Sunrun Inc. (RUN) Bundle
A Brief History of H3
As of 2024, H3 has seen significant developments in its operations, financial performance, and market presence.
Financial Performance
For the nine months ended September 30, 2024, H3 reported a total revenue of $1.519 billion, marking a decline of 13% from $1.743 billion in the same period of the previous year. The breakdown of revenue is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Customer Agreements | $1,030,859 | $789,256 | $241,603 | 31% |
| Incentives | $85,794 | $75,895 | $9,899 | 13% |
| Solar Energy Systems | $167,535 | $566,861 | ($399,326) | (70%) |
| Products | $235,039 | $311,211 | ($76,172) | (24%) |
| Total Revenue | $1,519,227 | $1,743,223 | ($223,996) | (13%) |
Operational Highlights
As of September 30, 2024, H3's total assets were valued at $22.1 billion, up from $20.5 billion at the end of 2023. The company’s total liabilities increased to $15.1 billion from $13.5 billion over the same period.
Cash Flow and Liquidity
For the nine months ending September 30, 2024, H3 reported:
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(507,794) | $(704,733) |
| Net Cash Used in Investing Activities | $(1,908,612) | $(1,952,019) |
| Net Cash Provided by Financing Activities | $2,439,185 | $2,655,674 |
H3's cash balance as of September 30, 2024, stood at $533.9 million, reflecting a robust liquidity position bolstered by various financing arrangements and investments.
Debt Structure
H3's total debt as of September 30, 2024, was reported as $12.5 billion, an increase from $10.7 billion in the previous year. The breakdown of the debt includes:
| Debt Type | Amount (in thousands) |
|---|---|
| Total Non-recourse Debt | $11,578,898 |
| Total Recourse Debt | $996,034 |
| Total Debt, Net | $12,452,159 |
Market Position and Strategic Initiatives
H3 has continued to expand its market presence through strategic partnerships and investments in solar energy systems. The company has placed significant emphasis on enhancing its operational efficiency and reducing costs, which is reflected in the operating expenses that decreased significantly due to lower sales and marketing costs as well as reductions in cost of solar energy systems sold.
Stock Performance
H3's stock performance has been closely monitored, with fluctuations reflecting broader market trends and company-specific developments. The company's stock price as of the end of September 2024 indicated a stable outlook despite the reported revenue declines.
Conclusion on Financial Health
H3's financial health remains robust with a strong asset base and sufficient liquidity to navigate market challenges. The company's strategic focus on customer agreements and innovative financing solutions is expected to drive future growth.
A Who Owns Sunrun Inc. (RUN)
Major Shareholders
As of September 30, 2024, the major shareholders of Sunrun Inc. include both institutional and retail investors. The largest institutional shareholders are:
| Institution | Shares Owned | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 23,718,000 | 10.59% |
| BlackRock, Inc. | 20,487,000 | 9.19% |
| State Street Corporation | 15,000,000 | 6.73% |
| Capital Research Global Investors | 14,000,000 | 6.29% |
| T. Rowe Price Associates, Inc. | 12,500,000 | 5.62% |
Insider Ownership
Insider ownership plays a significant role in the governance of Sunrun Inc. The following table outlines the key insiders and their respective ownership stakes:
| Name | Position | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Edward Fenster | Co-Founder & Executive Chairman | 6,500,000 | 2.92% |
| Lynn Jurich | Co-Founder & CEO | 5,800,000 | 2.59% |
| Thomas von Reichbauer | Chief Financial Officer | 1,200,000 | 0.54% |
| Other Executives | Various | 3,500,000 | 1.57% |
Institutional Ownership Trends
As of September 30, 2024, institutional investors hold approximately 70% of Sunrun's outstanding shares, reflecting confidence in the company's growth prospects. The trends over the past year indicate a slight increase in institutional ownership, attributed to the company's strategic initiatives and market expansion.
Retail Ownership
Retail investors make up about 30% of the ownership structure. This segment has seen growth due to increasing interest in renewable energy investments, particularly amid rising environmental awareness and favorable government policies.
Recent Shareholder Changes
In the last quarter, there have been notable changes in shareholder composition:
- BlackRock increased its stake by 2%.
- Vanguard's ownership remained stable, while T. Rowe Price reduced its stake by 1%.
- New institutional investors have entered, reflecting the growing interest in renewable energy stocks.
Summary of Financial Data
As of September 30, 2024, Sunrun's total assets amount to $22.1 billion, with total liabilities of $15.1 billion. The company reported a net loss of $955.3 million for the nine months ended September 30, 2024, compared to a net loss of $2.1 billion for the same period in 2023.
| Financial Metric | Value |
|---|---|
| Total Assets | $22,104,323,000 |
| Total Liabilities | $15,069,930,000 |
| Net Loss (9 Months) | $(955,266,000) |
| Net Loss (Previous Year) | $(2,147,435,000) |
Sunrun's strategic investments and expansions are expected to continue influencing its ownership structure and market performance positively.
Sunrun Inc. (RUN) Mission Statement
Mission Overview
Sunrun's mission is to connect people to the cleanest energy on earth. The company aims to remove financial barriers and democratize access to locally-generated, renewable energy. Sunrun is recognized as the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage solutions with no upfront costs.
Key Elements of the Mission
- Transformation of the Solar Industry: Since its inception in 2007, Sunrun has transformed the solar industry.
- Energy Security and Predictability: The company provides energy solutions that enhance customer value and contribute to energy security.
- Community Benefits: Sunrun manages energy services that benefit communities, utilities, and the electric grid.
Business Model
Sunrun is engaged in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems. The primary customers are residential homeowners, and the company also offers battery storage in select markets. The customer agreements typically have an initial term of 20 to 25 years, during which Sunrun monitors, maintains, and insures the projects.
Operational Metrics
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Networked Solar Energy Capacity (megawatts) | 7,288 | 6,462 |
| Customers | 1,015,910 | 903,270 |
| Gross Earning Assets | $16,779,712,000 | $13,299,394,000 |
Financial Performance
For the nine months ended September 30, 2024, Sunrun reported total revenue of $1,519,227,000, compared to $1,743,223,000 for the same period in 2023. The net loss attributable to common stockholders was $32,510,000 for 2024, compared to a net loss of $1,254,373,000 in 2023.
Investment and Financing
As of September 30, 2024, Sunrun had raised tax equity investment funds to finance the installation of solar energy systems, with total liabilities reaching $15,069,930,000. The balance of redeemable noncontrolling interests was $633,817,000, and total stockholders’ equity stood at $5,278,033,000.
Market Challenges
Sunrun faces global macroeconomic challenges, including rising interest rates and inflationary pressures that could impact the cost of capital and available financing for new solar energy systems. The company has observed market uncertainty, including regulatory changes in California that have affected the attractiveness of solar-only offerings, pushing a shift towards solar plus storage solutions.
Future Outlook
Despite the challenges, Sunrun is positioned to leverage its scalable operating platform to continue driving distribution through multiple marketing channels. The company aims to enhance customer experience and expand its market presence as demand for solar energy solutions grows.
How Sunrun Inc. (RUN) Works
Business Model
Sunrun Inc. operates primarily in the residential solar energy market, focusing on the design, installation, and financing of solar energy systems. The company generates revenue through:
- Customer agreements and incentives
- Sales of solar energy systems and products
Revenue Performance
For the nine months ended September 30, 2024, Sunrun reported total revenue of $1.52 billion, representing a 13% decrease from $1.74 billion in the same period in 2023. The breakdown is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Customer agreements | $1,030,859 | $789,256 | $241,603 | 31% |
| Incentives | $85,794 | $75,895 | $9,899 | 13% |
| Solar energy systems | $167,535 | $566,861 | $(399,326) | (70%) |
| Products | $235,039 | $311,211 | $(76,172) | (24%) |
| Total Revenue | $1,519,227 | $1,743,223 | $(223,996) | (13%) |
Operating Expenses
In the nine months ended September 30, 2024, total operating expenses were $1.96 billion, a significant decrease of 44% compared to $3.52 billion in the same period in 2023. The details are outlined below:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Cost of customer agreements and incentives | $876,581 | $789,334 | $87,247 | 11% |
| Cost of solar energy systems and product sales | $411,591 | $824,830 | $(413,239) | (50%) |
| Sales and marketing | $466,411 | $574,061 | $(107,650) | (19%) |
| Research and development | $30,510 | $14,153 | $16,357 | 116% |
| General and administrative | $173,082 | $163,957 | $9,125 | 6% |
| Goodwill impairment | $0 | $1,158,000 | $(1,158,000) | (100%) |
| Total Operating Expenses | $1,958,175 | $3,524,335 | $(1,566,160) | (44%) |
Net Loss
For the nine months ended September 30, 2024, Sunrun reported a net loss of $955.3 million compared to $2.15 billion in the prior year, indicating a significant reduction in losses. The net loss attributable to common stockholders was $32.5 million, down from $1.25 billion in 2023.
Cash Flow Overview
Sunrun's cash flow for the nine months ended September 30, 2024, is summarized below:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash used in operating activities | $(507,794) | $(704,733) |
| Net cash used in investing activities | $(1,908,612) | $(1,952,019) |
| Net cash provided by financing activities | $2,439,185 | $2,655,674 |
| Net change in cash and restricted cash | $22,779 | $(1,078) |
Customer Base and Capacity
As of September 30, 2024, Sunrun had 1,015,910 customers and a networked solar energy capacity of 7,288 megawatts, compared to 903,270 customers and 6,462 megawatts in 2023.
Debt and Financing
As of September 30, 2024, Sunrun's total liabilities amounted to $15.07 billion, with significant non-recourse debt obligations. The company had outstanding borrowings of $392.5 million on its credit facility, with a commitment amount of $447.5 million maturing in March 2027.
Investment Commitments
Sunrun has purchase commitments totaling $125.4 million for photovoltaic modules, inverters, and batteries, which are expected to be fulfilled by the end of Q1 2025.
How Sunrun Inc. (RUN) Makes Money
Revenue Streams
Sunrun Inc. generates revenue primarily through two main channels: Customer Agreements and product sales.
Customer Agreements
Revenue from Customer Agreements includes payments for the use of solar energy systems as well as utility and other rebates assigned by the customer. For the three months ended September 30, 2024, revenue from Customer Agreements was $368,641,000, a 27% increase from $289,678,000 in the same quarter of 2023. For the nine months ended September 30, 2024, this revenue reached $1,030,859,000, up from $789,256,000, marking a 31% increase year-over-year.
Incentives
Incentives revenue primarily consists of sales of solar renewable energy credits (SRECs) and commercial investment tax credits (ITCs). In the third quarter of 2024, SREC revenue contributed $37,220,000, up from $26,850,000 in the previous year, reflecting a 39% increase. For the nine months ending September 30, 2024, incentives revenue was $85,794,000 compared to $75,895,000 in 2023, a 13% increase.
Solar Energy Systems and Product Sales
Revenue from the sale of solar energy systems and products has seen a decline due to shifts in customer preferences towards financing arrangements through Customer Agreements. For the three months ended September 30, 2024, revenue from solar energy systems was $47,189,000, down from $135,476,000 in 2023. For the nine-month period, this revenue decreased to $167,535,000 from $566,861,000, reflecting a 70% decline.
Financial Performance Overview
Below is a summary of Sunrun's financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenue | $537,173,000 | $563,181,000 | $1,519,227,000 | $1,743,223,000 |
| Customer Agreements Revenue | $368,641,000 | $289,678,000 | $1,030,859,000 | $789,256,000 |
| Incentives Revenue | $37,220,000 | $26,850,000 | $85,794,000 | $75,895,000 |
| Solar Energy Systems Revenue | $47,189,000 | $135,476,000 | $167,535,000 | $566,861,000 |
| Product Sales Revenue | $84,123,000 | $111,177,000 | $235,039,000 | $311,211,000 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $664,951,000, a significant decrease from $1,910,658,000 in Q3 2023. For the nine months ended September 30, 2024, total operating expenses were $1,958,175,000, down from $3,524,335,000 in 2023.
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Cost of Customer Agreements | $308,382,000 | $283,742,000 | $876,581,000 | $789,334,000 |
| Cost of Solar Energy Systems | $125,312,000 | $234,274,000 | $411,591,000 | $824,830,000 |
| Sales and Marketing | $162,490,000 | $176,349,000 | $466,411,000 | $574,061,000 |
| Research and Development | $8,180,000 | $5,039,000 | $30,510,000 | $14,153,000 |
| General and Administrative | $60,587,000 | $53,254,000 | $173,082,000 | $163,957,000 |
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, Sunrun reported a net cash used in operating activities of $507,794,000, an improvement from $704,733,000 in the prior year. Cash used in investing activities was $1,908,612,000, compared to $1,952,019,000 in 2023. In financing activities, Sunrun generated $2,439,185,000, down from $2,655,674,000 in 2023.
| Cash Flow Activity | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(507,794,000) | $(704,733,000) |
| Net Cash Used in Investing Activities | $(1,908,612,000) | $(1,952,019,000) |
| Net Cash Provided by Financing Activities | $2,439,185,000 | $2,655,674,000 |
Customer Growth and Capacity
As of September 30, 2024, Sunrun had a networked solar energy capacity of 7,288 megawatts and served 1,015,910 customers, compared to 6,462 megawatts and 903,270 customers in 2023.
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Networked Solar Energy Capacity (MW) | 7,288 | 6,462 |
| Total Customers | 1,015,910 | 903,270 |
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Resources:
- Sunrun Inc. (RUN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sunrun Inc. (RUN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sunrun Inc. (RUN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.