Sunrun: Too Cheap To Sell, Too Messy To Buy

Daniel James 495 Followers Follow Summary Sunrun appears optically cheap after a 46% drop, but headline revenue and earnings figures are misleading due to asset sales and accounting treatments. Underlying business trends are weak: subscriber additions and margins collapsed, upfront net subscriber margin fell to 3.7%, and management cut full-year guidance. The transition to direct sales could improve margins but requires a significant second-half recovery in productivity and cash generation to meet revised targets. Despite trading 43% below contracted asset value, I rate RUN a Hold, awaiting clear evidence that direct sales can restore margins and cash flow. KangeStudio/iStock via Getty Images Introduction Sunrun ( RUN ) looks extraordinarily cheap at first glance. The shares have fallen around 46% over the past year and now trade at approximately 6 times expected 2026 earnings. Second-quarter revenue increased 53%, adjusted expectations remain positive, and the This article was written by Daniel James 495 Followers Follow I am a part-time investor interested in equities, ETFs, macro, and emerging markets. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.