Sunrun Inc. (RUN) FY2025 10-K Annual Report

Filed: Feb 26, 2026
Information Technology
Miscellaneous Electrical Machinery, Equipment & SuppliesSEC EDGAR

Sunrun Inc. (RUN) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Sunrun Inc. FY2025 10-K Analysis

Business Overview

  • Core business: Residential solar and battery storage subscription services with no upfront costs, serving homeowners primarily through leases and power purchase agreements
  • New emphasis: Expanded strategic partnerships providing access to millions of potential customers from new market entrants in retail and energy sectors
  • Strategic shift: Multi-channel sales model integration of direct-to-consumer, energy system partnerships, and strategic partnerships boosting capital-efficient growth and market reach
  • Quantitative metric: Networked Solar Energy Capacity totaled 8,404 megawatts as of December 31, 2025, with Gross Earning Assets of approximately $21.1 billion
  • Noteworthy fact: Operated the largest fleet of residential energy systems in the U.S. as of end 2025, post-acquisition of Vivint Solar in 2020

Management Discussion & Analysis

  • Revenue $2.96B, up 45% YoY from $2.04B; Customer agreements up $314M (21%), energy systems up $606M (114%)
  • Gross margin on customer agreements improved: cost ratio 70% vs 78%; on energy systems margin improved: cost ratio 68% vs 101% prior year
  • Best segment: Energy systems and product sales revenue up $605.5M (114%), cost ratio improved from 101% to 68%
  • Worst segment: Product sales declined $68.1M (21%) in revenue, negative impact on overall energy product sales growth
  • Cash $823.4M end 2025; $1.2B new secured credit facilities, $1.6B secured long-term non-recourse loans commitments received
  • No dividend or buybacks mentioned; Capital expenditures implied in business funding and energy system acquisition costs
  • Outlook: Reduced goodwill impairment (zero in 2025 vs $3.1B in 2024); increased income tax benefit $167M; management focus on funded growth and leveraging financing arrangements

Risk Factors

  • Convertible senior notes $475M issued Feb 2024, maturity Mar 2030, reliance on outside financing for growth and capital deployment
  • Purchase commitments $2.0B photovoltaic modules, inverters, batteries through Q4 2025, cancelable without significant penalties
  • Operating cash outflow $421.4M in 2025 driven by cost of revenue and SG&A expenses, notable working capital outflow $441.7M
  • Financing activities generated $3.2B in 2025, driven by $1.8B fund investor proceeds, $1.6B debt net proceeds, reflecting capital raising dependency
  • Committed capital $1.0B restricted for energy system purchase/installation as of Dec 31, 2025, limiting liquidity flexibility

Sunrun Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$3.0B

+45.1% YoY

Net Income

$450M

+115.8% YoY

Operating Margin

-4.3%

+17707bp YoY

Net Margin

15.2%

+15489bp YoY

ROE

14.4%

+12579bp YoY

Total Assets

$22.6B

+13.6% YoY

EPS (Diluted)

$1.71

+113.3% YoY

Operating Cash Flow

-$421M

+45.0% YoY

Source: XBRL data from Sunrun Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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