which we\nhave accrued at least 80% of the expected project cost (inclusive of\nacquisitions of installed systems). A portion of customers have subsequently\nentered into Customer Agreements to obtain, or have directly purchased,\nadditional solar or storage systems at the same host customer site, and since\nthese represent separate assets, they are considered separate Deployments.\n\nCustomer Agreements refer to, collectively, solar and/or storage power\npurchase agreements and leases.\n\nRetained Subscribers represent customers subject to Customer Agreements for\nsolar and/or storage systems that have been recognized as Deployments and\nrecognized as energy systems on Sunrun’s consolidated balance sheet, whether\nor not they continue to be active.\n\nNon-Retained or Partially Retained Subscribers represent customers subject to\nCustomer Agreements for solar and/or storage systems that have been recognized\nas Deployments whereby the assets have been fully or partially sold to one or\nmore investors and not presented as an energy system on Sunrun’s\nconsolidated balance sheet.\n\nSubscribers represent aggregate Retained Subscribers and Non-Retained or\nPartially Retained Subscribers.\n\nPurchase Customers represent customers who purchased, whether outright or with\nproceeds from third-party loans, solar and/or storage systems that have been\nrecognized as Deployments.\n\nCustomers represent aggregate Subscribers and Purchase Customers.\n\nSubscriber Additions represent the number of Subscribers added in a period.\n\nPurchase Customer Additions represent the number of Purchase Customers added\nin a period.\n\nCustomer Additions represent Subscriber Additions plus Purchase Customer\nAdditions.\n\nSolar Capacity Installed represents the aggregate megawatt production capacity\nof solar energy systems that were recognized as Deployments in a period.\n\nStorage Capacity Installed represents the aggregate megawatt hour capacity of\nstorage systems that were recognized as Deployments in a period.\n\nNetworked Solar Capacity represents the cumulative Solar Capacity Installed\nfrom the company’s inception through the measurement date.\n\nNetworked Storage Capacity represents the cumulative Storage Capacity\nInstalled from the company’s inception through the measurement date.\n\nStorage Attachment Rate represents Customer Additions with storage divided by\ntotal Customer Additions.\n\nDefinitions for Unit-based and Aggregate Value, Costs and Margin Terms\n\nSubscriber Value represents Contracted Subscriber Value plus Non-contracted or\nUpside Subscriber Value.\n\nContracted Subscriber Value represents the per Subscriber present value of\nestimated upfront and future Contracted Cash Flows from Subscriber Additions\nin a period, discounted at the observed cost of capital in the period.\n\nNon-contracted or Upside Subscriber Value represents the per Subscriber\npresent value of estimated future Non-contracted or Upside Cash Flows from\nSubscriber Additions in a period, discounted at the observed cost of capital\nin the period.\n\nContracted Cash Flows represent, (A) for Retained Subscribers, (x) (1)\nscheduled payments from Subscribers during the initial terms of the Customer\nAgreements (provided, that for Flex Customer Agreements that allow variable\nbillings based on the amount of electricity consumed by the Subscriber, only\nthe minimum contracted payment is included in Contracted Cash Flows), (2) net\nproceeds from tax equity partners, (3) payments from government and utility\nincentive and rebate programs, (4) contracted net cash flows from grid\nservices programs with utilities or grid operators, and (5) contracted or\ndefined (i.e., with fixed pricing) cash flows from the sale of renewable\nenergy credits, less (y) (1) estimated operating and maintenance costs to\nservice the systems and replace equipment over the initial terms of the\nCustomer Agreements, consistent with estimates by independent engineers, (2)\ndistributions to tax equity partners in consolidated joint venture partnership\nflip structures, and (3) distributions to any project equity investors, and\n(B) for Non-Retained or Partially Retained Subscribers, (x) contracted\nproceeds from the full or partial sale of related assets, before any price\nadjustments related to consigned inventory usage, plus (y) the share of\nContracted Cash Flows described in clause (A) of this definition which are\nallocated to Sunrun pursuant to the terms of each sale agreement or\npartnership agreement.\n\nNon-contracted or Upside Cash Flows represent (A) for Retained Subscribers the\n(1) net cash flows realized from either the purchase of systems at the end of\nthe Customer Agreement initial terms or renewals of Customer Agreements beyond\nthe initial terms, estimated in both cases to have equivalent value, assuming\nonly a 30-year relationship and a contract renewal rate equal to 90% of each\nSubscriber’s contractual rate in effect at the end of the initial contract\nterm, (2) non-contracted net cash flows from grid service programs with\nutilities and grid operators, (3) non-contracted net cash flows from the sale\nof renewable energy credits, and (4) contracted cash flows from Flex Customer\nAgreements exceeding the minimum contracted payment (provided, that for Flex\nCustomer Agreements that allow variable billings based on the amount of\nelectricity consumed by the Subscriber, an assumption is made that each\nSubscriber’s electricity consumption increases by approximately 2% per year\nthrough the end of the initial term of the Customer Agreement and into the\nrenewal period (if renewed), resulting in billings in excess of the minimum\ncontracted amount (which minimums are included in Contracted Cash Flows)), and\n(B) for Non-Retained or Partially Retained Subscribers, the share of\nNon-contracted or Upside Cash Flows described in clause (A) of this definition\nwhich are allocated to Sunrun pursuant to the terms of each sale agreement or\npartnership agreement. After the initial contract term, our Customer\nAgreements typically automatically renew on an annual basis and the rate is\ninitially set at up to a 10% discount to then-prevailing utility power prices.\n\nCreation Costs Reflected In Operating Expenses (Non-GAAP measure) represent\ntotal operating expenses, adjusted for certain items consistent with\nmanagement’s use as a performance measure, all of which are itemized in the\nNon-GAAP reconciliation table as provided in the Company’s earnings release.\nCreation Costs Reflected In Operating Expenses may be derived by taking total\noperating expenses incurred in a period, and adjusting by: (A) excluding the\nfollowing items: (i) fleet servicing costs; (ii) non-cash net impairment of\nenergy systems; (iii) depreciation and amortization expense; (iv) amortization\nof costs to obtain contracts, which represents the amortization expense of\nsales commissions; (v) cost of energy system and product sales not pertaining\nto Non-retained or Partially Retained Subscribers; (vi) gross profit from\nsystem & product sales not pertaining to Non-retained or Partially Retained\nSubscribers; (vii) stock based compensation expense; (viii) goodwill\nimpairment expense; (ix) amortization of intangible assets; and (x) costs\nassociated with certain restructuring activities, amortization of previously\ncapitalized insurance costs associated with tax credit transfer agreements,\nand one-time items are identified and excluded; and (B) including any purchase\nprice adjustments for Non-retained or Partially Retained Subscribers owing to\nconsigned inventory usage. When presented on a per Subscriber Addition basis,\nCreation Costs Reflected in Operating Expenses is divided by the Subscriber\nAdditions for the corresponding period.\n\nCreation Costs Reflected In Capital Expenditures (Non-GAAP measure) represent\ntotal capital expenditures, adjusted for certain items consistent with\nmanagement’s use as a performance measure, all of which are itemized in the\nNon-GAAP reconciliation table as provided in the Company’s earnings release.\nCreation Costs Reflected In Capital Expenditures may be derived by taking net\ncash used in investing activities and adjusting to include the gross additions\nto capitalized costs to obtain contracts (i.e., sales commissions) and to\nexclude cash used for the purchase of equity investments. As such, this\nmeasure represents the sum of the following items: (i) payments for the costs\nof energy systems, (ii) net purchases of property and equipment, and (iii)\ngross additions to capitalized costs to obtain contracts (i.e., sales\ncommissions). When presented on a per Subscriber Addition basis, Creation\nCosts Reflected in Capital Expenditures is divided by the Subscriber Additions\nfor the corresponding period.\n\nNet Subscriber Value represents Subscriber Value less the summation of the\nfollowing items divided by Subscriber Additions: (A) payments for the costs of\nenergy systems; (B) net purchases of property and equipment; (C) gross\nadditions to capitalized costs to obtain contracts (i.e., sales commissions);\n(D) total operating expenses, adjusted to exclude the following items: (i)\nfleet servicing costs; (ii) non-cash net impairment of energy systems; (iii)\ndepreciation and amortization expense; (iv) amortization of costs to obtain\ncontracts, which represents the amortization expense of sales commissions; (v)\ncost of energy system and product sales not pertaining to Non-retained or\nPartially Retained Subscribers; (vi) gross profit from system & product sales\nnot pertaining to Non-retained or Partially Retained Subscribers; (vii) stock\nbased compensation expense; (viii) goodwill impairment expense; (ix)\namortization of intangible assets; and (x) costs associated with certain\nrestructuring activities, amortization of previously capitalized insurance\ncosts associated with tax credit transfer agreements, and one-time items are\nidentified and excluded; and to include any purchase price adjustments for\nNon-retained or Partially Retained Subscribers owing to consigned inventory\nusage.\n\nContracted Net Subscriber Value represents Contracted Subscriber Value less\nthe summation of the following items divided by Subscriber Additions: (A)\npayments for the costs of energy systems; (B) net purchases of property and\nequipment; (C) gross additions to capitalized costs to obtain contracts (i.e.,\nsales commissions); (D) total operating expenses, adjusted to exclude the\nfollowing items: (i) fleet servicing costs; (ii) non-cash net impairment of\nenergy systems; (iii) depreciation and amortization expense; (iv) amortization\nof costs to obtain contracts, which represents the amortization expense of\nsales commissions; (v) cost of energy system and product sales not pertaining\nto Non-retained or Partially Retained Subscribers; (vi) gross profit from\nsystem & product sales not pertaining to Non-retained or Partially Retained\nSubscribers; (vii) stock based compensation expense; (viii) goodwill\nimpairment expense; (ix) amortization of intangible assets; and (x) costs\nassociated with certain restructuring activities, amortization of previously\ncapitalized insurance costs associated with tax credit transfer agreements,\nand one-time items are identified and excluded; and to include any purchase\nprice adjustments for Non-retained or Partially Retained Subscribers owing to\nconsigned inventory usage.\n\nUpfront Net Subscriber Value represents Contracted Subscriber Value multiplied\nby Advance Rate less the summation of the following items divided by\nSubscriber Additions: (A) payments for the costs of energy systems; (B) net\npurchases of property and equipment; (C) gross additions to capitalized costs\nto obtain contracts (i.e., sales commissions); (D) total operating expenses,\nadjusted to exclude the following items: (i) fleet servicing costs; (ii)\nnon-cash net impairment of energy systems; (iii) depreciation and amortization\nexpense; (iv) amortization of costs to obtain contracts, which represents the\namortization expense of sales commissions; (v) cost of energy system and\nproduct sales not pertaining to Non-retained or Partially Retained\nSubscribers; (vi) gross profit from system & product sales not pertaining to\nNon-retained or Partially Retained Subscribers; (vii) stock based compensation\nexpense; (viii) goodwill impairment expense; (ix) amortization of intangible\nassets; and (x) costs associated with certain restructuring activities,\namortization of previously capitalized insurance costs associated with tax\ncredit transfer agreements, and one-time items are identified and excluded;\nand to include any purchase price adjustments for Non-retained or Partially\nRetained Subscribers owing to consigned inventory usage.\n\nAdvance Rate or Advance Rate on Contracted Subscriber Value represents the\ncompany’s estimated upfront proceeds, expressed as a percentage of\nContracted Subscriber Value or Aggregate Contracted Subscriber Value, from\nproject-level capital, proceeds from Non-Retained or Partially Retained\nSubscribers, and other upfront cash flows, based on market terms and observed\ncost of capital in a period.\n\nAggregate Subscriber Value represents Subscriber Value multiplied by\nSubscriber Additions.\n\nAggregate Contracted Subscriber Value represents Contracted Subscriber Value\nmultiplied by Subscriber Additions.\n\nAggregate Upfront Proceeds represent Aggregate Contracted Subscriber Value\nmultiplied by Advance Rate. Actual project financing transaction timing for\nportfolios of Subscribers may occur in a period different from the period in\nwhich Subscribers are recognized, and may be executed at different terms. As\nsuch, Aggregate Upfront Proceeds are an estimate based on capital markets\nconditions present during each period and may differ from ultimate Proceeds\nRealized in respect of such period’s Retained Subscribers and ultimate\nproceeds obtained from such period’s Non-Retained or Partially Retained\nSubscribers.\n\nProceeds Realized From Retained Subscribers represents cash flows received in\nrespect of Retained Subscribers from non-recourse financing partners in\naddition to upfront customer prepayments, incentives and rebates. It is\ncalculated as the proceeds from non-controlling interests on the cash flow\nstatement, plus the net proceeds from non-recourse debt (excluding normal\nnon-recourse debt amortization for existing debt, as such debt is serviced by\ncash flows from existing solar and storage assets), plus the gross additions\nto deferred revenue which represents customer payments for prepaid Customer\nAgreements along with local rebates and incentive programs.\n\nCash Generation (Non-GAAP measure) represents Net cash provided by operating\nactivities, less cash used in investing activities, less increases in\nrestricted cash (or plus decreases in restricted cash), plus the following\nitems: (i) net proceeds from non-recourse debt financings; (ii) net proceeds\nfrom tax equity (non-controlling interests and proceeds from sale of\ninvestment tax credits); (iii) net proceeds from state tax credits; (iv) net\nproceeds from trade receivable financings; and (v) net proceeds from\npass-through financing obligations and finance lease obligations. Cash\nGeneration can also be calculated through the change in our unrestricted cash\nbalance from our consolidated balance sheet, less net proceeds (or plus net\nrepayments) from all recourse debt (inclusive of convertible debt), and less\nany primary equity issuances or net proceeds derived from employee stock award\nactivity (or plus any stock buybacks or dividends paid to common stockholders)\nas presented on the Company’s consolidated statement of cash flows. The\nCompany expects to continue to raise proceeds from tax equity and asset-level\nnon-recourse debt, and proceeds from the sale of Non-Retained or Partially\nRetained Subscribers, to fund growth, and as such, these sources of cash are\nincluded in the definition of Cash Generation. Cash Generation also excludes\nproceeds from long-term asset or business divestitures (aside from\ntransactions relating to Non-Retained or Partially Retained Subscribers) and\nequity investments in external non-consolidated businesses not related to\nNon-Retained or Partially Retained Subscribers (or less dividends or\ndistributions received in connection with such equity investments).\n\nDefinitions for Gross and Net Value from Existing Customer Base Terms\n\nGross Earning Assets is calculated as Contracted Gross Earning Assets plus\nNon-contracted or Upside Gross Earning Assets.\n\nContracted Gross Earning Assets represents, as of any measurement date, the\npresent value of estimated remaining Contracted Cash Flows that we expect to\nreceive in future periods in relation to Subscribers as of the measurement\ndate, discounted at 6%.\n\nNon-contracted or Upside Gross Earning Assets represents, as of any\nmeasurement date, the present value of estimated Non-contracted or Upside Cash\nFlows that we expect to receive in future periods in relation to Subscribers\nas of the measurement date, discounted at 6%.\n\nNet Earning Assets represents Gross Earning Assets, plus Total Cash, less\nadjusted debt and lease pass-through financing obligations, as of the\nmeasurement date. Debt is adjusted to exclude a pro-rata share of non-recourse\ndebt associated with funds with project equity structures for Retained\nSubscribers along with debt associated with the company’s ITC safe harboring\nequipment inventory facility. Because estimated cash distributions to our\nproject equity partners for Retained Subscribers are deducted from Gross\nEarning Assets, a proportional share of the corresponding project level\nnon-recourse debt is deducted from Net Earning Assets, as such debt would be\nserviced from cash flows already excluded from Gross Earning Assets.\n\nContracted Net Earning Assets represents Net Earning Assets less\nNon-contracted or Upside Gross Earning Assets.\n\nNon-contracted or Upside Net Earning Assets represents Net Earning Assets less\nContracted Net Earning Assets.\n\nTotal Cash represents the total of the restricted cash balance and\nunrestricted cash balance from our consolidated balance sheet.\n\nOther Terms\n\nAnnual Recurring Revenue represents revenue arising from Customer Agreements\nover the following twelve months for Retained Subscribers that have met\ninitial revenue recognition criteria as of the measurement date.\n\nAverage Contract Life Remaining represents the average number of years\nremaining in the initial term of Customer Agreements for Retained Subscribers\nthat have met revenue recognition criteria as of the measurement date.\n\nHouseholds Served in Low-Income Multifamily Properties represent the number of\nindividual rental units served in low-income multi-family properties from\nshared solar energy systems deployed by Sunrun. Households are counted when\nthe solar energy system has interconnected with the grid, which may differ\nfrom Deployment recognition criteria.\n\nPositive Environmental Impact from Customers represents the estimated\nreduction in carbon emissions as a result of energy produced from our\nNetworked Solar Capacity over the trailing twelve months. The figure is\npresented in millions of metric tons of avoided carbon emissions and is\ncalculated using the Environmental Protection Agency’s AVERT tool. The\nfigure is calculated using the most recent published tool from the EPA, using\nthe current-year avoided emission factor for distributed resources on a state\nby state basis. The environmental impact is estimated based on the system,\nregardless of whether or not Sunrun continues to own the system or any\nassociated renewable energy credits.\n\nPositive Expected Lifetime Environmental Impact from Customer Additions\nrepresents the estimated reduction in carbon emissions over thirty years as a\nresult of energy produced from solar energy systems that were recognized as\nDeployments in a period. The figure is presented in millions of metric tons of\navoided carbon emissions and is calculated using the Environmental Protection\nAgency’s AVERT tool. The figure is calculated using the most recent\npublished tool from the EPA, using the current-year avoided emission factor\nfor distributed resources on a state by state basis, leveraging our estimated\nproduction figures for such systems, which degrade over time, and is\nextrapolated for 30 years. The environmental impact is estimated based on the\nsystem, regardless of whether or not Sunrun continues to own the system or any\nassociated renewable energy credits.\n\n*For our second quarter of 2026, the definitions listed below have been\nmodified, and the changes to these definitions had no impact on previously\nreported quarters: Net Subscriber Value, Contracted Net Subscriber Value,\nUpfront Net Subscriber Value, and Cash Generation.\n\nInvestor & Analyst Contacts:\n\nPatrick Jobin\nSVP, Deputy CFO & Investor Relations Officer\ninvestors@sunrun.com\n\nBronson Fleig\nDirector, Finance & Investor Relations\ninvestors@sunrun.com\n\nMedia Contact:\n\nWyatt Semanek\nSr. Director, Corporate Communications\npress@sunrun.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/5e4df695-28b9-4854-b8eb-5102dfc50d77)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-05T20:01:03.485691993Z","server_sent_at_ms":1785960063485},"received_at":"2026-08-05T20:01:03.777Z","source_url":"https://www.globenewswire.com/news-release/2026/08/05/3339639/0/en/sunrun-reports-second-quarter-2026-financial-results.html"},"analysis":{"id":"98943","press_release_id":"109938","analysis_json":{"industry":{"label":"Independent Power and Renewable Electricity Producers","sector":"Utilities"},"redFlags":["Full-year Cash Generation guidance lowered from $250-450M to $200-375M","Aggregate Subscriber Value guidance cut from $4.8-5.2B to $4.6-4.9B","Subscriber additions decreased 31% compared to prior year","Net Subscriber Value decreased 44% year-over-year"],"eventType":"earnings","narrative":"Sunrun reported Q2 revenue of $870 million, up 53% year-over-year, primarily driven by a 193% increase in energy systems and product sales revenue, though diluted EPS fell to $0.42 from $1.07 in the prior year.\n\nThe company lowered its full-year 2026 guidance, revising Cash Generation expectations to a range of $200 million to $375 million, down from the prior outlook of $250 million to $450 million, due to reduced affiliate channel volumes and higher capital costs.\n\nOperational metrics showed mixed results, with a record storage attachment rate of 74% and networked storage capacity reaching 4.6 GWh, while subscriber additions decreased 31% to 19,793.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"Sunrun cuts 2026 cash generation guidance on higher costs and volume pressure despite record storage attachment rates."},"keyFigures":{"eps":0.42,"revenue":870000000,"guidance":"Cash Generation $200 million to $375 million; Aggregate Subscriber Value $4.6 billion to $4.9 billion","revenueYoy":"53%","customDimensions":{"cash_generation":23000000,"cash_generation_adj":45000000,"net_subscriber_value":9444,"subscriber_additions":19793,"storage_attachment_rate":"74%","aggregate_subscriber_value":1200000000,"networked_storage_capacity":"4.6 Gigawatt-hours","contracted_net_earning_assets":3700000000}},"quotedText":"We are revising our full-year Cash Generation outlook to $200 million to $375 million, excluding equipment safe harbor investments, reflecting reduced affiliate channel volumes, a delayed ramp in direct sales activities, and modestly higher capital costs than previously forecasted.","namedEntities":{"people":[{"name":"Mary Powell","role":"Chief Executive Officer"},{"name":"Danny Abajian","role":"Chief Financial Officer"}],"products":[],"companies":[{"name":"Sunrun","ticker":"RUN"},{"name":"Renew Home","relationship":"partner"},{"name":"Tesla","ticker":"TSLA","relationship":"partner"}],"dollarAmounts":[{"amount":"$1.2 billion","context":"Aggregate Subscriber Value in Q2"},{"amount":"$870.0 million","context":"Total revenue for Q2"},{"amount":"$267 million","context":"Securitization of seasoned residential solar and battery systems"},{"amount":"$200 million to $375 million","context":"Revised 2026 Cash Generation guidance"},{"amount":"$115.2 million","context":"Net income attributable to common stockholders"}]},"materialImpact":{"score":3,"reasoning":"The company issued a downward revision to full-year 2026 guidance for Cash Generation and Aggregate Subscriber Value, citing higher capital costs and reduced volumes. While storage attachment rates hit a record, subscriber additions and net subscriber value declined year-over-year."},"tickerRelevance":{"others":[{"ticker":"TSLA","relevance":"partner"}],"primary":"RUN"},"globalImportance":25,"audienceRelevance":45,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings-with-guidance-cut","sectorWeight":"solar/renewables"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bearish","material_impact_score":3,"narrative":"Sunrun reported Q2 revenue of $870 million, up 53% year-over-year, primarily driven by a 193% increase in energy systems and product sales revenue, though diluted EPS fell to $0.42 from $1.07 in the prior year.\n\nThe company lowered its full-year 2026 guidance, revising Cash Generation expectations to a range of $200 million to $375 million, down from the prior outlook of $250 million to $450 million, due to reduced affiliate channel volumes and higher capital costs.\n\nOperational metrics showed mixed results, with a record storage attachment rate of 74% and networked storage capacity reaching 4.6 GWh, while subscriber additions decreased 31% to 19,793.","key_figures":{"eps":0.42,"revenue":870000000,"guidance":"Cash Generation $200 million to $375 million; Aggregate Subscriber Value $4.6 billion to $4.9 billion","revenueYoy":"53%","customDimensions":{"cash_generation":23000000,"cash_generation_adj":45000000,"net_subscriber_value":9444,"subscriber_additions":19793,"storage_attachment_rate":"74%","aggregate_subscriber_value":1200000000,"networked_storage_capacity":"4.6 Gigawatt-hours","contracted_net_earning_assets":3700000000}},"named_entities":{"people":[{"name":"Mary Powell","role":"Chief Executive Officer"},{"name":"Danny Abajian","role":"Chief Financial Officer"}],"products":[],"companies":[{"name":"Sunrun","ticker":"RUN"},{"name":"Renew Home","relationship":"partner"},{"name":"Tesla","ticker":"TSLA","relationship":"partner"}],"dollarAmounts":[{"amount":"$1.2 billion","context":"Aggregate Subscriber Value in Q2"},{"amount":"$870.0 million","context":"Total revenue for Q2"},{"amount":"$267 million","context":"Securitization of seasoned residential solar and battery systems"},{"amount":"$200 million to $375 million","context":"Revised 2026 Cash Generation guidance"},{"amount":"$115.2 million","context":"Net income attributable to common stockholders"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-05T22:56:37.348Z","global_importance":25,"audience_relevance":45,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings-with-guidance-cut","sectorWeight":"solar/renewables"}},"durationMs":177125,"modelName":"glm-4.7"}}