Sunrun 2025 Q2 Earnings Strong EPS Growth Amid Persistent Net Loss

Sunrun reported fiscal 2025 Q2 earnings on August 6, 2025. The results beat expectations on the earnings front, with a 93.7% rise in EPS, though the company’s net loss widened. Guidance for 2025 Cash Generation remained in line with prior expectations at $200 million to $500 million.

Revenue
Sunrun's total revenue increased by 8.7% year-over-year to $569.34 million in Q2 2025, driven by continued growth in its residential solar and storage services.

Earnings/Net Income
The company's earnings per share (EPS) surged by 93.7% to $1.22 in Q2 2025 compared to $0.63 in the same quarter of the prior year, marking continued progress on the bottom line. However, Sunrun’s net loss widened to $278.98 million in Q2 2025 from $259.93 million in the prior-year period. The loss, now in its 12th consecutive year for the quarter, reflects ongoing financial challenges despite improved per-share profitability.

Price Action
Sunrun’s stock price declined across recent timeframes, with a 1.84% dip on the latest trading day, a 10.64% drop over the past week, and an 18.36% decline month-to-date.

Post Earnings Price Action Review
A strategy of purchasing Sunrun shares following revenue beats and holding them for 30 days has delivered a strong 45.25% return over the past three years, significantly outpacing the market’s 13.75% CAGR. The strategy maintained a Sharpe ratio of 0.55, reflecting solid risk-adjusted returns and moderate volatility, as indicated by a maximum drawdown of 0.00%. Historically, the approach has shown consistency in generating gains after positive revenue reports, reinforcing its effectiveness as a growth-oriented, risk-managed investment tactic.

CEO Commentary
CEO Mary Powell highlighted Sunrun’s record Contracted Net Value Creation and 70% storage attachment rate, emphasizing strong unit margins and customer value. She also underscored the company’s role as the largest home-to-grid operator in the U.S., with recent grid contributions helping prevent blackouts. CFO Danny Abajian noted the fifth consecutive quarter of positive Cash Generation, with a 17 percentage point margin expansion and 4% lower Creation Costs despite higher equipment expenses.

Guidance
Sunrun reiterated its 2025 Cash Generation guidance of $200 million to $500 million and expects to pay down $100 million or more of recourse debt in the year. The company anticipates continued execution in capital markets and cost efficiency improvements, with no recourse debt maturities until March 2027.

Additional News
Sunrun recently dispatched a record amount of energy to California’s grid during a coordinated event on July 29, contributing the largest share among distributed power plant aggregators. Over 100,000 residential batteries supplied more than 535 megawatts of power, enough to power over half of San Francisco, reducing evening peak demand. This is the second such event this summer, following a 325-megawatt dispatch in June. The Brattle Group noted the consistent and reliable performance of Sunrun’s fleet, equating its output to that of a traditional power plant. Participating customers receive up to $150 per battery per dispatching season, while Sunrun is compensated for managing the fleet. The CEO emphasized the win-win nature of the program, supporting both households and grid stability.