Sunrun Inc. (NASDAQ: RUN) saw its shares tumble 5.24% in after-hours trading on Thursday, following the release of its third-quarter 2025 financial results. The solar energy company reported mixed results, with revenue surpassing expectations but concerns arising from high operating expenses and future outlook.

For the third quarter, Sunrun reported earnings per share (EPS) of $0.06 and revenue of $724.6 million, significantly beating the analyst estimate of $602 million. The company also posted a net income of $16.6 million. However, investors seemed to focus on the high operating expenses, which came in at $721 million for the quarter, nearly matching the total revenue.

Adding to the market's apprehension, Sunrun provided guidance for the fourth quarter of 2025, projecting an aggregate subscriber value in the range of $1.33 billion to $1.63 billion. This forecast, combined with the high operating costs, may have sparked concerns about the company's profitability and growth trajectory, leading to the sharp decline in stock price despite the revenue beat. As the solar industry faces challenges including rising interest rates and shifting government policies, investors appear to be scrutinizing the financial health and future prospects of companies in the sector more closely.