What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-26 compared with 2025-02-27 · 187 added, 182 removed, 305 unchanged (55% of the section changed)

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Factors that could cause or contribute to such differences include those identified below and those discussed in the section titled “Risk Factors” included elsewhere in this Annual Report on Form 10-K.

We provide clean, solar energy and energy storage to customers at a significant savings compared to traditional utility energy.

We provide clean, solar energy and energy storage to customers.

We have been selling solar energy to residential customers through a variety of offerings since we were founded in 2007.

We, either directly or through one of our solar partners, install a solar energy system on a customer’s home and either sell the system to the customer or, as is more often the case, sell the energy generated by the system to the customer pursuant to a lease or PPA with no or low upfront costs.

We refer to these leases and PPAs as “Customer Agreements.” Following installation, a system is interconnected to the local utility grid.

The home’s energy usage is provided by the solar energy system, with any additional energy needs provided by the local utility.

We, either directly or through one of our energy system partners, install an energy system on a customer’s home and either sell the system to the customer or, as is more often the case, sell the energy generated by the system to the customer pursuant to a lease or PPA with no or low upfront costs.

Certain of these energy systems under lease or PPA agreements have been sold and may in the future be sold to third-party investors.

For these non-retained agreements we may continue to maintain the customer experience and servicing relationships.

We refer to these leases and PPAs as “Customer Agreements.” Following installation, an energy system is interconnected to the local utility grid.

The home’s energy usage is provided by the energy system, with any additional energy needs provided by the local utility.

Any excess solar energy, including amounts in excess of battery storage, that is not immediately used by the customers is exported to the utility grid using a bi-directional utility net meter, and the customer generally receives a credit for the excess energy from their utility to offset future usage of utility-generated energy.

We offer our solar service offerings both directly to the customer and through our solar partners, which include sales and installation partners, and strategic partners, which include retail partners.

In addition, we sell solar energy systems directly to customers for cash.

We offer our solar service offerings both directly to the customer and through our energy system partners, which include sales and installation partners, and strategic partners, which include retail partners.

In addition, we sell energy systems directly to customers for cash.

We also sell solar energy panels and other products (such as racking) to resellers.

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For example, with the insights provided by our technology, we can offer competitive pricing to customers with homes that have favorable characteristics, such as roofs that allow for easy installation, high electricity consumption, or low shading, effectively passing through the cost savings we are able to achieve on these installations to the customer.

Our ability to offer Customer Agreements depends in part on our ability to finance the purchase and installation of the solar energy systems by monetizing the resulting customer cash flows and related Commercial ITCs, accelerated tax depreciation and other incentives from governments and local utilities.

We monetize these incentives under tax equity investment funds, which are generally structured as non-recourse project financings.

Since inception we have raised numerous tax equity investment funds to finance the installation of solar energy systems.

Our ability to offer Customer Agreements depends in part on our ability to finance the purchase and installation of the energy systems by monetizing the resulting customer cash flows and related Commercial ITCs, accelerated tax depreciation and other incentives from governments and local utilities.

We monetize these incentives under tax equity investment funds, which are generally structured as non-recourse project financings, as well as through the sale of certain energy systems under newly originated Customer Agreements to third-party investors.

Since inception we have raised numerous tax equity investment funds to finance the installation of energy systems.

From time to time, we may repurchase investors' interests in our tax equity investment funds after the recapture period of the relevant tax incentives.

We intend to establish additional investment funds and may also use debt, equity and other financing strategies to fund our growth.

In addition, completing the sale and installation of a solar energy system requires many different steps including a site audit, completion of designs, permitting, installation, electrical sign-off and interconnection.

In addition, completing the sale and installation of an energy system requires many different steps including a site audit, completion of designs, permitting, installation, electrical sign-off and interconnection.

Customers may cancel their Customer Agreements with us, subject to certain conditions, during this process until commencement of installation.

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Market & Macroeconomic Environment

Our business and financial performance also depend on worldwide economic conditions.

We face global macroeconomic challenges, particularly in light of increases and volatility in interest rates, uncertainty in markets, inflationary trends, navigating complex and evolving regulatory and tax frameworks, and the dynamics of the global trade environment.

During the twelve months ended December 31, 2024, we observed market uncertainty, increasing inflationary pressures, rising interest rates, the market impacts of proposed or newly enacted regulatory frameworks in markets within which we do business and within our industry, supply constraints, and bank failures.

In particular, rising interest rates, including recent historic increases starting in 2021, have resulted and may continue to result in a decrease in our advance rates, reducing the proceeds we receive from certain investment funds.

Because our financing structure is sensitive to volatility in interest rates, higher rates increase our cost of capital and may decrease the amount of capital available to us to finance the deployment of new solar energy systems.

These market dynamics, some of which we expect will continue into the foreseeable future, have impacted and may continue to impact our business and financial results.

In December 2022, California made changes to its net metering policy by adopting NBT, which presents a significant change to the rate structure for new California customers, and has partially limited the financial attractiveness of our offerings in certain regions of the state, particularly for solar-only systems.

However, under this new policy, the value proposition of storage offerings is significantly enhanced.

We believe that California will be predominantly a solar plus storage market going forward and the vast majority of California sales now consist of either our Sunrun Shift product or our backup battery offerings.

Our business and financial performance also depend on worldwide economic and geopolitical conditions.

We face global macroeconomic challenges, particularly in light of volatility in interest rates, uncertainty in markets, inflationary trends, navigating complex and evolving regulatory and tax frameworks, and the dynamics of the global trade environment, including the imposition of tariffs.

Federal tax policies and regulations, as well as state regulatory frameworks, also affect our business and financial performance.

During the twelve months ended December 31, 2025, we observed market uncertainty, including as a result of ongoing announcements related to tariffs, inflationary pressures, elevated interest rates, the market impacts of proposed or newly enacted regulatory frameworks in markets within which we do business and within our industry and supply constraints.

In particular, elevated interest rates, including historic increases starting in 2021, have resulted and may continue to result in a decrease in our advance rates, reducing the proceeds we receive from certain Funds.

These market dynamics, some of which we expect will continue into the foreseeable future, despite a recent reduction in federal interest rates, have impacted and may continue to impact our business and financial results.

Additionally, our operations and supply chains are subject to risks related to uncertainties in trade regulations and policies, including changes in tariffs, duties, trade barriers, and other restrictions imposed by both domestic and international governments.

These trade policy uncertainties may increase our costs, disrupt our supply chain, limit our ability to operate in certain markets, or require us to modify our current business practices.

Changes in trade agreements, import/export regulations, and retaliatory measures between countries could further impact the availability and cost of materials necessary for our products and services.

While the Company is not a direct importer of modules and batteries, many of the Company's suppliers import products and components from jurisdictions such as China and Vietnam that are subject to recently announced tariffs, which could significantly increase component expenses for key products, such as lithium-ion battery cells used in our energy storage systems that are currently sourced primarily from China.

Despite our efforts to identify qualified suppliers outside of China, these tariffs and potential future trade restrictions could adversely impact our supply chain costs, the pricing of our products and, consequently, negatively affect consumer demand for our products.

At the federal level, tax policy and associated regulations have a direct impact on our business.

The most notable recent tax legislation affecting our business is the OBBB that President Trump signed into law on July 4, 2025.

The new law adjusts tax policies that Sunrun relies upon, including the 48E Clean Electricity Investment Credit and its associated “bonus” credits.

While the law maintains the full 48E credit for energy storage through 2033, it shortens the availability of the 48E credit for solar facilities to the end of 2027.

The law also applies new PFE restrictions to the 48E credit, which could potentially deny tax credits to entities owned, controlled, or influenced by certain specified foreign entities, and for projects that use certain components or receive “material assistance” from a PFE, thereby potentially increasing costs, reducing demand, or restricting access to tax credits.

Further, the law ended the Section 25D Residential Clean Energy Credit starting on January 1, 2026.

Changes in the law relating to the Section 45X Advanced Manufacturing Production Credit could also affect Sunrun indirectly, through our suppliers.

The implementation of the OBBB through the federal regulatory process could also directly affect our business, including from uncertainty prior to the issuance of guidance or formal rulemaking processes, which may result in delays for monetizing tax credits.

For further information regarding possible impacts of the OBBB on our business, see Part II, Item 1A.

Risk Factors —"Risks Related to Regulation and Policy—Federal tax policy impacts the competitiveness of our service offerings to customers and our market” and “Risks Related to Taxes and Accounting—Our ability to provide our storage and solar service offerings to customers on an economically viable basis depends in part on our ability to finance these systems with fund investors who seek particular tax and other benefits” and “—Our business depends in part on the availability of utility rebates, tax credits and other benefits, tax exemptions and exclusions, and other financial incentives on the federal, state, and/or local levels.

State legislative and regulatory frameworks also have a direct impact on our business.

For example, on April 15, 2023, California implemented changes to its net metering policy by adopting a net billing tariff (“NBT”), which presented a significant change to the rate structure for new California customers, and has partially limited the financial attractiveness of our offerings in certain regions of the state, particularly for solar-only systems.

However, under this new policy, the value proposition of storage offerings is significantly enhanced in California.

We believe that California will be predominantly a solar plus storage market going forward and the vast majority of California sales now consist of our backup battery offerings.

As the demand for solar plus storage offerings grows, we anticipate facing additional operational challenges associated with the complexity of deploying storage solutions.

For example, solar plus storage offerings tend to have longer cycle times due to factors such as lengthened permitting and inspection times and potential need of a main panel upgrade.

For example, solar plus storage offerings tend to have longer cycle times due to factors such as lengthened

permitting and inspection times and potential need of a main panel upgrade.

Any such factors that extend the timeframes from customer signature to installation have historically resulted in increased operational challenges and correspondingly lower realization rates, and any future instances may continue to do so.

Accordingly, this may adversely affect our financial performance, as well as the timing and magnitude of our installations and the recognition of the associated revenue.

Under the new NBT framework, the value proposition of our products is best understood when customers compare the combined costs of their utility bill along with their Sunrun solar and storage bill, due to the impact of time-of-use rates and export rates.

The solar industry in California is adjusting from selling based on the value of solar-only to a more complicated rate design with NBT.

Under the new California NBT framework, the value proposition of our products is best understood when customers compare the combined costs of their utility bill along with their Sunrun solar and storage bill, due to the impact of time-of-use rates and export rates.

We believe the best customer offering is one that pairs solar and storage, although it may be more confusing to customers when compared to solar-only offers from competitors.

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Although we believe this to be an economically unsustainable practice, in the short term, it has contributed to increased competition in the industry.

The Opportunity of Home Electrification and a Clean, Resilient Grid

The United States is on the precipice of a once-in-a-generation transformation of our energy system.

The decarbonization of the American economy will require powering our energy supply, including our homes, appliances and automobiles, with clean energy.

Sunrun’s next goal and chapter of growth is to be the go-to company for clean and reliable home electrification, providing our customers with affordable renewable energy throughout their homes and our communities with a cleaner, more resilient grid.

We intend to pursue these opportunities on a variety of fronts, and we continue to pursue the development of our grid services business, creating virtual power plants that lead to a cleaner, more resilient grid.

The Need for Fast-Built Dispatchable Power and Home Electrification

The United States is currently experiencing a transformation of our energy system due to a dramatic increase in demand for electricity from data centers, artificial intelligence, and manufacturing, as well as the opportunities of electrification of the American economy with clean energy.

We anticipated this critical need for more dispatchable electrons on the grid and assisting grid operators with on-demand, home-to-grid energy to help meet demand.

Meeting America’s energy needs to power the economy requires adding more dispatchable capacity to the grid.

We intend to pursue these opportunities on a variety of fronts, and we continue to pursue the development of our grid services business, creating distributed power plants that we believe will lead to a more affordable and more resilient grid.

Sunrun’s evolution to become a storage-first company has put us in the position of being the largest home-to-grid power plant owner and operator in the country—becoming a key dispatchable energy resource for the grid.

In collaboration with grid managers, we can deploy our battery systems where they will add the most value for utilities, the grid, and customers.

We are actively delivering demand response and capacity services to meet operational needs in multiple geographies, and partnering with grid managers to build a more resilient electricity system that integrates the new energy technologies customers want.

We believe the electrification of U.S.

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To further expand such future upsell and retrofit opportunities, from time to time, we may pursue acquisitions of previously installed solar systems.

While we do not expect such acquisitions to represent a material portion of our growth on an annual basis, we plan to pursue such transactions opportunistically.

While we do not expect such acquisitions to represent a significant portion of our growth on an annual basis, we plan to pursue such transactions opportunistically.

For instance, in the third quarter of fiscal 2021, we completed a strategic transaction that added approximately 2,000 Customers and 13 MW of Networked Solar Energy Capacity.

In sum, we believe the electrification of the U.S.

economy with renewable energy presents an unprecedented economic opportunity, as well as our country’s best path to achieving net zero emissions by 2050.

Through these electrification opportunities and our grid services business, we aim to be the consumer brand synonymous with repowering our customers’ homes with renewable energy and providing a pathway to a cleaner, healthier future.

2024 Election

As a result of the recent transition in both the White House and Congress, we may face changes or delays in policies that affect our business, including those related to federal tax credits, tariffs, and other regulatory measures.

Any delay, reduction, or elimination in the implementation of policies that support the residential solar industry, such as the ITCs and adders under the IRA, or Executive Orders issued by the President of the United States, could have an adverse effect on our business.

Additionally, these changes in the United States’ government could contribute to a higher interest rate environment, which may further negatively impact our operations and financing costs.

While it is difficult to predict specific outcomes at this time, we expect a period of regulatory and policy uncertainty in the near term.

However, we believe our diversified business model and flexible operational framework position us to adapt to potential changes in the regulatory landscape and will continue to build on the robust bi-partisan support for residential solar policy.

Investment Funds

Our Customer Agreements provide for recurring customer payments, typically over 20 or 25 years, and the related solar energy systems are generally eligible for Commercial ITCs, accelerated tax depreciation and other government or utility incentives.

economy backed by solar and battery storage presents an unprecedented economic opportunity.

Through these electrification opportunities and our grid services business, we aim to be the consumer brand synonymous with repowering our customers’ homes with affordable, resilient energy and providing a pathway to a cleaner, healthier future.

Energy Policy in a Period of Transition

The federal policy landscape in 2025 has created a dynamic environment that may impact our business and financial results, including via changes to federal tax credits, tariffs, and other regulatory measures.

The recent changes to ITCs under the OBBB, or Executive Orders issued by the President of the United States, as well as any other elimination, reduction or delay in policies that support the residential storage and solar industry, could have an adverse effect on our business.

For further information regarding certain of the impacts of the OBBB on our business, see Part II, Item 1A.

We may be adversely affected by changes in, and application of, these laws or other incentives to us, and the expiration, elimination or reduction of these benefits could adversely impact our business.” Additionally, these and other regulatory policies set forth in the United States’ government could contribute to a higher interest rate environment, which may further negatively impact our operations and financing costs.

While it is difficult to predict specific outcomes at this time, we expect a period of regulatory and policy uncertainty and change in the near term.

However, we believe our diversified business model and flexible operational framework position us to adapt to potential adverse changes in the regulatory landscape and to continue building on the robust bipartisan support for residential solar policy.

Our Customer Agreements provide for recurring customer payments, typically over 20 or 25 years, and the related energy systems are generally eligible for ITCs, accelerated tax depreciation and other government or utility incentives.

Our financing strategy is to monetize these benefits at a low weighted average cost of capital.

This low cost of capital enables us to offer attractive pricing to our customers for the energy generated by the solar energy system on their homes.

Historically, we have monetized a portion of the value created by our Customer Agreements and the related solar energy systems through investment funds.

These assets are attractive to fund investors due to the long-term, recurring nature of the cash flows generated by our Customer Agreements, the high credit scores of our customers, the fact that energy is a non-discretionary good and our low loss rates.

In addition, fund investors can receive attractive after-tax returns from our investment funds due to their ability to utilize Commercial ITCs, accelerated depreciation and certain government or utility incentives associated with the funds’ ownership of solar energy systems.

As of December 31, 2024, we had 62 active investment funds, which are described below.

We have established different types of investment funds to implement our asset monetization strategy.

Depending on the nature of the investment fund, cash may be contributed to the investment fund by the investor upfront or in stages based on milestones associated with the design, construction or interconnection status of the solar energy systems.

The cash contributed by the fund investor is used by the investment fund to purchase solar energy systems.

The investment funds either own or enter into a master lease with a Sunrun subsidiary for the solar energy systems, Customer Agreements and associated incentives.

We receive on-going cash distributions from the investment funds representing a portion of the monthly customer payments received.

We use the upfront cash, as well as on-going distributions to cover our costs associated with designing, purchasing and installing the solar energy systems.

This low cost of capital enables us to offer attractive pricing to our customers for the energy generated by the energy system on their homes.

Historically, we have monetized a portion of the value created by our Customer Agreements and the related energy systems through Funds, as defined below.

Additionally, we sell certain energy systems under newly originated Customer Agreements to third-party investors.

These assets are attractive to investors due to the long-term, recurring nature of the cash flows generated by our Customer Agreements, the high credit scores of our customers, the fact that energy is a non-discretionary good and our low loss rates.

In addition, investors can receive attractive after-tax returns due to their ability to utilize ITCs, accelerated depreciation and certain government or utility incentives associated with the ownership of energy systems.

As of December 31, 2025, we had 59 active Funds, which are described below.

We have established different types of Funds to implement our asset monetization strategy.

Depending on the nature of the Fund, cash may be contributed to the investment Fund by the investor upfront or in stages based on milestones associated with the design, construction or interconnection status of the energy systems.

The cash contributed by the Fund investor is used by the Fund to purchase energy systems.

The Funds own a Sunrun subsidiary for the energy systems, Customer Agreements and associated incentives.

We receive on-going cash distributions from the Funds representing a portion of the monthly customer payments received.

We use the upfront cash, as well as on-going distributions to cover our costs associated with designing, purchasing and installing the energy systems.

In addition, we also use debt, equity and other financing strategies to fund our operations.

The allocation of the economic benefits between us and the fund investor and the corresponding accounting treatment varies depending on the structure of the investment fund.

We currently utilize the legal structure for our investment funds which we refer to as partnership flips.

Historically, we also utilized pass-through financing obligations as a legal structure for our investment funds.

The allocation of the economic benefits between us and the Fund investor and the corresponding accounting treatment varies depending on the structure of the Fund.

We currently utilize the partnership flip structure for our Funds.

Historically, we also utilized pass-through financing obligations as a legal structure for our Funds.

In Q4 2024, we retired our last pass-through financing obligation Fund.

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If the investor has the option to put their interest to us, we record the investor’s interest as a redeemable noncontrolling interest at the greater of the HLBV and the redemption value.

The table below provides an overview of our current investment funds (dollars in millions):

Pass-Through Financing Obligations Partnership Flip

Consolidation Owner entity consolidated, tenant entity not consolidated Single entity, consolidated

Balance sheet classification Pass-through financing obligation Redeemable noncontrolling interests and noncontrolling interests

Revenue from Commercial ITCs Recognized on the permission to operate ("PTO") date None

Method of calculating investor interest Effective interest rate method Greater of HLBV or redemption value

Liability balance as of December 31, 2024 $ — N/A

Noncontrolling interest balance (redeemable or otherwise) as of December 31, 2024 N/A $ 1,610.0

For further information regarding our investment funds, including the associated risks, see Item 1A.

For further information regarding our Funds, including the associated risks, see Item 1A.

Risk Factors —" Our ability to provide our solar service offerings to customers on an economically viable basis depends in part on our ability to finance these systems with fund investors who seek particular tax and other benefits.

", Note 12, Pass-Through Financing Obligation , Note 13, VIE Arrangements and Note 14, Redeemable Noncontrolling Interests to our consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K.

Pass-through Financing Obligations

Pass-Through Financing Obligations.

In this investment fund structure, we and the fund investor each utilize separate entities to facilitate the pass-through of the Commercial ITC to the fund investors.

We contribute solar energy systems to an “owner” entity in exchange for interests in the owner entity, and the fund investors contribute cash to a “tenant” entity in exchange for interests in the tenant entity.

Under our pass-through financing obligation structure, in accordance with the provisions of FASB, Accounting Standards Codification (“ASC”) Topic 810, Consolidation , we have determined that we are the primary beneficiary of the owner entity, and accordingly, we consolidate that entity.

We have also determined that we are not the primary beneficiary of the tenant entity, and accordingly, we do not consolidate that entity.

In this investment fund structure, the investors make a series of large up-front payments as well as, in some instances, subsequent smaller quarterly lease payments through their respective tenant entity to the corresponding owner entity in exchange for the assignment of cash flows from Customer Agreements and certain other benefits associated with the Customer Agreements and related solar energy systems.

We account for the payments from investors as borrowings by recording the proceeds received as financing obligations.

The financing obligation is reduced over a period of approximately 22 years, or over 7 years in the case of one fund, by customer payments under the Customer Agreements;

and proceeds from the contracted resale of SRECs as they are received by the investor.

In addition, funds paid for the Commercial ITC value upfront are initially recorded as a refund liability and recognized as revenue as the associated solar system reaches permission to operate ("PTO").

We account for these investment funds in our consolidated financial statements as if we have not assigned the Customer Agreement to the investor, and we record on our consolidated financial statements activities arising from the Customer Agreements and any related Commercial ITCs monetized as part of the upfront payments received from the investor and SREC sales.

The interest charge on our pass-through financing obligations is imputed at the inception of the fund based on the effective interest rate in the arrangement giving rise to the obligation and is updated prospectively as appropriate.

In certain arrangements, we agree to defer a portion of the up-front payments by arranging a loan between one of our indirectly wholly owned subsidiaries to a subsidiary of the investor’s tenant entity.

Partnership Flips

", Note 12, VIE Arrangements and Note 13, Redeemable Noncontrolling Interests to our consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K.

Under partnership flip structures, we and our fund investors contribute cash into a partnership entity.

The partnership uses the cash to acquire solar energy systems developed by us with signed Customer Agreements.

The partnership uses the cash to acquire energy systems developed by us with signed Customer Agreements.

Each fund investor receives a rate of return, typically on an after-tax basis, which varies by investment fund.

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The HLBV method estimates the amount that, if the fund’s assets were hypothetically sold at their book value, the investor would be entitled to receive according to the liquidation waterfall in the partnership agreement.

As of December 31, 2025, the noncontrolling interest balance (redeemable or otherwise) for these Funds was $1.9 billion.

Key Operating Metrics

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Furthermore, other companies may calculate these metrics differently than we do now or in the future, which would reduce their usefulness as a comparative measure.

• Networked Solar Energy Capacity represents the aggregate megawatt production capacity of our solar energy systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection;

or (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost (inclusive of acquisitions of installed systems).

Systems that have met these criteria are considered to be deployed.

We believe it is helpful to investors to evaluate networked solar energy capacity added during the period in order to measure the growth of our business as a whole, whether sold directly to customers or subject to executed Customer Agreements.

• Gross Earning Assets is calculated as Gross Earning Assets Contracted Period plus Gross Earning Assets Renewal Period.

◦ Gross Earning Assets Contracted Period represents the present value of the remaining net cash flows (discounted at 6%) during the initial term of our Customer Agreements as of the measurement date.

It is calculated as the present value of cash flows (discounted at 6%) we expect to receive from Subscribers in future periods as set forth in Customer Agreements, after deducting expected operating and maintenance costs, equipment replacements costs, distributions to tax equity partners in partnership flip structures, and distributions to project equity investors.

We include cash flows we expect to receive in future periods from tax equity partners, government incentive and rebate programs, contracted sales of solar renewable energy credits, and awarded net cash flows from grid service programs with utility or grid operators.

◦ Gross Earning Assets Renewal Period is the forecasted net present value we would receive upon or following the expiration of the initial Customer Agreement term but before the 30th anniversary of the system’s activation (either in the form of cash payments during any applicable renewal period or a system purchase at the end of the initial term), for Subscribers as of the measurement date.

We calculate the Gross Earning Assets Renewal Period amount at the expiration of the initial contract term assuming either a system purchase or a renewal, forecasting only a 30-year customer relationship (although the customer may renew for additional years, or purchase the system), at a contract rate equal to 90% of the customer’s contractual rate in effect at the end of the initial contract term.

After the initial contract term, our Customer Agreements typically automatically renew annually or for a five year term and the rate is initially set at up to a 10% discount to then-prevailing utility power prices.

◦ Subscribers represent the cumulative number of Customer Agreements for systems that have been recognized as deployments through the measurement date.

• Customers represent the cumulative number of deployments, from our inception through the measurement date.

• Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost (inclusive of acquisitions of installed systems).

A portion of customers have subsequently entered into Customer Agreements to obtain, or have directly purchased, additional solar or storage systems at the same host customer site, and since these represent separate assets, they are considered separate Deployments.

• Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments and recognized as energy systems on Sunrun’s consolidated balance sheet, whether or not they continue to be active.

• Non-Retained or Partially Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments whereby the assets have been fully or partially sold to one or more investors and not presented as an energy system on Sunrun’s consolidated balance sheet.

• Subscribers represent aggregate Retained Subscribers and Non-Retained or Partially Retained Subscribers.

• Purchase Customers represent customers who purchased, whether outright or with proceeds from third-party loans, solar and/or storage systems that have been recognized as Deployments.

• Customers represent aggregate Subscribers and Purchase Customers.

We believe that it is helpful to investors to evaluate customers added during the period in order to measure the growth of our business as a whole.

• Solar Capacity Installed represents the aggregate megawatt production capacity of solar energy systems that were recognized as Deployments in a period.

• Networked Solar Capacity represents the cumulative Solar Capacity Installed from the Company’s inception through the measurement date.

• Subscriber Additions represent the number of Subscribers added in a period.

We believe this metric is helpful to investors to track the additions to our customers under long-term Customer Agreements from our activities in the period.

• Contracted Subscriber Value represents the per Subscriber present value of estimated upfront and future Contracted Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period.

• Aggregate Contracted Subscriber Value represents Contracted Subscriber Value multiplied by Subscriber Additions.

• Contracted Cash Flows represent, (A) for Retained Subscribers, (x) (1) scheduled payments from Subscribers during the initial terms of the Customer Agreements (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, only the minimum contracted payment is included in Contracted Cash Flows), (2) net proceeds from tax equity partners, (3) payments from government and utility incentive and rebate programs, (4) contracted net cash flows from grid services programs with utilities or grid operators, and (5) contracted or defined (i.e., with fixed pricing) cash flows from the sale of renewable energy credits, le ss (y) (1) estimated operating and maintenance costs to service the systems and replace equipment over the initial terms of the Customer Agreements, consistent with estimates by independent engineers, (2) distributions to tax equity partners in consolidated joint venture partnership flip structures, and (3) distributions to any project equity investors, and (B) for Non-Retained or Partially Retained Subscribers, (x) contracted proceeds from the full or partial sale of related assets, plus (y) the share of Contracted Cash Flows described in clause (A) of this definition which are allocated to Sunrun pursuant to the terms of each sale agreement or partnership agreement.

• Non-contracted or Upside Cash Flows represent (A) for Retained Subscribers the (1) net cash flows realized from either the purchase of systems at the end of the Customer Agreement initial terms or renewals of Customer Agreements beyond the initial terms, estimated in both cases to have equivalent value, assuming only a 30-year relationship and a contract renewal rate equal to 90% of each Subscriber’s contractual rate in effect at the end of the initial contract term, (2) non-contracted net cash flows from grid service programs with utilities and grid operators, (3) non-contracted net cash flows from the sale of renewable energy credits, and (4) contracted cash flows from Flex Customer Agreements exceeding the minimum contracted payment (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, an assumption is made that each Subscriber’s electricity consumption increases by approximately 2% per year through the end of the initial term of the Customer Agreement and into the renewal period (if renewed), resulting in billings in excess of the minimum contracted amount (which minimums are included in Contracted Cash Flows)), and (B) for Non-Retained or Partially Retained Subscribers, the share of Non-contracted or Upside Cash Flows described in clause (A) of this definition which are allocated to Sunrun pursuant to the terms of each sale agreement or partnership agreement.

After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing utility power prices.

• Gross Earning Assets is calculated as Contracted Gross Earning Assets plus Non-contracted or Upside Gross Earning Assets.

Gross Earning Assets is forecasted as of a specific date.

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Various assumptions are made when calculating these metrics.

Gross Earning Assets utilize a 6% unlevered discount rate (weighted average cost of capital or “WACC”) to discount future cash flows to the present period.

Gross Earning Assets utilize a 6% unlevered discount rate to discount future cash flows to the present period.

Furthermore, this metric assumes that customers renew after the initial contract period at a rate equal to 90% of the rate in effect at the end of the initial contract term.

For Customer Agreements with 25-year initial contract terms, a 5-year renewal period is assumed.

For a 20-year initial contract term, a 10-year renewal period is assumed.

In all instances, we assume a 30-year customer relationship, although the customer may renew for additional years, or purchase the system.

For instance, Customer Agreements with 25-year initial contract terms, a 5-year renewal period is assumed.

For a 20-year initial contract term, a 10-year renewal period is assumed.

Estimated cost of servicing assets has been deducted and is estimated based on the service agreements underlying each fund.

• Contracted Gross Earning Assets represents, as of any measurement date, the present value of estimated remaining Contracted Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%.

• Non-contracted or Upside Gross Earning Assets represents, as of any measurement date, the present value of estimated Non-contracted or Upside Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%.

Preceding fiscal year 2025, this key operating metric was previously disclosed as “Gross Earning Assets Renewal Period,” and was calculated in the same manner except that since the beginning of fiscal year 2025 we have (i) included the expected impact of our Flex product offering, which in prior periods had been an immaterial part of our business, and (ii) modified the title of the metric to Non-contracted or Upside Gross Earnings Assets.

Three months ended December 31,

Subscriber Additions in period 25,475 30,709

Contracted Subscriber Value (per Subscriber) $ 47,988 $ 48,273

Aggregate Contracted Subscriber Value (in thousands) $ 1,222,500 $ 1,482,413

As of December 31,

Networked Solar Energy Capacity (megawatts) 7,531 6,689

Networked Solar Capacity (megawatts) 8,404 7,531

Customers 1,165,686 1,048,842

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(in thousands)

Gross Earning Assets Contracted Period $ 13,790,540 $ 10,802,494

Gross Earning Assets Renewal Period 4,043,288 3,364,026

Contracted Gross Earning Assets $ 16,177,676 $ 13,790,540

Non-contracted or Upside Gross Earning Assets 4,967,223 4,043,288

Gross Earning Assets $ 21,144,899 $ 17,833,828

The tables below provide a range of Gross Earning Asset amounts if different default, discount and purchase and renewal assumptions were used.

Gross Earning Assets Contracted Period:

Contracted Gross Earning Assets:

As of December 31, 2025

Discount rate

Default rate 4% 5% 6% 7% 8%

Annualized Net Default Rate 4% 5% 6% 7% 8%

(in thousands)

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0.50% $ 17,842,775 $ 16,577,725 $ 15,246,388 $ 14,080,696 $ 13,055,794

Gross Earning Assets Renewal Period:

0.25% $ 18,409,056 $ 17,099,239 $ 15,712,032 $ 14,498,315 $ 13,431,965

0.00% $ 18,975,337 $ 17,620,753 $ 16,177,676 $ 14,915,934 $ 13,808,136

Non-contracted or Upside Gross Earning Assets:

As of December 31, 2025

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Customer Agreements and Incentives Revenue.

Customer agreements and incentives revenue is primarily comprised of revenue from our Customer Agreements and sales of Commercial ITCs and SRECs to third parties.

We begin to recognize revenue from a Customer Agreement when PTO for the applicable solar energy system is given by the local utility company or on the date daily operation commences if utility approval is not required.

Customer agreements and incentives revenue is primarily comprised of revenue from our Customer Agreements and sales of solar renewable energy credits (“SRECs”) to third parties.

We begin to recognize revenue from a Customer Agreement when PTO for the applicable energy system is given by the local utility company or on the date daily operation commences if utility approval is not required.

For Customer Agreements that include a fixed fee per month which entitles the customer to any and all electricity generated by the system, we recognize revenue evenly over the time that we satisfy our performance obligations over the initial term of Customer Agreements.

For Customer Agreements that charge a fixed price per kilowatt hour, revenue is recognized based on the actual amount of power generated at rates specified under the contracts.

Customer Agreements typically have an initial term of 20 or 25 years.

After the initial contract term, our Customer Agreements typically automatically renew annually or for a five year term.

We also apply for and receive SRECs associated with the energy generated by our solar energy systems and sell them to third parties in certain jurisdictions.

We also apply for and receive SRECs associated with the energy generated by our energy systems and sell them to third parties in certain jurisdictions.

SREC revenue is estimated net of any variable consideration related to possible liquidated damages if we were to deliver fewer SRECs than contractually committed, and is generally recognized upon delivery of the SRECs to the counterparty.

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The interest expense is recognized based upon an amortization schedule which typically decreases throughout the term of the related agreement.

For pass-through financing obligation funds, the value attributable to the Commercial ITCs is recognized in the period a solar system is granted PTO, at which point we have met our obligation to the investor.

The Commercial ITCs are subject to recapture under the Internal Revenue Code (“Code”) if the underlying solar energy system either ceases to be a qualifying property or undergoes a change in ownership within five years of its placed-in-service date.

The recapture amount decreases on the anniversary of the PTO date.

We have not historically incurred a material recapture of Commercial ITCs, and do not expect to experience a material recapture of Commercial ITCs in the future.

Consideration from customers is considered variable due to the performance guarantee under Customer Agreements and liquidated damage provisions under SREC contracts in the event minimum deliveries are not achieved.

Customer Agreements with a performance guarantee provide a credit to the customer if the system's

cumulative production, as measured on various PTO anniversary dates, is below our guarantee of a specified minimum.

Customer Agreements with a performance guarantee provide a credit to the customer if the system's cumulative production, as measured on various PTO anniversary dates, is below our guarantee of a specified minimum.

Revenue is recognized to the extent it is probable that a significant reversal of such revenue will not occur.

If our estimate of the future production shortfall amount for Customer Agreements with a performance guarantee was 10% higher, the additional reduction to revenue in the twelve months ended December 31, 2025 would have been less than $5.0 million.

Our estimated production shortfall reduced revenue during the twelve months ended December 31, 2024 by less than $7.6 million more than the prior year's period.

Our estimated production shortfall reduced revenue during the twelve months ended December 31, 2025 by less than $10.2 million compared to the prior year's period.

We have historically estimated an immaterial amount of liquidated damages pursuant to SREC contracts, and actual damages have not been materially different from estimates, nor material in amount during the years ended December 31, 2025, 2024 and 2023.

Solar Energy Systems and Product Sales.

Solar energy systems sales are revenue from the sale of solar energy systems directly to customers.

We generally recognize revenue from solar energy systems sold to customers when the solar energy system passes inspection by the authority having jurisdiction, which inspection generally occurs after installation but prior to PTO, at which time we have met the performance obligation in the contract.

For solar energy system sales that include delivery obligations up until interconnection to the local power grid with permission to operate, we recognize revenue at PTO.

Certain solar energy systems sold to customers include fees for extended warranty and maintenance services.

Energy Systems and Product Sales.

Energy systems sales are revenue from the sale of energy systems directly to customers or third-party investors.

We generally recognize revenue from energy systems sold to customers when the energy system passes inspection by the authority having jurisdiction, which inspection generally occurs after installation but prior to PTO, at which time we have met the performance obligation in the contract.

For energy system sales that include delivery obligations up until interconnection to the local power grid with permission to operate, we recognize revenue at PTO.

For sale of energy systems subject to newly originated

Customer Agreements to third-party investors, we recognize revenue over time as performance obligations are satisfied, based on the achievement of milestones.

Certain energy systems sold to customers include fees for extended warranty and maintenance services.

These fees are recognized over the life of the service agreement.

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A sustained decrease in the price of our common stock is one of the qualitative factors to be considered as part of an impairment test when evaluating whether events or changes in circumstances may indicate that it is more likely than not that a potential goodwill impairment exists.

As of October 1, 2024, we performed a qualitative assessment to evaluate any circumstances and events impacting our one reporting unit to determine the likelihood of goodwill impairment.

We concluded it was more likely than not that the fair value of our one reporting unit exceeded its carrying value.

To corroborate this conclusion, we compared the carrying value of our one reporting unit to our enterprise market capitalization after consideration of a reasonable control premium.

However, in November 2024, consistent with industry peers, our stock price declined resulting in a significant decline in our market capitalization below the book value of equity.

In November 2024, consistent with industry peers, our stock price declined resulting in a significant decline in our market capitalization below the book value of equity.

This indicator triggered an interim quantitative assessment as of December 31, 2024.

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The assumptions and estimates used in the assessment include, among others, estimated future net annual contracted cash flows under our existing long term customer agreements, as well as future growth estimates.

We also compared the total invested capital (including market

capitalization) to the fair value of our reporting unit to assess the reasonableness of fair value.

We also compared the total invested capital (including market capitalization) to the fair value of our reporting unit to assess the reasonableness of fair value.

As of December 31, 2024, we concluded that the fair value of our one reporting unit did not exceed its carrying value primarily driven by our market capitalization and recorded an impairment charge of $ 3.1 billion in our consolidated statements of operations equal to the full value of the previously recorded goodwill.

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Impairment of Long-Lived Assets

The carrying values of our long-lived assets, including solar energy systems, are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated.

The carrying values of our long-lived assets, including energy systems, are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated.

Factors that we consider in deciding when to perform an impairment review would include significant negative industry or economic trends, and significant changes or planned changes in our use of the assets.

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We recognize the effect of tax rate and law changes on deferred taxes in the reporting period in which the legislation is enacted.

We sell solar energy systems to investment funds.

As the investment funds are consolidated by us, the gain on the sale of the solar energy systems is not recognized in the consolidated financial statements.

We sell energy systems to investment funds.

As the investment funds are consolidated by us, the gain on the sale of the energy systems is not recognized in the consolidated financial statements.

However, this gain is recognized for tax reporting purposes.

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the flow-through method).

The Company enters into ITC transfer agreements with third-party transferees to transfer to such third-parties, for cash, the ITCs generated by certain solar energy systems that have been or will be placed in service.

The Company enters into ITC transfer agreements with third-party transferees to transfer to such third-parties, for cash, the ITCs generated by certain energy systems that have been or will be placed in service.

The Company accounts for its share of ITC transfer proceeds under ASC 740, Income Taxes , as a reduction of income tax expense in the consolidated statement of operations during the year in which the credits are recognized ( i.e.

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Any residual purchase price is recorded as goodwill.

The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to the solar energy systems acquired as part of our acquisition of Vivint Solar in 2020.

The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to the energy systems acquired as part of our acquisition of Vivint Solar in 2020.

Significant estimates in valuing certain tangible assets include but are not limited to discount rates.

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Customer agreements and incentives $ 1,819,007 $ 1,505,227

Solar energy systems and product sales 532,492 1,073,107

Energy systems and product sales 1,137,990 532,492

Total revenue 2,956,997 2,037,719

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Cost of customer agreements and incentives 1,282,357 1,169,213

Cost of solar energy systems and product sales 539,952 1,019,638

Cost of energy systems and product sales 777,342 539,952

Sales and marketing 709,253 617,162

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Goodwill impairment

3,122,168 1,158,000

Total operating expenses 3,083,126 5,732,926

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Interest expense, net (996,782) (848,366)

Other income (expense), net 161,539 (63,900)

Other (expense) income, net

(53,413) 161,539

Loss before income taxes (1,176,324) (4,382,034)

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Net loss attributable to noncontrolling interests and redeemable noncontrolling interests (1,459,053) (1,509,050)

Net loss attributable to common stockholders $ (2,846,167) $ (1,604,497)

Net loss per share attributable to common stockholders

Net income (loss) attributable to common stockholders

$ 449,947 $ (2,846,167)

Net income (loss) per share attributable to common stockholders

Basic $ 1.96 $ (12.81)

Diluted $ 1.71 $ (12.81)

Weighted average shares used to compute net loss per share attributable to common stockholders

Weighted average shares used to compute net income (loss) per share attributable to common stockholders

Basic 229,809 222,215

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Customer agreements and incentives 1,819,007 1,505,227 313,780 21 %

Solar energy systems 204,776 656,408 (451,632) (69) %

Energy systems 878,341 204,776 673,565 329 %

Products 259,649 327,716 (68,067) (21) %

Solar energy systems and product sales 532,492 1,073,107 (540,615) (50) %

Energy systems and product sales 1,137,990 532,492 605,498 114 %

Total revenue $ 2,956,997 $ 2,037,719 $ 919,278 45 %

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Revenue from incentives consisted primarily of sales of SRECs.

The $7.2 million increase when compared to the prior year related to the timing and volume of SREC sales, which were responsive to market conditions.

Solar Energy Systems and Product Sales .

Revenue from solar energy systems sales decreased by $451.6 million compared to the prior year primarily due to an increase in the proportion of customers choosing to enter into a Customer Agreement versus purchasing a system outright using a loan, likely due to increased interest rates.

Product sales decreased by $89.0 million compared to the prior year primarily due to the lower average sales price of solar energy products, as well as lower sales volume of solar energy products to installers of solar energy systems compared to the prior year, due to easing of supply chain constraints and the wind-down of the AEE Solar operations in 2024.

Operating Expenses

The $6.3 million decrease when compared to the prior year related to the timing and volume of SREC sales, which were responsive to market conditions.

Energy Systems and Product Sales .

Revenue from energy systems sales increased by $673.6 million compared to the prior year primarily due to a transaction that Sunrun entered into in the third quarter of 2025 whereby certain storage and energy systems subject to newly originated Customer Agreements are sold to a third-party investor;

however, Sunrun continues to maintain the customer experience and servicing relationships and can sell future goods and services to these customers.

Product sales decreased by $68.1 million compared to the prior year primarily due to the lower average sales price of solar energy products, as well as lower sales volume of solar energy products to installers of solar energy systems compared to the prior year, due to easing of supply chain constraints.

December 31, Change

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Cost of customer agreements and incentives $ 1,282,357 $ 1,169,213 $ 113,144 10 %

Cost of solar energy systems and product sales 539,952 1,019,638 (479,686) (47) %

Cost of energy systems and product sales 777,342 539,952 237,390 44 %

Sales and marketing 709,253 617,162 92,091 15 %

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catching up to costs.

Cost of Solar Energy Systems and Product Sales .

There was a $479.7 million decrease in Cost of solar energy systems and product sales, which was primarily due to the corresponding net decrease in the solar energy systems and product sales discussed above.

The Cost of solar energy systems and product sales increased to 101% of solar energy systems and product sales revenue during 2024, when compared with 95% in the prior year, primarily as the result of a $22.1 million increase in inventory reserves recorded in the first quarter of fiscal 2024 related to the wind-down of the AEE Solar operations.

Cost of Energy Systems and Product Sales .

There was a $237.4 million increase in Cost of energy systems and product sales, which was primarily due to the corresponding net increase in the energy systems and product sales discussed above.

The Cost of energy systems and product sales decreased to 68% of energy systems and product sales revenue during 2025, when compared with 101% in the prior year, primarily due to the increase in system sales to a third-party investor related to the transaction Sunrun entered in Q3 2025 discussed above, as well as a $22.1 million increase in inventory reserves recorded in the first quarter of fiscal 2024 related to the wind-down of the AEE Solar operations with no such comparable activity in 2025.

Sales and Marketing Expense.

The $123.7 million decrease in Sales and marketing expense was primarily attributable to decreases in headcount driving lower employee compensation and costs to acquire customers through our sales lead generating partners.

The $92.1 million increase in Sales and marketing expense was primarily attributable to increases in costs to acquire customers through our sales lead generating partners, partially offset by a decrease in headcount driving lower employee compensation.

Included in sales and marketing expense were $95.3 million and $76.2 million of amortization of costs to obtain Customer Agreements for 2025 and 2024, respectively.

Research and Development Expense .

The $17.5 million increase in Research and development expense was primarily attributable to an increase in headcount driving higher employee compensation costs, as well as an increase in support related consulting costs.

The $3.2 million decrease in Research and development expense was primarily attributable to a decrease in support-related consulting costs, as well as a decline in employee compensation.

General and Administrative Expense .

The $24.1 million increase in General and administrative expenses was primarily attributable to an increase in headcount driving higher employee compensation costs.

The $32.9 million increase in General and administrative expenses was primarily attributable to an increase in employee compensation costs.

Additionally, there were increases related to information technology related consulting costs, when compared to the prior year period.

Goodwill impairment .

The $2.0 billion increase in Goodwill impairment expense related to an impairment charge of $3.1 billion that was a result of an interim impairment test performed during the fourth quarter of 2024 and an impairment charge of $1.2 billion that was a result of an interim impairment test performed during the third quarter of 2023.

The $3.1 billion decrease in Goodwill impairment expense related to an impairment charge of $3.1 billion that was a result of an interim impairment test performed during the fourth quarter of 2024.

For further detail, see Note 2, Summary of Significant Accounting Policies to our consolidated financial statement included elsewhere in this Annual Report on Form 10-K.

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Interest expense, net $ (996,782) $ (848,366) $ (148,416) 17 %

Other income (expense), net 161,539 (63,900) 225,439 (353) %

Other (expense) income, net (53,413) 161,539 (214,952) (133) %

Total interest and other expense, net

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Included in net interest expense is $38.1 million and $34.8 million of non-cash interest recognized under Customer Agreements that have a significant financing component for 2025 and 2024, respectively.

Other income (expense), net.

The increase in other income of $225.4 million relates primarily to an increase in gains on derivatives during 2024, as well as a $7.4 million decrease in loss on an equity investment, as we recorded a $51.3 million loss on an equity investment in 2024, compared with a $58.7 million loss on an equity investment during 2023.

Other (expense) income, net.

The decrease in other income of $215.0 million related primarily to losses on derivatives recognized in 2025, as well as to gains on extinguishment of debt during 2024, with no such comparable activity in 2025.

Income Tax Benefit

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Income tax benefit $ 167,218 $ 26,817 $ 140,401 524 %

The increase in Income tax benefit of $14.1 million primarily relates to an increase in pre-tax loss, increased proceeds from investment tax credit transfers, and a decrease in valuation allowance on certain federal and state

tax credits and net operating losses, which was offset by goodwill impairment and an increase in noncontrolling interest and redeemable noncontrolling interests.

The increase in Income tax benefit of $140.4 million primarily relates to increased proceeds from investment tax credit transfers and a reduction of goodwill impairment, which was partially offset by an overall increase in valuation allowance on certain tax credits and net operating losses, a decrease in pre-tax loss, and a decrease in losses allocable to noncontrolling interests and redeemable noncontrolling interests.

Given our net operating loss carryforwards as of December 31, 2025, we do not expect to pay income tax, including in connection with our 2025 income tax provision, until our net operating losses are fully utilized.

As of December 31, 2024, we had net operating loss carryforwards for federal, state, and foreign income tax purposes of approximately $720.7 million, $3.3 billion, and $459.9 million, respectively, which will begin to expire in 2028 for federal purposes, in 2025 for state purposes, and in 2031 for foreign purposes.

As of December 31, 2025, we had net operating loss carryforwards for federal, state, and foreign income tax purposes of approximately $720.7 million, $3.5 billion, and $1.3 billion, respectively, which will begin to expire in 2028 for federal purposes, in 2026 for state purposes, and in 2031 for foreign purposes.

In addition, federal and certain state net operating loss carryforwards generated in tax years beginning after December 31, 2017 total $2.6 billion and $371.4 million, respectively, and have indefinite carryover periods and do not expire.

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Net loss attributable to noncontrolling interests and redeemable noncontrolling interests $ (1,459,053) $ (1,509,050) $ 49,997 (3) %

Net loss attributable to noncontrolling interests and redeemable noncontrolling interests was primarily the result of an addition of seven new investment funds since December 31, 2023, for which the HLBV method was used in determining the amount of net loss attributable to noncontrolling interests.

The decrease in Net loss attributable to noncontrolling interests and redeemable noncontrolling interests was primarily the result of an addition of only six new investment funds in 2025, as compared to the addition of seven new investment funds in 2024, for which the HLBV method was used in determining the amount of net loss attributable to noncontrolling interests.

Investment funds generally allocate more loss to the noncontrolling interest in the first several years after fund formation.

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In 2025, we received $1.2 billion of new commitments on secured credit facilities arrangements and $1.6 billion of commitments from secured, long-term non-recourse loan arrangements.

Our principal uses of cash are funding our business, including the costs of acquisition and installation of solar energy systems, satisfaction of our obligations under our debt instruments and other working capital requirements.

Our principal uses of cash are funding our business, including the costs of acquisition and installation of energy systems, satisfaction of our obligations under our debt instruments and other working capital requirements.

As of December 31, 2025, we had outstanding borrowings of $238.3 million on our $321.4 million credit facility maturing in March 2028.

In February 2024, we amended one of our subsidiary’s senior secured credit facility to, among other things, increase the total commitments from $1.8 billion to $2.4 billion and extend the maturity date from April 2025 to April 2028.

In July 2024, we amended the same senior secured credit facility to increase total commitments from $2.4 billion to $2.6 billion.

In February 2024, we amended our bank line of credit to, among other things, reduce the total commitments from $600.0 million to $447.5 million, and to extend the maturity date from January 2025 to November 2025.

As of September 30, 2024, this maturity date was automatically extended to March 1, 2027, due to us maintaining funds on deposit in a collateral account equal to an amount sufficient to repay at the scheduled maturity all of our 0% Senior Convertible Notes due 2026 that are outstanding as of September 30, 2024 and being otherwise in compliance with our quarter-end liquidity covenant.

Additionally, we have purchase commitments, which have the ability to be canceled without significant penalties, with multiple suppliers to purchase $574.0 million of photovoltaic modules, inverters and batteries by the end of the fourth quarter of 2025.

In December 2025, we amended our bank line of credit to, among other things, reduce the total commitments from $447.5 million to approximately $321.4 million, and to extend the maturity date from March 2027 to March 2028.

In 2024, we amended one of our subsidiary’s senior secured credit facility to, among other things, increase the total commitments from $1.8 billion to $2.6 billion and extend the maturity date from April 2025 to April 2028.

For further information regarding certain of the impacts our ability to raise capital on our business, see Part I, Item 1A.

Risk Factors— Risks Related to Our Operating Structure and Financing Activities—"We need to raise capital to finance the continued growth of our operations and solar service business.

If capital is not available to us on acceptable terms, as and when needed, our business and prospects would be materially and adversely impacted.

In addition, our business is affected by general economic conditions and related uncertainties affecting markets in which we operate.

Volatility in current economic conditions could adversely impact our business, including our ability to raise financing.”

Additionally, we have purchase commitments, which have the ability to be canceled without significant penalties, with multiple suppliers to purchase $2.0 billion of photovoltaic modules, inverters and batteries by the end of the fourth quarter of 2025.

In February 2024, we issued $475.0 million of convertible senior notes with a maturity date of March 1, 2030, for net proceeds of approximately $470.1 million.

Our business model requires substantial outside financing arrangements to grow the business and facilitate the deployment of additional solar energy systems.

The solar energy systems that are operational are expected to generate a positive return rate over the term of the Customer Agreement, typically 20 or 25 years.

Our business model requires substantial outside financing arrangements to grow the business and facilitate the deployment of additional energy systems.

The energy systems that are operational are expected to generate a positive return rate over the term of the Customer Agreement, typically 20 or 25 years.

However, in order to grow, we will continue to be dependent on financing from outside parties.

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Net cash provided by financing activities 3,211,350 3,426,755

Net (decrease) increase in cash

$ (40,422) $ 34,815

Net increase (decrease) in cash $ 289,572 $ (40,422)

Operating Activities

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The driver of our operating cash outflow consisted of the cost of our revenue, as well as sales, marketing and general and administrative costs.

During 2024, our operating cash outflows were $447.6 million from our net loss excluding non-cash and non-operating items.

Changes in working capital resulted in a net cash outflow of $318.5 million.

During 2025, after adjusting our net loss to exclude non-operating and non-cash items, we had operating cash outflows of $20.3 million.

Additionally, changes in working capital resulted in a net cash outflow of $441.7 million.

During 2024, we used $766.2 million in net cash from operating activities.

The driver of our operating cash outflow consisted of the cost of our revenue, as well as sales, marketing and general and administrative costs.

During 2023, our operating cash outflows were $625.6 million from our net loss excluding non-cash and non-operating items.

Changes in working capital resulted in a net cash outflow of $195.3 million.

During 2024, after adjusting our net loss to exclude non-operating and non-cash items, we had operating cash outflows of $447.6 million.

Additionally, changes in working capital resulted in a net cash outflow of $318.5 million.

Investing Activities

During 2025, we used $2.5 billion in cash in investing activities.

The majority was used to design, acquire and install solar energy systems and components under our long-term Customer Agreements.

The majority was used to design, acquire and install energy systems and components under our long-term Customer Agreements.

During 2024, we used $2.7 billion in cash in investing activities.

The majority was used to design, acquire and install solar energy systems and components under our long-term Customer Agreements.

Included within cash used in investing activities during 2023, was a $5.0 million contribution we made as an additional investment in Lunar Energy.

The majority was used to design, acquire and install energy systems and components under our long-term Customer Agreements.

Financing Activities

During 2025, we generated $3.2 billion from financing activities.

This was primarily driven by $1.3 billion in net proceeds from fund investors, $2.1 billion in net proceeds from debt, $124.3 million in net proceeds from trade receivable financing, $98.2 million in net proceeds from convertible senior notes and $18.9 million in net proceeds from stock-based awards activity, offset by $26.2 million in acquisition of noncontrolling interests and $27.2 million in repayments under finance lease obligations.

This was primarily driven by $1.8 billion in net proceeds from fund investors, $1.6 billion in net proceeds from debt, $2.1 million in net proceeds from convertible senior notes and $16.8 million in net proceeds from stock-based awards activity, offset by $124.3 million in net repayments from trade receivable financing, $30.7 million in acquisition of noncontrolling interests and $25.2 million in repayments under finance lease obligations.

During 2024, we generated $3.4 billion from financing activities.

This was primarily driven by $1.4 billion in net proceeds from fund investors, $2.2 billion in net proceeds from debt, $22.6 million in net proceeds from stock-based awards activity, offset by $1.5 million in repurchase of convertible senior notes, $46.3 million in acquisition of noncontrolling interests and $23.3 million in repayments under finance lease obligations.

Debt, Equity, and Financing Fund Commitments

Debt Instruments

For a discussion of the terms and conditions of debt instruments and changes thereof in the period, refer to Note 10, Indebtedness, to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Investment Fund Commitments

As of December 31, 2024, we had committed and available capital of approximately $260.2 million that may only be used to purchase and install solar energy systems.

Debt and Fund Commitments

As of December 31, 2025, we had committed and available capital of approximately $1.0 billion that may only be used to purchase and install energy systems.

We intend to establish new investment funds in the future, and we may also use debt, equity or other financing strategies to finance our business.

Recent Accounting Pronouncements

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis