Sunrun delivered strong revenue growth of 53% YoY in Q2 2026, and maintained record battery attachment despite lower installation volumes
The company revised its 2026 guidance downward due to lower affiliate channel volumes, a slower direct sales ramp, and higher capital costs
It expects stronger growth on the back of improved direct sales momentum in June and July
US residential solar and storage company Sunrun reported stronger Q2 2026 financial results, driven by higher revenue and a return to profitability. Yet the company has lowered its full-year outlook as the transition toward its direct sales business took longer than expected and affiliate channel volumes weakened.
For the quarter ended June 30, 2026, its total revenue increased 53% year-on-year (YoY) to $870 million. Net income of $115.2 million dropped from $280 million in Q3 2025, while its total operating expenses rose 23% YoY to $835.2 million.
The company said aggregate subscriber value (ASV) reached approximately $1.2 billion during the quarter. Its storage attachment rate rose to a record 74%, up from 70% a year earlier, while its networked storage capacity expanded to about 4.6 GWh across more than 266,000 installed solar-plus-storage systems.
Subscriber additions during the quarter declined 31% YoY to 19,793, while solar capacity installed fell 23% to 174 MW and storage capacity went down by 15% to 332 MWh. At the same time, subscriber value per customer increased 10% to $59,377.
The company said its direct business sales turned positive in June and July, with monthly sales growth exceeding 10% YoY.
“We are positioning the business for strong growth, bringing on some of the best talent in the industry and scaling deliberately, with a focus on customer experience and asset quality. And as that engine scales, we're aiming to unlock new ways to monetize the network we've already built, from distributed power plant programs to emerging data center and grid edge applications, creating new streams of Cash Generation,” said CEO Mary Powell.
Chief Financial Officer Danny Abajian said the company has revised its full-year outlook to reflect ‘reduced affiliate channel volumes, a delayed ramp in direct sales activities, and modestly higher capital costs than previously forecasted’.
Looking ahead, Sunrun has reduced its 2026 ASV guidance to $4.6 billion to $4.9 billion from the earlier $4.8 billion to $5.2 billion. It also lowered its full-year cash generation forecast to $200 million to $375 million, excluding equipment safe harbor investments, from the previous range of $250 million to $450 million.
During the earnings call, management said the lower full-year outlook was also influenced by the bankruptcy of affiliate partner Freedom Forever, slower onboarding of new sales representatives, and higher interest rates.
Abajian added that customer demand remains strong and that Sunrun expects to exit the year with stronger growth and improved unit margins as its expanded sales force reaches full productivity.
Following the results, analysts at Roth described the quarter as mixed after Sunrun lowered its 2026 cash generation outlook. However, the firm said the company remains well positioned to navigate challenges in the residential solar market because of its stronger financing position and growing direct sales business.
