Sunrun Reports Fourth Quarter and Full Year 2024 Financial Results
Sunrun (RUN) reported strong Q4 2024 financial results, marking its third consecutive quarter of positive cash generation at $34 million. The company achieved $518.5 million in total revenue and installed 242.4 Megawatts of solar capacity and 392 Megawatt hours of storage capacity, with storage attachment rates reaching 62%.
Key highlights include an increase in Net Earning Assets to $6.8 billion, including $947 million in Total Cash. The company paid down $132 million of recourse debt in Q4 and projects Cash Generation guidance of $200-500 million for 2025. Customer base grew 12% year-over-year, reaching 1,048,842 customers, including 889,186 subscribers.
For 2025's first quarter, Sunrun expects Cash Generation of $40-50 million, with Storage Capacity Installation projected at 265-275 Megawatt hours. The company recorded a non-cash goodwill impairment charge of $3.1 billion in Q4 2024, resulting in a net loss attributable to common stockholders of $2,813.7 million.
Sunrun (RUN) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, segnando il suo terzo trimestre consecutivo di generazione di cassa positiva con 34 milioni di dollari. L'azienda ha raggiunto 518,5 milioni di dollari di ricavi totali e ha installato 242,4 Megawatt di capacità solare e 392 Megawattora di capacità di stoccaggio, con tassi di attacco per lo stoccaggio che hanno raggiunto il 62%.
Tra i punti salienti c'è stato un aumento degli Attivi Netti di Guadagno a 6,8 miliardi di dollari, inclusi 947 milioni di dollari in Liquidità Totale. L'azienda ha ridotto 132 milioni di dollari di debito ricorsivo nel quarto trimestre e prevede una guida alla generazione di cassa di 200-500 milioni di dollari per il 2025. La base clienti è cresciuta del 12% rispetto all'anno precedente, raggiungendo 1.048.842 clienti, di cui 889.186 abbonati.
Per il primo trimestre del 2025, Sunrun prevede una generazione di cassa di 40-50 milioni di dollari, con un'installazione della capacità di stoccaggio prevista tra 265-275 Megawattora. L'azienda ha registrato un addebito di impairment di goodwill non monetario di 3,1 miliardi di dollari nel quarto trimestre del 2024, con una perdita netta attribuibile agli azionisti comuni di 2.813,7 milioni di dollari.
Sunrun (RUN) reportó resultados financieros sólidos para el cuarto trimestre de 2024, marcando su tercer trimestre consecutivo de generación de efectivo positiva con 34 millones de dólares. La compañía logró 518,5 millones de dólares en ingresos totales e instaló 242,4 Megavatios de capacidad solar y 392 Megavatios hora de capacidad de almacenamiento, con tasas de conexión de almacenamiento alcanzando el 62%.
Los aspectos destacados incluyen un aumento en los Activos de Ganancia Neta a 6,8 mil millones de dólares, incluyendo 947 millones de dólares en Efectivo Total. La compañía pagó 132 millones de dólares de deuda recursiva en el cuarto trimestre y proyecta una guía de Generación de Efectivo de 200-500 millones de dólares para 2025. La base de clientes creció un 12% interanual, alcanzando 1.048.842 clientes, de los cuales 889.186 son suscriptores.
Para el primer trimestre de 2025, Sunrun espera una Generación de Efectivo de 40-50 millones de dólares, con una instalación de Capacidad de Almacenamiento proyectada entre 265-275 Megavatios hora. La compañía registró un cargo por deterioro de goodwill no monetario de 3,1 mil millones de dólares en el cuarto trimestre de 2024, resultando en una pérdida neta atribuible a los accionistas comunes de 2.813,7 millones de dólares.
Sunrun (RUN)은 2024년 4분기 강력한 재무 결과를 보고하며, 3분기 연속으로 3,400만 달러의 긍정적인 현금 창출을 기록했습니다. 이 회사는 5억 1,850만 달러의 총 수익을 달성했으며, 242.4 메가와트의 태양광 용량과 392 메가와트시의 저장 용량을 설치하였고, 저장 장착 비율은 62%에 도달했습니다.
주요 하이라이트로는 순 이익 자산이 68억 달러로 증가했으며, 여기에는 9억 4,700만 달러의 총 현금이 포함됩니다. 이 회사는 4분기 동안 1억 3,200만 달러의 회수 가능 부채를 상환하였고, 2025년 현금 창출 지침을 2억-5억 달러로 예상하고 있습니다. 고객 기반은 전년 대비 12% 증가하여 1,048,842명의 고객에 도달했으며, 이 중 889,186명이 구독자입니다.
2025년 1분기 동안 Sunrun은 4,000만-5,000만 달러의 현금 창출을 예상하며, 저장 용량 설치는 265-275 메가와트시로 예상하고 있습니다. 이 회사는 2024년 4분기에 31억 달러의 비현금 goodwill 손상 비용을 기록하였으며, 일반 주주에게 귀속되는 순손실은 28억 1,370만 달러에 달합니다.
Sunrun (RUN) a annoncé de solides résultats financiers pour le quatrième trimestre 2024, marquant son troisième trimestre consécutif de génération de trésorerie positive à 34 millions de dollars. L'entreprise a atteint 518,5 millions de dollars de revenus totaux et a installé 242,4 mégawatts de capacité solaire et 392 mégawattheures de capacité de stockage, avec des taux d'attachement de stockage atteignant 62%.
Les points forts incluent une augmentation des Actifs de Gains Nets à 6,8 milliards de dollars, y compris 947 millions de dollars en Liquidités Totales. L'entreprise a remboursé 132 millions de dollars de dettes recouvrables au quatrième trimestre et prévoit une génération de trésorerie de 200 à 500 millions de dollars pour 2025. La base de clients a augmenté de 12% d'une année sur l'autre, atteignant 1.048.842 clients, dont 889.186 abonnés.
Pour le premier trimestre 2025, Sunrun prévoit une génération de trésorerie de 40 à 50 millions de dollars, avec une installation de capacité de stockage projetée entre 265 et 275 mégawattheures. L'entreprise a enregistré une charge de dépréciation de goodwill non monétaire de 3,1 milliards de dollars au quatrième trimestre 2024, entraînant une perte nette attribuable aux actionnaires ordinaires de 2.813,7 millions de dollars.
Sunrun (RUN) hat starke Finanzzahlen für das vierte Quartal 2024 gemeldet und damit das dritte aufeinanderfolgende Quartal positiver Cash-Generierung mit 34 Millionen Dollar erreicht. Das Unternehmen erzielte 518,5 Millionen Dollar Gesamterlöse und installierte 242,4 Megawatt Solarleistung sowie 392 Megawattstunden Speicherkapazität, wobei die Speicheranschlussraten 62% erreichten.
Zu den wichtigsten Highlights gehört ein Anstieg der Nettoertragswerte auf 6,8 Milliarden Dollar, einschließlich 947 Millionen Dollar an Gesamtkasse. Das Unternehmen tilgte im vierten Quartal 132 Millionen Dollar an rückforderbarer Schulden und prognostiziert für 2025 eine Cash-Generierungsrichtlinie von 200-500 Millionen Dollar. Die Kundenbasis wuchs im Jahresvergleich um 12% und erreichte 1.048.842 Kunden, darunter 889.186 Abonnenten.
Für das erste Quartal 2025 erwartet Sunrun eine Cash-Generierung von 40-50 Millionen Dollar, während die Installation der Speicherkapazität auf 265-275 Megawattstunden geschätzt wird. Das Unternehmen verzeichnete im vierten Quartal 2024 eine nicht zahlungswirksame Wertminderung des Goodwills in Höhe von 3,1 Milliarden Dollar, was zu einem Nettoverlust von 2.813,7 Millionen Dollar für die Stammaktionäre führte.
- Third consecutive quarter of positive cash generation ($34M in Q4)
- Storage attachment rate increased to 62% from 45% YoY
- Net Earning Assets grew to $6.8B
- Paid down $132M of recourse debt in Q4
- Strong 2025 cash generation guidance ($200-500M)
- Record-high Net Subscriber Values
- $2.8B net loss in Q4 2024
- $3.1B non-cash goodwill impairment charge
- Solar energy systems and product sales revenue decreased 33% YoY
- Total revenue flat YoY at $518.5M
Insights
Sunrun's Q4 2024 results showcase a company successfully transitioning from growth-at-all-costs to sustainable profitability, with $34 million in Cash Generation marking the third consecutive cash-positive quarter. This represents a fundamental shift in the company's financial trajectory, with management projecting this trend to accelerate dramatically to $200-500 million for full-year 2025.
The company's strategic pivot is evident in several key metrics:
- Record Net Subscriber Value of $19,177 per customer (11% year-over-year increase), reflecting improved unit economics from higher-margin products and optimized geographic focus
- Storage attachment rate reaching 62% (up from 45% YoY), driving 78% growth in Storage Capacity Installed
- Aggressive debt reduction, with $132 million of recourse debt paid down in Q4 alone, strengthening the balance sheet
- Net Earning Assets increased to $6.8 billion, representing substantial embedded value
The revenue mix shift is particularly telling - customer agreements revenue increased 21% while system sales revenue decreased 33%. This transition to more recurring subscription revenue creates greater predictability but masks top-line growth in GAAP reporting since revenue recognition is spread over 20-25 year contracts rather than upfront.
Sunrun's capital markets execution remains strong, with a recent $629 million securitization priced 38 basis points better than their previous offering, demonstrating continued investor confidence despite industry headwinds. Their $1.3 billion in new tax equity commitments year-to-date provides runway for continued deployment.
The $3.1 billion goodwill impairment charge, while optically concerning, represents a non-cash accounting adjustment related to the 2020 Vivint Solar acquisition and doesn't impact operational performance. Excluding this charge, Sunrun delivered $360.9 million in non-GAAP net income for Q4.
Virtual power plants represent an emerging value driver, with 20,000+ customers participating across 16 programs. As utilities increasingly value distributed energy resources for grid stabilization, this capability could transform into meaningful revenue streams beyond traditional solar economics.
With a focus on maximizing cash generation rather than installation growth (projecting flat solar growth but robust storage growth for 2025), Sunrun appears positioned to deliver improved financial performance and potentially return value to shareholders after completing its deleveraging initiatives.
Sunrun's Q4 results demonstrate an impressive execution of the industry's most challenging transition: pivoting from growth-at-all-costs to sustainable profitability. In a sector where many competitors continue to struggle with negative cash flows, Sunrun has achieved three consecutive quarters of positive Cash Generation, culminating in $34 million in Q4 despite making safe harbor equipment purchases.
The company's storage strategy stands out as particularly successful. Their 62% storage attachment rate dramatically exceeds industry averages (typically 15-30%) and drove 78% year-over-year growth in Storage Capacity Installed. This storage penetration transforms their value proposition from simple electricity generation to comprehensive energy management, creating both higher margins and deeper customer relationships. With 156,000 solar+storage systems deployed representing 2.5 GWh of capacity, Sunrun has built the largest residential virtual power plant network in the country.
Their VPP initiatives are transitioning from experimental to commercial, with programs across nine states delivering a combined 80 MW peak capacity during grid events. These programs typically generate $100-300 annually per participating customer while requiring minimal incremental cost, creating a growing revenue stream beyond traditional solar economics.
The financial transformation is equally impressive. Net Subscriber Value reached a record $19,177, reflecting disciplined customer acquisition and improved product mix. Their aggressive deleveraging strategy - paying down $132 million in recourse debt in Q4 alone - strengthens their balance sheet while their continued capital markets success (securing tax equity for 500 MW of future deployments) provides deployment runway despite industry headwinds.
Perhaps most telling is the $6.8 billion in Net Earning Assets, representing substantial embedded value relative to their ~$1.9 billion market cap. This disconnection between book value and market value suggests significant potential upside if management continues executing on their cash generation targets of $200-500 million for 2025.
While the $3.1 billion goodwill impairment creates headline risk, this non-cash charge merely recognizes that Sunrun's stock price has declined since the 2020 Vivint acquisition and has no impact on operational performance or future cash generation. The company's guidance for flat solar growth but robust storage growth in 2025 actually represents market share gains in what remains a challenging industry environment, while maintaining their focus on maximizing cash flow rather than pure volume growth.
Cash Generation of
Paid down
Cash Generation guidance of
Cash Generation guidance of
Net Earning Assets increased to
Storage Capacity Installed of 392 Megawatt hours in Q4, exceeding high-end of guidance range and representing
Solar Energy Capacity Installed of 242 Megawatts in Q4, within the guidance range, reaching 7.5 Gigawatts of Networked Solar Energy Capacity
SAN FRANCISCO, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today announced financial results for the fourth quarter and full year ended December 31, 2024.
“We are growing, generating meaningful cash, increasing our book value of deployed systems, and paying down debt. We are poised to further improve our operating and financial results, and deliver a very strong 2025 with meaningful Cash Generation. Our actions to optimize our product mix, prioritize the highest value geographies and routes to market and an intense focus on cost as we grow have resulted in the highest Net Subscriber Values Sunrun has ever reported,” said Mary Powell, Sunrun’s Chief Executive Officer. “We are improving in every dimension we control – focusing on fast, effective execution, delivering strong financial and operating results, gaining share in a disciplined way, while building a long-term foundation of valuable grid resources.”
“In the fourth quarter, we again set new margin records and delivered the third consecutive quarter of Cash Generation. We continue to execute well in the capital markets, raising more than
Fourth Quarter Updates
- Storage Attachment Rates Reach
62% : Customer Additions with storage grew more than50% during the quarter compared to the prior-year period. Storage attachment rates on installations reached62% in Q4, up from45% in the prior-year period, with 392 Megawatt hours installed during the quarter. Sunrun has installed more than 156,000 solar and storage systems, representing over 2.5 Gigawatt hours of stored energy capacity. - Continued Strong Capital Markets Execution: In January 2025, Sunrun priced a
$629 million securitization of residential solar and battery systems. The securitization is Sunrun’s thirteenth securitization since 2015 and first issuance in 2025. The oversubscribed transaction was structured with three separate classes of A rated notes, only two of which were publicly offered. The weighted average spread of the notes was 197 basis points, which was an improvement of approximately 38 basis points from our prior securitization in September. Similar to prior transactions, Sunrun raised additional capital in a subordinated non-recourse financing, which increased the cumulative advance rate to above80% as measured against the initial Contracted Subscriber Value of the portfolio. - Paying Down Recourse Debt: We continue to pay down parent recourse debt. During the fourth quarter, we repurchased
$125.5 million in principal of our 2026 Convertible Notes. As of December 31, 2024 we had only$7.7 million outstanding of these notes, which we may repurchase in 2025. Since March 31, 2024 we have paid down recourse debt by$186 million , by repurchasing our 2026 Convertible Notes and reducing borrowings under our recourse Working Capital Facility. We have also increased our Total Cash balance by$164 million and grown Net Earning Assets by$1.5 billion . We expect to further pay down our recourse debt in 2025 by$100 million or more. Aside from the$7.7 million outstanding of our 2026 Convertible Notes, we have no recourse debt maturities until March 2027. Over time we will explore further capital allocation options to maximize shareholder value, based on market conditions and our long-term outlook. - Improving Grid Stability with Virtual Power Plants: During 2024, Sunrun’s virtual power plants (VPPs) successfully supported power grids across the country with a combined instantaneous peak of nearly 80 megawatts—a capacity greater than many traditional fossil-fuel power plants. These innovative programs leveraged Sunrun’s fleet of residential solar and battery systems—the largest in America—empowering customers to generate, store, and share their own solar energy. In 2024, more than 20,000 Sunrun customers participated in 16 virtual power plant programs across nine states and territories. From California and Texas to Puerto Rico and New England, the customers’ batteries supplied on-demand, stored solar energy to augment power resources during hundreds of critical energy events.
Key Operating Metrics
In the fourth quarter of 2024, Customer Additions were 32,932 including 30,709 Subscriber Additions. As of December 31, 2024, Sunrun had 1,048,842 Customers, including 889,186 Subscribers. Customers grew
Annual Recurring Revenue from Subscribers was approximately
Subscriber Value was
Net Subscriber Value was
Gross Earning Assets as of December 31, 2024, were
Cash Generation was
Storage Capacity Installed was 392.0 Megawatt hours in the fourth quarter of 2024, a
Solar Energy Capacity Installed was 242.4 Megawatts in the fourth quarter of 2024, a
Networked Solar Energy Capacity was 7,531 Megawatts as of December 31, 2024. Included in this figure is 6,436 Megawatts of Networked Solar Energy Capacity for Subscribers as of December 31, 2024.
Networked Storage Capacity was 2.5 Gigawatt hours as of December 31, 2024.
The solar energy systems we deployed in Q4 are expected to offset the emission of 4.8 million metric tons of CO2 over the next thirty years. Over the last twelve months ended December 31, 2024, Sunrun’s systems are estimated to have offset 4.0 million metric tons of CO2.
Outlook
Cash Generation is expected to be in a range of
For the full-year 2025, Cash Generation is expected to be in a range of
Storage Capacity Installed is expected to be in a range of 265 to 275 Megawatt hours in the first quarter of 2025, representing approximately
Solar Energy Capacity Installed is expected to be in a range of 170 to 180 Megawatts in the first quarter of 2025, representing approximately flat year over year growth at the midpoint.
For the full-year 2025, the Company expects robust growth in Storage Capacity Installed year over year, and Solar Energy Capacity Installed is expected to be approximately flat year over year.
Fourth Quarter 2024 GAAP Results
Total revenue was
Total cost of revenue was
Net loss attributable to common stockholders was
Full Year 2024 GAAP Results
Total revenue was
Total cost of revenue was
During the year, Sunrun recorded a non-cash goodwill impairment charge of approximately
Net loss attributable to common stockholders was
Financing Activities
As of February 27, 2025, closed transactions and executed term sheets provide us with expected tax equity to fund over 500 Megawatts of Solar Energy Capacity Installed for Subscribers beyond what was deployed through December 31, 2024. Sunrun also has
Conference Call Information
Sunrun is hosting a conference call for analysts and investors to discuss its fourth quarter and full year 2024 results and business outlook at 1:30 p.m. Pacific Time today, February 27, 2025. A live audio webcast of the conference call along with supplemental financial information will be accessible via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com. The conference call can also be accessed live over the phone by dialing (877) 407-5989 (toll free) or (201) 689-8434 (toll). An audio replay will be available following the call on the Sunrun Investor Relations website for approximately one month.
About Sunrun
Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com
Non-GAAP Information
This press release includes references to certain non-GAAP financial measures, such as non-GAAP net (loss) income and non-GAAP net (loss) income per share. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.
Non-GAAP net (loss) income is defined as GAAP net (loss) income adjusted by the non-cash goodwill impairment charge, non-cash adjustment to equity investments, and the debt discount amortization. Management believes the exclusion of this non-cash and non-recurring item provides useful supplemental information to investors and facilitates the analysis of its operating results and comparison of operating results across reporting periods.
Forward Looking Statements
This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company’s financial and operating guidance and expectations; the Company’s business plan, trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company’s momentum in its business strategies including expectations regarding market share, total addressable market, growth in certain geographies, customer value proposition, market penetration, growth of certain divisions, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the growth of the solar industry; the Company’s financing activities and expectations to refinance, amend, and/or extend any financing facilities; trends or potential trends within the solar industry, our business, customer base, and market; the Company’s ability to derive value from the anticipated benefits of partnerships, new technologies, and pilot programs, including contract renewal and repowering programs; anticipated demand, market acceptance, and market adoption of the Company’s offerings, including new products, services, and technologies; the Company’s strategy to be a margin-focused, multi-product, customer-oriented company; the ability to increase margins based on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, virtual power plants, and distributed energy resources; the Company’s ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains; the Company’s leadership team and talent development; the legislative and regulatory environment of the solar industry and the potential impacts of proposed, amended, and newly adopted legislation and regulation on the solar industry and our business; the ongoing expectations regarding the Company’s storage and energy services businesses and anticipated emissions reductions due to utilization of the Company’s solar energy systems; and factors outside of the Company’s control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company’s current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include: the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the solar industry and our business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks and associated costs; realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the Company’s leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in the Company’s investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law.
Citations to industry and market statistics used herein may be found in our Investor Presentation, available via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com.
| Consolidated Balance Sheets (In Thousands) | ||||||
| As of December 31, | ||||||
| 2024 | 2023 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 574,956 | $ | 678,821 | ||
| Restricted cash | 372,312 | 308,869 | ||||
| Accounts receivable, net | 170,706 | 172,001 | ||||
| Inventories | 402,083 | 459,746 | ||||
| Prepaid expenses and other current assets | 202,579 | 262,822 | ||||
| Total current assets | 1,722,636 | 1,882,259 | ||||
| Restricted cash | 148 | 148 | ||||
| Solar energy systems, net | 15,032,115 | 13,028,871 | ||||
| Property and equipment, net | 121,239 | 149,139 | ||||
| Goodwill | — | 3,122,168 | ||||
| Other assets | 3,021,746 | 2,267,652 | ||||
| Total assets | $ | 19,897,884 | $ | 20,450,237 | ||
| Liabilities and total equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 354,214 | $ | 230,723 | ||
| Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 41,464 | 35,180 | ||||
| Accrued expenses and other liabilities | 543,752 | 499,225 | ||||
| Deferred revenue, current portion | 129,442 | 128,600 | ||||
| Deferred grants, current portion | 7,900 | 8,199 | ||||
| Finance lease obligations, current portion | 26,045 | 22,053 | ||||
| Non-recourse debt, current portion | 231,665 | 547,870 | ||||
| Pass-through financing obligation, current portion | — | 16,309 | ||||
| Total current liabilities | 1,334,482 | 1,488,159 | ||||
| Deferred revenue, net of current portion | 1,208,905 | 1,067,461 | ||||
| Deferred grants, net of current portion | 196,535 | 195,724 | ||||
| Finance lease obligations, net of current portion | 66,139 | 68,753 | ||||
| Line of credit | 384,226 | 539,502 | ||||
| Non-recourse debt, net of current portion | 11,806,181 | 9,191,689 | ||||
| Convertible senior notes | 479,420 | 392,867 | ||||
| Pass-through financing obligation, net of current portion | — | 278,333 | ||||
| Other liabilities | 119,846 | 190,866 | ||||
| Deferred tax liabilities | 137,940 | 122,870 | ||||
| Total liabilities | 15,733,674 | 13,536,224 | ||||
| Redeemable noncontrolling interests | 624,159 | 676,177 | ||||
| Total stockholders’ equity | 2,554,207 | 5,230,228 | ||||
| Noncontrolling interests | 985,844 | 1,007,608 | ||||
| Total equity | 3,540,051 | 6,237,836 | ||||
| Total liabilities, redeemable noncontrolling interests and total equity | $ | 19,897,884 | $ | 20,450,237 | ||
| Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue: | ||||||||||||||||
| Customer agreements and incentives | $ | 388,574 | $ | 321,555 | $ | 1,505,227 | $ | 1,186,706 | ||||||||
| Solar energy systems and product sales | 129,918 | 195,035 | 532,492 | 1,073,107 | ||||||||||||
| Total revenue | 518,492 | 516,590 | 2,037,719 | 2,259,813 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of customer agreements and incentives | 292,632 | 287,780 | 1,169,213 | 1,077,114 | ||||||||||||
| Cost of solar energy systems and product sales | 128,361 | 194,808 | 539,952 | 1,019,638 | ||||||||||||
| Sales and marketing | 150,751 | 166,760 | 617,162 | 740,821 | ||||||||||||
| Research and development | 8,794 | 7,663 | 39,304 | 21,816 | ||||||||||||
| General and administrative | 72,045 | 57,110 | 245,127 | 221,067 | ||||||||||||
| Goodwill Impairment | 3,122,168 | — | 3,122,168 | 1,158,000 | ||||||||||||
| Total operating expenses | 3,774,751 | 714,121 | 5,732,926 | 4,238,456 | ||||||||||||
| Loss from operations | (3,256,259 | ) | (197,531 | ) | (3,695,207 | ) | (1,978,643 | ) | ||||||||
| Interest expense, net | (233,385 | ) | (181,826 | ) | (848,366 | ) | (652,989 | ) | ||||||||
| Other income (expense), net | 89,829 | (157,644 | ) | 161,539 | (63,900 | ) | ||||||||||
| Loss before income taxes | (3,399,815 | ) | (537,001 | ) | (4,382,034 | ) | (2,695,532 | ) | ||||||||
| Income tax benefit | 136 | (1,595 | ) | (26,817 | ) | (12,691 | ) | |||||||||
| Net loss | (3,399,951 | ) | (535,406 | ) | (4,355,217 | ) | (2,682,841 | ) | ||||||||
| Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (586,294 | ) | (185,282 | ) | (1,509,050 | ) | (1,078,344 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (2,813,657 | ) | $ | (350,124 | ) | $ | (2,846,167 | ) | $ | (1,604,497 | ) | ||||
| Net loss per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | (12.51 | ) | $ | (1.60 | ) | $ | (12.81 | ) | $ | (7.41 | ) | ||||
| Diluted | $ | (12.51 | ) | $ | (1.60 | ) | $ | (12.81 | ) | $ | (7.41 | ) | ||||
| Weighted average shares used to compute net loss per share attributable to common stockholders | ||||||||||||||||
| Basic | 224,896 | 218,461 | 222,215 | 216,642 | ||||||||||||
| Diluted | 224,896 | 218,461 | 222,215 | 216,642 | ||||||||||||
| Consolidated Statements of Cash Flows (In Thousands) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net loss | $ | (3,399,951 | ) | $ | (535,406 | ) | $ | (4,355,217 | ) | $ | (2,682,841 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
| Depreciation and amortization, net of amortization of deferred grants | 162,343 | 143,024 | 620,876 | 531,669 | ||||||||||||
| Goodwill impairment | 3,122,168 | — | 3,122,168 | 1,158,000 | ||||||||||||
| Deferred income taxes | 136 | (1,623 | ) | (26,817 | ) | (12,716 | ) | |||||||||
| Stock-based compensation expense | 28,869 | 27,555 | 112,825 | 111,781 | ||||||||||||
| Interest on pass-through financing obligations | — | 4,862 | 8,837 | 19,504 | ||||||||||||
| Reduction in pass-through financing obligations | — | (9,820 | ) | (20,787 | ) | (40,352 | ) | |||||||||
| Unrealized (gain) loss on derivatives | (122,319 | ) | 108,226 | (120,008 | ) | 28,105 | ||||||||||
| Other noncash items | 105,220 | 118,956 | 210,479 | 261,390 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | 5,741 | 5,762 | (14,974 | ) | 15,748 | |||||||||||
| Inventories | (59,735 | ) | 202,055 | 57,663 | 324,158 | |||||||||||
| Prepaid expenses and other current assets | (301,380 | ) | (142,438 | ) | (771,997 | ) | (476,628 | ) | ||||||||
| Accounts payable | 141,070 | (52,514 | ) | 177,449 | (108,785 | ) | ||||||||||
| Accrued expenses and other liabilities | 4,182 | (31,986 | ) | 80,588 | (56,473 | ) | ||||||||||
| Deferred revenue | 55,297 | 47,340 | 152,762 | 106,700 | ||||||||||||
| Net cash used in operating activities | (258,359 | ) | (116,007 | ) | (766,153 | ) | (820,740 | ) | ||||||||
| Investing activities: | ||||||||||||||||
| Payments for the costs of solar energy systems | (791,785 | ) | (651,462 | ) | (2,699,452 | ) | (2,587,183 | ) | ||||||||
| Purchase of equity investment | — | (5,000 | ) | — | (5,000 | ) | ||||||||||
| Purchases of property and equipment, net | (627 | ) | (4,662 | ) | (1,572 | ) | (20,960 | ) | ||||||||
| Net cash provided by (used in) investing activities | (792,412 | ) | (661,124 | ) | (2,701,024 | ) | (2,613,143 | ) | ||||||||
| Financing activities: | ||||||||||||||||
| Proceeds from state tax credits, net of recapture | — | — | 5,203 | 4,033 | ||||||||||||
| Proceeds from trade receivable financing | 124,261 | 41,225 | 124,261 | 41,225 | ||||||||||||
| Repayment of trade receivable financing | — | (41,225 | ) | — | (41,225 | ) | ||||||||||
| Proceeds from line of credit | 48,700 | 473,277 | 354,256 | 1,124,675 | ||||||||||||
| Repayment of line of credit | (56,998 | ) | (451,023 | ) | (509,532 | ) | (1,090,331 | ) | ||||||||
| Proceeds from issuance of convertible senior notes, net of capped call transaction | — | — | 444,822 | — | ||||||||||||
| Repurchase of convertible senior notes | (117,235 | ) | (1,545 | ) | (346,581 | ) | (1,545 | ) | ||||||||
| Proceeds from issuance of non-recourse debt | 644,950 | 556,100 | 4,009,906 | 3,745,580 | ||||||||||||
| Repayment of non-recourse debt | (102,748 | ) | (175,728 | ) | (1,794,962 | ) | (1,575,527 | ) | ||||||||
| Payment of debt fees | (128 | ) | (412 | ) | (93,875 | ) | (47,342 | ) | ||||||||
| Proceeds from pass-through financing and other obligations, net | — | 2,100 | 4,795 | 8,812 | ||||||||||||
| Repayment of pass-through financing obligation | — | — | (240,288 | ) | — | |||||||||||
| Payment of finance lease obligations | (6,605 | ) | (6,484 | ) | (27,240 | ) | (23,279 | ) | ||||||||
| Contributions received from noncontrolling interests and redeemable noncontrolling interests | 521,480 | 459,858 | 1,811,966 | 1,572,399 | ||||||||||||
| Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (70,269 | ) | (51,578 | ) | (308,657 | ) | (225,114 | ) | ||||||||
| Acquisition of noncontrolling interest | (4,761 | ) | — | (26,195 | ) | (46,274 | ) | |||||||||
| Proceeds from transfer of investment tax credits | 148,586 | 6,980 | 705,697 | 6,980 | ||||||||||||
| Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits | (148,586 | ) | (6,980 | ) | (705,697 | ) | (6,980 | ) | ||||||||
| Net proceeds related to stock-based award activities | 6,923 | 8,459 | 18,876 | 22,611 | ||||||||||||
| Net cash provided by financing activities | 987,570 | 813,024 | 3,426,755 | 3,468,698 | ||||||||||||
| Net change in cash and restricted cash | (63,201 | ) | 35,893 | (40,422 | ) | 34,815 | ||||||||||
| Cash and restricted cash, beginning of period | 1,010,617 | 951,945 | 987,838 | 953,023 | ||||||||||||
| Cash and restricted cash, end of period | $ | 947,416 | $ | 987,838 | $ | 947,416 | $ | 987,838 | ||||||||
| Reconciliation between GAAP and Non-GAAP diluted (loss) income per share: | ||||||||||||||||
| Three Months Ended December 31, 2024 | Year Ended December 31, 2024 | |||||||||||||||
| Net (Loss) Income | Diluted EPS | Net (Loss) Income | Diluted EPS | |||||||||||||
| GAAP diluted loss per share | $ | (2,813,657 | ) | $ | (12.51 | ) | $ | (2,846,167 | ) | $ | (12.81 | ) | ||||
| Debt Discount Amortization | 1,131 | 0.01 | 6,438 | 0.03 | ||||||||||||
| Non-cash impairment charges (2) | 3,173,450 | 14.11 | 3,173,450 | 14.28 | ||||||||||||
| Non-GAAP diluted income per share (1) | $ | 360,924 | $ | 1.41 | $ | 333,721 | $ | 1.33 | ||||||||
| GAAP weighted average shares for diluted EPS | 224,896 | 222,215 | ||||||||||||||
| Non-GAAP weighted average shares for diluted EPS | 256,614 | 250,622 | ||||||||||||||
(1) Non-GAAP diluted income per share excludes the effects of the pro forma adjustment detailed above. Non- GAAP diluted income per share is adjusted to exclude this item, as it is not used by management to evaluate the performance of the business.
(2) Excluding this item of non-recurring, infrequent or unusual nature and its impact on the comparability of our results for the period to prior periods and future expected trends.
Key Operating and Financial Metrics
The following operating metrics are used by management to evaluate the performance of the business. Management believes these metrics, when taken together with other information contained in our filings with the SEC and within this press release, provide investors with helpful information to determine the economic performance of the business activities in a period that would otherwise not be observable from historic GAAP measures. Management believes that it is helpful to investors to evaluate the present value of cash flows expected from subscribers over the full expected relationship with such subscribers (“Subscriber Value”, more fully defined in the definitions appendix below) in comparison to the costs associated with adding these customers, regardless of whether or not the costs are expensed or capitalized in the period (“Creation Cost”, more fully defined in the definitions appendix below). The Company also believes that Subscriber Value, Creation Costs, and Total Value Generated are useful metrics for investors because they present an unlevered view of all of the costs associated with new customers in a period compared to the expected future cash flows from these customers over a 30-year period, based on contracted pricing terms with its customers, which is not observable in any current or historic GAAP-derived metric. Management believes it is useful for investors to also evaluate the future expected cash flows from all customers that have been deployed through the respective measurement date, less estimated costs to maintain such systems and estimated distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to project equity investors (“Gross Earning Assets”, more fully defined in the definitions appendix below). The Company also believes Gross Earning Assets is useful for management and investors because it represents the remaining future expected cash flows from existing customers, which is not a current or historic GAAP-derived measure.
Various assumptions are made when calculating these metrics. Both Subscriber Value and Gross Earning Assets utilize a
| In-period volume metrics: | Three Months Ended December 31, 2024 | ||
| Customer Additions | 32,932 | ||
| Subscriber Additions (included within Customer Additions) | 30,709 | ||
| Solar Energy Capacity Installed (in Megawatts) | 242.4 | ||
| Solar Energy Capacity Installed for Subscribers (in Megawatts) | 232.0 | ||
| Storage Capacity Installed (in Megawatt hours) | 392.0 | ||
| In-period value creation metrics: | Three Months Ended December 31, 2024 | ||
| Subscriber Value Contracted Period | |||
| Subscriber Value Renewal Period | |||
| Subscriber Value | |||
| Creation Cost | |||
| Net Subscriber Value | |||
| Total Value Generated (in millions) | |||
| In-period environmental impact metrics: | Three Months Ended December 31, 2024 | ||
| Positive Environmental Impact from Customers (over trailing twelve months, in millions of metric tons of CO2 avoidance) | 4.0 | ||
| Positive Expected Lifetime Environmental Impact from Customer Additions (in millions of metric tons of CO2 avoidance) | 4.8 | ||
| Period-end metrics: | December 31, 2024 | ||
| Customers | 1,048,842 | ||
| Subscribers (subset of Customers) | 889,186 | ||
| Households Served in Low-Income Multifamily Properties | 21,129 | ||
| Networked Solar Energy Capacity (in Megawatts) | 7,531 | ||
| Networked Solar Energy Capacity for Subscribers (in Megawatts) | 6,436 | ||
| Networked Storage Capacity (in Megawatt hours) | 2,525 | ||
| Annual Recurring Revenue (in millions) | |||
| Average Contract Life Remaining (in years) | 17.6 | ||
| Gross Earning Assets Contracted Period (in millions) | |||
| Gross Earning Assets Renewal Period (in millions) | |||
| Gross Earning Assets (in millions) | |||
| Net Earning Assets (in millions) | |||
Figures presented above may not sum due to rounding. For adjustments related to Subscriber Value and Creation Cost, please see the supplemental Creation Cost and Net Subscriber Value calculation memo for each applicable period, which is available on investors.sunrun.com.
Definitions
Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least
Customer Agreements refer to, collectively, solar or storage power purchase agreements and leases.
Subscriber Additions represent the number of Deployments in the period that are subject to executed Customer Agreements.
Customer Additions represent the number of Deployments in the period.
Solar Energy Capacity Installed represents the aggregate megawatt production capacity of our solar energy systems that were recognized as Deployments in the period.
Solar Energy Capacity Installed for Subscribers represents the aggregate megawatt production capacity of our solar energy systems that were recognized as Deployments in the period that are subject to executed Customer Agreements.
Storage Capacity Installed represents the aggregate megawatt hour capacity of storage systems that were recognized as Deployments in the period.
Creation Cost represents the sum of certain operating expenses and capital expenditures incurred divided by applicable Customer Additions and Subscriber Additions in the period. Creation Cost is comprised of (i) installation costs, which includes the increase in gross solar energy system assets and the cost of customer agreement revenue, excluding depreciation expense of fixed solar assets, and operating and maintenance expenses associated with existing Subscribers, plus (ii) sales and marketing costs, including increases to the gross capitalized costs to obtain contracts, net of the amortization expense of the costs to obtain contracts, plus (iii) general and administrative costs, and less (iv) the gross profit derived from selling systems to customers under sale agreements and Sunrun’s product distribution and lead generation businesses. Creation Cost excludes stock based compensation, amortization of intangibles, and research and development expenses, along with other items the company deems to be non-recurring or extraordinary in nature. The gross margin derived from solar energy systems and product sales is included as an offset to Creation Cost since these sales are ancillary to the overall business model and lowers our overall cost of business. The sales, marketing, general and administrative costs in Creation Costs is inclusive of sales, marketing, general and administrative activities related to the entire business, including solar energy system and product sales. As such, by including the gross margin on solar energy system and product sales as a contra cost, the value of all activities of the Company’s segment are represented in the Net Subscriber Value.
Subscriber Value represents the per subscriber value of upfront and future cash flows (discounted at
Net Subscriber Value represents Subscriber Value less Creation Cost.
Total Value Generated represents Net Subscriber Value multiplied by Subscriber Additions.
Customers represent the cumulative number of Deployments, from the company’s inception through the measurement date.
Subscribers represent the cumulative number of Customer Agreements for systems that have been recognized as Deployments through the measurement date.
Networked Solar Energy Capacity represents the aggregate megawatt production capacity of our solar energy systems that have been recognized as Deployments, from the company’s inception through the measurement date.
Networked Solar Energy Capacity for Subscribers represents the aggregate megawatt production capacity of our solar energy systems that have been recognized as Deployments, from the company’s inception through the measurement date, that have been subject to executed Customer Agreements.
Networked Storage Capacity represents the aggregate megawatt hour capacity of our storage systems that have been recognized as Deployments, from the company’s inception through the measurement date.
Gross Earning Assets is calculated as Gross Earning Assets Contracted Period plus Gross Earning Assets Renewal Period.
Gross Earning Assets Contracted Period represents the present value of the remaining net cash flows (discounted at
Gross Earning Assets Renewal Period is the forecasted net present value we would receive upon or following the expiration of the initial Customer Agreement term but before the 30th anniversary of the system’s activation (either in the form of cash payments during any applicable renewal period or a system purchase at the end of the initial term), for Subscribers as of the measurement date. We calculate the Gross Earning Assets Renewal Period amount at the expiration of the initial contract term assuming either a system purchase or a renewal, forecasting only a 30-year customer relationship (although the customer may renew for additional years, or purchase the system), at a contract rate equal to
Net Earning Assets represents Gross Earning Assets, plus total cash, less adjusted debt and less pass-through financing obligations, as of the same measurement date. Debt is adjusted to exclude a pro-rata share of non-recourse debt associated with funds with project equity structures along with debt associated with the company’s ITC safe harboring facility. Because estimated cash distributions to our project equity partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level non-recourse debt is deducted from Net Earning Assets, as such debt would be serviced from cash flows already excluded from Gross Earning Assets.
Cash Generation is calculated using the change in our unrestricted cash balance from our consolidated balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt), and less any primary equity issuances or net proceeds derived from employee stock award activity (or plus any stock buybacks or dividends paid to common stockholders) as presented on the Company’s consolidated statement of cash flows. The Company expects to continue to raise tax equity and asset-level non-recourse debt to fund growth, and as such, these sources of cash are included in the definition of Cash Generation. Cash Generation also excludes long-term asset or business divestitures and equity investments in external non-consolidated businesses (or less dividends or distributions received in connection with such equity investments). Restricted cash in a reserve account with a balance equal to the amount outstanding of 2026 convertible notes is considered unrestricted cash for the purposes of calculating Cash Generation.
Annual Recurring Revenue represents revenue arising from Customer Agreements over the following twelve months for Subscribers that have met initial revenue recognition criteria as of the measurement date.
Average Contract Life Remaining represents the average number of years remaining in the initial term of Customer Agreements for Subscribers that have met revenue recognition criteria as of the measurement date.
Households Served in Low-Income Multifamily Properties represent the number of individual rental units served in low-income multi-family properties from shared solar energy systems deployed by Sunrun. Households are counted when the solar energy system has interconnected with the grid, which may differ from Deployment recognition criteria.
Positive Environmental Impact from Customers represents the estimated reduction in carbon emissions as a result of energy produced from our Networked Solar Energy Capacity over the trailing twelve months. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.
Positive Expected Lifetime Environmental Impact from Customer Additions represents the estimated reduction in carbon emissions over thirty years as a result of energy produced from solar energy systems that were recognized as Deployments in the period. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis, leveraging our estimated production figures for such systems, which degrade over time, and is extrapolated for 30 years. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.
Total Cash represents the total of the restricted cash balance and unrestricted cash balance from our consolidated balance sheet.
Investor & Analyst Contact:
Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com
Media Contact:
Wyatt Semanek
Director, Corporate Communications
press@sunrun.com
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