Sunrun (RUN) Q2 2024 earnings summary

Executive summary

• Achieved $217 million in cash generation in Q2 2024, including working capital recovery, and introduced 2025 cash generation guidance of $350–$600 million.

• Storage installations grew 152% year-over-year to 265 MWh, with a 54% attachment rate on new customers; solar installations reached 192 MW, within guidance.

• Customer base grew 13% year-over-year to 984,000, with annual recurring revenue of $1.5 billion and an average contract life of 17.8 years.

• Launched new grid services and virtual power plant programs, including partnerships with Tesla in Texas and Ford in Maryland, enhancing recurring revenue streams.

• Improved customer Net Promoter Score to approximately 76, up over 5 points from the same quarter last year.

Financial highlights

• Q2 2024 total revenue was $523.9 million, down 11% year-over-year; customer agreements and incentives revenue rose 28%, while solar energy systems and product sales revenue fell 53%.

• Net income attributable to common stockholders was $139.1 million ($0.55 diluted EPS) in Q2 2024; net loss attributable to noncontrolling interests was $399 million.

• Net subscriber value was $12,394, with subscriber value at $49,610 and creation cost at $37,216.

• Gross earning assets reached $15.7 billion and net earning assets $5.7 billion as of June 30, 2024.

• Ended Q2 with over $1 billion in cash, up $259 million from Q1.

Outlook and guidance

• Raised full-year storage installation guidance to 1,030–1,100 MWh (80–93% growth); Q3 storage expected at 275–300 MWh (64% year-over-year growth).

• Solar installation guidance narrowed to a 15% annual decline, but expects high-teens sequential growth in Q3 and Q4, with double-digit year-over-year growth resuming in Q4.

• Reiterated Q4 2024 cash generation guidance of $50–$125 million and introduced 2025 guidance of $350–$600 million.

• Expects average ITC to reach 45% in 2025 as more systems qualify for domestic content adders.

• Net subscriber value expected to be materially higher in the second half of 2024 relative to Q2.