Sunrun Inc. reported fourth‑quarter 2025 results, posting revenue of $1.1588 billion, up 124% year‑over‑year, and earnings per share of $0.38, a $0.46 beat over the consensus estimate of –$0.08. The earnings beat was driven by disciplined cost control and a favorable mix shift toward higher‑margin storage‑first contracts, which also lifted the company’s storage attachment rate to a record 71%.
Cash generation was a key highlight, with the company generating $187 million in cash during the quarter and projecting 2026 cash generation of $250 million to $450 million. The strong cash flow reflects the company’s ability to convert its growing revenue base into free cash, a critical metric for a capital‑intensive solar and storage business.
While revenue surged, Sunrun’s net subscriber value fell 30% year‑over‑year to $9,098 million, down from $12,927 million in Q4 2024. Management attributed the decline to higher creation costs and a shift in the financing mix toward asset sales, which reduced the upfront value captured per subscriber.
Subscriber additions slowed 17% year‑over‑year to 25,000 in Q4, a result of the company’s deliberate pivot to a margin‑focused direct‑sales model that reduces affiliate volume. Despite the slowdown, the company added 108,000 subscribers in 2025, roughly flat versus the prior year, and increased its storage attachment rate by 9 percentage points, adding 26% more storage capacity.
Management emphasized the company’s “storage‑first” strategy as a driver of long‑term growth. CEO Mary Powell said the strategy “protects American families from rising utility costs and an increasingly unreliable power grid” and that Sunrun is building a distributed power plant that is “critical in meeting the nation’s urgent demand for more power.” CFO Danny Abajian highlighted that Sunrun is on track to exceed the midpoint of its 2026 cash‑generation guidance and that disciplined margin management has lifted the full‑year margin to 7%, a 6‑percentage‑point improvement over the prior year.
Analysts noted the strong earnings beat but tempered enthusiasm with concerns about subscriber growth and net subscriber value. The mixed market reaction— a 4.45% gain during regular hours followed by a 1.69% decline after hours— reflects investor focus on the company’s strategic shift and the headwinds of higher creation costs.
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