Sunrun Q4 Revenue Up 124% With $0.38 EPS, Outlook Sparks 36% Stock Drop
Sunrun reported Q4 revenue of $1.16 billion, up 124% year-over-year, and delivered a surprise EPS of $0.38, topping analyst estimates. However, it forecast a 13% revenue decline next 12 months, return to negative EPS, and saw negative free cash flow widen to $312.7 million, driving a 36% share plunge.
1. Fourth-Quarter Financial Results
Sunrun reported Q4 revenue of $1.16 billion, marking a 124% year-over-year increase, and posted a surprise profit with EPS of $0.38. These results surpassed Wall Street estimates and reflected strong growth in residential solar installations.
2. Future Outlook and Cash Burn
Management warned of a 13% revenue decline over the next 12 months and a return to negative EPS, while negative free cash flow widened to $312.7 million this quarter. The company’s substantial debt load further heightens concerns about its liquidity and long-term profitability.
3. Market Reaction and Stock Movement
Shares tumbled 36% following the earnings release, extending a 33% decline year-to-date and trading roughly 39% below the 52-week high of $21.41. Sunrun’s stock has experienced 82 moves greater than 5% over the past year, underscoring its extreme volatility.