Exhibit 99.1

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Sunrun Reports Second Quarter 2019 Financial Results
Customers now at 255,000, an increase of 26% year-over-year
Net Present Value created of $95 million in the quarter, an increase of 23% year-over-year
Net Earning Assets of $1.4 billion, an increase of 11% year-over-year
Total Cash increased $91 million from the prior year

SAN FRANCISCO, August 7, 2019, Sunrun (Nasdaq: RUN), the nation’s largest provider of residential solar, storage and energy services, today announced financial results for the second quarter ended June 30, 2019.
“Sunrun’s 255,000 customers are helping to build our future energy system where home solar and batteries will displace costly and harmful fossil fuel power plants,” said Lynn Jurich, Sunrun’s Chief Executive Officer and co-founder. “We continue to see strong demand from consumers and grid operators and expect we can deliver above-market growth rates again in 2019.”
Key Operating Metrics
In the second quarter of 2019, MW deployed increased to 103 MW from 91 MW in the second quarter of 2018, a 13% year-over-year increase.
Creation Cost per watt was $3.33 in the second quarter of 2019, compared to $3.12 in the second quarter of 2018.
NPV created in the second quarter of 2019 was $95 million, a 23% increase from $77 million in the second quarter of 2018. Unlevered NPV per watt in the second quarter of 2019 was $1.11.
Gross Earning Assets as of June 30, 2019 were $3.3 billion, up $734 million, or 28% from the prior year. Net Earning Assets as of June 30, 2019 were $1.4 billion, up $139 million, or 11% from the prior year.
Total Cash (meaning total cash, including restricted cash, less recourse debt) increased $91 million from the prior year.
Second Quarter 2019 GAAP Results
Total revenue grew to $204.6 million in the second quarter of 2019, up $34.1 million, or 20% from the second quarter of 2018. Customer agreements and incentives revenue grew 1% year-over-year to $92.4 million. Solar energy systems and product sales increased 42% year-over-year to $112.2 million.
Total cost of revenue was $156.9 million, an increase of 29% year-over-year. Total operating expenses were $267.4 million, an increase of 30% year-over-year.
Net loss attributable to common stockholders was $1.3 million in the second quarter of 2019.
Diluted net loss per share attributable to common stockholders was ($0.01) per share.
Guidance for Q3 and Full Year 2019
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
In Q3, we expect deployments to be in a range between 107 MW and 110 MW.
For the full year 2019, we continue to expect deployments to grow in a range between 16% and 18% year-over-year.
Financing Activities
As of August 7, 2019, closed transactions and executed term sheets provide us project debt capacity through 2019 and tax equity capacity into the second quarter of 2020.

1


Exhibit 99.1

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Conference Call Information
Sunrun is hosting a conference call for analysts and investors to discuss its second quarter 2019 results and outlook for its third quarter 2019 at 2:00 p.m. Pacific Time today, August 7, 2019. A live audio webcast of the conference call along with supplemental financial information will be accessible via the “Investor Relations” section of the Company’s website at http://investors.sunrun.com. The conference call can also be accessed live over the phone by dialing (877) 470-1078 (domestic) or (615) 247-0087 (international) using ID #9471428. A replay will be available following the call via the Sunrun Investor Relations website or for one week at the following numbers (855) 859-2056 (domestic) or (404) 537-3406 (international) using ID #9471428.
About Sunrun    
Sunrun (Nasdaq:RUN) is the nation’s leading residential solar, storage and energy services company.  With a mission to create a planet run by the sun, Sunrun has led the industry since 2007 with its solar-as-a-service model, which provides clean energy to households with little to no upfront cost and at a saving compared to traditional electricity. The company designs, installs, finances, insures, monitors and maintains the systems, while families receive predictable pricing for 20 years or more. The company also offers a home solar battery service, Sunrun Brightbox, that manages household solar energy, storage and utility power. For more information, please visit: www.sunrun.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our market leadership, competitive advantages, investments, market adoption rates, our future financial and operating guidance, operational and financial results such as growth, value creation, cash generation, MW deployments, estimates of gross and net earning assets, project value, estimated creation costs, gross orders, demand, NPV, and the assumptions related to the calculation of the foregoing metrics, as well as our expectations regarding our growth, financing activities, and financing capacity. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to: the availability of additional financing on acceptable terms; changes in the retail prices of traditional utility generated electricity; changes in policies and regulations including net metering and interconnection limits or caps; the availability of rebates, tax credits and other incentives; the availability of solar panels and other raw materials; our limited operating history, particularly as a new public company; our ability to attract and retain our relationships with third parties, including our solar partners; our ability to meet the covenants in our investment funds and debt facilities; our continued ability to manage costs associated with solar service offerings, our business plan and our ability to effectively manage our growth and labor constraints, and such other risks identified in the reports that we file with the U.S. Securities and Exchange Commission, or SEC, from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.



2


Exhibit 99.1

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Consolidated Balance Sheets
(In Thousands)


 
 
June 30, 2019
 
December 31, 2018
 
 
 
 
 
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash
 
$
299,537

 
$
226,625

Restricted cash
 
54,182

 
77,626

Accounts receivable, net
 
77,846

 
66,435

State tax credits receivable
 

 
2,697

Inventories
 
89,829

 
79,467

Prepaid expenses and other current assets
 
8,692

 
8,563

Total current assets
 
530,086

 
461,413

Restricted cash

 
148

 
148

Solar energy systems, net
 
4,149,883

 
3,820,017

Property and equipment, net
 
50,419

 
34,893

Intangible assets, net
 
8,382

 
10,088

Goodwill
 
87,543

 
87,543

Other assets
 
380,919

 
335,685

Total assets
 
$
5,207,380

 
$
4,749,787

Liabilities and total equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
153,206

 
$
131,278

Distributions payable to noncontrolling interests and redeemable noncontrolling interests
 
16,444

 
15,847

Accrued expenses and other liabilities
 
104,328

 
98,636

Deferred revenue, current portion
 
59,818

 
47,407

Deferred grants, current portion
 
8,029

 
7,885

Finance lease obligations, current portion
 
11,206

 
9,193

Recourse debt, current portion
 
239,035

 

Non-recourse debt, current portion
 
35,158

 
35,484

Pass-through financing obligation, current portion
 
10,666

 
26,461

Total current liabilities
 
637,890

 
372,191

Deferred revenue, net of current portion
 
643,613

 
544,218

Deferred grants, net of current portion
 
217,013

 
221,739

Finance lease obligations, net of current portion
 
14,363

 
9,992

Recourse debt
 

 
247,000

Non-recourse debt, net of current portion
 
1,688,989

 
1,466,438

Pass-through financing obligation, net of current portion
 
329,968

 
337,282

Other liabilities
 
113,992

 
48,210

Deferred tax liabilities
 
73,926

 
93,633

Total liabilities
 
3,719,754

 
3,340,703

Redeemable noncontrolling interests
 
278,539

 
126,302

Total stockholders’ equity
 
915,545

 
948,707

Noncontrolling interests
 
293,542

 
334,075

Total equity
 
1,209,087

 
1,282,782

Total liabilities, redeemable noncontrolling interests and total equity
 
$
5,207,380

 
$
4,749,787



3


Exhibit 99.1

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Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)


 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Revenue:
 
 
 
 
 
 
 
 
Customer agreements and incentives
 
$
92,439

 
$
91,605

 
$
192,289

 
$
158,595

Solar energy systems and product sales
 
112,156

 
78,933

 
206,810

 
156,306

Total revenue
 
204,595

 
170,538

 
399,099

 
314,901

Operating expenses:
 
 
 
 
 
 
 
 
Cost of customer agreements and incentives
 
70,594

 
57,769

 
140,087

 
112,345

Cost of solar energy systems and product sales
 
86,348

 
64,268

 
164,147

 
128,847

Sales and marketing
 
70,038

 
49,237

 
125,991

 
93,316

Research and development
 
6,555

 
5,052

 
12,029

 
8,948

General and administrative
 
33,044

 
28,130

 
62,107

 
61,023

Amortization of intangible assets
 
814

 
1,051

 
1,707

 
2,102

Total operating expenses
 
267,393

 
205,507

 
506,068

 
406,581

Loss from operations
 
(62,798
)
 
(34,969
)
 
(106,969
)
 
(91,680
)
Interest expense, net
 
42,309

 
31,872

 
83,649

 
60,070

Other expenses (income), net
 
1,388

 
508

 
6,144

 
(1,184
)
Loss before income taxes
 
(106,495
)
 
(67,349
)
 
(196,762
)
 
(150,566
)
Income tax (benefit) expense
 
(1,910
)
 
4,378

 
(5,271
)
 
12,581

Net loss
 
(104,585
)
 
(71,727
)
 
(191,491
)
 
(163,147
)
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
 
(103,292
)
 
(79,136
)
 
(176,336
)
 
(198,588
)
Net (loss) income attributable to common stockholders
 
$
(1,293
)
 
$
7,409

 
$
(15,155
)
 
$
35,441

Net (loss) income per share attributable to common stockholders
 
 
 
 
 
 
 
 
Basic
 
$
(0.01
)
 
$
0.07

 
$
(0.13
)
 
$
0.33

Diluted
 
$
(0.01
)
 
$
0.06

 
$
(0.13
)
 
$
0.31

Weighted average shares used to compute net (loss) income per share attributable to common stockholders
 
 
 
 
 
 
 
 
Basic
 
115,765

 
109,559

 
114,843

 
108,510

Diluted
 
115,765

 
117,067

 
114,843

 
113,930




4


Exhibit 99.1

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Consolidated Statements of Cash Flows
(In Thousands)


 
 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Operating activities:
 
 
 
 
 
 
 
 
Net loss
 
$
(191,491
)
 
$
(163,147
)
 
$
(104,585
)
 
$
(71,727
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization, net of amortization of deferred grants
 
89,019

 
73,980

 
45,358

 
37,794

Deferred income taxes
 
(5,271
)
 
12,582

 
(1,910
)
 
4,379

Stock-based compensation expense
 
12,566

 
16,242

 
6,783

 
5,548

Interest on pass-through financing obligations
 
12,378

 
7,002

 
5,906

 
3,903

Reduction in pass-through financing obligations
 
(19,702
)
 
(10,142
)
 
(9,716
)
 
(5,114
)
Other noncash losses and expenses
 
6,714

 
12,131

 
5,225

 
6,464

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Accounts receivable
 
(12,848
)
 
495

 
(12,701
)
 
(5,722
)
Inventories
 
(10,362
)
 
13,123

 
(13,645
)
 
6,598

Prepaid and other assets
 
(49,771
)
 
(34,013
)
 
(13,903
)
 
(20,690
)
Accounts payable
 
(1,567
)
 
(32,840
)
 
21,010

 
(19,858
)
Accrued expenses and other liabilities
 
1,525

 
31,676

 
(6,199
)
 
38,724

Deferred revenue
 
112,195

 
15,190

 
10,347

 
7,734

Net cash provided by (used in) operating activities
 
(56,615
)
 
(57,721
)
 
(68,030
)
 
(11,967
)
Investing activities:
 
 
 
 
 
 
 
 
Payments for the costs of solar energy systems
 
(388,430
)
 
(346,962
)
 
(189,550
)
 
(183,772
)
Purchases of property and equipment
 
(13,950
)
 
(2,762
)
 
(11,433
)
 
(1,241
)
Net cash used in investing activities
 
(402,380
)
 
(349,724
)
 
(200,983
)
 
(185,013
)
Financing activities:
 
 
 
 
 
 
 
 
Proceeds from state tax credits, net of recapture
 
2,329

 
10,434

 
(275
)
 
10,483

Proceeds from issuance of recourse debt
 
55,000

 
2,000

 
15,000

 

Repayment of recourse debt
 
(62,965
)
 
(2,000
)
 
(15,000
)
 

Proceeds from issuance of non-recourse debt
 
541,249

 
250,232

 
359,597

 
154,332

Repayment of non-recourse debt
 
(313,474
)
 
(48,677
)
 
(214,226
)
 
(41,555
)
Payment of debt fees
 
(7,462
)
 
(9,133
)
 
(4,808
)
 
(5,253
)
Proceeds from pass-through financing and other obligations
 
5,282

 
98,172

 
3,497

 
96,670

Early repayment of pass-through financing obligation
 
(7,597
)
 

 

 
 
Payment of finance lease obligations
 
(6,445
)
 
(4,081
)
 
(3,444
)
 
(1,968
)
Contributions received from noncontrolling interests and redeemable noncontrolling interests
 
330,311

 
167,468

 
178,162

 
23,864

Distributions paid to noncontrolling interests and redeemable noncontrolling interests
 
(35,607
)
 
(33,301
)
 
(17,160
)
 
(18,038
)
Acquisition of noncontrolling interests
 
(4,600
)
 

 

 

Proceeds from exercises of stock options, net of withholding taxes paid on restricted stock units
 
12,442

 
4,944

 
11,603

 
5,520

Net cash provided by financing activities
 
508,463

 
436,058

 
312,946

 
224,055

Net change in cash and restricted cash
 
49,468

 
28,613

 
43,933

 
27,075

Cash and restricted cash, beginning of period
 
304,399

 
241,790

 
309,934

 
243,328

Cash and restricted cash, end of period
 
$
353,867

 
$
270,403

 
$
353,867

 
$
270,403



5


Exhibit 99.1

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Key Operating Metrics and Financial Metrics
 
 
 
Three Months Ended June 30,
 
 
2019
 
2018
MW Deployed (during the period)
 
103

 
91

Cumulative MW Deployed (end of period)
 
1,763

 
1,360

Gross Earning Assets under Energy Contract (end of period)(in millions)
 
$
2,252

 
$
1,715

Gross Earning Assets Value of Purchase or Renewal (end of period)(in millions)
 
$
1,060

 
$
863

Gross Earning Assets (end of period)(in millions) (1)
 
$
3,312

 
$
2,578

Net Earning Assets (end of period)(in millions)(1)(2)
 
$
1,429

 
$
1,290



 
Three Months Ended June 30,
 
 
2019
 
2018
Project Value, Contracted Portion (per watt)
 
$
4.04

 
$
3.51

Project Value, Renewal Portion (per watt)
 
$
0.40

 
$
0.59

Total Project Value (per watt)
 
$
4.44

 
$
4.10

Creation Cost (per watt)
 
$
3.33

 
$
3.12

Unlevered NPV (per watt)(1)
 
$
1.11

 
$
0.98

NPV (in millions)
 
$
95

 
$
77



(1)
Numbers may not sum due to rounding.

(2)
Sunrun records income when it delivers tax benefits to its tax equity investors. Under partnership flip transactions this income is recognized beginning at the time of deployment. In pass-through financing transactions, income is recognized later, upon utility interconnection permission (PTO). Income recognition therefore lags in periods when the company is increasing its use of pass-through financing funds. Until PTO is received for a solar system in a pass-through financing obligation structure, the company records the expected value of tax benefits as a short term pass-through financing obligation, similar to deferred revenue accounting. The amount reflected within short-term pass-through financing obligation was $36.2 million in the second quarter of 2018. As such, the pass-through financing obligation used to calculate Net Earning Assets is reduced by $36.2 million. There was no amount reflected within short-term pass through financing in the second quarter of 2019.

6


Exhibit 99.1

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Definitions
Creation Cost includes (i) certain installation and general and administrative costs after subtracting the gross margin on solar energy systems and product sales divided by watts deployed during the measurement period and (ii) certain sales and marketing expenses under new Customer Agreements, net of cancellations during the period divided by the related watts deployed.
Customers refers to all residential homeowners (i) who have executed a Customer Agreement or cash sales agreement with us and (ii) for whom we have internal confirmation that the applicable solar energy system has reached notice to proceed or “NTP”, net of cancellations.
Customer Agreements refers to, collectively, solar power purchase agreements and solar leases.
Gross Earning Assets represent the remaining net cash flows (discounted at 6%) we expect to receive during the initial term of our Customer Agreements (typically 20 or 25 years) for systems that have been deployed as of the measurement date, plus a discounted estimate of the value of the Customer Agreement renewal term or solar energy system purchase at the end of the initial term. Gross Earning Assets deducts estimated cash distributions to investors in consolidated joint ventures and estimated operating, maintenance and administrative expenses for systems deployed as of the measurement date. In calculating Gross Earning Assets, we deduct estimated cash distributions to our project equity financing providers. In calculating Gross Earning Assets, we do not deduct customer payments we are obligated to pass through to investors in pass-through financing obligations as these amounts are reflected on our balance sheet as long-term and short-term pass-through financing obligations, similar to the way that debt obligations are presented. In determining our finance strategy, we use pass-through financing obligations and long-term debt in an equivalent fashion as the schedule of payments of distributions to pass-through financing investors is more similar to the payment of interest to lenders than the internal rates of return (IRRs) paid to investors in other tax equity structures. We calculate the Gross Earning Assets value of the purchase or renewal amount at the expiration of the initial contract term assuming either a system purchase or a five year renewal (for our 25-year Customer Agreements) or a 10-year renewal (for our 20-year Customer Agreements), in each case 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 on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing power prices. Gross Earning Assets Under Energy Contract represents the remaining net cash flows during the initial term of our Customer Agreements (less substantially all value from SRECs prior to July 1, 2015), for systems deployed as of the measurement date.
Gross Earning Assets Under Energy Contract represents the remaining net cash flows during the initial term of our Customer Agreements (less substantially all value from SRECs prior to July 1, 2015), for systems deployed as of the measurement date.
Gross Earning Assets Value of Purchase or Renewal is the forecasted net present value we would receive upon or following the expiration of the initial Customer Agreement term (either in the form of cash payments during any applicable renewal period or a system purchase at the end of the initial term), for systems deployed as of the measurement date.
MW Deployed represents the aggregate megawatt production capacity of our solar energy systems, whether sold directly to customers or subject to executed Customer Agreements, for which we have (i) confirmation that the systems are installed on the roof, subject to final inspection or (ii) in the case of certain system installations by our partners, accrued at least 80% of the expected project cost.
Net Earning Assets represents Gross Earning Assets less both project level debt and pass-through financing obligations, as of the same measurement date. Because estimated cash distributions to our project equity financing partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level debt is deducted from Net Earning Assets.
NPV equals Unlevered NPV multiplied by leased megawatts deployed in period.

7


Exhibit 99.1

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NTP or Notice to Proceed refers to our internal confirmation that a solar energy system has met our installation requirements for size, equipment and design.
Project Value represents the value of upfront and future payments by customers, the benefits received from utility and state incentives, as well as the present value of net proceeds derived through investment funds. Specifically, Project Value is calculated as the sum of the following items (all measured on a per-watt basis with respect to megawatts deployed under Customer Agreements during the period): (i) estimated Gross Earning Assets, (ii) utility or upfront state incentives, (iii) upfront payments from customers for deposits and partial or full prepayments of amounts otherwise due under Customer Agreements and which are not already included in Gross Earning Assets and (iv) finance proceeds from tax equity investors, excluding cash true-up payments or the value of asset contributions in lieu of cash true-up payments made to investors. Project Value includes contracted SRECs for all periods after July 1, 2015.
Unlevered NPV equals the difference between Project Value and estimated Creation Cost on a per watt basis.




Investor & Analyst Contact:

Patrick Jobin
Vice President, Finance & Investor Relations
investors@sunrun.com
(415) 373-5206


Media Contact:

Georgia Dempsey
Director of Corporate Communications
press@sunrun.com
(415) 518-9418




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