RUN Earning Date, Transcript Summary & Report

Strong Q1 Performance: In Q1, we exceeded our volume and cash generation targets in what is seasonally the slowest quarter of the year.

Positive Cash Generation: We generated $56 million in cash, our fourth consecutive quarter of positive cash generation.

Market Share Gains and De-levering: We delivered market share gains and continued de-levering, paying down our parent debt by $27 million.

Cash Position Improvement: We ended Q1 with $605 million in unrestricted cash, a $30 million increase from the prior quarter.

Strong Customer Growth: Demand remains strong, with total customer additions growing 6% compared to the prior year and aggregate subscriber value growing 23% to more than $1.2 billion.

Customer Growth and Storage Rate: Customer additions with storage grew by over 46% from Q1 of last year, hitting a record-high 69% storage attachment rate.

Market Share Expansion: We have steadily increased our share to approximately 19% of new solar installations and about 45% of new storage installations across the country.

Subscriber Value Increase: Subscriber Value increased to approximately $52,000, a 15% increase compared to the prior year, reflecting a 7.5% discount rate this period.

Subscriber Value Increase: Aggregate subscriber value was $1.2 billion in the first quarter, a 23% increase from the prior year, resulting in net value creation of $246 million or approximately $1.09 per share.

Subscriber Value Growth: We expect aggregate subscriber value to be between $5.7 and $6 billion for the full year, representing 14% growth at the midpoint.

Tariff Impact on Costs: Tariff developments are expected to create cost headwinds of approximately $1,000 to $3,000 per subscriber in 2025, which could impact overall creation costs by 3% to 7%.

Tariff Impact Variance: The company anticipates that these tariff impacts could represent a potential variance of $100 million to $200 million within their guidance range.

Cash Generation Outlook: Despite strong demand, the current tariff situation is expected to trend the company towards the lower half of their cash generation guidance range.

First Quarter Profitability Challenges: The first quarter is traditionally the lowest margin period of the year, which may affect overall profitability as sales activities ramp up for the busier summer months.

Rising Creation Costs: Creation costs increased by 7% from the prior year, primarily due to higher battery hardware and installation labor costs, which could pressure margins going forward.