Sunrun Cut Outlook as Asset Sales Lifted Revenue
Second-quarter revenue climbed 53% to $870.0 million, driven by a new asset-sale structure.
Sunrun (RUN), the residential solar and storage provider, cut its full-year cash-generation outlook as subscriber additions remained below year-earlier levels despite a sequential recovery.
Subscriber additions rose 12% from the first quarter to 19,793, reversing some of the prior period’s weakness, while remaining 31% below a year earlier. Customer additions increased 11% sequentially to 20,979, led by an approximately 13% rise in customers adding storage.
Revenue rose 53% from a year earlier, with customer-agreements and incentives revenue increasing 19% to $543.7 million. Energy-systems and product-sales revenue nearly tripled to $326.3 million, primarily reflecting the third-party asset-sale structure introduced in the third quarter of 2025.
The storage mix continued to rise even as installation volumes remained below last year. Storage attachment rate reached a record 74%, compared with 73% in the first quarter and 70% a year earlier. Storage capacity installed increased 18% sequentially to 332.0 megawatt-hours, while solar capacity installed rose 13% to 174.3 megawatts; the measures were down 15% and 23%, respectively, from a year earlier.
Subscriber economics weakened as capital costs increased. Subscriber value declined 3% sequentially to $59,377, and the observed project-level discount rate rose to 7.3% from 6.3%. Upfront net subscriber value fell 61% from the first quarter to $2,016, reducing its margin to 3.7% of contracted subscriber value from 9.3%.
Aggregate subscriber value recovered 9% sequentially to $1.175 billion, though it remained 24% below a year earlier. Total operating expenses increased 23% year over year to $835 million, while creation costs reflected in operating expenses rose 92%. Cash generation swung to positive $23 million from negative $59 million in the first quarter, even as operating activities used $186 million of cash.
Sunrun now expects full-year cash generation of $200 million to $375 million, down from its previous range of $250 million to $450 million. The reduction is due to lower affiliate-channel volume, a delayed direct-sales ramp and modestly higher capital costs. Its aggregate subscriber value forecast is now $4.6 billion to $4.9 billion, compared with $4.8 billion to $5.2 billion previously.
The subscriber base grew 10% year over year to more than 1.03 million, and networked storage capacity reached 4.647 gigawatt-hours. Sunrun also disclosed a nonbinding proposal with Renew Home and Tesla involving more than 16 gigawatts of distributed capacity and a pilot placing artificial-intelligence compute nodes in homes with its systems. An August securitization priced at a 200-basis-point spread, 20 basis points tighter than its April transaction, offering a measure of financing relief as higher capital costs weighed on the outlook.