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3Q 2025 Operating & Financial Results November 6, 2025
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3Q25 Earnings Presentation Safe harbor & forward looking statements This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company’s financial and operating guidance and expectations; the Company’s business plan, trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company’s momentum in its business strategies including expectations regarding market share, total addressable market, growth in certain geographies, customer value proposition, market penetration, growth of certain divisions, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the Company’s discussion of new products, including Sunrun Flex; the growth of the storage and solar industry; the Company’s financing activities and expectations to refinance, amend, and/or extend any financing facilities; trends or potential trends within the storage and solar industry, our business, customer base, and market; the Company’s ability to derive value from the anticipated benefits of partnerships, new technologies, and pilot programs, including contract renewal and repowering programs; anticipated demand, market acceptance, and market adoption of the Company’s offerings, including new products, services, and technologies; the Company’s strategy to be a margin-focused, multi-product, customer-oriented company; the ability to increase margins based on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, home-to-grid distributed power plants, and distributed energy resources; the Company’s ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains including reliance on specific countries for critical components; the Company’s leadership team and talent development; the legislative and regulatory environment of the solar industry and the potential impacts of proposed, amended, and newly adopted legislation and regulation on the solar industry and our business, including federal and state-level solar incentive programs (such as the One Big Beautiful Bill Act and Investment Tax Credit), net metering policies, and utility rate structures; the ongoing expectations regarding the Company’s storage and energy services businesses and anticipated emissions reductions due to utilization of the Company’s solar energy systems; and factors outside of the Company’s control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company’s current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include: the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the solar industry and our business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks, including restrictions on components and materials sourced from designated foreign entities of concern and our reliance on specific countries for critical components, tariff and trade policy impacts, and raw material availability for solar panels and batteries; realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the Company’s leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in the Company’s investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law. All guidance information contained in this presentation was provided on November 6, 2025 in the 3Q 2025 earnings release. The company assumes no obligation to update such guidance and the guidance is effective only as of the date hereof. Use of Non-GAAP financial measures This presentation includes the Company’s non-GAAP financial measures: Aggregate Creation Costs and Cash Generation. The Company utilizes these non-GAAP measures to analyze the Company’s performance and for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s financial results as reported under GAAP. Additionally, these non-GAAP measures may not be comparable to similarly titled measures presented by other companies, thus reducing their usefulness. Accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company is not able to provide reconciliations of certain forward-looking financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted without unreasonable effort. The Company encourages investors to review our GAAP financial measures and to not rely on any single financial measure to evaluate our business. 2
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OPERATING & FINANCIAL PERFORMANCE OVERVIEW 3 Mary Powell CEO
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4 Sunrun delivered strong growth in top-line Aggregate Subscriber Value and bottom-line Contracted Net Value Creation, producing substantial Cash Generation & increased book value 4 $1.6 billion Aggregate Subscriber Value in 3Q25 +10% year-over-year (1) See Appendix for a reconciliation of Cash Generation, a non-GAAP metric, to change in Net Change in Cash and Restricted Cash. See Appendix for glossary of terms. $279 million Contracted Net Value Creation in 3Q25 +35% year-over-year $1.21 per share $108 million Cash Generation(1) in 3Q25 Sixth consecutive quarter of positive Cash Generation Trailing 4 quarter Cash Generation of $224 million 231.0 million weighted average basic shares in 3Q25 $3.4 billion Contracted Net Earning Assets inclusive of net debt as of 9/30/2025 $14.56 per share Includes $709 million of unrestricted cash
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3Q25 Earnings Presentation ➔ Margin outcome driven by strong cost control and efficiency, growth in higher-value offerings (including Storage and Flex), and realization of higher ITC levels ➔ Customer Additions grew 3% year-over-year in Q3. Customer Additions with Storage grew 20% year-over-year in Q3 as Storage Attachment Rate reached 70% Continued strong margin execution, with Upfront Net Subscriber Value exceeding $3.5k, representing a 7% margin, expanding 5 ppt y/y 5 (1) See Appendix for a reconciliation of Aggregate Creation Costs, a non-GAAP metric, to Total Operating Expenses. See Appendix for glossary of terms. Upfront Net Subscriber Value Represents, on a per Subscriber basis, estimated proceeds from tax equity, non-recourse project debt, upfront incentives, and proceeds from Non-Retained or Partially Retained Subscribers for systems deployed in the period, less Aggregate Creation Costs(1), which represents CapEx & Adjusted OpEx Percentages represent Upfront Net Subscriber Value as a percentage of Contracted Subscriber Value Upfront Net Subscriber Value %
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3Q25 Earnings Presentation US power demand is expected to increase; Sunrun offers solutions to the grid’s power needs & to consumers seeking relief from rising rates 6 (1) Source: S&P Global Commodity Insights, “US National Power Demand Study” (March 2025). Data depicts US Lower 48 net on-grid electricity demand. (2) Energy Information Agency. Average price per KWhr of electricity for the U.S. residential sector. Rates reflect changes from December 2021 to December 2024. Includes Sunrun’s top 15 markets. Electricity demand forecasted to increase 40% by 2040; necessitating >1,000 GW of new capacity(1) The price of electricity nationwide already has risen ~19% over the past 3 years, with even steeper increases in many of our top markets(2) TWh Electricity prices has increased at a 9% CAGR over the last 5 years in Sunrun’s markets
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3Q25 Earnings Presentation Sunrun is the nation’s largest home-to-grid distributed power plant operator, providing critical utility-scale grid services 7 See Appendix for glossary of terms. ➔ Distributed home-to-grid power plants are reliable, dispatchable resources. Sunrun’s power plants don’t take up land or need new transmission lines to be constructed as they are located on the existing built environment, where energy is consumed. ➔ Power demand in the US is growing from AI, data centers and domestic manufacturing. Capacity prices are rising rapidly, and “traditional” centralized generation plants takes years to permit and build. Sunrun is providing critical power plant resources to meet urgent energy needs today. Sunrun has recently signed agreements to be a distributed power plant provider to retail electricity providers, and has seen a significant increase in interest from strategic energy companies that serve load. ➔ Customer enrollments in home-to-grid distributed power plant programs has grown >400% y/y to more than 106k customers. We expect this cash flow stream to grow rapidly in the coming years. Based on current activities, we are finding that the estimate of $2,000+ NPV per participating customer is not only realistic, but likely conservative. 70% of new customers now have storage, which is capable of dispatching power to the grid when called upon. ➔ Sunrun expects to have over 10 GWh of dispatchable capacity online by the end of 2028. 17 Active programs >106k Customers enrolled in grid service programs 416 MW Power delivered during dispatches over last year 3.7 GWh Networked Storage Capacity 217,000+ Storage & Solar Systems Installed Current Home-to-Grid Distributed Power Plant Programs Massive Opportunity for Continued Expansion As of 9/30/2025
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3Q25 Earnings Presentation Sunrun has a leading share of installations given strength of subscription offering and storage capabilities 8 See Appendix for glossary of terms. (1) Based on Ohm Analytics data for the U.S. residential storage market (November 2025), which has been revised and supersedes certain U.S. residential storage market data within its 2Q25 DG Solar and Storage Report (September 2025), and Sunrun’s reported Storage Capacity Installed. (2) Based on Ohm Analytics Q2 2025 DG Solar and Storage Report (September 2025) and Sunrun’s reported Solar Capacity Installed (3) Based on Wood Mackenzie/SEIA US Solar Market Insight Report (September 2025) Overall Industry Mix of Subscriptions Increasing(3) Sunrun Solar Install Volume Share(2)Sunrun Storage Install Volume Share(1) ➔ We expect the 25D ITC sunset on 12/31/2025 may distort Sunrun’s share of installations through the rest of 2025, given potential pull-in of demand for the cash/loan segment of the market. ➔ Sunrun expects to gain share in 2026 given the company’s focus on a subscription offering and storage-first strategy to be the leading home-to-grid dispatchable distributed power plant operator.
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3Q25 Earnings Presentation Growth expected in 2026 as we maintain our margin focus 9 Subscription (‘TPO’) offerings represent >50% of industry install volumes(1) ➔ Sunrun poised to grow in 2026, at improving economics, even as industry volumes likely decline ➔ Cash & loan customer ITC sunsets at the end of 2025 while Subscriptions (95% of Sunrun’s Q3 Solar Capacity Installed volume) continue to benefit from a 30-70% investment tax credit ➔ Sunrun goes to market predominantly with a direct vertically-integrated approach with in-house sales & installation capacity (approx. 2/3 of volumes) along with strategic affiliate partners. ➔ Sunrun has chosen not to employ a “long-tail” or inorganic “roll up” strategy. Sunrun’s direct operations and deep integration with strategically aligned partners facilitates the best customer experience and the highest quality asset origination. Sunrun is focused on being the leading distributed power plant operator. Sunrun expects to grow in 2026 given we are the leading distributed power plant operator Sunrun represents >1/3 of the Subscription (‘TPO’) volumes(1) Ohm’s projection for entire industry(2) 2026 Forecast Sunrun -26% Positive volume growth & margin expansion (1) Based on Wood Mackenzie/SEIA US Solar Market Insight Report (September 2025) and Sunrun’s reported Solar Capacity Installed for Subscribers. Sunrun share of TPO volumes represents the trailing four quarter volume through 2Q25. (2) Based on Ohm Analytics Q2 2025 DG Solar and Storage Report (September 2025) Wood Mackenzie projection for entire industry(1) -13%
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3Q25 Earnings Presentation We Love Our People Teams Driving Success in Q3 Massachusetts Direct-to-Home | Top Sales Team Massachusetts Top Installation Team 10 Based on Commitment to Safety, Storage Attachment Rates, Quality, and Customer Experience
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11 FINANCIAL PERFORMANCE& OUTLOOK Danny Abajian CFO
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3Q25 Earnings Presentation 12 Net Subscriber Value increased year-over-year to $13,205 Note: CapEx and OpEx are adjusted to include and exclude certain items. See appendix for a reconciliation. See Appendix for glossary of terms and accompanying notes. ➔ Subscriber Additions were 30,104 in 3Q25, a decrease of 1% year-over-year. ➔ Net Subscriber Value expanded year-over-year to $13,205 driven by a strong Storage Attachment Rate at 70%, ITC levels of 42%, increasing Flex mix, and continued cost efficiency efforts. ➔ Subscriber Value growing faster than Creation Costs, with efficiency improvements more than offsetting the increased costs associated with increasing storage attachment rates. Subscriber Value +11% y/y, -3% q/q Creation Costs +4% y/y, +6% q/q Net Subscriber Value +38% y/y, -22% q/q Unit-level Economics $ per Subscriber Addition $ per Subscriber Addition $ per Subscriber Addition
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3Q25 Earnings Presentation 13 Net Value Creation increased to $398 million in Q3, representing $1.72 per share ➔ Aggregate results are the average unit economics multiplied by the number of units and represent enterprise level gross value, total asset-origination related costs (including overhead), and net value being created on an unlevered basis. ➔ Aggregate Subscriber Value increased 10% y/y to $1.6 billion while Aggregate Creation Costs increased 3% to $1.2 billion. Aggregate Subscriber Value +10% y/y, +2%% q/q Aggregate Creation Costs +3% y/y, +11% q/q Net Value Creation +37% y/y, -19% q/q $ millions $ millions $ millions Aggregate Value & Costs Note: CapEx and OpEx are adjusted to include and exclude certain items. See appendix for a reconciliation. See Appendix for glossary of terms and accompanying notes.
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3Q25 Earnings Presentation Year-over-year unit margin drivers: Contracted Subscriber Value increased 9%: ➔ driven by +5 pts higher ITC achievement ➔ Favorable volume/product mix (e.g. storage attachment rate, larger system sizes, Flex mix) Creation Costs increased 4%: ➔ 8% higher installation costs driven by higher Storage Attachment Rate ➔ 5% lower customer acquisition (S&M) and overhead (G&A + R&D) costs Contracted Net Value Creation increased to $279 million as Subscriber Additions were approximately flat, Contracted Subscriber Value increased 9% and Creation Costs increased 4% year-over-year 14 See Appendix for glossary of terms. 3Q24 4Q24 1Q25 2Q25 3Q25 Per Unit Contracted Subscriber Value $44,551 $48,273 $48,727 $49,919 $48,507 (Creation Costs) $(37,756) $(38,071) $(41,817) $(36,887) $(39,241) Contracted Net Subscriber Value $6,795 $10,202 $6,910 $13,032 $9,266 x Subscriber Additions 30,348 30,709 23,692 28,823 30,104 Aggregate Value Contracted Net Value Creation ($ millions) $206.2 $313.3 $163.7 $375.6 $278.9 Underlying Attributes Storage Attachment Rate 60% 62% 69% 70% 70% Average ITC Level 37.7% 39.8% 43.6% 42.6% 42.4% Discount Rate (observed project-level capital cost) 7.1% 7.3% 7.5% 7.4% 7.3% Contracted Net Value Creation ($ millions)
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3Q25 Earnings Presentation Upfront Net Value Creation of $106 million in Q3 15 See Appendix for glossary of terms. $ millions 3Q24 4Q24 1Q25 2Q25 3Q25 Aggregate Contracted Subscriber Value $1,352 $1,482 $1,154 $1,439 $1,460 x Advance Rate on Contracted Subscriber Value (estimate) 87.2% 85.9% 86.9% 85.3% 88.2% = Aggregate Upfront Proceeds (estimate) $1,180 $1,274 $1,003 $1,228 $1,287 (Aggregate Creation Costs) $(1,146) $(1,169) $(991) $(1,063) $(1,181) = Upfront Net Value Creation $34 $105 $12 $165 $106 Cash Generation $2 $34 $56 $27 $108 Note: Conversion of Upfront Net Value Creation to Cash Generation will be impacted by project finance transaction timing and ultimate terms, parent capital interest costs & working capital items. $ per share (weighted average basic shares in period) 3Q24 4Q24 1Q25 2Q25 3Q25 Contracted Net Value Creation per share $0.92 $1.39 $0.72 $1.64 $1.21 Upfront Net Value Creation per share $0.15 $0.47 $0.05 $0.72 $0.46 ➔ Sunrun raises non-recourse capital against the Retained Subscribers we originate, including monetization of tax attributes from tax equity partners and non-recourse senior & subordinated debt against future Retained Subscriber cash flows along with customer prepayments & state incentives. Sunrun also obtains proceeds from the sale of Non-Retained or Partially Retained Subscribers. Together, these proceeds cover all-in Aggregate Creation Costs such that we can produce Cash Generation while also retaining a valuable equity position and/or upside opportunities from the underlying assets and customers. ➔ Transaction timing and working capital will influence in-period conversion of the accrual Upfront Net Value Creation to Cash Generation. Aggregate Contracted Subscriber Value Adjusted OpEx Upfront Net Value Creation Proceeds from sale of Non-Retained or Partially Retained Subscribers CapEx Cash Generation X Advance Rate (Aggregate Creation Costs) Aggregate Upfront Proceeds - After working capital, parent interest expense and transaction timing Estimated upfront net cash proceeds = Tax Equity Asset-backed non-recourse debt Prepayments & Upfront Incentives Retained Subscribers Non-Retained or Partially Retained Subscribers
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3Q25 Earnings Presentation Net Earning Assets now at $8.2 billion 16 See Appendix for glossary of terms. ➔ Contracted Net Earnings Assets at $3.4 billion
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3Q25 Earnings Presentation Sunrun is generating cash and paying down recourse debt 17 See Appendix for glossary of terms. Cash Generation $ millions Repaying Recourse Debt $ millions Note: 2H25E Cash Generation reflects the achievement of 2025 guidance midpoint. Note: Gross balances reflected in chart, excluding unamortized debt discounts.
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3Q25 Earnings Presentation We continue to achieve strong capital markets execution 18 (1) Recourse debt balance as of 9/30/2025 is net of unamortized debt discount of $10 million. See Appendix for glossary of terms. ➔ We have a strong track record of attracting low-cost capital from diverse sources. Our access to capital markets puts us in a position to offer more advantageous financing options to consumers while creating long-term value for investors. ➔ We have demonstrated industry-leading execution throughout our history, with the market and rating agencies recognizing both the high quality of residential solar assets as well as our track record as a sponsor. Our strong project finance runway has allowed us to be selective in timing capital market activities ➔ Closed transactions and executed term sheets (inclusive of agreements related to Non-Retained or Partially Retained Subscribers) provide us with expected tax equity capacity or equivalent to fund approximately 550 megawatts of projects for Subscribers beyond what was deployed through Q3. ➔ We also have $811 million in unused commitments available in our non-recourse senior revolving warehouse loan to fund over 288 megawatts of projects for Retained Subscribers. Recourse Parent Capital Asset-level Non-recourse Capital ➔ Planning to allocate more than $100 million of Cash Generation to repaying our parent debt in 2025. Targeting exiting 2025 with total recourse debt to Cash Generation of ~2x. ➔ Excess cash to be potentially allocated to further debt repayment and/or equipment purchases. ➔ No maturities until March 2027 (aside from $5.5 million remaining of our 2026 convertible notes). ➔ Have repaid or repurchased $17 million of recourse debt during Q3 and $66 million YTD. ➔ Ended Q3 with $709 million in unrestricted cash and $798 million of recourse debt.(1) ➔ Raised $2.8 billion in senior and subordinated non recourse financing YTD. ➔ Continued to raise additional tax equity, with $2.8 billion in commitments and executed terms sheets YTD. ➔ Received $525 million tax equity contributions, $659 million in net non-recourse debt (excluding normal debt amortization), and $90 million in customer prepayments and upfront incentives in Q3. ➔ Further diversified our capital raising activities to include mix of asset sales, which also provides improved GAAP results. Revenue from the sale of Non-Retained or Partially Retained Subscribers was $115 million in Q3.
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3Q25 Earnings Presentation 19 Sunrun partners with top financial institutions and global asset managers to raise capital against the assets we originate Select Recent Financing Partners Tax Equity Sunrun has secured ~$2.8b in new tax equity commitments and term sheets YTD across traditional and hybrid tax equity structures ~$2.8b Non-recourse Project Debt Sunrun has raised ~$2.8b in senior and subordinated non-recourse debt financing YTD across public and private debt markets ~$2.8b Project Equity and Alternative Financing Structures ↑ Sunrun expects to engage in more outright asset monetization and joint-venture project equity structures, facilitating improved GAAP financials and diversification of capital sources, while still retaining customer relationships and ongoing upside opportunities.
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3Q25 Earnings Presentation Guidance & Outlook 20 See Appendix for glossary of terms. Aggregate Subscriber Value Contracted Net Value Creation Cash Generation 4Q 2025 Full-year 2025 $1.33 to $1.63 billion ➔ Represents 5% decline year-over-year at the midpoint $5.7 to $6.0 billion ➔ Unchanged from prior guidance ➔ Driven by growth in both Subscriber Value & Subscriber Additions ➔ Represents 14% growth year-over-year at the midpoint $182 to $482 million ➔ Represents 6% growth year-over-year at the midpoint $1.0 to $1.3 billion ➔ Unchanged from prior guidance. ➔ Represents 67% growth year-over-year at the midpoint $60 to $260 million ➔ Represents the 7th consecutive quarter of positive Cash Generation. $250 to $450 million ➔ Midpoint of $350 million reiterated, range narrowed from prior guidance of $200 to $500 million. ➔ Project finance transaction timing, working capital changes, cost of capital and volume realization are primary drivers for the range. As is inherent in our business, project finance timing & working capital changes can influence period-to-period Cash Generation.
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21 Appendix
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3Q25 Earnings Presentation Key Operating Metrics Summary (1) See Appendix on page 28 for a reconciliation of Aggregate Creation Costs, a non-GAAP metric, to Total Operating Expenses. See Appendix for glossary of terms and accompanying notes. 22 An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com. 1
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3Q25 Earnings Presentation See Appendix for glossary of terms and accompanying notes. 23 Key Operating Metrics: Volume Additions in Period An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
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3Q25 Earnings Presentation See Appendix for glossary of terms and accompanying notes. 24 Key Operating Metrics: Creation Costs in Period An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
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3Q25 Earnings Presentation See Appendix for glossary of terms and accompanying notes. 25 Key Operating Metrics: Value Creation in Period An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
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3Q25 Earnings Presentation See Appendix for glossary of terms and accompanying notes. 26 Key Operating Metrics: Proceeds Realized, Cash Generation, GEA & NEA An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
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3Q25 Earnings Presentation See Appendix for glossary of terms. 27 Metric Sensitivities An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
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3Q25 Earnings Presentation See Appendix for glossary of terms and accompanying notes. 28 Non-GAAP Reconciliation of Aggregate Creation Costs An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com. Use of Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: Aggregate Creation Costs and Cash Generation. The Company utilizes these non-GAAP measures to analyse the Company’s performance and for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s financial results as reported under GAAP. Additionally, these non-GAAP measures may not be comparable to similarly titled measures presented by other companies, thus reducing their usefulness. Accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company is not able to provide reconciliations of certain forward-looking financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted without unreasonable effort. The Company encourages investors to review our GAAP financial measures and to not rely on any single financial measure to evaluate our business.
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3Q25 Earnings Presentation See Appendix for glossary of terms and accompanying notes. 29 Non-GAAP Reconciliation of Cash Generation An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com. Use of Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: Aggregate Creation Costs and Cash Generation. The Company utilizes these non-GAAP measures to analyse the Company’s performance and for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s financial results as reported under GAAP. Additionally, these non-GAAP measures may not be comparable to similarly titled measures presented by other companies, thus reducing their usefulness. Accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company is not able to provide reconciliations of certain forward-looking financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted without unreasonable effort. The Company encourages investors to review our GAAP financial measures and to not rely on any single financial measure to evaluate our business.
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3Q25 Earnings Presentation The majority of Customer Agreements and Incentives COGS is depreciation (~$621m total depreciation & amortization in 2024). This also includes operating & maintenance costs and non-capitalized costs associated with installation-related activities. A large portion of our Sales & Marketing spend is expensed in period, while it relates to customers with ~20 or ~25 years of contracted revenue. The Loss Attributable to Non-Controlling Interests is primarily driven by our monetization of the Investment Tax Credit (ITC) with our Tax Equity partners with partnership flip structures. Assume a tax investor contributes about ~$1.8 per watt in cash and then immediately receives back a tax credit worth $1.3 per watt. After receipt of the tax credit, the investor’s remaining non-controlling interest in Sunrun’s solar facility is now only $0.5 per watt, which is repaid over about 6 years through cash distributions and depreciation deductions. Like the elimination of a liability, the reduction in the tax investor’s non-controlling interest from ~$1.8 per watt to ~$0.5 per watt is income to Sunrun common shareholders. Because Sunrun received this $1.3 per watt in cash through a partnership, this income is accounted for under GAAP using the hypothetical liquidation at book value (HLBV) method as a “loss attributable to non-controlling interests,” rather than revenue. Customer Agreements and Incentive Revenue is comprised of ongoing revenue from customers under long-term agreements, amortization of prepaid systems, and incentive revenue. The value of the Investment Tax Credits (ITC) are recognized as Incentive revenue, when monetized using a pass-through financing structure. 30 Reflected in Sunrun’s 2023 and 2024 GAAP results are large one-time non-cash charges: 2023: $1.2 billion Goodwill impairment. 2024: $3.1 billion Goodwill impairment. GAAP Income Statement
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3Q25 Earnings Presentation Non-controlling interests represent our Tax Equity (under partnership flip structures) and Project Equity investors’ interests in our funds. Deferred revenue is primarily Customer Prepayments which are recognized over the life of the contract, typically 20 or 25 years ($950.2 million balance of Payments Received Under Customer Agreements at the end of 2024). 31 ~$14.0 billion of our debt is non-recourse project debt and solely secured by the solar assets. GAAP Balance Sheet
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3Q25 Earnings Presentation Contributions from NCI represent investments from (1) Tax Equity investors in partnership flip funds, where they receive the Investment Tax Credit, certain depreciation attributes, and a share of cash flows, along with (2) project equity investors, which receive a share of cash flows from the funds. In 2024, proceeds from NCI and proceeds from pass-through and other financial obligations averaged $16,762 per Subscriber Addition. These investments are the capex for our solar energy systems. Approximately 70-75% of our Creation Costs are capitalized, the rest are expensed in-period on our income statement. Cash Flow From Operations is negative as typically ~25-30% of our Creation Costs are expensed in the period, while revenue is recognized over 80 quarters or more. Additionally, we raise Debt and Project Equity to fund our growth, which covers CFO and CFI. 32 We raise non-recourse project debt on assets, which is serviced by cash flows from contracted customer payments. GAAP Cash Flow Statement
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Definitions for Volume-related Terms Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost (inclusive of acquisitions of installed systems). A portion of customers have subsequently entered into Customer Agreements to obtain, or have directly purchased, additional solar or storage systems at the same host customer site, and since these represent separate assets, they are considered separate Deployments. Customer Agreements refer to, collectively, solar and/or storage power purchase agreements and leases. Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments and recognized as solar energy systems on Sunrun’s consolidated balance sheet, whether or not they continue to be active. Non-Retained or Partially Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments whereby the assets have been fully or partially sold to one or more investors and not presented as a solar energy system on Sunrun’s consolidated balance sheet. Subscribers represent aggregate Retained Subscribers and Non-Retained or Partially Retained Subscribers. Purchase Customers represent customers who purchased, whether outright or with proceeds from third-party loans, solar and/or storage systems that have been recognized as Deployments. Customers represent aggregate Subscribers and Purchase Customers. Subscriber Additions represent the number of Subscribers added in a period. Purchase Customer Additions represent the number of Purchase Customers added in a period. Customer Additions represent Subscriber Additions plus Purchase Customer Additions. Solar Capacity Installed represents the aggregate megawatt production capacity of solar energy systems that were recognized as Deployments in a period. Storage Capacity Installed represents the aggregate megawatt hour capacity of storage systems that were recognized as Deployments in a period. Networked Solar Capacity represents the cumulative Solar Capacity Installed from the company’s inception through the measurement date. Networked Storage Capacity represents the cumulative Storage Capacity Installed from the company’s inception through the measurement date. Storage Attachment Rate represents Customer Additions with storage divided by total Customer Additions. Definitions for Unit-based and Aggregate Value, Costs and Margin Terms Subscriber Value represents Contracted Subscriber Value plus Non-contracted or Upside Subscriber Value. Contracted Subscriber Value represents the per Subscriber present value of estimated upfront and future Contracted Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period. Non-contracted or Upside Subscriber Value represents the per Subscriber present value of estimated future Non-contracted or Upside Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period. Contracted Cash Flows represent, (A) for Retained Subscribers, (x) (1) scheduled payments from Subscribers during the initial terms of the Customer Agreements (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, only the minimum contracted payment is included in Contracted Cash Flows), (2) net proceeds from tax equity partners, (3) payments from government and utility incentive and rebate programs, (4) contracted net cash flows from grid services programs with utilities or grid operators, and (5) contracted or defined (i.e., with fixed pricing) cash flows from the sale of renewable energy credits, less (y) (1) estimated operating and maintenance costs to service the systems and replace equipment over the initial terms of the Customer Agreements, consistent with estimates by independent engineers, (2) distributions to tax equity partners in consolidated joint venture partnership flip structures, and (3) distributions to any project equity investors, and (B) for Non-Retained or Partially Retained Subscribers, (x) contracted proceeds from the full or partial sale of related assets, plus (y) the share of Contracted Cash Flows described in clause (A) of this definition which are allocated to Sunrun pursuant to the terms of each sale agreement or partnership agreement. Non-contracted or Upside Cash Flows represent (A) for Retained Subscribers the (1) net cash flows realized from either the purchase of systems at the end of the Customer Agreement initial terms or renewals of Customer Agreements beyond the initial terms, estimated in both cases to have equivalent value, assuming only a 30-year relationship and a contract renewal rate equal to 90% of each Subscriber’s contractual rate in effect at the end of the initial contract term, (2) non-contracted net cash flows from grid service programs with utilities and grid operators, (3) non-contracted net cash flows from the sale of renewable energy credits, and (4) contracted cash flows from Flex Customer Agreements exceeding the minimum contracted payment (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, an assumption is made that each Subscriber’s electricity consumption increases by approximately 2% per year through the end of the initial term of the Customer Agreement and into the renewal period (if renewed), resulting in billings in excess of the minimum contracted amount (which minimums are included in Contracted Cash Flows)), and (B) for Non-Retained or Partially Retained Subscribers, the share of Non-contracted or Upside Cash Flows described in clause (A) of this definition which are allocated to Sunrun pursuant to the terms of each sale agreement or partnership agreement. After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing utility power prices. Aggregate Creation Costs (Non-GAAP measure) represent total operating expenses, adjusted for certain items consistent with management’s use as a performance measure, and capital expenditures, all of which are itemized in the Non-GAAP reconciliation table as provided in the Company’s quarterly earnings release. Aggregate Creation Costs may also be derived through the direct summation of certain operating expenses and capital expenditures incurred in a period, including: (A) the following items from the cash flow statement: (i) payments for the costs of solar energy systems, plus (ii) purchases of property and equipment, less (iii) net depreciation and amortization, less (iv) stock based compensation expense; (B) the following items from the income statement: (i) cost of customer agreements and incentives revenue, adjusted to exclude fleet servicing costs and non-cash net impairment of solar energy systems, plus (ii) cost of solar energy systems sales for Non-Retained or Partially Retained Subscribers, plus (iii) sales and marketing expenses, adjusted to exclude amortization of cost to obtain customer contracts (which is the amortization of previously capitalized sales commissions), plus (iv) general and administrative expenses, plus (v) research and development expenses; and (C) gross additions to capitalized costs to obtain contracts (i.e., sales commissions), which are presented on the balance sheet within Other Assets. Because the sales, marketing, general and administrative costs are for activities related to the entire business, including solar energy system and product sales, the gross margin on solar energy system and product sales excluding Non-Retained or Partially Retained Subscribers is reflected as a contra cost. Costs associated with certain restructuring activities and one-time items are identified and excluded. Creation Costs represent Aggregate Creation Costs divided by Subscriber Additions. Net Subscriber Value represents Subscriber Value less Creation Costs. Contracted Net Subscriber Value represents Contracted Subscriber Value less Creation Costs. Upfront Net Subscriber Value represents Contracted Subscriber Value multiplied by Advance Rate less Creation Costs. 33 Glossary of Terms
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Advance Rate or Advance Rate on Contracted Subscriber Value represents the company’s estimated upfront proceeds, expressed as a percentage of Contracted Subscriber Value or Aggregate Contracted Subscriber Value, from project-level capital, proceeds from Non-Retained or Partially Retained Subscribers, and other upfront cash flows, based on market terms and observed cost of capital in a period. Aggregate Subscriber Value represents Subscriber Value multiplied by Subscriber Additions. Aggregate Contracted Subscriber Value represents Contracted Subscriber Value multiplied by Subscriber Additions. Aggregate Upfront Proceeds represent Aggregate Contracted Subscriber Value multiplied by Advance Rate. Actual project financing transaction timing for portfolios of Subscribers may occur in a period different from the period in which Subscribers are recognized, and may be executed at different terms. As such, Aggregate Upfront Proceeds are an estimate based on capital markets conditions present during each period and may differ from ultimate Proceeds Realized in respect of such period’s Retained Subscribers and ultimate proceeds obtained from such period’s Non-Retained or Partially Retained Subscribers. Proceeds Realized From Retained Subscribers represents cash flows received in respect of Retained Subscribers from non-recourse financing partners in addition to upfront customer prepayments, incentives and rebates. It is calculated as the proceeds from non-controlling interests on the cash flow statement, plus the net proceeds from non-recourse debt (excluding normal non-recourse debt amortization for existing debt, as such debt is serviced by cash flows from existing solar and storage assets), plus the gross additions to deferred revenue which represents customer payments for prepaid Customer Agreements along with local rebates and incentive programs. Net Value Creation represents Aggregate Subscriber Value less Aggregate Creation Costs. Contracted Net Value Creation represents Aggregate Contracted Subscriber Value less Aggregate Creation Costs. Upfront Net Value Creation represents Aggregate Upfront Proceeds less Aggregate Creation Costs. Cash Generation (Non-GAAP measure) represents the net change in cash and restricted cash less change in restricted cash and adjusting for certain items consistent with management’s use as a performance measure, as provided in the Company’s quarterly earnings release. Cash Generation may also be derived through calculating the change in our unrestricted cash balance from our consolidated balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt), and less any primary equity issuances or net proceeds derived from employee stock award activity (or plus any stock buybacks or dividends paid to common stockholders) as presented on the Company’s consolidated statement of cash flows. The Company expects to continue to raise proceeds from tax equity and asset-level non-recourse debt, and proceeds from the sale of Non-Retained or Partially Retained Subscribers, to fund growth, and as such, these sources of cash are included in the definition of Cash Generation. Cash Generation also excludes long-term asset or business divestitures (aside from transactions relating to Non-Retained or Partially Retained Subscribers) and equity investments in external non-consolidated businesses (or less dividends or distributions received in connection with such equity investments). Restricted cash in a reserve account with a balance equal to the amount outstanding of 2026 convertible notes is considered unrestricted cash for the purposes of calculating Cash Generation. Definitions for Gross and Net Value from Existing Customer Base Terms Gross Earning Assets is calculated as Contracted Gross Earning Assets plus Non-contracted or Upside Gross Earning Assets. Contracted Gross Earning Assets represents, as of any measurement date, the present value of estimated remaining Contracted Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%. Non-contracted or Upside Gross Earning Assets represents, as of any measurement date, the present value of estimated Non-contracted or Upside Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%. Net Earning Assets represents Gross Earning Assets, plus Total Cash, less adjusted debt and lease pass-through financing obligations, as of the measurement date. Debt is adjusted to exclude a pro-rata share of non-recourse debt associated with funds with project equity structures for Retained Subscribers along with debt associated with the company’s ITC safe harboring equipment inventory facility. Because estimated cash distributions to our project equity partners for Retained Subscribers are deducted from Gross Earning Assets, a proportional share of the corresponding project level non-recourse debt is deducted from Net Earning Assets, as such debt would be serviced from cash flows already excluded from Gross Earning Assets. Contracted Net Earning Assets represents Net Earning Assets less Non-contracted or Upside Gross Earning Assets. Non-contracted or Upside Net Earning Assets represents Net Earning Assets less Contracted Net Earning Assets. Total Cash represents the total of the restricted cash balance and unrestricted cash balance from our consolidated balance sheet. Other Terms Annual Recurring Revenue represents revenue arising from Customer Agreements over the following twelve months for Retained Subscribers that have met initial revenue recognition criteria as of the measurement date. Average Contract Life Remaining represents the average number of years remaining in the initial term of Customer Agreements for Retained Subscribers that have met revenue recognition criteria as of the measurement date. Households Served in Low-Income Multifamily Properties represent the number of individual rental units served in low-income multi-family properties from shared solar energy systems deployed by Sunrun. Households are counted when the solar energy system has interconnected with the grid, which may differ from Deployment recognition criteria. Positive Environmental Impact from Customers represents the estimated reduction in carbon emissions as a result of energy produced from our Networked Solar Capacity over the trailing twelve months. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits. Positive Expected Lifetime Environmental Impact from Customer Additions represents the estimated reduction in carbon emissions over thirty years as a result of energy produced from solar energy systems that were recognized as Deployments in a period. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis, leveraging our estimated production figures for such systems, which degrade over time, and is extrapolated for 30 years. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits. 34 Glossary of Terms (continued)
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Per Share Operational Metrics The Company presents certain operating metrics on a per share basis to aid investors in understanding the scale of such operational metrics in relation to the outstanding basic share count in each period. These metrics are operational in nature and not a financial metric. These metrics are not a substitute for GAAP financials, liquidity related measures, or any financial performance metrics. Net Value Creation, Contracted Net Value Creation, and Upfront Net Value Creation are also presented on a per share basis, calculated by dividing each metric by the weighted average basic shares outstanding for each period, as presented on the Company’s Consolidated Statements of Operations. Net Earning Assets and Contracted Net Earning Assets are also presented on a per share basis, calculated by dividing each metric by the basic shares outstanding as of the end of each period, as presented on the Company’s Consolidated Balance Sheets. . 35 Glossary of Terms (continued)
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Investor Relations investors.sunrun.com 415-373-5206 investors@sunrun.com