U.S.-based residential solar and battery storage provider Sunrun reported a revenue of $1.16 billion for the fourth quarter (Q4) of 2025, an increase of 123.5% from $518.5 million in the same quarter of the previous year. Revenue exceeded analysts’ estimates of $602.7 million.

The company attributed its revenue growth to energy systems and product sales revenue, which increased 432.8% year-over-year (YoY) to $692.3 million from $129.9 million, while customer agreements and incentives revenue increased 20% to $466.5 million from $388.6 million.

The company reported a net income of $103.6 million compared with a net loss of $2.81 billion in the prior-year quarter, which included a $3.12 billion goodwill impairment charge.

Basic earnings per share were $0.45 compared with a loss per share of $12.51 in the previous year, while diluted earnings per share were $0.38 compared with diluted loss per share of $12.51.

Mary Powell, Chief Executive Officer at Sunrun, said, “Sunrun is delivering innovative, storage-first energy offerings that protect consumers from rising utility costs and an increasingly unreliable power grid.”

Full Year

For the full year ended December 31, 2025, Sunrun reported revenue of $2.96 billion, an increase of 45.1% from $2.04 billion in 2024. Net income for the year was $449.9 million compared with a net loss of $2.85 billion in the prior year, which included the goodwill impairment charge.

Basic earnings per share were $1.96 compared with a loss per share of $12.81 in 2024, while diluted earnings per share were $1.71 compared with diluted loss per share of $12.81.

Customer agreements and incentives revenue increased 20.8% to $1.82 billion from $1.51 billion, while energy systems and product sales revenue increased 113.7% to $1.14 billion from $532.5 million.

Cash generation improved to $377 million compared with a negative $58 million in the prior year. The company paid down approximately $150 million of parent-level recourse debt. Contracted net value creation increased to $1 billion from $695 million.

Total assets increased 13.6% to $22.61 billion as of December 31, 2025, from $19.90 billion in the previous year, while total liabilities increased to $17.63 billion from $15.73 billion.

“We recently decided to reduce our volume through affiliate channels, which we expect will lower affiliate volumes by over 40% in 2026, leading to slight declines in overall volumes,” Powell said.

Business Highlights

Operational performance showed mixed trends during the quarter and full year. Subscriber additions declined 17% in the fourth quarter to 25,475 from 30,709 in the prior-year quarter, while full-year subscriber additions remained stable at 108,094 compared with 108,069 in 2024.

Solar capacity installed declined 10.7% in the fourth quarter to 216 MW from 242 MW, while full-year solar capacity installed increased 3.2% to 873 MW from 846 MW.

Storage capacity installed declined 5.4% in the fourth quarter to 371 MWh from 392 MWh, but increased 25.7% to 1,508 MWh for the full year from 1,200 MWh.

“We increased our storage attachment rate to 71% at year-end, up 9 percentage points from the prior year,” Powell said. Contracted net value creation declined 43.7% in the fourth quarter to $176.3 million from $313.3 million, although it increased significantly for the full year.

In the quarter, Sunrun announced a partnership with NRG Energy, pairing Sunrun’s storage and solar offerings with optimized rate plans through NRG’s retail electric provider. This can achieve NRG’s goal of creating a 1 GW distributed power plant by 2035.

Additionally, in Q4, the company entered into a new partnership with Hannon Armstrong. This innovative structure is a first-of-a-kind for residential storage and solar financing. “We expect this will drive a more efficient and lower overall weighted average cost of project capital,” Powell said.

Outlook

Sunrun expects aggregate subscriber value to range from $850 million to $950 million in the first quarter of 2026 and from $4.8 billion to $5.2 billion for the full year.

Contracted net value creation is expected to range from $25 million to $125 million in the first quarter and from $650 million to $1.05 billion for the full year.

Cash generation is expected to remain positive in the first quarter, with full-year cash generation projected between $250 million and $450 million, excluding potential safe harbor investments.

The company expects affiliate partner volumes to decline by more than 40% in 2026, and more than 10 GWh of dispatchable capacity to be online by the end of 2028.

Powell said, “We will continue to lead in our efforts to be the best in the energy business, delivering sophisticated energy offerings and a strong customer experience, while building the Nation’s leading distributed power plant.”

Sunrun also identified risks, including lower proceeds from investment tax credit transfers, higher insurance and solar module costs, dilution in value metrics due to subscriber mix, and exposure to capital market conditions for financing.

The company posted revenue of $724.6 million for the third quarter, a 35% YoY increase from $537.2 million.

Earlier this month, Sunrun priced $629 million in the securitization of leases and power purchase agreements.