Sunrun Inc. (RUN) reported its second-quarter results after Wednesday's closing bell, and despite a solid beat on both earnings and revenue, the stock took a nosedive. Shares fell double-digits in extended trading, leaving investors scratching their heads. Let's break down what happened.

Sunrun Q2 Details

Sunrun posted quarterly earnings of 42 cents per share, easily beating the analyst consensus estimate of 24 cents. Revenue came in at $869.99 million, also topping the Street's expectation of $751.83 million. So why the sell-off?

Here are some of the key highlights from the quarter:

• Aggregate Subscriber Value hit approximately $1.2 billion in the second quarter.
• Storage Attachment Rate reached a record 74%, and Networked Storage Capacity grew to 4.6 Gigawatt-hours as of June 30, 2026.
• Net cash used in operating activities was $186 million, but Cash Generation was $23 million, or $45 million when excluding $22 million of net investments in equipment safe harbor.
• The company revised its Cash Generation guidance for 2026 to a range of $200 million to $375 million, excluding safe harbor investments.

CEO Mary Powell struck an optimistic tone, saying, "We are positioning the business for strong growth, bringing on some of the best talent in the industry and scaling deliberately, with a focus on customer experience and asset quality." She added, "And as that engine scales, we're aiming to unlock new ways to monetize the network we've already built, from distributed power plant programs to emerging data center and grid edge applications, creating new streams of Cash Generation."

It's a classic case of "good news, bad reaction," and it'll be interesting to see how the stock trades when the market opens.