Sunrun’s second quarter results were met with a significant positive market reaction, reflecting the company’s performance above Wall Street’s expectations. Management credited the outperformance to the rapid increase in storage attachment rates, which reached an all-time high of 70% for new customers, and continued cost reduction efforts across installation and customer acquisition. CEO Mary Powell highlighted that Sunrun “generated this record profitability by growing the attachment rate of our storage offerings... and by driving significant cost efficiencies and performance improvements across the business.”

Is now the time to buy RUN? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Sunrun’s Q2 Earnings Call

• Moses Nathaniel Sutton (BNP Paribas) questioned the impact and timing of Sunrun’s safe harbor tax strategy. CFO Danny Abajian confirmed that safe harbor actions will extend ITC benefits through 2029 and are being managed in a capital-efficient manner.
• Brian K. Lee (Goldman Sachs) asked why net value creation gains were not translating into higher near-term cash generation. Abajian responded that working capital timing and capital market activity temporarily offset cash benefits, but expects stronger cash generation in the second half of the year.
• Praneeth Satish (Wells Fargo) inquired about current and future recurring revenue from grid services. President Paul Dickson indicated that current run-rate is conservative and expected to grow as more batteries are enrolled, with future securitization of these revenues under consideration.
• David Keith Arcaro (Morgan Stanley) pressed on cost efficiency measures, particularly in customer acquisition. CEO Mary Powell highlighted ongoing AI-driven improvements and significant room for further reductions in both acquisition and servicing costs.
• Dylan Thomas Nassano (Wolfe Research) questioned how Sunrun plans to reduce customer acquisition costs as industry incentives decline. Dickson emphasized differentiation through new features and grid participation, which reduce acquisition costs while supporting volume.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will monitor (1) ongoing growth in storage attachment rates and grid services enrollment, (2) execution of safe harbor strategies and their impact on tax credit eligibility, and (3) continued progress in cost reduction and margin expansion. Developments in federal and state energy policy, as well as the pace of recurring revenue growth from grid services, will be additional key factors shaping Sunrun’s trajectory.

Sunrun currently trades at $11.40, up from $9.01 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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