Sunrun Inc.

Greetings and welcome to the Sunrun fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick Jobin, Investor Relations. Thank you, sir. You may begin.

Thank you, Miriam. Before we begin, please note that certain remarks we will make on this call constitute forward-looking statements related to the expected future results of our company, including our 2026 financial outlook and other statements that are not historical in nature or predictive in nature or depend upon or refer to future events or conditions, such as our expectations, estimates, predictions, strategies, beliefs, rather statements that may be considered forward-looking. Although we believe these statements reflect our best judgment based on factors currently known to us, actual results may differ materially and adversely. Please refer to the company's filings with the SEC for more inclusive discussion of risks and other factors that may cause our actual results to differ from projections made in any forward-looking statements. Please also note these statements are being made as of today, and we disclaim any obligation to update or revise them. Please note, during this earnings call, we may refer to certain non-GAAP measures, including cash generation and aggregation costs, which are not measures prepared in accordance with U.S. GAAP. These non-GAAP measures are being presented because we believe they provide investors with means of evaluating and understanding how the company's management evaluates the company's operating performance. Reconciliation of these measures can be found in our earnings press release and other investor materials available on the company's investor relations website. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to, financial measures prepared in accordance with U.S. GAAP. On the call today are Mary Powell, Sunrun's CEO, Damian Badgen, Sunrun's CFO, and Paul Dixon, Sunrun's President and Chief Revenue Officer. Presentation is available on Sunrun's Investor Relations website along with supplemental materials. An audio replay of today's call along with a copy of today's prepared remarks and transcript including Q&A will be posted to Sunrun's Investor Relations website shortly after the call. Now let me turn the call over to Mary.

Thank you, Patrick, and thank you all for joining us today. Sunrun continues to deliver strong operating and financial results. Our disciplined growth strategy focused on our role as a critical energy system player while creating healthy margins is paying off. The heart of our strategy is providing a richer and more meaningful customer experience by providing generation and storage capabilities and then utilizing those resources to create the nation's leading residential power producer, leveraging our assets as a distributed power plant. We are providing American families peace of mind with predictable, affordable, and reliable energy, which is particularly welcomed in an environment where utility costs are rising rapidly and the grid is proving time and again to be unreliable in the face of extreme weather and increased demand. We have built a base of incredibly valuable grid resources that are helping to improve our country's energy system and meet the growing energy capacity challenges. Just last year, we dispatched 425 megawatts to the grid, equivalent to the peaking capacity in some states. Our growth each year is equivalent to adding a moderate-sized utility to our fleet, in addition to dispatchable generation capabilities of 1.5 gigawatt hours added in 2025. In 2025, we demonstrated our value in the face of significant uncertainty surrounding passage of the 2025 budget bill. This process served as a powerful catalyst for us to help legislators and their constituents recognize that distributed storage plus solar is not just a preference, but of strategic importance to meet America's energy needs. We emerged in a stronger position, focused on higher value storage-first offerings and building upon our domestically focused supply chains. To that end, in 2025, we continue to prioritize growing our customer base in an optimized, disciplined way, focusing on product mix and the highest value routes to market and geographies. We increased our storage attachment rates to 71% exiting the year, up nine percentage points from the prior year. At the same time, we also remain focused on being the absolute best in the business on customer experience. while simultaneously unlocking additional cost efficiencies as we leveraged AI and streamlined operations. As shown on slide five, this margin-focused strategy resulted in the highest subscriber values we have ever reported and drove strong upfront unit margins, with upfront net subscriber value exceeding $3,200 per subscriber addition in 2025. Sunrun reached an inflection point in 2025 in terms of our financial performance. We oriented our business to generate strong upfront returns and to structurally generate cash. In 2025, Sunrun delivered $377 million of cash generation and paid down approximately $150 million of parent-level recourse debt. We expect to continue to build on this momentum and drive meaningful value to shareholders in 2026 and beyond. Turning to slide six, I want to spend a minute on Sunrun's strategic priorities for 2026. We will continue to lead in our efforts to be the best in the energy business, delivering sophisticated energy offerings and a strong customer experience while building the nation's leading distributed power plant. We plan to expand our storage attachment rate on our path to being Americans' choice for greater energy independence and control. Over the course of the last few years, We have dramatically improved our vertically integrated Sunrun direct business, achieving net promoter scores that rival some top tier brands. We have executed amazing pivots to make our products and Salesforce the best in navigating increasingly complex utility rate structures and selling an entirely different offering centered around dispatchable storage. We believe that we will deliver robust growth in 2026 at higher margins and stellar quality in Sunrun's direct business, which already represents over two-thirds of our volume. We expect high single-digit to low double-digit growth in our Sunrun direct business this year. We recently decided to reduce our volume through affiliate channels, which we expect will lower affiliate volumes by over 40% in 2026, leading to slight declines in overall volume. We made these changes because our direct business provides greater customer experience and operational control to manage regulatory and compliance complexity resulting in stronger customer credit profiles, higher margins, and better strategic alignment with our long-term objectives. The increasing complexity of sales processes, utility rate structures, storage integration, distributed power plants, and ITC compliance requires ever increasing standards of training for our employees on our best-in-class products and operations. Today, very few industry participants are able to execute in this landscape to our standards. We will continue to value and work with partners that meet our rigorous standards and further our strategic objectives. To put it simply, complexity, control, and end-to-end visibility add to Sunrun's competitive advantages. We will continue to expand our work as a distributed power plant, designing our approach by market with the best possible products and services for our customers and generating additional value as our assets get leveraged as a grid resource. Our team launched innovative customer products that provide enhanced value and further differentiate Sunrun. In 2025, we launched Flex, which has now reached thousands of installs per quarter. In 2026, we will aim to further accelerate innovation, focusing on expanding our lead as the largest distributed power plant operator. As you can see on slide seven, our nation needs more power to meet the demands coming from the AI and data center revolution. Many of our top markets have already experienced exponential growth in retail electricity prices and face an uncertain future as it relates to affordable and reliable energy. By aggregating our growing fleet of dispatchable storage and home solar, Sunrun is building the next generation of power plants to deliver the critical energy our customers and the U.S. grid urgently requires. Importantly, we can scale these resources quickly as opposed to traditional utility solutions that can take years or even decades to bring online. This fleet of storage provides important resiliency benefits to our customers. The value of this was recently highlighted yet again during winter storm FUR. As widespread grid outages swept across the U.S., Sunrun kept the power flowing for our storage customers, delivering uninterrupted energy for these households. Detailed on slide eight, over the course of 2025, our 237,000 storage customers faced over 650,000 unique outages. In many cases, customers had enough stored energy to power through outages that lasted days. We have already reached a sizable scale with over four gigawatt hours of dispatchable energy. Over the last year, our customers participated in 18 active programs across the country that provided 425 megawatts of peak power capacity. During 2025, Sunrun generated tens of millions of dollars of revenue for dispatching energy onto the grid. And we expect to expand this in 2026 as we grow our battery base, increase customer participation, and diversify into new power plant programs. Our customers are also directly financially benefiting from participation in these programs. In Q4, Sunrun announced a partnership with NRG, pairing Sunrun's storage and solar offerings with optimized rate plans through NRG's retail electric provider. We believe that we will be a meaningful contributor to NRG's goal of creating a one gigawatt distributed power plant by 2035. Uptake by existing and new Sunrun customers has been strong, and our batteries under the program have already delivered energy back to the grid during multiple dispatch events. We look forward to scaling this program in a meaningful way in 2026. This is in addition to the programs we have already launched with other retail energy providers such as Tesla, providing a more sophisticated solution for customers in Texas as we design products that integrate retail electricity plants with solar and storage subscriptions. Retail electricity providers are seeing the benefits they can derive from these partnerships while customers receive better value. We expect to launch additional partnerships in 2026. Our priority is to deliver strong financial results. We believe that our margin-focused growth strategy will continue to produce meaningful cash generation. This is delivered through innovations in how we operate and how we finance our growth. We expect to lean even more into our AI and technology capabilities this year. At Sunrun, AI is foundational to how we are transforming the business to an energy generation and dispatch company. In addition to unlocking further cost efficiencies and enhancing the customer experience. At the same time, we aim to continue to strengthen and diversify our capital sources to fund growth through new, innovative structures with strategic partners. We have deployed various structures to accelerate investment in distributed energy resources. First, we are pleased to announce we evolved the asset sales structure we launched in Q3 into something even more strategic between both parties. forming a new joint venture partnership to acquire and finance residential storage and solar energy assets. This was the initial intent of the parties. The partnership not only provides efficient capital formation, it provides preferred returns for the infrastructure investor, while Sunrun retains a long-term share of project cash flows and maintains the customer relationship and cross-selling opportunities. The partnership also envisions accelerating distributed power plant development across the country. Additionally, in Q4, we entered into a new partnership with Hannon Armstrong. This innovative structure is a first of a kind for residential storage and solar financing. We expect this will drive a more efficient and lower overall weighted average cost of project capital. Before handing it over to Danny, I want to take a moment to celebrate some of our people who truly embrace energy independence and the desire to connect customers to a more secure way to power their lives. I specifically want to call out our leading installation teams in Houston, Texas. Higher power prices and the prevalence of extreme weather events has highlighted our value proposition in Texas, where we give our customers peace of mind by offering them the ultimate in reliability and the ability to power the grid when needed. Our Houston sales and install teams have been exemplary in advancing this mission and are a critical piece in supporting 25% year-on-year growth in the Texas market. Further, they are executing at strong levels of efficiency with excellent customer satisfaction. Ricky and all the Houston installation team members, let's go, Texas, and thank you. All right, now I'll turn the call over to Danny for the financial update and outlook.