Sunrun shares drop 46% amid weak subscriber growth and margin pressures, rating Hold pending margin recovery.

Sunrun's stock has fallen 46% over the past year, appearing cheap at about 6 times expected 2026 earnings. However, underlying business trends are weak, with subscriber additions and margins collapsing, and upfront net subscriber margin falling to 3.7%. Management has cut full-year guidance, reflecting challenges in the transition to direct sales. While this shift could improve margins, it requires a strong second-half recovery in productivity and cash flow. Despite trading 43% below contracted asset value, the stock is rated Hold, awaiting clear evidence that direct sales can restore margins and cash generation.