Sunrun Reports 5% Revenue Decline, Net Loss Improvement in Q3 2024

As of September 30, 2024, Sunrun Inc. reported total current assets of $1.6 billion, a decrease from $1.9 billion at the end of 2023. Cash reserves fell to $533.9 million from $678.8 million, while restricted cash increased to $476.6 million. Total assets rose to $22.1 billion, up from $20.5 billion, driven by an increase in solar energy systems, which grew to $14.4 billion from $13.0 billion. Total liabilities decreased to $2.3 billion from $2.4 billion, with a notable reduction in current liabilities from $1.5 billion to $1.1 billion.

For the third quarter of 2024, Sunrun reported revenue of $537.2 million, down 5% from $563.2 million in the same period of 2023. Revenue from customer agreements and incentives increased significantly to $405.9 million, up 28% from $316.5 million year-over-year. However, revenue from solar energy system sales decreased by $88.3 million, attributed to a shift in customer preference towards customer agreements rather than outright purchases. Total operating expenses for the quarter were $665.0 million, a substantial decrease from $1.9 billion in Q3 2023, primarily due to a lack of goodwill impairment charges that had previously inflated expenses.

The net loss for the third quarter was $412.2 million, a significant improvement from a loss of $1.5 billion in the prior year. The net loss attributable to common stockholders was $83.8 million, compared to $1.1 billion in Q3 2023. This resulted in a net loss per share of $0.37, down from $4.92.

For the nine months ended September 30, 2024, total revenue was $1.5 billion, down from $1.7 billion in the same period of 2023. The net loss for this period was $955.3 million, compared to $2.1 billion in the previous year. The company’s total stockholders' equity slightly increased to $5.3 billion from $5.2 billion.

Strategically, Sunrun has focused on expanding its customer agreements, which now account for a larger share of revenue. The company has also been actively managing its costs, with a significant reduction in operating expenses and a focus on improving profitability. The company continues to face challenges from rising interest rates and market competition, particularly in California, where regulatory changes have impacted customer acquisition and installation rates.

Overall, Sunrun's financial performance reflects a transition towards a more sustainable business model, with a focus on long-term customer agreements and operational efficiency.