10-Q · May 6, 2026
Sunrun's Q1 2026 results showed revenue of $722.2 million, significantly exceeding expectations of $645.9 million and up 43% year-over-year. EPS of $0.62 marked a positive surprise against a loss expectation of $0.05,…
Earnings analysis · 10-Q
RUN earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Sunrun delivered a strong third quarter financially: revenue increased 52% year over year to $1.099 billion, diluted EPS rose to $0.56, and operating margin expanded to approximately 14.0% from 0.5%. Growth was led by…
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Sunrun delivered a strong third quarter financially: revenue increased 52% year over year to $1.099 billion, diluted EPS rose to $0.56, and operating margin expanded to approximately 14.0% from 0.5%. Growth was led by energy-system sales to third-party investors and a joint venture, while subscriber additions and Aggregate Contracted Subscriber Value declined to 22,957 and $1.206 billion, respectively. Operating cash flow improved to $125.8 million year to date, but the business remains highly capital intensive, leveraged and exposed to tax-credit, tariff and California policy changes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.56
What stood out
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Revenue Growth Accelerated
Third-quarter revenue rose 52% year over year to $1.099 billion from $724.6 million. Energy systems revenue increased 212% to $513.6 million, primarily reflecting third-party investor and joint-venture system sales.
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Margins Expanded Sharply
Gross margin was approximately 42.7%, versus 33.6% in the comparable prior-year quarter, while operating margin improved to approximately 14.0% from 0.5%. Management attributed cost-ratio improvement to customer pricing increases catching up to costs and higher-margin system sales.
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EPS Improved Materially
Diluted EPS increased to $0.56 from $0.06 in the prior-year quarter. Net income attributable to common stockholders was $153.2 million, compared with $16.6 million in the prior-year period.
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Operating Cash Flow Turned Positive
Operating cash flow was $125.8 million for the first nine months of 2026, versus usage of $518.4 million in the prior-year period. The improvement was driven primarily by energy-system sales, although working-capital changes consumed $131.8 million.
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Fleet and Asset Base Expanded
The customer base increased to 1,229,709 as of September 30, 2026, from 1,137,913 a year earlier, while Networked Solar Capacity rose to 8,936 MW from 8,188 MW. Gross Earning Assets increased to $22.4 billion from $20.9 billion.
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Liquidity Supports Near-Term Needs
Cash was $699.4 million at September 30, 2026, and the company had approximately $1.6 billion of committed and available capital restricted to purchasing and installing energy systems. Management stated that liquidity should cover anticipated cash needs for at least the next 12 months.
What to watch
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New Subscriber Economics Weakened
Subscriber additions fell to 22,957 from 30,104 in the comparable quarter, while Aggregate Contracted Subscriber Value declined to $1.206 billion from $1.460 billion. This indicates weaker new-customer volume and contracted value despite reported revenue growth.
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Capital Intensity Remains High
The company used $1.3 billion in investing cash during the first nine months of 2026, primarily for designing, acquiring and installing energy systems, compared with $2.1 billion in the prior-year period. Free cash flow is not disclosed, and the capital-intensive model remains dependent on external financing.
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Higher Interest Burden
Net interest expense increased 9% year over year to $804.4 million for the first nine months, primarily due to additional non-recourse debt. The company had $135.1 million drawn on a $321.4 million credit facility at September 30, 2026.
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Tax-Credit and PFE Uncertainty
The OBBB shortened solar 48E credit eligibility: solar facilities beginning construction after July 4, 2026 must be placed in service by December 31, 2027, while new Prohibited Foreign Entity restrictions may increase costs or restrict credits. The Treasury Department has a statutory deadline to issue proposed PFE regulations by December 31, 2026.
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Tariffs Threaten Equipment Costs
New tariff measures establish a 15% tariff on certain polysilicon derivatives effective December 4, 2026, while some anti-dumping and countervailing duty rates on imported solar cells and modules have exceeded 3,400%. These measures could increase equipment costs and disrupt supply.
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California Concentration and Policy Risk
California represented over 45% of the customer base as of September 30, 2026. The California solar property-tax exclusion is scheduled to sunset on January 1, 2027, and the customer exemption from Utility Users Tax is scheduled to expire at the end of 2026, potentially reducing offering attractiveness and shifting customers from PPAs to leases.
Management's outlook
The 10-Q provides no numeric revenue or EPS guidance and does not state a change to the prior company outlook. Management said it anticipates raising additional capital and believes cash, fund commitments and available borrowings will meet anticipated cash needs for at least the next 12 months; committed and available capital was approximately $1.6 billion as of September 30, 2026.
Earlier filings 4
10-K · February 26, 2026
Sunrun positions itself as “the nation’s leading provider of clean energy as a subscription service,” operating the largest U.S. residential fleet with Networked Solar Energy Capacity of 8,404 megawatts and Gross…
10-Q · August 6, 2025
Sunrun reported Q2 revenue of $569,336,000 (three months ended June 30, 2025), up from $523,866,000 in Q2 2024, with diluted EPS of $1.07 versus $0.55 a year earlier. Gross margin improved to ~21.0% and operating loss…
10-Q · November 7, 2024
Sunrun reported Q3 revenue of $537,173,000 and a net loss attributable to common stockholders of $83,766,000 (diluted EPS $(0.37)). Gross profit was $103,479,000 (≈19.3% of revenue) and loss from operations narrowed to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.