Sunrun Inc. (NASDAQ: RUN) saw its shares plummet 8.08% in 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, missing the analyst consensus estimate of $0.15. However, the company's revenue came in at $724.6 million, significantly beating the Street estimate of $602 million. Despite the revenue beat, investors seemed to focus on the alarmingly high operating expenses, which totaled $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, has sparked concerns about the company's profitability and growth trajectory. 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, leading to the sharp decline in Sunrun's stock price despite the revenue beat.