Shares of Sunrun Inc. (RUN) plummeted 5.18% in pre-market trading on Friday, following the company's disappointing fourth-quarter earnings report and weak guidance for 2025, coupled with an analyst downgrade.

Sunrun reported a wider-than-expected loss of $12.51 per share for the fourth quarter of 2024, compared to a loss of $1.60 per share in the same period last year. While revenue grew marginally to $518.5 million from $516.6 million, it missed analysts' expectations of $538.3 million.

Looking ahead, the company provided a disappointing cash generation guidance for 2025, revising it down to a range of $200 million to $500 million from its previous guidance of $350 million to $600 million. The lower guidance was driven by a slower ramp-up in domestic content ITC adders, higher capital cost assumptions, and slightly lower volume expectations.

Adding to the selloff, JP Morgan analyst cut their price target on Sunrun shares to $17 from $18, citing concerns over the company's outlook and competitive pressures in the residential solar industry.

During the earnings call, Sunrun's management acknowledged the challenging environment but remained optimistic about the company's long-term prospects, highlighting its focus on margin expansion, cash generation, and deleveraging efforts. However, investors appear to be concerned about the near-term headwinds and the company's ability to meet its revised guidance.