Sunrun Q1 2025 slides: Contracted Net Value Creation surges 104%, storage attachment hits 69%

Sunrun Inc . (NASDAQ:RUN) reported strong financial results for the first quarter of 2025, highlighted by triple-digit growth in Contracted Net Value Creation and continued momentum in storage attachment rates. The company’s May 7 presentation showcased its fourth consecutive quarter of positive cash generation and introduced a new product innovation called Sunrun Flex (NASDAQ:FLEX).

Quarterly Performance Highlights

Sunrun delivered $1.2 billion in Aggregate Subscriber Value for Q1 2025, representing a 23% year-over-year increase. The company reported $164 million in Contracted Net Value Creation, a remarkable 104% increase compared to the same period last year, equivalent to $0.72 per share. Cash Generation reached $56 million, marking the fourth consecutive quarter of positive cash generation.

As shown in the following financial results summary:

Subscriber Additions grew 7.4% year-over-year to 23,692 in Q1 2025, while Net Subscriber Value expanded to $10,390, up from $6,247 in Q1 2024. This improvement was driven by an increase in Subscriber Value from $45,477 to $52,206, partially offset by higher Creation Costs of $41,817 compared to $39,230 in the prior year.

The following chart illustrates the components of Net Subscriber Value and its year-over-year increase:

Contracted Net Value Creation showed particularly impressive growth, as detailed in this breakdown:

Storage Growth Strategy

Sunrun’s strategic focus on storage integration continues to yield positive results. Customer Additions with Storage grew 46% year-over-year in Q1, with the Storage Attachment Rate reaching 69%, up from 50% in Q1 2024. This increase in higher-value Storage customers drove a 14% year-over-year increase in Contracted Subscriber Value to $48,727 in Q1 2025.

The following chart shows the growth in Customer Additions with Storage over the past five quarters:

Market Share and Competitive Position

Sunrun has been steadily gaining market share in both solar and storage installations. The company’s Storage Install Volume Share reached 45% in Q4 2024, while its Solar Install Volume Share increased to 19%. Additionally, the overall industry is seeing a shift toward subscription offerings, with 53% of installations using this model in Q4 2024.

As illustrated in the following market share trends:

Product Innovation with Sunrun Flex

The company introduced Sunrun Flex, which it describes as the most significant innovation since the launch of the residential Power Purchase Agreement in 2007. This new offering allows customers to be billed only for current usage based on 100% offset, subject to a minimum bill, while having the flexibility to consume more energy at an affordable locked rate.

The following slide details how Sunrun Flex differentiates from traditional offerings:

Sunrun estimates that "100,000 Subscribers with Sunrun Flex consuming 15% more electricity would represent approximately $20 million in additional customer payments per year," highlighting the potential revenue impact of this innovation.

Financial Position and Asset Growth

Sunrun’s Net Earning Assets have grown to $6.8 billion, with Contracted Net Earning Assets at $2.6 billion, which includes $605 million of unrestricted cash. The company has demonstrated strong capital markets execution, receiving $256 million in tax equity contributions, $755 million in net non-recourse debt, and $53 million in customer prepayments and upfront incentives in Q1.

The following chart shows the growth in Net Earning Assets over the past five quarters:

The company continues to generate cash and pay down debt, as shown in this chart:

Tax and Tariff Policy Environment

Sunrun addressed the uncertain tax and tariff policy environment in its presentation. The company is engaged in industry coalitions to advocate for energy tax credits and noted that residential solar has bipartisan support. Regarding tariffs, Sunrun is shifting to more domestic US supply, with approximately half of current module supply and 100% of inverter and battery supply sourced from the US.

Financial Outlook and Guidance

For Q2 2025, Sunrun expects Aggregate Subscriber Value of $1.3 to $1.375 billion, representing 21% growth year-over-year at the midpoint. Contracted Net Value Creation is projected to be $125 to $200 million, an 80% increase year-over-year at the midpoint. Cash Generation is expected to be $50 to $60 million.

For the full year 2025, the company provided the following guidance:

Sunrun plans to allocate $100 million or more of cash generation to repaying parent debt in 2025, demonstrating its commitment to strengthening its balance sheet while continuing to invest in growth.

In after-hours trading following the presentation, Sunrun’s stock rose 8.66% to $8.03, reflecting positive investor reaction to the company’s strong quarterly performance and outlook.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.