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Sunrun Q1 2025 Earnings Report
Sunrun reported strong first quarter 2025 financial results, exceeding volume and Cash Generation targets, driven by increased storage attachment rates and continued capital markets execution.
Key Takeaways
Sunrun delivered a strong first quarter, surpassing volume and Cash Generation targets. The company reported a net income of $50.0 million and an EPS of $0.22. Key drivers included a record 69% storage attachment rate and successful securitization activities, contributing to positive Cash Generation for the fourth consecutive quarter.
Aggregate Subscriber Value grew 23% year-over-year to $1.2 billion in Q1 2025.
Contracted Net Value Creation increased 104% year-over-year to $164 million, or $0.72 per share.
Cash Generation was positive for the fourth consecutive quarter at $56 million, with $27 million of recourse debt paid down.
Storage Attachment Rate reached a record 69% in Q1, with customer additions with storage growing 46% compared to the prior year.
Sunrun
Sunrun
Sunrun Revenue by Segment
Revenue by Segment
Customer Agreements and Incentives Revenue
CapyFin.comSolar Energy Systems and Product Sales Revenue
CapyFin.com Forward Guidance
Sunrun expects continued growth in Aggregate Subscriber Value and Contracted Net Value Creation for Q2 2025 and the full year 2025, while maintaining positive Cash Generation.
Positive Outlook
- Aggregate Subscriber Value for Q2 2025 is expected to be in the range of $1.3 billion to $1.375 billion, representing 21% growth compared to Q2 2024 at the midpoint.
- Contracted Net Value Creation for Q2 2025 is expected to be in the range of $125 million to $200 million, representing 80% growth compared to Q2 2024 at the midpoint.
- Cash Generation for Q2 2025 is expected to be in the range of $50 million to $60 million.
- Full-year 2025 Aggregate Subscriber Value is expected to be in the range of $5.7 billion to $6.0 billion, representing 14% growth compared to full-year 2024 at the midpoint.
- Full-year 2025 Cash Generation guidance remains unchanged at $200 million to $500 million.
Challenges Ahead
- The company acknowledges a dynamic environment for tax policy and tariffs, which may impact future results.
- The higher spread on the March 2025 securitization (225 basis points) compared to January 2025 (197 basis points) indicates overall market movements in credit spreads.
- The increasing mix of Subscribers results in less upfront revenue recognition, as revenue is recognized over the life of the Customer Agreement, typically 20 or 25 years.
- While the tariff outlook is considered manageable, potential changes could still affect operations.
- The company continues to monitor and adapt to external factors that may influence its financial performance.