Sunrun Inc. (NASDAQ: RUN) saw its shares plummet 6.42% in pre-market trading on Friday, following the release of its third-quarter 2025 financial results. The solar energy company reported mixed results, with revenue surpassing expectations but earnings falling short of estimates, raising concerns about profitability and future growth.

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 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, Sunrun's future outlook and profitability concerns weighed heavily on investor sentiment. While the company 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 challenges facing the solar industry, including rising interest rates and shifting government policies. As the solar sector faces headwinds, investors seem to be scrutinizing the financial health and future prospects of companies more closely, leading to the sharp decline in Sunrun's stock price despite the revenue beat.