U.S.-based residential solar and battery storage provider Sunrun reported total revenue of $869.99 million in the second quarter (Q2) of 2026, a 52.8% year-over-year (YoY) increase from $569.34 million, driven by higher energy storage system sales.

Revenue exceeded analysts’ estimate by $124.53 million.

The net loss narrowed 25.4% YoY to $208.17 million from $278.98 million.

The diluted earnings per share (EPS) decreased to $0.42 from $1.07 a year earlier. However, EPS exceeded analysts’ consensus by $0.17.

1H 2026

For the first half (1H) of 2026, revenue increased 48.3% YoY to $1.59 billion from $1.07 billion.

The consolidated net loss narrowed 9.1% to hit $505.51 million from $556.16 million, while diluted EPS fell to $1.04 from $1.28.

Sunrun added 20,979 customers during Q2, including 19,793 subscribers. Customer additions declined from 30,810 a year earlier, while subscriber additions fell 31% YoY.

The average system sizes increased 2% from the previous quarter. Direct business volumes rose more than 20% sequentially and were nearly flat YoY.

Chief Financial Officer Danny Abajian said Sunrun expects YoY volume growth of its direct business to resume in Q3. The company expects direct business installations to grow by more than 10% during the second half of 2026.

Monthly direct sales in June and July increased by more than 10% YoY. Sunrun expects direct business volumes to record low-single-digit growth for the full year and to represent more than 85% of total origination volume.

Affiliate volume declined 30% sequentially and more than 70% YoY during Q2. Abajian attributed the decline to Sunrun’s decision to reduce affiliate partnerships, broader challenges in the dealer market, and the bankruptcy of partner Freedom Forever.

The company expects affiliate installation volumes to decline by more than 60% in 2026.

Storage Business

Sunrun’s storage attachment rate reached a record 74% in Q2, compared to 73% in the previous quarter and 70% a year earlier.

The company installed 332 MWh of storage capacity and 174.3 MW of solar capacity during the quarter. It installed more than 15,500 battery systems, including nearly 1,200 add-on batteries for existing solar customers and homeowners without solar systems.

As of June 30, 2026, Sunrun had installed more than 266,000 combined solar and storage systems, representing approximately 4.65 GWh of networked storage capacity.

Sunrun CEO Mary Powell said the company added more than 1 GWh of storage capacity and dispatched more than 700 MW of power during the last 12 months.

She said the company’s deployed assets represent more than $500 million in present value from grid services.

Sunrun expects its distributed power projects to generate approximately $40 million in GAAP gross revenue and more than $10 million in operating margin in 2026. It is targeting more than 10 GWh of dispatchable capacity by the end of 2028.

In June, Sunrun announced a non-binding letter of intent/framework with Renew Home and Tesla to supply more than 16 GW of distributed home energy resources to utilities and hyperscale data center operators.

The company also launched a distributed artificial intelligence compute pilot in July, using homes equipped with Sunrun solar and storage systems as edge computing locations.

Subscriber Economics

Subscriber value increased 10% YoY to $59,377, while contracted subscriber value rose 10% to approximately $55,000.

Aggregate subscriber value totaled approximately $1.2 billion, while aggregate contracted subscriber value was approximately $1.1 billion.

Abajian said the increase in contracted subscriber value was supported by larger system sizes, a higher storage attachment rate, a higher average investment tax credit level, and lower project-level capital costs.

Sunrun estimated upfront proceeds of approximately $52,000 per subscriber after applying an advance rate of about 94% to contracted subscriber value.

Upfront net subscriber value was approximately $2,000, representing a margin of about 4% of contracted subscriber value. Abajian said the lower margin reflected timing effects and front-loaded costs associated with increasing the share of direct sales. He expects the margin to improve in Q3.

Outlook

Sunrun lowered its full-year 2026 aggregate subscriber value guidance to between $4.6 billion and $4.9 billion from the earlier range of $4.8 billion to $5.2 billion.

It also reduced its cash generation guidance to $200 million to $375 million, excluding equipment safe harbor investments, down from the previous range of $250 million to $450 million.

Powell attributed the revision to lower affiliate channel volumes, a slower-than-expected ramp in direct sales and onboarding of new representatives, and higher capital costs as interest rates increased.

The company expects to continue using cash generation to reduce parent-level leverage.

Abajian said larger scale should improve fixed-cost absorption, efficiency, and productivity. He expects the unit margin pressure associated with the direct sales expansion to ease by the end of 2026.

Sunrun reported revenue of $722.2 million in Q1 2026, increasing 43% YoY from $504.3 million.

For the full year ended December 31, 2025, Sunrun reported revenue of $2.96 billion, an increase of 45.1% from $2.04 billion in 2024.