U.S.-based residential solar and battery storage provider Sunrun reported revenue of $1.10 billion in the third quarter (Q3) of 2026, a 51.7% year-over-year (YoY) increase from $724.56 million, driven by higher energy systems and product sales. Revenue exceeded analysts’ expectations by $284.29 million.

Revenue from energy systems and product sales surged 134.4% YoY to $546.05 million from $232.96 million. The increase was primarily attributable to a transaction arrangement introduced in Q3 2025, under which Sunrun sells certain storage and energy systems associated with newly originated customer agreements to a third party while retaining customer servicing relationships.

Revenue from customer agreements and incentives increased 12.6% YoY to $553.45 million from $491.60 million.

The company reported a consolidated net profit of $86.97 million, compared to a net loss of $277.85 million in the corresponding quarter last year.

Diluted earnings per share (EPS) rose to $0.56 from $0.06 in Q3 2025, beating analysts’ expectations by $0.34.

9M 2026

For the first nine months (9M) of 2026, Sunrun’s revenue increased 49.7% YoY to $2.69 billion from $1.80 billion.

The consolidated net loss narrowed 49.8% to $418.53 million from $834 million in the corresponding period last year.

Diluted EPS increased to $1.60 from $1.33 in the corresponding period last year.

Business Updates

Sunrun added 24,096 customers during Q3, including 22,957 subscribers. Customer additions declined 26.6% from 32,833 a year earlier, while subscriber additions fell 23.7% from 30,104.

The company’s total customer base reached approximately 1.23 million as of September 30, 2026, including more than 1.05 million subscribers.

Average system sizes increased 2% sequentially.

Sunrun’s direct installation volumes increased 17% from the previous quarter and 9% YoY, reflecting a recovery in its direct sales business.

Affiliate installation volumes increased nearly 20% sequentially but declined 67% YoY, following the company’s decision to scale back partnerships and amid continued challenges in the dealer market.

Sunrun Chief Financial Officer Danny Abajian said the company expects affiliate installation volumes to decline by more than 60% for the full year. Direct business volumes are expected to account for approximately 85% to 90% of total installation volumes in 2026.

President and Chief Revenue Officer Paul Dickson said the company’s direct sales increased by high-single-digit to low-double-digit percentages every month from June through October compared to the corresponding months last year.

He said markets such as Illinois, Texas, and New Jersey were recording growth exceeding 25% YoY. Installations in Illinois increased more than 30% YoY during Q3.

The company has also restructured its affiliate business and is selectively adding partners that meet its customer service and asset quality standards.

Dickson said Sunrun has no plans to exit the affiliate business and expects all its sales channels, including affiliates, to return to YoY growth, potentially by Q2 2027.

Storage Business

Sunrun’s storage attachment rate reached a record 75% in Q3, compared to 74% in the previous quarter and 70% a year earlier.

The company installed 374.4 MWh of storage capacity during the quarter, a 9.1% YoY decline from 412 MWh. Solar installations declined 14.8% YoY to 203.7 MW from 239.2 MW.

Of the 24,096 customers added during the quarter, 18,081 installed storage systems.

As of September 30, 2026, Sunrun had installed more than 284,000 combined solar and storage systems, representing approximately 5.02 GWh of networked storage capacity. Its cumulative networked solar capacity reached 8.94 GW.

CEO Mary Powell said the company added more than 1.3 GWh of storage capacity and dispatched more than 1,000 MW of power across the country over the preceding 12 months.

The company also recorded three consecutive record-setting residential distributed power plant dispatch events.

In September, Sunrun contributed more than 320 MW, representing 56% of a 580 MW dispatch event. This was followed by contributions exceeding 400 MW and 430 MW during dispatch events on October 5 and 6, respectively.

The October 6 event recorded a total dispatch of 745 MW, of which Sunrun contributed approximately 58%.

Powell said the company expects to double its online distributed power plant capacity by the end of 2028, while increasing participation rates and revenue per enrolled asset.

Sunrun is also exploring opportunities to use its distributed energy resources to support growing electricity demand from data centers and AI applications.

During the earnings call, Powell said Sunrun’s partnership with Tesla and Renew Home was involved in a Google-funded proof of concept announced with Pacific Gas and Electric Company.

The company also continued exploring distributed computing applications following the launch of a pilot earlier this year. The initiative involves placing computing resources at customer sites equipped with solar and storage systems.

Subscriber Economics

Sunrun’s subscriber value increased 5.5% YoY to $55,342 from $52,446, while contracted subscriber value rose 8.3% to $52,525 from $48,507.

Aggregate subscriber value declined 19.6% YoY to approximately $1.27 billion from $1.58 billion, reflecting lower subscriber additions.

Aggregate contracted subscriber value stood at approximately $1.21 billion, compared to $1.46 billion a year earlier.

The company’s net subscriber value declined 28.3% YoY to $9,462 from $13,205, while contracted net subscriber value decreased 28.3% to $6,645 from $9,266.

Outlook

Sunrun revised its full-year 2026 aggregate subscriber value guidance to approximately $4.6 billion from the earlier range of $4.6 billion to $4.9 billion.

The company also lowered its cash generation guidance to approximately $200 million, excluding investments in equipment safe harbor activities, from the previous range of $200 million to $375 million.

Sunrun expects net investments in safe harbor equipment to total approximately $60 million to $70 million for the full year.

Powell attributed the downward revision primarily to slower-than-expected sales onboarding and higher interest rates.

Abajian said lower installation volumes were the principal reason for the guidance reduction, with interest rates having a comparatively smaller impact.

The company expects positive cash generation to continue in Q4 and plans to allocate additional cash toward reducing parent-level leverage.

Sunrun expects overall installation volumes to return to YoY growth in 2027, supported by the recovery in direct sales and the restructuring of its affiliate business.

However, Abajian cautioned that higher ITC insurance costs could reduce financing proceeds by approximately one to two percentage points.

The company also expects new property taxes on solar systems deployed in California beginning January 1, 2027, to increase costs. Sunrun has already implemented price increases in some markets to partially offset these expenses.

Abajian said sustained higher interest rates could further increase capital costs in 2027. The company expects to raise prices in additional markets as utility electricity rates increase.

Sunrun reported total revenue of $869.99 million in the previous quarter, a 52.8% YoY increase from $569.34 million, driven by higher energy storage system sales.