Sunrun Reports 9% Revenue Growth to $569.3 Million in Q2 2025

Sunrun Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $569.3 million, a 9% increase from $523.9 million in the same period last year. The growth was primarily driven by a 21% rise in revenue from customer agreements, which reached $458 million, compared to $387.8 million in the prior year. However, revenue from solar energy systems and product sales decreased by 18%, totaling $111.3 million, down from $136 million, attributed to a shift in customer preference towards subscription models over outright purchases, likely influenced by rising interest rates.

The company's operating expenses for the quarter increased to $681.6 million, up from $651.9 million a year earlier. Notably, the cost of customer agreements and incentives rose by 16% to $345.4 million, reflecting the costs associated with new systems placed in service. In contrast, the cost of solar energy systems and product sales decreased by 20% to $104.1 million, aligning with the decline in sales volume. Despite the increase in revenue, Sunrun reported a net loss of $279 million for the quarter, compared to a loss of $259.9 million in the same period last year.

Sunrun's operational metrics showed significant growth, with the total number of customers reaching approximately 1.1 million, up from 984,000 a year ago. The company also reported a networked solar capacity of 7,949 megawatts, an increase from 7,058 megawatts in the previous year. The total gross earning assets as of June 30, 2025, were approximately $19.8 billion, reflecting a substantial increase from $15.7 billion a year prior. This growth is indicative of Sunrun's expanding market presence and customer base.

Strategically, Sunrun has been focusing on enhancing its product offerings and expanding its market reach. The company has established 62 active investment funds to finance its solar energy systems, which are crucial for maintaining its growth trajectory. Additionally, Sunrun is adapting to changing market conditions, including regulatory changes and rising interest rates, which have impacted its financing strategies. The company anticipates that the electrification of the U.S. economy will create further opportunities for growth, particularly in home electrification and grid services.

Looking ahead, Sunrun remains optimistic about its future, despite the challenges posed by market volatility and regulatory changes. The company plans to continue leveraging its scalable operating platform to drive customer acquisition and expand its service offerings. Sunrun's management believes that its diversified business model and strong customer relationships will enable it to navigate the evolving energy landscape effectively.