Sunrun Inc (NASDAQ:RUN) Surges 15% After Blowout Q2 2025 Earnings and Revenue Beat

Sunrun Inc (NASDAQ:RUN) reported second-quarter 2025 financial results that significantly exceeded analyst expectations, triggering a sharp positive market reaction. The stock surged 15.4% in after-hours trading following the earnings release, reflecting investor optimism about the company's improved profitability and strong operational performance.

Earnings and Revenue Beat

• Revenue: $569.3 million, up 8.7% year-over-year, surpassing the consensus estimate of $559.96 million.
• EPS: $1.07 per share (GAAP), a substantial beat compared to the estimated loss of -$0.22 per share.

The strong revenue growth was driven by higher customer additions and increased storage attachment rates, while the swing to profitability from an expected loss suggests improved cost management and operational efficiency.

Key Highlights from the Press Release

• Storage Attachment Rate: Reached a record 70%, up from 54% in the prior-year period, indicating strong demand for Sunrun’s solar-plus-storage solutions.
• Subscriber Growth: Subscriber additions rose 15% year-over-year to 28,823, bringing total subscribers to 941,701.
• Contracted Net Value Creation: $376 million, or $1.64 per share, up 316% year-over-year, reflecting higher margins and cost efficiencies.
• Cash Generation: Fifth consecutive quarter of positive cash generation at $27 million, with full-year guidance maintained at $200 million to $500 million.
• Debt Reduction: $21 million in recourse debt was repaid in Q2, part of a broader effort to strengthen the balance sheet.

Market Reaction and Outlook

The market’s bullish response aligns with the company’s improved financial health and execution. Sunrun’s upward revision of its full-year Contracted Net Value Creation guidance—now expected between $1.0 billion and $1.3 billion, up from $650 million to $850 million—signals confidence in continued margin expansion and operational efficiency.

Analyst estimates for Q3 2025 project revenue of $609.4 million and an EPS loss of -$0.15, while full-year 2025 revenue is forecast at $2.26 billion. Sunrun’s reiterated Cash Generation guidance of $200 million to $500 million for 2025 suggests stability, though investors will watch for further execution on cost reductions and storage adoption.

For more detailed earnings estimates and historical performance, visit Sunrun’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making financial decisions.