RUNNasdaqConstruction - Special Trade ContractorsUS GAAP · USD

Sunrun Inc.

Sunrun Inc. designs, installs, owns, and maintains residential solar energy systems and battery storage in the United States. The company sells clean-energy solutions primarily through a subscription-style model with no upfront cost, and also offers direct system sales and related energy services for homes, multi-family projects, and new homes.

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Revenue2,957m USD
+45.1 %y/y
Operating profit (EBIT)-126m USD
+96.6 %y/y
EBIT margin-4.3%
+177.1 ppy/y
Net income450m USD
+115.8 %y/y
Free cash flow-421m USD
+45.1 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-4,000-2,00002,0004,000m USD2020: 922 m USD2020: EBIT -465 m USD20202021: 1,610 m USD2021: EBIT -666 m USD20212022: 2,321 m USD2022: EBIT -662 m USD20222023: 2,260 m USD2023: EBIT -1,979 m USD20232024: 2,038 m USD2024: EBIT -3,695 m USD20242025: 2,957 m USD2025: EBIT -126 m USD20252,957-126
RevenueOperating profit (EBIT)

Business

Share of revenue
Residential solar subscriptions55 %

Solar systems owned or financed through recurring customer agreements for homes.

Solar energy system sales25 %

Direct sale of installed solar systems to customers under purchase contracts.

Battery and product sales12 %

Sales of batteries, solar products, and related equipment to resellers and installers.

Incentives and environmental credits5 %

Revenue from SRECs and similar incentive-related monetization.

Lead generation and other services3 %

Customer lead sales and other ancillary service revenue.

Products

Reported · share of revenue
57.8%29.7%8.8%FY2025100 %
  • Customer Agreements57.8 %
  • Energy Systems29.7 %
  • Manufactured Product Other8.8 %
  • Incentives3.7 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Sunrun serves residential homeowners who want rooftop solar and storage without a large upfront investment, using recurring payment contracts that spread the cost over time. It also sells into select commercial-adjacent channels, including multi-family developers and new-home builders, and works with retail, digital, and partner channels to reach households. Customers are typically motivated by lower electricity costs, backup power, and more predictable energy bills.

Residential homeowners

Buy solar and storage systems or subscribe to Sunrun's service for lower bills and energy security.

Battery storage customers

Add storage to solar systems to improve backup power and self-consumption.

Multi-family developers

Buy solar solutions for apartment and multi-unit residential projects.

New-home builders

Integrate Sunrun solar offerings into newly constructed homes.

Third-party sales and referral channels

Partners and referral sources that generate customer acquisition volume for Sunrun offerings.

Strategy

Sunrun's strategy centers on expanding residential solar and storage adoption through a subscription model that lowers upfront cost for customers. It uses a multi-channel sales engine, partner network, and financing structures to acquire customers efficiently while monetizing long-duration customer agreements and related tax and incentive benefits. The company also emphasizes storage, energy services, and third-party relationships to broaden its addressable market and deepen customer relationships.

Scale customer acquisition across multiple channelsShort term

Broad distribution lowers dependence on any single sales route and supports growth.

Increase storage and bundled energy offeringsMedium term

Storage improves the value proposition by adding backup power and grid resilience.

Monetize long-duration cash flows through financing structuresMedium term

Funds and asset monetization support capital-efficient growth in a capital-intensive model.

Deepen relationships with third-party channelsMedium term

Partnerships can expand reach faster than direct sales alone.

Geography

Sunrun's business is concentrated in the United States, where it designs, installs, owns, and services residential energy systems. Its operating footprint is national, with sales and installation activity spread across states and local utility territories, which matters because solar economics, permitting, and incentives vary by market. The company also depends on local interconnection, inspection, and utility processes that can affect timing and customer adoption.

Risks

Sunrun faces demand, regulatory, supply-chain, and execution risks tied to the residential solar market and its financing-heavy business model. Because the company depends on incentives, utility interconnection, third-party suppliers, and partner channels, changes in policy, component availability, or customer adoption can materially affect growth and project timing.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Solar market adoption may grow more slowly than expected1Regulatory and incentive changes could weaken economics2Supply-chain constraints can delay projects and raise costs3Construction and cancellation risk4Partner and channel execution risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Solar market adoption may grow more slowly than expectedImpact: HighLikelihood: High

    The business depends on consumer acceptance of solar subscriptions and storage.

    Exposure: Residential solar demand

  2. Regulatory and incentive changes could weaken economicsImpact: HighLikelihood: Medium

    Customer pricing and investor returns rely on tax benefits and utility incentives.

    ExposureITCSRECsUtility programs
  3. Supply-chain constraints can delay projects and raise costsImpact: HighLikelihood: Medium

    Solar panels, batteries, and components come from a limited supplier base.

    ExposurePanelsBatteriesOther system components
  4. Construction and cancellation riskImpact: MediumLikelihood: High

    Projects can be delayed, canceled, or affected by permitting and inspection issues.

    Exposure: Project pipeline and installations

  5. Partner and channel execution riskImpact: MediumLikelihood: Medium

    A meaningful share of growth depends on third-party sales and retail partners.

    ExposureRetailReferralSales-only organizations

Accounting

Judgemental items
Revenue recognition timing

Solar system sales may be recognized at inspection or PTO, while product sales are recognized on transfer.

Impact: Can shift revenue between quarters based on installation and interconnection timing

Fund accounting and noncontrolling interests

Funds own solar assets and customer agreements, and economics are shared with investors.

Impact: Affects revenue allocation, cash flows, and equity attribution

Goodwill impairment

The company recorded a large goodwill impairment when market value fell below carrying value.

Impact: Can materially reduce reported earnings and book value

Long-lived asset impairment

Solar assets and project-related assets depend on assumptions about cash flows and discount rates.

Impact: Changes in assumptions can trigger write-downs

SREC and incentive revenue timing

Incentive sales depend on market conditions and timing of certificate transactions.

Impact: Creates quarter-to-quarter volatility in other revenue

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Last updated: 24/09/2026