Residential solar energy company Sunrun (NASDAQ: RUN) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 43.2% year on year to $722.2 million. Its GAAP profit of $0.62 per share was significantly above analysts’ consensus estimates.
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Sunrun (RUN) Q1 CY2026 Highlights:
- Revenue: $722.2 million vs analyst estimates of $641.3 million (43.2% year-on-year growth, 12.6% beat)
- EPS (GAAP): $0.62 vs analyst estimates of -$0.10 (significant beat)
- Adjusted EBITDA: $172.3 million vs analyst estimates of $166.5 million (23.9% margin, 3.5% beat)
- Operating Margin: -6%, up from -22.8% in the same quarter last year
- Free Cash Flow was -$413.8 million compared to -$104.4 million in the same quarter last year
- Customers: 1.18 million, up from 1.17 million in the previous quarter
- Market Capitalization: $3.17 billion
Company Overview
Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Sunrun grew its sales at an incredible 24.9% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Sunrun’s annualized revenue growth of 22.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Sunrun also reports its number of customers, which reached 1.18 million in the latest quarter. Over the last two years, Sunrun’s customer base averaged 788% year-on-year growth. Because this number is better than its revenue growth, we can see the average customer spent less money each year on the company’s products and services. 
This quarter, Sunrun reported magnificent year-on-year revenue growth of 43.2%, and its $722.2 million of revenue beat Wall Street’s estimates by 12.6%.
Looking ahead, sell-side analysts expect revenue to decline by 4.5% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Sunrun’s high expenses have contributed to an average operating margin of negative 60.4% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
On the plus side, Sunrun’s operating margin rose by 36.1 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.
In Q1, Sunrun generated a negative 6% operating margin.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sunrun’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Sunrun, its two-year annual EPS growth of 52.3% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.
In Q1, Sunrun reported EPS of $0.62, up from $0.19 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Sunrun’s full-year EPS of $2.13 to shrink by 87.4%.
Key Takeaways from Sunrun’s Q1 Results
It was good to see Sunrun beat analysts’ EPS expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 3.7% to $13.39 immediately after reporting.
Sunrun had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
