Sunrun (NASDAQ:RUN) Posts Earnings Results, Beats Expectations By $0.46 EPS

Sunrun (NASDAQ:RUN) posted its quarterly earnings results on Thursday. The energy company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.46, Zacks reports. Sunrun had a negative net margin of 106.50% and a positive return on equity of 19.34%. Sunrun’s revenue for the quarter was up 123.5% on a year-over-year basis. During the same quarter last year, the business posted $1.41 EPS.

Here are the key takeaways from Sunrun’s conference call:

• Sunrun generated $377 million of cash in 2025 (Q4 cash generation $187M), paid down about $150M of parent recourse debt, and guides to $250M–$450M Cash Generation for 2026 while planning to repay >$100M of parent recourse debt and get below a 2x recourse leverage target.
• Management materially shifted its financing mix—roughly 51% of Q4 subscriber additions were monetized via asset-sale structures—and closed a JV with Hannon Armstrong that can invest up to $500M to finance ~300 MW across >40,000 homes, improving upfront proceeds and GAAP clarity but reducing certain non‑GAAP value metrics.
• The company is focused on a “storage-first” strategy, increasing its storage attachment rate to 71%, growing storage capacity ~26%, operating over 4 GWh of dispatchable energy and participating in programs that delivered 425 MW of peak capacity and new grid‑dispatch revenue streams.
• Sunrun will cut affiliate channel volumes by over 40% and tightened direct route activity led to expected slight overall volume declines, contributing to lower Aggregate Subscriber Value and Contracted Net Value Creation guidance for 2026 (Aggregate Subscriber Value guidance $4.8B–$5.2B, Contracted Net Value Creation $650M–$1.05B).

Sunrun Trading Up 4.5%

Shares of RUN stock traded up $0.87 during mid-day trading on Thursday, reaching $20.42. 14,892,048 shares of the stock traded hands, compared to its average volume of 7,408,924. The company has a market cap of $4.74 billion, a price-to-earnings ratio of -1.83 and a beta of 2.36. The company has a quick ratio of 1.06, a current ratio of 1.46 and a debt-to-equity ratio of 3.67. The stock’s fifty day simple moving average is $19.22 and its two-hundred day simple moving average is $18.29. Sunrun has a 1-year low of $5.38 and a 1-year high of $22.44.

Sunrun News Summary

Here are the key news stories impacting Sunrun this week:

• Positive Sentiment: Q4 EPS beat — Sunrun reported $0.38 EPS vs. a consensus of ($0.08), a meaningful upside that likely drove short‑term buying interest. View Press Release
• Positive Sentiment: Strong cash metrics — Sunrun reported a net increase in cash & restricted cash of $290M and “Cash Generation 1” of $377M for 2025, improving near‑term liquidity and reducing financing risk. Sunrun Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Leadership recognition — CEO Mary Powell was named to CNBC’s 2026 Changemakers list, reinforcing credibility around Sunrun’s battery/storage strategy and management execution. Sunrun CEO Mary Powell Named To 2026 CNBC Changemakers: Women Transforming Business List
• Neutral Sentiment: Investor/analyst coverage — Multiple previews and analyst‑estimate deep dives surfaced ahead of and around the release, keeping the stock on screens as investors parse metrics beyond revenue/EPS (e.g., asset performance, storage growth). Exploring Analyst Estimates for Sunrun (RUN) Q4 Earnings, Beyond Revenue and EPS
• Neutral Sentiment: Valuation/longer‑term story coverage — Commentary on Sunrun’s valuation and its one‑year return/storage growth narrative is prompting investors to reassess risk/reward beyond the quarterly print. A Look At Sunrun (RUN) Valuation After Strong 1 Year Return And Storage Growth Story
• Negative Sentiment: Profitability concerns remain — despite the EPS beat, Sunrun reported a negative net margin (~106.5%), signaling continued non‑operational charges or financing impacts that could pressure longer‑term profitability. View Press Release
• Negative Sentiment: Policy and market headwinds highlighted — coverage ahead of the print raised questions about how distributed power and storage businesses will navigate policy shifts, a potential headwind for future growth/returns. Sunrun earnings on deck: Can distributed power offset policy headwinds?

Insider Buying and Selling

In other Sunrun news, CEO Mary Powell sold 8,754 shares of the company’s stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $17.80, for a total value of $155,821.20. Following the completion of the transaction, the chief executive officer directly owned 864,946 shares in the company, valued at approximately $15,396,038.80. This represents a 1.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CRO Paul S. Dickson sold 6,119 shares of the firm’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $17.80, for a total transaction of $108,918.20. Following the transaction, the executive directly owned 639,110 shares of the company’s stock, valued at $11,376,158. The trade was a 0.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 518,800 shares of company stock valued at $9,903,520 over the last three months. Insiders own 3.37% of the company’s stock.

Institutional Trading of Sunrun

A number of institutional investors and hedge funds have recently bought and sold shares of RUN. Royal Bank of Canada raised its position in Sunrun by 5.1% during the 1st quarter. Royal Bank of Canada now owns 626,536 shares of the energy company’s stock worth $3,672,000 after purchasing an additional 30,175 shares during the last quarter. Integrated Wealth Concepts LLC increased its stake in shares of Sunrun by 47.8% in the first quarter. Integrated Wealth Concepts LLC now owns 32,767 shares of the energy company’s stock valued at $192,000 after buying an additional 10,598 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Sunrun by 2.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 238,360 shares of the energy company’s stock worth $1,397,000 after acquiring an additional 5,882 shares during the last quarter. Jones Financial Companies Lllp lifted its stake in shares of Sunrun by 511.0% in the first quarter. Jones Financial Companies Lllp now owns 27,026 shares of the energy company’s stock worth $158,000 after acquiring an additional 22,603 shares during the period. Finally, Goldman Sachs Group Inc. lifted its stake in shares of Sunrun by 45.3% in the first quarter. Goldman Sachs Group Inc. now owns 2,306,808 shares of the energy company’s stock worth $13,518,000 after acquiring an additional 718,955 shares during the period. 91.69% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms have weighed in on RUN. Jefferies Financial Group restated a “buy” rating and set a $22.00 target price on shares of Sunrun in a research note on Wednesday, January 21st. Guggenheim raised Sunrun from a “neutral” rating to a “buy” rating and set a $27.00 price target for the company in a report on Monday, November 10th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Sunrun in a research note on Thursday, January 22nd. Raymond James Financial assumed coverage on Sunrun in a research report on Monday, January 12th. They issued a “market perform” rating on the stock. Finally, TD Cowen raised their price target on shares of Sunrun from $22.00 to $23.00 and gave the company a “buy” rating in a research note on Friday, November 7th. Thirteen investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $19.99.

Sunrun Company Profile

Sunrun, Inc (NASDAQ: RUN) is a leading provider of residential solar energy systems in the United States. The company designs, installs and maintains rooftop solar panels and battery storage solutions for homeowners under flexible financing arrangements. Customers can choose from leasing, power purchase agreements or solar ownership models, all of which are supported by Sunrun’s network of installation partners and service technicians. Sunrun also offers integrated home energy management services, including its Brightbox battery storage product, which enables customers to store solar energy for use during peak hours or power outages.

Founded in 2007 by Lynn Jurich, Ed Fenster and Nat Kreamer, Sunrun is headquartered in San Francisco, California.