Sunrun (NASDAQ:RUN) Releases Earnings Results, Beats Estimates By $0.46 EPS

Sunrun (NASDAQ:RUN) posted its quarterly earnings results on Thursday. The energy company reported $0.38 EPS for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.46, Zacks reports. Sunrun had a positive return on equity of 19.34% and a negative net margin of 106.50%.The business had revenue of $1.16 billion during the quarter, compared to the consensus estimate of $610.29 million. During the same quarter in the previous year, the firm earned $1.41 earnings per share. Sunrun’s revenue for the quarter was up 123.5% compared to the same quarter last year.

Here are the key takeaways from Sunrun’s conference call:

• Sunrun generated $377 million of cash in 2025 (Q4 cash generation $187M), paid down about $150M of parent recourse debt, and guides to $250M–$450M Cash Generation for 2026 while planning to repay >$100M of parent recourse debt and get below a 2x recourse leverage target.
• Management materially shifted its financing mix—roughly 51% of Q4 subscriber additions were monetized via asset-sale structures—and closed a JV with Hannon Armstrong that can invest up to $500M to finance ~300 MW across >40,000 homes, improving upfront proceeds and GAAP clarity but reducing certain non‑GAAP value metrics.
• The company is focused on a “storage-first” strategy, increasing its storage attachment rate to 71%, growing storage capacity ~26%, operating over 4 GWh of dispatchable energy and participating in programs that delivered 425 MW of peak capacity and new grid‑dispatch revenue streams.
• Sunrun will cut affiliate channel volumes by over 40% and tightened direct route activity led to expected slight overall volume declines, contributing to lower Aggregate Subscriber Value and Contracted Net Value Creation guidance for 2026 (Aggregate Subscriber Value guidance $4.8B–$5.2B, Contracted Net Value Creation $650M–$1.05B).

Sunrun Trading Down 37.8%

Shares of NASDAQ:RUN traded down $7.73 during mid-day trading on Friday, reaching $12.69. 36,993,573 shares of the company’s stock were exchanged, compared to its average volume of 8,825,614. The company has a debt-to-equity ratio of 3.67, a quick ratio of 1.06 and a current ratio of 1.46. Sunrun has a twelve month low of $5.38 and a twelve month high of $22.44. The firm has a market capitalization of $2.95 billion, a price-to-earnings ratio of -1.14 and a beta of 2.36. The business’s fifty day moving average price is $19.22 and its 200-day moving average price is $18.29.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on RUN. Weiss Ratings reissued a “sell (d-)” rating on shares of Sunrun in a research note on Thursday, January 22nd. TD Cowen raised their target price on Sunrun from $22.00 to $23.00 and gave the company a “buy” rating in a report on Friday, November 7th. Jefferies Financial Group reiterated a “hold” rating and issued a $22.00 price target on shares of Sunrun in a research note on Friday. Deutsche Bank Aktiengesellschaft set a $19.00 price objective on Sunrun in a research note on Wednesday, January 7th. Finally, Oppenheimer lifted their target price on Sunrun from $23.00 to $25.00 and gave the company an “outperform” rating in a research report on Friday. Twelve research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Sunrun presently has an average rating of “Hold” and an average target price of $20.09.

Sunrun News Summary

Here are the key news stories impacting Sunrun this week:

• Positive Sentiment: Q4 beat and strong revenue: Sunrun reported $0.38 GAAP EPS vs. a consensus loss and revenue of $1.16B (up ~124% YoY), surprising the street and showing improving cash generation. This is a primary positive driver. Q4 Results
• Positive Sentiment: Better cash outlook and balance‑sheet progress: Sunrun disclosed strong 2025 cash generation (~$377M), positive 2026 cash generation guidance ($250M–$450M) and used excess cash to pay down recourse debt — supportive for credit concerns and valuation. Cash / Press Release
• Positive Sentiment: Zacks upgrade to Strong Buy and other bullish analyst moves: Zacks added RUN to its Rank #1 list and Oppenheimer raised its price target to $25 (outperform), signaling upside expectations from some institutional analysts. These endorsements can attract buying interest. Zacks Upgrade Oppenheimer Note
• Neutral Sentiment: Strategic pivot to margin focus: Management outlined a shift toward higher‑margin, direct business growth (high single- to low double‑digits for 2026). That supports profitability but may temper near‑term top‑line growth expectations. Strategy Pivot
• Neutral Sentiment: Mixed analyst stance overall: Jefferies reaffirmed a hold with a $22 target while other shops remain bullish — the split increases volatility as investors parse which view is right. Jefferies Note
• Negative Sentiment: Sell‑side skepticism persists: GLJ (and some others) reaffirmed sell ratings, and some sell‑side forecasts still expect negative FY EPS — a reminder of lingering profitability and policy risk that can pressure the stock. GLJ / TickerReport
• Negative Sentiment: Policy, cost and margin noise: Management noted rising costs and evolving market dynamics; the company still shows a negative net margin in reported metrics, and leverage remains elevated — factors that make investors cautious despite the beat. Earnings Call Highlights

Insider Buying and Selling at Sunrun

In other news, Director Edward Harris Fenster sold 163,844 shares of the firm’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $19.95, for a total transaction of $3,268,687.80. Following the completion of the transaction, the director directly owned 1,578,895 shares in the company, valued at $31,498,955.25. This trade represents a 9.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lynn Michelle Jurich sold 50,000 shares of Sunrun stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $19.57, for a total value of $978,500.00. Following the completion of the transaction, the director directly owned 751,626 shares in the company, valued at approximately $14,709,320.82. This represents a 6.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 518,800 shares of company stock worth $9,903,520 over the last 90 days. Company insiders own 3.37% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Voloridge Investment Management LLC bought a new stake in Sunrun in the third quarter valued at $40,193,000. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Sunrun in the 3rd quarter valued at about $21,427,000. Invesco Ltd. grew its stake in shares of Sunrun by 26.6% in the 4th quarter. Invesco Ltd. now owns 5,868,199 shares of the energy company’s stock valued at $107,975,000 after buying an additional 1,231,628 shares during the period. HRT Financial LP bought a new stake in Sunrun in the 2nd quarter valued at about $9,416,000. Finally, Deutsche Bank AG raised its stake in Sunrun by 61.7% during the 4th quarter. Deutsche Bank AG now owns 2,470,663 shares of the energy company’s stock worth $45,460,000 after buying an additional 942,454 shares during the period. 91.69% of the stock is owned by institutional investors.

About Sunrun

Sunrun, Inc (NASDAQ: RUN) is a leading provider of residential solar energy systems in the United States. The company designs, installs and maintains rooftop solar panels and battery storage solutions for homeowners under flexible financing arrangements. Customers can choose from leasing, power purchase agreements or solar ownership models, all of which are supported by Sunrun’s network of installation partners and service technicians. Sunrun also offers integrated home energy management services, including its Brightbox battery storage product, which enables customers to store solar energy for use during peak hours or power outages.

Founded in 2007 by Lynn Jurich, Ed Fenster and Nat Kreamer, Sunrun is headquartered in San Francisco, California.