Sunrun (RUN) Q4 2025 earnings summary

Executive summary

• Achieved record cash generation of $377 million in 2025, driven by a disciplined, margin-focused growth strategy, high storage attachment rates, and a shift to storage-first offerings.

• Net income reached $449.9 million for 2025, reversing prior year losses, with a focus on higher-value customer segments and improved unit economics.

• Storage attachment rate reached 71% by year-end, with over 237,000 storage and solar systems installed.

• Sunrun Direct business now represents over two-thirds of volume, with high single-digit to low double-digit growth expected in 2026.

• Transitioned to a diversified capital structure, including asset sales and joint ventures, enhancing GAAP results and capital flexibility.

Financial highlights

• Q4 2025 revenue was $1,158.8 million, up 124% year-over-year; full year revenue was $2,957.0 million, up 45%.

• Aggregate Subscriber Value for 2025 was $5.6 billion (+10% YoY); Contracted Net Value Creation reached $1.0 billion (+44% YoY).

• Q4 2025 Subscriber Additions were 25,475, down 17% year-over-year; full year additions were 108,000, flat year-over-year.

• Upfront Net Subscriber Value margin improved to 7% in 2025 (+6ppt YoY); Net Subscriber Value per unit was $9,100, down $3,800 year-over-year.

• Net Earning Assets at year-end were $8.5 billion ($36.55/share); Contracted Net Earning Assets were $3.6 billion ($15.28/share).

Outlook and guidance

• 2026 Aggregate Subscriber Value guidance: $4.8–$5.2 billion; Contracted Net Value Creation: $650–$1,050 million.

• Cash Generation guidance for 2026 is $250–$450 million, with positive cash generation expected each quarter.

• Plan to repay over $100 million in parent recourse debt in 2026, targeting leverage below 2x Cash Generation.

• Safe harbor investments for ITC compliance may require $50–$100 million in cash allocation in 2026.

• Direct channels expected to grow in 2026, offsetting industry-wide volume declines post-ITC sunset.