Sunrun (NASDAQ: RUN) shares plummeted 17.12% in pre-market trading on Friday, following the release of its third-quarter 2025 financial results. The solar energy company reported mixed results, raising concerns about profitability and future growth prospects.

For the third quarter, Sunrun reported earnings per share (EPS) of $0.06, significantly missing the analyst consensus estimate of $0.15. However, the company's revenue came in at $724.6 million, beating the Street estimate of $602 million and representing a 34.9% increase from the same period last year. Despite the revenue beat, investors seemed to focus on the company's high operating expenses, which totaled $721 million for the quarter, nearly matching the total revenue.

Adding to the market's apprehension were concerns about the broader challenges facing the solar industry, including rising interest rates and shifting government policies. While Sunrun reported positive developments, such as a 20% growth in customer additions with storage and an increased storage attachment rate of 70%, the market appeared more focused on the company's profitability issues and the headwinds facing the sector. As a result, investors are scrutinizing the financial health and future prospects of solar companies more closely, leading to the sharp decline in Sunrun's stock price despite the revenue beat.