What Happened?
Shares of residential solar energy company Sunrun (NASDAQ: RUN) fell 20.7% in the afternoon session after the company reported third-quarter 2025 financial results that showed a significant miss on earnings per share (EPS), which overshadowed a strong beat on revenue.
While total revenue grew by nearly 35% year over year to $724.6 million, its EPS of $0.06 fell well short of analyst forecasts of $0.14. This significant earnings miss suggested to investors that profitability remains a major concern despite the strong sales figures. Further fueling investor anxiety, the company's free cash flow worsened significantly, with a cash burn of $865.2 million in the quarter compared to $156.4 million in the same period last year, intensifying concerns about Sunrun's heavy debt load.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sunrun? Access our full analysis report here.
What Is The Market Telling Us
Sunrun’s shares are extremely volatile and have had 80 moves greater than 5% over the last year. But moves this big are rare even for Sunrun and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.6% on the news that the stock continued its recent positive momentum, building on significant gains from previous months. The session's rise was part of a broader trend that saw the stock climb nearly 13% over the previous month and a notable 99% over the previous 90 days. This run-up highlighted renewed optimism around the company's growth outlook. Investors appeared to be focusing on the recent positive performance, driving the stock higher despite its long-term total shareholder returns remaining negative over a five-year period.
Sunrun is up 66.1% since the beginning of the year, but at $16.96 per share, it is still trading 20.4% below its 52-week high of $21.29 from October 2025. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $305.55.
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