Sunrun (NASDAQ:RUN) Posts Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Sunrun (NASDAQ:RUN) announced its earnings results on Wednesday. The energy company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.19, FiscalAI reports. The company had revenue of $869.99 million for the quarter, compared to the consensus estimate of $746.87 million. Sunrun had a net margin of 17.88% and a return on equity of 14.06%. The company’s revenue was up 52.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.07 EPS.

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

• Storage demand reached a record, with a 74% storage attachment rate and more than 15,500 battery systems installed in Q2. Sunrun’s network now exceeds 4.6 GWh of installed storage capacity, supporting its strategy as a residential distributed power provider.
• Sunrun is shifting toward its higher-margin direct sales channel, where Q2 volume rose more than 20% sequentially and monthly sales growth exceeded 10% year over year in June and July. Management expects direct installation growth above 10% in the second half, though the sales-force ramp remains in progress.
• The company reduced full-year 2026 cash-generation guidance to $200 million-$375 million from $250 million-$450 million and lowered Aggregate Subscriber Value guidance to $4.6 billion-$4.9 billion. The revisions reflect weaker affiliate volumes, the bankruptcy of Freedom Forever, slower direct-sales ramp-up costs, and higher interest rates.
• Sunrun expects its distributed power plant fleet to generate approximately $40 million of GAAP gross revenue and more than $10 million of operating margin in 2026, with substantial future growth opportunities through utilities, energy markets, retail providers, and hyperscalers.
• Capital-market access remained constructive, including a $267 million securitization priced at a 200-basis-point spread, 20 basis points better than the prior transaction. Management also reported approximately $1.5 billion of non-recourse asset-level debt financing raised year to date and expects additional securitizations in the second half.

Sunrun Stock Performance

NASDAQ:RUN traded down $1.05 during midday trading on Thursday, reaching $9.44. The stock had a trading volume of 17,462,288 shares, compared to its average volume of 9,724,864. The stock has a market capitalization of $2.25 billion, a P/E ratio of 4.43 and a beta of 2.35. Sunrun has a 1-year low of $8.61 and a 1-year high of $22.44. The company has a debt-to-equity ratio of 3.44, a current ratio of 1.45 and a quick ratio of 1.09. The firm’s fifty day simple moving average is $12.53 and its 200-day simple moving average is $14.21.

Sunrun News Roundup

Here are the key news stories impacting Sunrun this week:

• Positive Sentiment: Sunrun reported second-quarter revenue of approximately $870 million, up 52.8% year over year, while adjusted earnings of $0.42 per share exceeded analyst expectations. Sunrun Q2 earnings and revenues beat estimates
• Positive Sentiment: Storage momentum remained strong: the battery-storage attachment rate reached a record 74%, networked storage capacity increased to 4.6 gigawatt-hours, and management expects to exit 2026 with more than 10% growth while targeting over 10 gigawatt-hours by the end of 2028. Sunrun growth and storage targets
• Positive Sentiment: Sunrun also priced a $267 million securitization of residential solar and storage assets, supporting liquidity and its asset-financing model. Sunrun prices securitization
• Neutral Sentiment: Goldman Sachs and TD Cowen maintained “buy” ratings, but lowered their price targets to $15 and $16, respectively, reflecting continued analyst confidence alongside more cautious expectations.
• Negative Sentiment: Management reduced 2026 cash-generation guidance to $200 million-$375 million. Second-quarter operating cash flow was negative $186 million, raising concerns about near-term cash needs and execution.
• Negative Sentiment: Although earnings beat estimates, quarterly EPS fell from $1.07 a year earlier. The guidance reduction and target cuts overshadowed the strong sales and storage figures, driving the negative market reaction. Sunrun shares fall as guidance cut offsets Q2 earnings beat

Insider Activity

In other Sunrun news, insider Jeanna Steele sold 9,897 shares of the company’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $13.19, for a total transaction of $130,541.43. Following the completion of the sale, the insider directly owned 461,715 shares in the company, valued at $6,090,020.85. This represents a 2.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Mary Powell sold 23,985 shares of the firm’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $13.19, for a total value of $316,362.15. Following the completion of the sale, the chief executive officer directly owned 1,111,535 shares in the company, valued at approximately $14,661,146.65. This represents a 2.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 223,045 shares of company stock worth $2,934,835. Insiders own 3.55% of the company’s stock.

Institutional Investors Weigh In On Sunrun

Hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada boosted its holdings in Sunrun by 5.1% in the 1st quarter. Royal Bank of Canada now owns 626,536 shares of the energy company’s stock valued at $3,672,000 after purchasing an additional 30,175 shares during the period. Integrated Wealth Concepts LLC lifted its stake in shares of Sunrun by 47.8% in the first quarter. Integrated Wealth Concepts LLC now owns 32,767 shares of the energy company’s stock valued at $192,000 after buying an additional 10,598 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Sunrun by 2.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 238,360 shares of the energy company’s stock worth $1,397,000 after buying an additional 5,882 shares in the last quarter. Jones Financial Companies Lllp grew its position in Sunrun by 511.0% during the first quarter. Jones Financial Companies Lllp now owns 27,026 shares of the energy company’s stock worth $158,000 after buying an additional 22,603 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in Sunrun by 45.3% during the first quarter. Goldman Sachs Group Inc. now owns 2,306,808 shares of the energy company’s stock valued at $13,518,000 after acquiring an additional 718,955 shares during the period. Institutional investors and hedge funds own 91.69% of the company’s stock.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Barclays dropped their price objective on shares of Sunrun from $23.00 to $14.00 and set an “equal weight” rating on the stock in a research note on Tuesday, April 21st. Mizuho set a $18.00 price target on Sunrun in a research note on Thursday. Wall Street Zen downgraded Sunrun from a “hold” rating to a “sell” rating in a report on Saturday, April 25th. Royal Bank Of Canada reduced their target price on shares of Sunrun from $18.00 to $14.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, TD Cowen cut their price target on shares of Sunrun from $21.00 to $16.00 and set a “buy” rating on the stock in a report on Thursday. Twelve research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Sunrun currently has an average rating of “Hold” and a consensus price target of $17.42.

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.