Nasdaq:RUN
Sunrun Inc.
A leading U.S. residential solar provider generating power for homeowners via rooftop systems and community solar projects with integrated energy storage.
Key Metrics
Investment Thesis
Bull Case
Sunrun offers exposure to the accelerating U.S. residential solar market which is projected to grow significantly as inflation drives homeownership costs up and federal renewable energy incentives remain supportive. The company's transition toward integrated storage solutions positions it well for future grid modernization projects, potentially converting current cash burn into long-term recurring revenue once systems reach maturity.
Bear Case
Persistent negative net income of -$1.01B and operating profit of -$126.1M raise concerns about the company's ability to achieve sustainable profitability without massive debt issuance or equity dilution. High levels of current liabilities at $1.30B against limited cash reserves create refinancing risk if credit markets tighten, while the lack of positive operating cash flow suggests heavy reliance on external capital to sustain operations.
About Sunrun Inc.
Sunrun Inc. (RUN) is a leading residential solar energy provider operating primarily across the United States, offering end-to-end solar solutions including system installation, energy storage integration, and Power Purchase Agreements (PPAs). The company serves homeowners seeking to reduce utility bills and increase property value through clean energy adoption, leveraging its proprietary technology and extensive installer network. With total revenue of $2.96B in the latest fiscal year, Sunrun balances rapid asset expansion against significant operational cash flow challenges typical of capital-intensive utility-scale projects.
Analysis
Management Discussion
Despite a recent revenue increase to $2.96B in the latest period, the company reported a net loss of $1.01B, indicating ongoing pressure from high depreciation costs of $677.7M and operating expenses of $3.08B. However, positive cash flow from financing activities of $3.21B suggests aggressive capital raising to fund growth, while operating cash flow remains negative at -$421.4M, highlighting the typical burn rate associated with scaling a capital-heavy infrastructure business.
Industry Overview
The U.S. residential solar industry is experiencing rapid growth driven by rising electricity costs and strong consumer demand for clean energy, yet it remains highly competitive with low barriers to entry for new installers. Regulatory uncertainty surrounding net metering policies and potential changes to the Investment Tax Credit create a volatile operating environment that can impact project economics significantly.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.32B | $2.26B | $2.04B | $2.96B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $2.32B | $2.26B | $2.04B | $2.96B |
| Operating Expenses | $2.98B | $4.24B | $5.73B | $3.08B |
| Operating Income | $-662.2M | $-1.98B | $-3.70B | $-126.1M |
| R&D | $20.9M | $21.8M | $39.3M | $36.1M |
| G&A | $189.2M | $221.1M | $245.1M | $278.0M |
| Marketing | $745.4M | $740.8M | $617.2M | $709.3M |
| Stock-Based Comp | $110.6M | $111.8M | $112.8M | $108.0M |
| D&A | $27.2M | $31.9M | $44.1M | $38.3M |
| Depreciation | $426.7M | $500.6M | $584.6M | $677.7M |
| Amortization | $5.4M | — | — | — |
| Other OpEx | $2.03B | $3.25B | $4.83B | $2.06B |
| Non-Operating Income | $-185.2M | $-716.9M | $-686.8M | $-1.05B |
| Pre-Tax Income | $-847.4M | $-2.70B | $-4.38B | $-1.18B |
| Income Tax | $2.3M | $-12.7M | $-26.8M | $-167.2M |
| Continuing Ops | $-849.6M | $-2.68B | $-4.36B | $-1.01B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-849.6M | $-2.68B | $-4.36B | $-1.01B |
| Minority Interest | $-1.02B | $-1.08B | $-1.51B | $-1.46B |
| Net to Common | $173.4M | $-1.60B | $-2.85B | $449.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.10B | $1.88B | $1.72B | $2.16B |
| Accounts Receivable | $214.3M | $172.0M | $170.7M | $262.6M |
| Inventory | $783.9M | $459.7M | $402.1M | $501.3M |
| Prepaid Expenses | $146.6M | $262.8M | $202.6M | $155.2M |
| Other Current Assets | $952.9M | $987.7M | $947.3M | $1.24B |
| Long-Term Assets | $17.17B | $18.57B | $18.18B | $20.45B |
| Goodwill | $4.28B | $3.12B | $0 | $0 |
| Operating Leases | $104.8M | $91.6M | $76.8M | $62.8M |
| Other LT Assets | $12.60B | $15.22B | $18.02B | $20.31B |
| Total Assets | $19.27B | $20.45B | $19.90B | $22.61B |
| Current Liabilities | $1.16B | $1.49B | $1.33B | $1.30B |
| Accounts Payable | $339.2M | $230.7M | $354.2M | $271.0M |
| Current Leases | $31.3M | $29.6M | $28.8M | $25.3M |
| Deferred Revenue | $183.7M | $128.6M | $129.4M | $162.8M |
| Other Current Liab | $601.3M | $1.10B | $822.0M | $843.4M |
| Long-Term Liabilities | $9.93B | $12.05B | $14.40B | $16.32B |
| Other LT Liab | $9.02B | $10.98B | $13.19B | $14.97B |
| Total Liabilities | $11.09B | $13.54B | $15.73B | $17.63B |
| Shareholders' Equity | $8.18B | $6.91B | $4.16B | $4.98B |
| Paid-In Capital | $6.47B | $6.61B | $6.75B | $6.90B |
| Retained Earnings | $170.8M | $-1.43B | $-4.28B | $-3.83B |
| AOCI | $67.1M | $54.7M | $86.8M | $63.1M |
| Total L&E | $19.27B | $20.45B | $19.90B | $22.61B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-849.6M | $-2.68B | $-4.36B | $-1.01B |
| Non-Cash Adjustments | $-1.07B | $1.78B | $2.45B | $-635.9M |
| Working Capital Changes | $1.07B | $78.2M | $1.14B | $1.22B |
| Cash from Operations | $-848.8M | $-820.7M | $-766.2M | $-421.4M |
| Capital Expenditures | $18.2M | $21.0M | $1.6M | — |
| Cash from Investing | $-2.09B | $-2.61B | $-2.70B | $-2.50B |
| Cash from Financing | $3.04B | $3.47B | $3.43B | $3.21B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $102.6M | $34.8M | $-40.4M | $289.6M |
| Beginning Cash | $850.4M | $953.0M | $987.8M | $947.4M |
| Ending Cash | $953.0M | $987.8M | $947.4M | $1.24B |
Frequently Asked Questions
How does Sunrun Inc. make money?
Residential Solar Services (core revenue from system sales and PPAs), Commercial & Industrial Projects, Energy Storage Solutions, and Ancillary Revenue streams including virtual power plant participation and carbon credit generation.
What are the main risks for RUN?
Regulatory headwinds from potential federal tax credit expirations or state-level net metering policy changes, high interest rate environments increasing project financing costs and customer sensitivity to monthly payments, operational cash flow volatility due to capital-intensive expansion cycles, and supply chain disruptions affecting panel and battery component availability.
What is RUN's competitive advantage?
Extensive proprietary installer network allowing rapid deployment of residential solar systems, advanced proprietary battery storage technology enabling grid resilience, and a diversified customer base reducing reliance on any single utility jurisdiction.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.