U.S.-based residential solar and battery storage provider Sunrun reported a revenue of $722.2 million in Q1 2026, increasing 43% year-over-year (YoY) from $504.3 million. The revenue beat analyst expectations of $688.5 million.

Profit after tax (PAT) stood at $167.6 million, up 235.2% YoY from $50.01 million.

Earnings per share (EPS) came in at $0.62, compared to $0.2 in Q1 2025. It beat analyst expectations by $0.67.

The company attributed its performance to rising energy-system sales, margin discipline, a storage-first strategy, higher battery attachment, and advantages from scale, subscriptions, vertical integration, and its balance sheet.

Sunrun had reported a revenue of $1.16 billion for Q4 2025, an increase of 123.5% YoY from $518.5 million.

Business Update

Sunrun added approximately 17,665 customers in Q1, with its storage attachment rate reaching a record 73%, up from 69% last year.

The company’s aggregate creation costs were $872 million in Q1. On a unit basis, creation costs were 18% higher YoY, driven by larger system sizes and a higher storage attachment rate, and adverse fixed-cost absorption due to lower volumes.

It installed more than 251,000 solar and storage systems cumulatively, representing approximately 4.3 GWh of networked storage capacity. The company said its active sales force has grown by over 20% since the start of 2026, while March sales bookings rose by over 30% month-on-month.

Danny Abajian, CFO and Principal Financial Officer at Sunrun, said, “While customer additions are down year-over-year, given the effects of reduced lead generation and sales activities in mid-2025 around the budget bill and our decision to reduce affiliate partner volume, early funnel sales activities this year have seen an inflection point toward growth.”

In Q1 2026, the company’s aggregate subscriber value stood at $1.1 billion. It had a contracted net value creation of $108 million in Q1, or $0.46/share.

The company reported a $148 million net decrease in cash and restricted cash and a negative cash generation of $59 million in Q1.

Cash generation came in at negative $31 million when excluding equipment safe harbor investments. This was caused by the company shifting certain project finance transaction activity from Q1 to Q2, which negatively affected its Q1 cash generation.

The company’s fleet of dispatchable storage grew by more than 50% from the previous year.

Sunrun amended its non-recourse warehouse facility, extending availability to 2029, maturity to 2030, increasing commitments by $70 million to $2.7 billion, and adding advances against expected future Investment Tax Credit (ITC) proceeds.

The company raised $774 million in non-recourse asset-level debt financing year-to-date, including a $584 million securitization priced at a 220-basis-point (bps) spread, 20 bps better than its Q3 2025 transaction.

The One Big Beautiful Bill (Budget Reconciliation Bill), signed on July 4, 2025, introduced sweeping changes to the U.S. energy policy landscape. Under the new provisions, the solar sector will no longer have access to Section 48E and 45Y tax credits after 2027, or the Section 25D tax credits (for customer-owned residential solar) after 2025.

Sunrun said it is less exposed to the consumer ITC sunset under Section 25D because its origination volume is almost entirely subscription-based rather than cash or loan-financed. Contracted subscriber value per unit was up 14% YoY, driven by larger system sizes, a higher storage attachment rate, a higher average ITC level, and lower capital costs.

The company’s closed deals and signed term sheets provide enough tax equity or similar funding to support approximately 1,000 MW of subscriber projects beyond Q1 deployments. It also had more than $675 million available under its nonrecourse warehouse loan, enough to fund over 250 MW of retained subscriber projects.

Roughly 23% of Sunrun subscriber additions in Q1 were monetized through the non-retained or partially retained model.

The company said market activity has picked up since the second half of 2025, when tax law changes created temporary uncertainty, driving a modest recovery in ITC market pricing.

The tax credit transfer market grew by 50%, from $28 billion in 2024 to $42 billion in 2025, despite concerns about a slowdown.

However, the sunset has caused many smaller dealers and affiliate partners dependent on that credit to experience significant volume declines.

Sunrun closed multiple traditional and hybrid tax-equity funds and tax-credit transfer agreements in 2026, and has a pipeline of additional transactions expected to close in Q2.

The company evolved its Q3 2025 asset-sale model into a new joint venture with a leading U.S. energy investor to acquire and finance residential storage and energy systems, while retaining customer relationships and long-term project cash-flow participation.

It repaid $92 million of recourse debt in Q1 and has paid down $240 million since December 2024, and has no recourse debt maturities until March 2028.

Sunrun Flex, Sunrun’s subscription-based solar and battery storage service, increased its share in the company’s sales mix. It added that utility rate structures are increasing in complexity, making customer value increasingly dependent on well-designed and actively managed storage systems.

Sunrun also highlighted the rising complexity of domestic content and the Foreign Entity of Concern provisions, with some multinational tax-equity investors pausing 2026 activity while awaiting guidance from the U.S. Treasury.

Outlook

Sunrun said it expects cash generation in 2026 to range from $250 million to $450 million, excluding roughly $50 million to $100 million of equipment safe-harbor investments.

It expects overall installations to return to year-over-year growth later in 2026, driven by stronger direct sales momentum.

The company plans to lower parent leverage to below 2x, expand capital-light funding structures, and grow grid-services revenue.