Sunrun Inc (RUN, Financial), a leading provider of residential solar energy systems in the United States, has reported its financial results for the quarter ended June 30, 2024. The company, which designs, develops, installs, sells, owns, and maintains solar energy systems, has shown significant growth in several key areas despite facing some challenges.
Performance Overview
Sunrun Inc (RUN, Financial) reported total revenue of $523.9 million for Q2 2024, surpassing the analyst estimate of $515.17 million. However, the company posted an earnings per share (EPS) of -$0.31, meeting the analyst estimate of -$0.31.
Key Financial Achievements
Sunrun Inc (RUN, Financial) achieved a cash generation of $217 million in Q2, including working capital recovery. The company has introduced cash generation guidance of $350 million to $600 million for 2025 and reiterated its Q4 guidance of $50 million to $125 million.
Storage capacity installed reached 265 Megawatt hours in Q2, representing a 152% year-over-year growth, with storage attachment rates hitting 54%. Solar energy capacity installed was 192 Megawatts, within the prior guidance range, bringing the networked solar energy capacity to 7.1 Gigawatts.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $523.9 million | $590.2 million |
| Net Income (Loss) | $139.1 million | $55.5 million |
| EPS (Basic) | $0.63 | $0.26 |
| EPS (Diluted) | $0.55 | $0.25 |
Balance Sheet and Cash Flow
As of June 30, 2024, Sunrun Inc (RUN, Financial) reported total assets of $21.4 billion, up from $20.5 billion at the end of 2023. The company had $707.6 million in cash and $334.5 million in restricted cash. Total liabilities stood at $14.4 billion, with total equity at $6.4 billion.
Net cash used in operating activities was $208.5 million for Q2 2024, compared to $202.2 million in Q2 2023. Net cash used in investing activities was $608.8 million, while net cash provided by financing activities was $1.1 billion.
Operational Metrics
Sunrun Inc (RUN, Financial) added 26,687 customers in Q2 2024, including 24,984 subscriber additions. The company now has 984,000 customers, including 828,129 subscribers. Annual recurring revenue from subscribers was approximately $1.5 billion, with an average contract life remaining of 17.8 years.
Subscriber value increased by 11% year-over-year to $49,610, while creation cost was $37,216, resulting in a net subscriber value of $12,394. Total value generated was $310 million for the quarter.
Commentary
“In the second quarter we again set new records for both storage installation and attachment rates, further differentiating Sunrun in the industry, beating the high-end of our storage installation guidance and delivering solid quarter-over-quarter growth for solar installation, Cash Generation and Net Subscriber Value,” said Mary Powell, Sunrun’s Chief Executive Officer.
“The team is executing on our margin-focused and disciplined-growth strategy, which is producing strong results. We expect positive Cash Generation in Q3, are on track for our annualized run-rate target of $200 to $500 million in Q4, and are excited to introduce our 2025 Cash Generation guidance of $350 to $600 million,” said Danny Abajian, Sunrun’s Chief Financial Officer.
Analysis
Sunrun Inc (RUN, Financial) has demonstrated robust growth in storage capacity and customer additions, which are critical for its long-term success in the residential solar market. The company's focus on cash generation and disciplined growth strategy is yielding positive results. However, the decline in solar energy systems and product sales revenue indicates a shift towards a subscription-based model, which may impact short-term revenue but could provide more stable long-term income.
Overall, Sunrun Inc (RUN, Financial) is well-positioned to capitalize on the growing demand for residential solar energy systems, with strong financial metrics and a clear strategy for future growth.
Explore the complete 8-K earnings release (here) from Sunrun Inc for further details.
