Sunrun Reports Third Quarter 2024 Financial Results
Sunrun (RUN) reported Q3 2024 financial results with notable achievements in storage capacity and customer base. The company installed 336 Megawatt hours of storage capacity, exceeding guidance and showing 92% year-over-year growth, with storage attachment rates reaching 60%. Solar Energy Capacity installed was 230 Megawatts, achieving the high-end of guidance. The company generated positive cash of $2.5 million in Q3, marking the second consecutive quarter of positive cash generation. Net Earning Assets increased to $6.2 billion, including over $1 billion in Total Cash. Sunrun became the first clean energy company to surpass 1 million residential solar customers.
Sunrun (RUN) ha riportato i risultati finanziari del terzo trimestre del 2024 con risultati notevoli in termini di capacità di stoccaggio e base clienti. L'azienda ha installato 336 Megawattora di capacità di stoccaggio, superando le aspettative e mostrando una crescita del 92% rispetto all'anno precedente, con tassi di attacco al sistema di stoccaggio che hanno raggiunto il 60%. La capacità di energia solare installata è stata di 230 Megawatt, raggiungendo il massimo delle previsioni. L'azienda ha generato un flusso di cassa positivo di $2,5 milioni nel terzo trimestre, segnando il secondo trimestre consecutivo di generazione di cassa positiva. Gli attivi netti di guadagno sono aumentati a $6,2 miliardi, inclusi oltre $1 miliardo in contante totale. Sunrun è diventata la prima azienda di energia pulita a superare 1 milione di clienti residenziali di energia solare.
Sunrun (RUN) informó sobre los resultados financieros del tercer trimestre de 2024 con logros notables en capacidad de almacenamiento y base de clientes. La empresa instaló 336 Megavatios hora de capacidad de almacenamiento, superando las expectativas y mostrando un crecimiento del 92% en comparación con el año anterior, con tasas de conexión de almacenamiento alcanzando el 60%. La capacidad de energía solar instalada fue de 230 Megavatios, logrando el extremo superior de las pautas. La compañía generó un flujo de caja positivo de $2,5 millones en el tercer trimestre, marcando el segundo trimestre consecutivo de generación de caja positiva. Los activos netos de ganancias aumentaron a $6,2 mil millones, incluyendo más de $1 mil millones en efectivo total. Sunrun se convirtió en la primera empresa de energía limpia en superar 1 millón de clientes residenciales de energía solar.
Sunrun (RUN)은 2024년 3분기 재무 결과를 발표하며 저장 용량 및 고객 기반에서 주목할 만한 성과를 기록했습니다. 이 회사는 336메가와트시의 저장 용량을 설치하여 가이드를 초과하며 전년 대비 92% 성장률을 보였고, 저장 장착률은 60%에 도달했습니다. 설치된 태양광 에너지 용량은 230메가와트였으며 이는 가이드의 상한에 해당합니다. 회사는 3분기에 250만 달러의 긍정적인 현금을 생성하여 두 번째 연속 분기 동안 긍정적인 현금 생성을 기록했습니다. 순 수익 자산은 62억 달러로 증가했으며, 총 현금 10억 달러 이상을 포함합니다. Sunrun은 100만 명 이상의 주거용 태양광 고객을 보유한 최초의 청정 에너지 회사가 되었습니다.
Sunrun (RUN) a annoncé les résultats financiers du troisième trimestre 2024, avec des réalisations notables en termes de capacité de stockage et de clientèle. L'entreprise a installé 336 Mégawattheures de capacité de stockage, dépassant les prévisions et affichant une croissance de 92 % par rapport à l'année précédente, avec des taux d'attachement de stockage atteignant 60 %. La capacité d'énergie solaire installée s'élevait à 230 Mégawatts, atteignant le haut de la fourchette de prévisions. L'entreprise a généré un flux de trésorerie positif de 2,5 millions de dollars au troisième trimestre, marquant le deuxième trimestre consécutif de génération de flux de trésorerie positif. Les actifs nets générateurs de revenus ont augmenté pour atteindre 6,2 milliards de dollars, y compris plus de 1 milliard de dollars en liquidités totales. Sunrun est devenue la première entreprise d'énergie propre à dépasser 1 million de clients résidentiels en énergie solaire.
Sunrun (RUN) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und bemerkenswerte Erfolge in Bezug auf Speicherkapazität und Kundenbasis erzielt. Das Unternehmen hat 336 Megawattstunden Speicherkapazität installiert, was die Vorgaben übertrifft und ein Wachstum von 92% im Jahresvergleich zeigt, während die Speichereinfügequoten 60% erreichen. Die installierte Solarenergie-Kapazität betrug 230 Megawatt und erreichte damit das obere Ende der Prognosen. Das Unternehmen erzielte im dritten Quartal einen positiven Cashflow von 2,5 Millionen Dollar und markierte damit das zweite aufeinanderfolgende Quartal mit positiver Cash-Generierung. Die Nettogewinnwerte stiegen auf 6,2 Milliarden Dollar, einschließlich über 1 Milliarde Dollar an Gesamtliquidität. Sunrun wurde das erste Unternehmen für saubere Energie, das 1 Million private Solarkunden überschreitet.
- Storage capacity installed grew 92% YoY to 336 Megawatt hours
- Storage attachment rates increased to 60% from 33% year-over-year
- Positive cash generation of $2.5 million in Q3
- Net Earning Assets reached $6.2 billion
- Record-high Net Subscriber Value achieved
- Reduced parent debt by over $100 million since March
- Solar Energy Capacity Installed decreased 11% YoY to 229.7 Megawatts
- Total revenue declined 5% YoY to $537.2 million
- Net loss of $83.8 million reported
- Solar energy systems and product sales revenue decreased 47% YoY
Insights
Sunrun's Q3 results show mixed performance with notable strengths in storage deployment but challenges in solar installations. Storage capacity installed grew 92% YoY to 336 Megawatt hours, with attachment rates reaching
Key financial metrics reveal Net Subscriber Value reached
The company's debt management strategy shows progress, having reduced parent debt by over
The surge in storage attachment rates to
The company's expansion in the new homes market, particularly the exclusive agreement with Toll Brothers in California, opens up a promising growth channel. While currently representing less than
The total Networked Solar Energy Capacity of 7.3 Gigawatts and Storage Capacity of 2.1 Gigawatt hours positions Sunrun as a significant player in grid stability solutions, with potential for increased recurring revenue streams through VPP programs.
Storage Capacity Installed of 336 Megawatt hours in Q3, exceeding high-end of guidance range and representing
Solar Energy Capacity Installed of 230 Megawatts in Q3, at the high-end of prior guidance range, reaching 7.3 Gigawatts of Networked Solar Energy Capacity
Cash Generation of
Reiterating Cash Generation guidance of
Net Earning Assets increases to
Sunrun becomes the first clean energy company to surpass 1 million residential solar customers
SAN FRANCISCO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today announced financial results for the quarter ended September 30, 2024.
“Sunrun’s focus on providing customers with the best experience and differentiated offerings is delivering strong operating and financial results. In the third quarter, we again set new records for both storage installation attachment rates and delivered solid quarter-over-quarter growth for solar installations while reporting higher Net Subscriber Values,” said Mary Powell, Sunrun’s Chief Executive Officer. “The team delivered the second consecutive quarter of positive Cash Generation. Our primary focus continues to be expanding our differentiation for customers and remaining a disciplined, margin-focused leader that drives meaningful Cash Generation.”
“In the third quarter, we delivered on our commitments for solar and storage installations, margin expansion and Cash Generation. Net Subscriber Value was the highest level the company has ever reported, a testament to our margin-focused and disciplined growth strategy,” said Danny Abajian, Sunrun’s Chief Financial Officer. “We have a strong balance sheet with no near-term corporate debt maturities, having extended our recourse working capital facility maturity to March 2027, and as of today, we have reduced parent debt by over
Third Quarter Updates
- Storage Attachment Rates Reach
60% : Storage attachment rates on installations reached60% in Q3, up from33% in the prior-year period, with 336 Megawatt hours installed during the quarter. Sunrun has installed more than 135,000 solar and storage systems, representing over 2.1 Gigawatt hours of stored energy capacity. - Continued Momentum in New Homes Business: Sunrun is seeing strong traction in its new homes division. Sunrun is working with 9 of the top 10 new home builders in California, and over half of the top 20 home builders in the US. In September, Sunrun signed a multi-year exclusive agreement with Toll Brothers (NYSE: TOL) in California. While this division represents less than
5% of our volumes currently, we expect this division to grow at least50% next year. Home builders appreciate our leading subscription offerings, service commitments, and long track record. Our subscription offering can provide new home buyers with immediate value, including savings on energy and resiliency from backup storage systems, without increasing the cost of purchasing the home. - Improving Grid Stability with Virtual Power Plants: In Q3, Sunrun introduced several new virtual power plant programs to help meet peak demand and enhance grid stability. In New York, Sunrun activated the state’s largest residential virtual power plant in collaboration with Orange & Rockland Utilities, Inc., a subsidiary of Consolidated Edison, Inc. (NYSE: ED). Over 300 solar-plus-storage systems provided stored solar energy during multiple peak demand events this summer, strengthening grid reliability. Participating customers received a free or heavily discounted home battery in exchange for their commitment to the 10-year program, while Sunrun received upfront payments from O&R based on installed battery capacity. In Maryland, Sunrun launched the nation’s first vehicle-to-home virtual power plant, partnering with Baltimore Gas and Electric Company (BGE), a subsidiary of Exelon Corporation (Nasdaq: EXC), to utilize a small group of customer-owned Ford F-150 Lightnings. BGE was awarded grant funding from the Department of Energy to create the program, and Sunrun helped develop and administer it. Participating customers can earn several hundred dollars by sharing energy from their F-150 Lightning trucks. In Texas, Sunrun partnered with Tesla Electric and Vistra on two virtual power plants. Still growing, the Tesla Electric program has already enrolled more than 150 Sunrun customers, leveraging home batteries to provide reserves during peak consumption. Customers will receive an annual payment, currently set at
$400 per Powerwall for 2024, while Sunrun earns recurring revenue through the program. The Vistra partnership also offers customers financial incentives and credits for sharing stored energy with the grid when demand is highest. - Continued Strong Capital Markets Execution: In September, Sunrun closed a
$365 million securitization of residential solar and battery systems, its fourth securitization placed in 2024. The transaction was structured with two separate classes of publicly placed A+ rated notes. The weighted average spread was 235 basis points and the weighted average yield was5.87% . The initial balance of the Class A notes represents a73.8% advance rate on the Securitization Share of ADSAB (present value using a6% discount rate). 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. Also, in July, Sunrun expanded its non-recourse warehouse lending facility by$280 million to$2,630 million in commitments, matching the growing scale of Sunrun’s business. - Extended Maturity of Recourse Working Capital Facility and Reduced Parent Leverage Through Continued 2026 Convertible Note Repurchases: We extended the maturity of our recourse Working Capital Facility to March 2027 (from November 2025) as we were in compliance with the provisions in the agreement, which calls for having funds in a restricted reserve account equal to the amount of our outstanding 2026 Convertible Notes. We continue to reduce parent leverage with continued repurchasing of our 2026 Convertible Notes. To date, we have repurchased
$317 million of these notes, leaving$83 million of the notes outstanding as of today. As of September 30, 2024 the outstanding balance on the 2026 Convertible Notes was$133.2 million .
Key Operating Metrics
In the third quarter of 2024, Customer Additions were 31,910 including 30,348 Subscriber Additions. As of September 30, 2024, Sunrun had 1,015,910 Customers, including 858,477 Subscribers. Customers grew
Annual Recurring Revenue from Subscribers was approximately
Subscriber Value was
Net Subscriber Value was
Gross Earning Assets as of September 30, 2024, were
Cash Generation was
Storage Capacity Installed was 336.3 Megawatt hours in the third quarter of 2024, a
Solar Energy Capacity Installed was 229.7 Megawatts in the third quarter of 2024, an
Networked Solar Energy Capacity was 7,288 Megawatts as of September 30, 2024. Included in this figure is 6,204 Megawatts of Networked Solar Energy Capacity for Subscribers as of September 30, 2024.
Networked Storage Capacity was 2.1 Gigawatt hours as of September 30, 2024.
The solar energy systems we deployed in Q3 are expected to offset the emission of 4.7 million metric tons of CO2 over the next thirty years. Over the last twelve months ended September 30, 2024, Sunrun’s systems are estimated to have offset 4.1 million metric tons of CO2.
Outlook
Management is reiterating Cash Generation guidance of
Management is reiterating guidance for Cash Generation of
Storage Capacity Installed is expected to be in a range of 320 to 350 Megawatt hours in Q4, reflecting
Solar Energy Capacity Installed is expected to be in a range of 240 to 250 Megawatts in Q4, reflecting
Net Subscriber Value is expected to increase in Q4 compared to Q3.
Third Quarter 2024 GAAP Results
Total revenue was
Total cost of revenue was
Net loss attributable to common stockholders was
Financing Activities
As of November 7, 2024, closed transactions and executed term sheets provide us with expected tax equity to fund approximately 272 Megawatts of Solar Energy Capacity Installed for Subscribers beyond what was deployed through September 30, 2024. Sunrun also had
Conference Call Information
Sunrun is hosting a conference call for analysts and investors to discuss its third quarter 2024 results and business outlook at 1:30 p.m. Pacific Time today, November 7, 2024. 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
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 its ESG efforts, expectations regarding market share, total addressable market, 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 storage-first 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) | ||||||
| September 30, 2024 | December 31, 2023 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 533,863 | $ | 678,821 | ||
| Restricted cash | 476,606 | 308,869 | ||||
| Accounts receivable, net | 182,513 | 172,001 | ||||
| Inventories | 342,348 | 459,746 | ||||
| Prepaid expenses and other current assets | 67,132 | 262,822 | ||||
| Total current assets | 1,602,462 | 1,882,259 | ||||
| Restricted cash | 148 | 148 | ||||
| Solar energy systems, net | 14,427,903 | 13,028,871 | ||||
| Property and equipment, net | 134,613 | 149,139 | ||||
| Goodwill | 3,122,168 | 3,122,168 | ||||
| Other assets | 2,817,029 | 2,267,652 | ||||
| Total assets | $ | 22,104,323 | $ | 20,450,237 | ||
| Liabilities and total equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 244,184 | $ | 230,723 | ||
| Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 43,871 | 35,180 | ||||
| Accrued expenses and other liabilities | 410,488 | 499,225 | ||||
| Deferred revenue, current portion | 120,991 | 128,600 | ||||
| Deferred grants, current portion | 8,165 | 8,199 | ||||
| Finance lease obligations, current portion | 26,532 | 22,053 | ||||
| Non-recourse debt, current portion | 236,227 | 547,870 | ||||
| Pass-through financing obligation, current portion | 1,050 | 16,309 | ||||
| Total current liabilities | 1,091,508 | 1,488,159 | ||||
| Deferred revenue, net of current portion | 1,171,925 | 1,067,461 | ||||
| Deferred grants, net of current portion | 188,589 | 195,724 | ||||
| Finance lease obligations, net of current portion | 74,627 | 68,753 | ||||
| Convertible senior notes | 603,510 | 392,867 | ||||
| Line of credit | 392,524 | 539,502 | ||||
| Non-recourse debt, net of current portion | 11,219,898 | 9,191,689 | ||||
| Pass-through financing obligation, net of current portion | — | 278,333 | ||||
| Other liabilities | 212,091 | 190,866 | ||||
| Deferred tax liabilities | 115,258 | 122,870 | ||||
| Total liabilities | 15,069,930 | 13,536,224 | ||||
| Redeemable noncontrolling interests | 633,817 | 676,177 | ||||
| Total stockholders’ equity | 5,278,033 | 5,230,228 | ||||
| Noncontrolling interests | 1,122,543 | 1,007,608 | ||||
| Total equity | 6,400,576 | 6,237,836 | ||||
| Total liabilities, redeemable noncontrolling interests and total equity | $ | 22,104,323 | $ | 20,450,237 | ||
| Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue: | ||||||||||||||||
| Customer agreements and incentives | $ | 405,861 | $ | 316,528 | $ | 1,116,653 | $ | 865,151 | ||||||||
| Solar energy systems and product sales | 131,312 | 246,653 | 402,574 | 878,072 | ||||||||||||
| Total revenue | 537,173 | 563,181 | 1,519,227 | 1,743,223 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of customer agreements and incentives | 308,382 | 283,742 | 876,581 | 789,334 | ||||||||||||
| Cost of solar energy systems and product sales | 125,312 | 234,274 | 411,591 | 824,830 | ||||||||||||
| Sales and marketing | 162,490 | 176,349 | 466,411 | 574,061 | ||||||||||||
| Research and development | 8,180 | 5,039 | 30,510 | 14,153 | ||||||||||||
| General and administrative | 60,587 | 53,254 | 173,082 | 163,957 | ||||||||||||
| Goodwill impairment | — | 1,158,000 | — | 1,158,000 | ||||||||||||
| Total operating expenses | 664,951 | 1,910,658 | 1,958,175 | 3,524,335 | ||||||||||||
| Loss from operations | (127,778 | ) | (1,347,477 | ) | (438,948 | ) | (1,781,112 | ) | ||||||||
| Interest expense, net | (215,615 | ) | (171,288 | ) | (614,981 | ) | (471,163 | ) | ||||||||
| Other (expense) income, net | (82,598 | ) | 77,673 | 71,710 | 93,744 | |||||||||||
| Loss before income taxes | (425,991 | ) | (1,441,092 | ) | (982,219 | ) | (2,158,531 | ) | ||||||||
| Income tax (benefit) expense | (13,803 | ) | 29,846 | (26,953 | ) | (11,096 | ) | |||||||||
| Net loss | (412,188 | ) | (1,470,938 | ) | (955,266 | ) | (2,147,435 | ) | ||||||||
| Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (328,422 | ) | (401,479 | ) | (922,756 | ) | (893,062 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (83,766 | ) | $ | (1,069,459 | ) | $ | (32,510 | ) | $ | (1,254,373 | ) | ||||
| Net loss per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | (0.37 | ) | $ | (4.92 | ) | $ | (0.15 | ) | $ | (5.81 | ) | ||||
| Diluted | $ | (0.37 | ) | $ | (4.92 | ) | $ | (0.15 | ) | $ | (5.81 | ) | ||||
| Weighted average shares used to compute net loss per share attributable to common stockholders | ||||||||||||||||
| Basic | 223,695 | 217,344 | 222,078 | 216,029 | ||||||||||||
| Diluted | 223,695 | 217,344 | 222,078 | 216,029 | ||||||||||||
| Consolidated Statements of Cash Flows (In Thousands) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net loss | $ | (412,188 | ) | $ | (1,470,938 | ) | $ | (955,266 | ) | $ | (2,147,435 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
| Depreciation and amortization, net of amortization of deferred grants | 155,528 | 138,756 | 458,533 | 388,645 | ||||||||||||
| Goodwill impairment | — | 1,158,000 | — | 1,158,000 | ||||||||||||
| Deferred income taxes | (13,803 | ) | 29,844 | (26,953 | ) | (11,093 | ) | |||||||||
| Stock-based compensation expense | 26,992 | 27,723 | 83,956 | 84,226 | ||||||||||||
| Interest on pass-through financing obligations | — | 4,886 | 8,837 | 14,642 | ||||||||||||
| Reduction in pass-through financing obligations | (1,599 | ) | (10,485 | ) | (20,787 | ) | (30,532 | ) | ||||||||
| Unrealized (loss) gain on derivatives | 73,870 | (74,390 | ) | 2,311 | (80,121 | ) | ||||||||||
| Other noncash items | 65,436 | 63,750 | 105,259 | 142,434 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (7,113 | ) | 22,688 | (20,715 | ) | 9,986 | ||||||||||
| Inventories | 10,777 | 129,939 | 117,398 | 122,103 | ||||||||||||
| Prepaid expenses and other assets | (199,993 | ) | (83,510 | ) | (470,617 | ) | (334,190 | ) | ||||||||
| Accounts payable | 45,217 | (36,439 | ) | 36,379 | (56,271 | ) | ||||||||||
| Accrued expenses and other liabilities | 68,707 | 24,023 | 76,406 | (24,487 | ) | |||||||||||
| Deferred revenue | 32,013 | 12,913 | 97,465 | 59,360 | ||||||||||||
| Net cash used in operating activities | (156,156 | ) | (63,240 | ) | (507,794 | ) | (704,733 | ) | ||||||||
| Investing activities: | ||||||||||||||||
| Payments for the costs of solar energy systems | (764,161 | ) | (736,781 | ) | (1,907,667 | ) | (1,935,721 | ) | ||||||||
| Purchases of property and equipment, net | (202 | ) | (4,666 | ) | (945 | ) | (16,298 | ) | ||||||||
| Net cash used in investing activities | (764,363 | ) | (741,447 | ) | (1,908,612 | ) | (1,952,019 | ) | ||||||||
| Financing activities: | ||||||||||||||||
| Proceeds from state tax credits, net of recapture | — | — | 5,203 | 4,033 | ||||||||||||
| Proceeds from line of credit | 161,824 | 295,014 | 305,556 | 651,398 | ||||||||||||
| Repayment of line of credit | (160,229 | ) | (359,572 | ) | (452,534 | ) | (639,308 | ) | ||||||||
| Proceeds from issuance of convertible senior notes, net of capped call transaction | — | — | 444,822 | — | ||||||||||||
| Repurchase of convertible senior notes | (45,562 | ) | — | (229,346 | ) | — | ||||||||||
| Proceeds from issuance of non-recourse debt | 749,700 | 1,724,370 | 3,364,956 | 3,189,480 | ||||||||||||
| Repayment of non-recourse debt | (238,489 | ) | (1,061,809 | ) | (1,692,214 | ) | (1,399,799 | ) | ||||||||
| Payment of debt fees | (10,723 | ) | (29,809 | ) | (93,747 | ) | (46,930 | ) | ||||||||
| Proceeds from pass-through financing and other obligations, net | 1,192 | 2,392 | 4,795 | 6,712 | ||||||||||||
| Early repayment of pass-through financing obligation | — | — | (240,288 | ) | — | |||||||||||
| Payment of finance lease obligations | (6,884 | ) | (6,035 | ) | (20,635 | ) | (16,795 | ) | ||||||||
| Contributions received from noncontrolling interests and redeemable noncontrolling interests | 494,569 | 355,002 | 1,290,486 | 1,112,541 | ||||||||||||
| Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (55,985 | ) | (52,192 | ) | (238,388 | ) | (173,536 | ) | ||||||||
| Acquisition of noncontrolling interests | (1,501 | ) | (32,090 | ) | (21,434 | ) | (46,274 | ) | ||||||||
| Proceeds from transfer of investment tax credits | 222,891 | — | 557,111 | — | ||||||||||||
| Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits | (222,891 | ) | — | (557,111 | ) | — | ||||||||||
| Net proceeds related to stock-based award activities | 976 | 283 | 11,953 | 14,152 | ||||||||||||
| Net cash provided by financing activities | 888,888 | 835,554 | 2,439,185 | 2,655,674 | ||||||||||||
| Net change in cash and restricted cash | (31,631 | ) | 30,867 | 22,779 | (1,078 | ) | ||||||||||
| Cash and restricted cash, beginning of period | 1,042,248 | 921,078 | 987,838 | 953,023 | ||||||||||||
| Cash and restricted cash, end of period | $ | 1,010,617 | $ | 951,945 | $ | 1,010,617 | $ | 951,945 | ||||||||
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 September 30, 2024 | ||
| Customer Additions | 31,910 | ||
| Subscriber Additions (included within Customer Additions) | 30,348 | ||
| Solar Energy Capacity Installed (in Megawatts) | 229.7 | ||
| Solar Energy Capacity Installed for Subscribers (in Megawatts) | 220.7 | ||
| Storage Capacity Installed (in Megawatt hours) | 336.3 | ||
| In-period value creation metrics: | Three Months Ended September 30, 2024 | ||
| Subscriber Value Contracted Period | $ | 47,557 | |
| Subscriber Value Renewal Period | $ | 3,666 | |
| Subscriber Value | $ | 51,223 | |
| Creation Cost | $ | 36,591 | |
| Net Subscriber Value | $ | 14,632 | |
| Total Value Generated (in millions) | $ | 444.1 | |
| In-period environmental impact metrics: | Three Months Ended September 30, 2024 | ||
| Positive Environmental Impact from Customers (over trailing twelve months, in millions of metric tons of CO2 avoidance) | 4.1 | ||
| Positive Expected Lifetime Environmental Impact from Customer Additions (in millions of metric tons of CO2 avoidance) | 4.7 | ||
| Period-end metrics: | September 30, 2024 | ||
| Customers | 1,015,910 | ||
| Subscribers (subset of Customers) | 858,477 | ||
| Households Served in Low-Income Multifamily Properties | 19,321 | ||
| Networked Solar Energy Capacity (in Megawatts) | 7,288 | ||
| Networked Solar Energy Capacity for Subscribers (in Megawatts) | 6,204 | ||
| Networked Storage Capacity (in Megawatt hours) | 2,133 | ||
| Annual Recurring Revenue (in millions) | $ | 1,517 | |
| Average Contract Life Remaining (in years) | 17.6 | ||
| Gross Earning Assets Contracted Period (in millions) | $ | 12,964 | |
| Gross Earning Assets Renewal Period (in millions) | $ | 3,815 | |
| Gross Earning Assets (in millions) | $ | 16,780 | |
| Net Earning Assets (in millions) | $ | 6,231 | |
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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