- Storage Attachment Rate Growth: Increased to 71% in 2025, up 9 percentage points, driving 26% growth in storage capacity installed.
- Grid Dispatch Capability: Delivered 425 MW of generation to the grid in 2025, equivalent to peaking capacity in some states.
- Subscriber Value Metrics: Upfront net subscriber value exceeded $3,200 per addition, with total aggregate upfront proceeds of $1.1 billion in Q4 2025.
- Cash Generation: Generated $377 million in cash for 2025, with $187 million in Q4 alone, and $250–$450 million projected for 2026.
- 2026 Growth Outlook: Expects high single-digit to low double-digit growth in Sunrun Direct business (over 2/3 of total volume) with margin expansion.
Financial Performance
Sunrun's financial results for 2025 demonstrated a strong operational performance, with 108,000 subscriber additions, approximately flat from the prior year. The company's average system size grew by 4%, leading to similar growth in solar capacity installed. Sunrun's creation costs increased by 8% compared to the prior year, primarily due to larger system sizes and a higher storage attachment rate. The company's net subscriber value was approximately $9,100, a decrease of $3,800 year-over-year. Sunrun generated $187 million in cash in Q4 and $377 million for the full year 2025.
Valuation Metrics
Sunrun's current valuation metrics indicate a Price-to-Sales Ratio of 1.04 and an EV/EBITDA ratio of 29.51. The company's ROE is 5.9%, and its Net Debt / EBITDA ratio is 24.17. These metrics suggest that Sunrun's stock price may be influenced by its growth prospects, with the market pricing in a significant increase in revenues. As Danny Abajian mentioned, "Our focus for this year is debt paydown and safe harbor, but beyond that, we'll consider shareholder return and explore options."
Growth Prospects
Sunrun expects to continue its growth momentum in 2026, with a high single-digit to low double-digit growth in its Sunrun direct business. The company plans to expand its storage attachment rate and build upon its domestically focused supply chain. Sunrun's joint venture with Hannon Armstrong Sustainable Infrastructure Capital is expected to drive aggregate proceeds equal to or better than traditional financing arrangements. The company's strong pipeline of transactions is expected to secure its 2026 needs, with over $600 million in unused commitments available in its nonrecourse senior revolving warehouse loan.
Challenges and Opportunities
Sunrun faces challenges related to the tax equity market, with the recent FIAC guidelines being incrementally helpful but not providing enough clarity on PFEs and FIEs. The company's strength in being a vertically integrated player has helped it navigate this complexity. Sunrun is also exploring opportunities in grid stability outcomes, particularly in the Texas market, with 18 programs in place. The company's success in these programs has spurred interest from other partners, indicating potential for further growth.