Sunrun — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $1,099.5 million, a 52% increase from $724.6 million in Q3 2025.
• Customer agreements and incentives revenue was $553.5 million, up 13% year-over-year.
• Energy systems and product sales revenue was $546.0 million, up 134% year-over-year.
• Total cost of revenue was $629.9 million, a 31% increase from the prior year period.
• Total operating expenses were $946.0 million, a 31% increase from the prior year period.
• Net income attributable to common stockholders was $153.2 million, or $0.64 per basic share and $0.56 per diluted share.
• Net cash provided by operating activities was $301 million in Q3 2026, compared to net cash used of $121.5 million in Q3 2025.
• Net cash used in investing activities was $420 million, a 44% decrease from the prior year period.
• Contracted Net Earning Assets were $3.7 billion as of September 30, 2026, including $1.1 billion in total cash.
• Cash Generation was $6 million in Q3 2026; excluding $50 million in net investments in equipment safe harbor, Cash Generation was $56 million.

Guidance and Future Outlook:

• Full-year 2026 Aggregate Subscriber Value guidance is revised to approximately $4.6 billion, down from the prior range of $4.6 billion to $4.9 billion.
• Full-year 2026 Cash Generation guidance is revised to approximately $200 million, excluding investments related to equipment safe harboring, down from the prior range of $200 million to $375 million.
• Management expects higher Cash Generation in Q4 2026.
• Sunrun aims to monetize its network through distributed power plant programs and emerging data center and grid edge applications.

Business Segments and Product Lines:

• Direct business installations increased 9% year-over-year in Q3 2026.
• Storage Attachment Rate reached a record 75% in Q3 2026, up from 70% in the prior-year period.
• Networked Storage Capacity reached 5.0 Gigawatt-hours as of September 30, 2026.
• Subscriber Additions were 22,957 in Q3 2026, a 24% decrease from Q3 2025.
• Total subscribers reached 1,057,695 as of September 30, 2026, a 9% increase from September 30, 2025.
• Storage Capacity Installed was 374 megawatt hours in Q3 2026, a 9% decrease from Q3 2025.
• Solar Capacity Installed was 204 megawatts in Q3 2026, a 15% decrease from Q3 2025.
• Subscriber Value was $55,342 in Q3 2026, a 6% increase from Q3 2025.
• Contracted Subscriber Value was $52,525 in Q3 2026, an 8% increase from Q3 2025.
• Net Subscriber Value was $9,462 in Q3 2026, a 28% decrease from $13,205 in Q3 2025.
• Aggregate Subscriber Value was $1.3 billion in Q3 2026, a 20% decrease from Q3 2025.
• Upfront Net Subscriber Value margin increased considerably in Q3 2026.

Market and Competitive Landscape:

• Sunrun participated in three consecutive record-setting residential distributed power plant dispatch events in September and October 2026.
• In September, Sunrun contributed 320+ MW (56%) to a 580 MW dispatch event, the largest in history.
• On October 5, 2026, Sunrun contributed 400+ MW (61%) to a 669 MW dispatch event.
• On October 6, 2026, Sunrun contributed 430+ MW (58%) to a 745 MW dispatch event.
• Sunrun was awarded the exclusive 2026 Preferred Partner Award and Platinum Solar Award by BestCompany.com for the third consecutive year for the Platinum Solar Award and second consecutive year for the Preferred Partner Award.

Risks and Challenges:

• The press release notes risks related to managing costs, competition, financing availability, economic conditions, interest rates, and regulatory changes including net metering and interconnection limits.
• Risks include supply chain dependencies, workforce shortages, and potential changes in retail electricity prices or tax credit availability.
• Specific risks mentioned include the possibility of IRS determinations regarding the creditable basis of energy systems and compliance with data privacy regulations.

Management Commentary and Tone:

• Mary Powell, CEO, stated that Sunrun has returned its direct business to growth and hit a 75% storage attachment rate, the highest in the company's history.
• Management emphasized a focus on customer experience, asset quality, and scaling deliberately.
• Danny Abajian, CFO, described Q3 as an important inflection point with expanded Upfront Net Subscriber Value margins and delivered $56 million in Cash Generation (excluding safe harbor investments).
• Management expressed confidence in unlocking new monetization streams from the existing network.

Other Key Points:

• The discount rate used for Subscriber Value calculations in Q3 2026 was 8.4%, compared to 7.3% in the prior year period.
• The average Investment Tax Credit (ITC) reflected in Subscriber Value was 43.4% in Q3 2026, compared to 42.4% in the prior year period.
• Creation Costs Reflected in Operating Expenses were $610 million in Q3 2026, a 100% increase from Q3 2025.
• Creation Costs Reflected in Capital Expenditures were $444 million in Q3 2026, a 49% decrease from Q3 2025.
• A transaction in Q3 2025 involved selling certain storage and energy systems subject to newly originated Customer Agreements to a third party, while Sunrun maintained customer experience and servicing relationships.
• Sunrun hosted a conference call for analysts and investors on November 4, 2026, to discuss results and outlook.