Sunrun Inc. · NASDAQ:RUN

Sunrun — Q4 2024 Earnings Presentation

28 slides from Sunrun's earnings presentation, Feb 27, 2025

  1. Slide 1: 4Q 2024 Financial Results

    4Q 2024 Financial Results February 27, 2025

  2. Slide 2: Safe harbor & forward looking statements

    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 o

  3. Slide 3: Q4 Overview & Strategic Priorities

    Q4 OVERVIEW & STRATEGIC PRIORITIES Mary Powell CEO 3

  4. Slide 4: Subscriber value growth, net value growth, strong Cash Generation

    Sunrun delivered rapid top-line Subscriber value growth, net value growth, strong Cash Generation & increased book value of our customer base $1.6 billion $357 million Aggregate Subscriber Contracted Net Value Value(1) Creation(2) in Q4 in Q4 +28% year-over year +125% year-over-year +9% from Q3 +48%

  5. Slide 5: In Q4 Sunrun delivered positive Cash Generation while growing volumes

    In Q4 Sunrun delivered positive Cash Generation while growing volumes and expanding unit margins to record levels High-quality focused growth strategy yielded strong growth in value creation ➔ Contracted-only adjusted Total Value Generated(1) of $357 million, using market-observed cost of Q4 Key Met

  6. Slide 6: Growing value creation in a disciplined way, shifting to higher-value offerings

    We are growing value creation in a disciplined way, shifting to higher-value offerings as we prioritize Cash Generation Successfully executed margin-focused growth strategy in 2024, which will continue in 2025 ➔ Sunrun focused on higher-margin product mix, routes to market and 2024 2025E geographies

  7. Slide 7: Accelerating storage adoption, providing customers resiliency

    We are accelerating storage adoption, providing customers resiliency & building a foundation of valuable grid resources Storage attachment rates accelerating Storage Attachment Rate on New Installations 392 MWhrs of Storage Capacity Installed in Q4, a 78% ➔ Sunrun has now installed more than 156,000

  8. Slide 8: Supporting Our Customers & Communities During the LA Fires

    Supporting Our Customers & Communities During the LA Fires ➔ During the January 2024 LA fires, the Sunrun team supported 4,200+ customers customers in blackout-affected areas, ensuring their battery experienced at least one grid systems operating as expected. outage during the LA fires ➔ Over 70 Sunrun

  9. Slide 9: Financial Performance & Outlook

    FINANCIAL PERFORMANCE & OUTLOOK Danny Abajian CFO 9

  10. Slide 10: Contracted Total Value Generated was $473 million in Q4

    Contracted Total Value Generated was $473 million in Q4 (+81% y/y, +42% q/q) or $357 million at 7.3% discount rate (+125% y/y, 48% q/q) ➔ Total Value Generated represents Subscriber Additions (i.e., volume) multiplied by Net Subscriber Value (i.e., unit margin). In Q4 there were 30,709 Subscriber Ad

  11. Slide 11: Net Subscriber Value increased to record levels in Q4

    Net Subscriber Value increased to record levels in Q4 ➔ Net Subscriber Value expanded to $19,177 driven by record-high battery attachment rate at 62%, ITC levels of 39.8%, fixed cost absorption benefits with higher volumes and continued cost efficiency efforts. ➔ Efficiency improvements and hardware cost d

  12. Slide 12: Three 10% ITC adders enhance unit economics

    Three 10% ITC adders enhance unit economics ➔ These ITC adders will make solar more affordable and accessible to a broader consumer population. Each adder represents an incremental 10% ITC per subscriber, except for the low-income multifamily housing adder, which is 20%. ➔ ITC adders are only availab

  13. Slide 13: Net Earning Assets increased to $6.8 billion

    Net Earning Assets increased to $6.8 billion ➔ We have ~$17.8 billion in Gross Earning Assets, which is our measure of the present value of cash flows from customers over time. ➔ Projected cash flow from customers plus cash, less total debt represents $6.8 billion in present value, which we call Net E

  14. Slide 14: Third consecutive quarter of positive Cash Generation while paying down recourse debt

    Delivered third consecutive quarter of positive Cash Generation while paying down recourse debt and growing Net Earning Assets ➔ Delivered third consecutive quarter of positive Cash Generation, and expect positive Cash Generation in every quarter of 2025, including Q1 which is typically lower owing

  15. Slide 15: Sunrun has achieved strong Subscriber Values

    Sunrun has achieved strong Subscriber Values ➔ Sunrun has increased pricing and adjusted go-to-market approaches multiple times since 2022 to respond to inflation and higher interest rates. High utility rate inflation across the United States has provided us headroom to increase pricing while still de

  16. Slide 16: 15+ years of consistent capital markets execution

    Sunrun has demonstrated 15+ years of consistent capital markets execution ➔ 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 fo

  17. Slide 17: Enhancing metrics in 2025

    Enhancing metrics in 2025 ➔ To make the Sunrun unit economics and aggregate value creation easier to track and more clearly present value creation activities, we plan to modify our set of metrics starting with our 1Q25 reporting in May. We will continue to report all of the metrics we report today.

  18. Slide 18: Summary of key metrics for reporting in 2025

    Summary of key metrics for reporting in 2025 Unit Economics (per Subscriber Addition) Aggregate Value Creation ($ millions) Subscriber Value Aggregate Subscriber Value ➔ Now calculated using a floating discount rate, based ➔ Subscriber Value multiplied by Subscriber Additions. on observed project-lev

  19. Slide 19: Outlook

    Outlook 1Q 2025: ➔ Cash Generation expected to be in a range of $40 million to $50 million, representing the fourth consecutive quarter of positive Cash Generation.(1) ➔ Storage Capacity Installed is expected to be in a range of 265 to 275 Megawatt hours, representing 30% year-over-year growth at th

  20. Slide 20: Updating Cash Generation guidance to $200 million to $500 million in 2025

    Updating Cash Generation guidance to $200 million to $500 million in 2025 Cash Generation represents the change in Sunrun’s total unrestricted cash balance, less any increases in recourse debt or issuance of equity (or plus any decreases in repayment of recourse debt or stock repurchases). Cash Gene

  21. Slide 21: Appendix

    Appendix 21

  22. Slide 22: Metric Sensitivity Tables

    Metric Sensitivity Tables ➔ Net Earning Assets excludes other assets, such as Inventory ($402 million as of 12/31/2024) and a portion of systems currently under construction but not yet recognized as deployed and therefore not yet reflected in Gross Earning Assets. ➔ Existing assets are financed with

  23. Slide 23: GAAP Income Statement

    GAAP Income Statement 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

  24. Slide 24: GAAP Balance Sheet

    GAAP Balance Sheet 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). ~$12.0 billion of our debt is non-recourse project debt and s

  25. Slide 25: GAAP Cash Flow Statement

    GAAP Cash Flow 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. These investments a

  26. Slide 26: Glossary

    Glossary Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Net Subscriber Value represents Subscriber Value less Creation Cost. Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection,

  27. Slide 27: Glossary (continued)

    Glossary (continued) Cash Generation is calculated using 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 f

  28. Slide 28: Investor Relations

    Investor Relations investors.sunrun.com 415-373-5206 investors@sunrun.com

Sunrun — Q4 2024 Earnings Presentation on 6ix