Following the company's Q3 results release on Friday, Sunrun (RUN, Financials) shares dropped by double digits thanks to a surprising net loss of $83.8 million. Revenue fell 4.5% annually to $537 million, below expert projections. Sunrun marked a turning point even with the drop as it became the first sustainable energy firm to exceed one million home solar users.

• Warning! GuruFocus has detected 10 Warning Signs with RUN.

Furthermore, Sunrun maintained its 2025 cash generation outlook of $350 million to $600 million after reporting a second consecutive quarter of positive cash flow. However, investors are not biting, because revenue dropped 4.5% year-over-year to $537 million, below analyst expectations

Sunrun reported 336 MW of storage capacity installed in Q3, a 92% increase from the prior year, boosting storage attachment rates to nearly 60%. Newly installed solar energy capacity totaled 230 MW, bringing the company's networked solar capacity to 7.3 GW. For Q4, Sunrun guided expectations for 320-350 MWh of installed storage capacity and 240-250 MW of new solar installations.

CEO Mary Powell addressed investor concerns over the potential effects of Donald Trump's presidential election victory on solar energy incentives. Powell said it was highly unlikely that the Inflation Reduction Act, which includes tax credits for solar systems, would be fully repealed, noting bipartisan support for rooftop solar across different administrations.

The Inflation Reduction Act is actually bolstering the economies of a lot of states across the nation, including very many states that are Republican-leaning, Powell said.

She underlined Sunrun's continuous market resiliency and great leadership position in home battery storage.

Despite all of this, the stock is sliding downward this year, losing 48.3% in the year thus far.