Sunrun (NASDAQ: RUN), a leading provider of residential solar, battery storage, and energy services, saw its stock surge 10.83% in after-hours trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The company significantly outperformed analysts' expectations, demonstrating robust growth and improved profitability.

The solar energy company reported quarterly earnings of $0.22 per share, a substantial beat compared to the analyst consensus estimate of a $0.25 loss per share. This represents a remarkable 180% surprise and a significant improvement from the $0.40 loss per share reported in the same period last year. Sunrun's revenue for Q1 reached $504.3 million, surpassing the analyst consensus estimate of $484.1 million by 4.17% and marking a 10.06% increase from the previous year.

Sunrun's strong performance extends beyond its top and bottom lines. The company reported a net income of $50 million for the quarter, showcasing its ability to generate profit in a competitive renewable energy market. Additionally, Sunrun added 23,692 new subscribers in Q1, a 7% increase from the same period last year, while its storage attachment rate reached a record 69%, up from 50% in Q1 2024.

Looking ahead, Sunrun provided a positive outlook for Q2, expecting the Aggregate Subscriber Value to be in the range of $1.3 billion to $1.375 billion. For the full year 2025, the company projects Aggregate Subscriber Value to be between $5.7 billion and $6.0 billion, indicating confidence in sustained growth. This optimistic guidance, coupled with the strong Q1 results, has likely fueled investor enthusiasm and contributed to the significant stock price increase.

Mary Powell, Sunrun's Chief Executive Officer, commented on the results, saying, "The first quarter was another strong quarter for Sunrun as we exceeded our volume and Cash Generation targets by significant margins in what is seasonally the slowest quarter of the year." The company's focus on delivering the best product for customers, underwriting volumes with strong unit margins, and driving cost discipline, including leveraging AI for innovation, appears to be paying off.

As Sunrun continues to gain market share and produce strong operating and financial results, investors seem optimistic about the company's future prospects in the growing residential solar and energy storage market.