NOVA - Earnings call transcript Q2 2022 | Sunnova Energy International Inc.

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Operator

Good morning, and welcome to Sunnova's Second Quarter 2022 Earnings Conference Call. Today’s call is being recorded. And we have allocated an hour for prepared remarks and questions-and- answers. At this time, I would now like to turn the conference over to Rodney McMahan, Vice President, Investor Relations of Sunnova. Thank you. sir. ahead, go Please

Rodney McMahan

operator. you, Thank

our earnings we information begin, make risks call will those slide during uncertainties Form as our XX-K. Please factors please may statements that note affect refer see presentation, our will forward-looking earnings measures in non-GAAP certain call. various for that for GAAP these Please are today's we release, are and the that well XXXX those to additional and during we the to presentation, documents press release of non-GAAP described appendix Before press reference regarding subject the cautionary forward-looking and to statements. as today's appropriate Also, disclosures. reconciliations

Officer Officer. Lane, Chief and President and On John. will over I Vice Robert Sunnova's call the are Executive John Executive Financial today turn Berger, to the now call Chief Chairman and

John Berger

NCCV you unlevered Good and increased quarter return delivered we as we second from prior a points the by morning us. was is or and in solid quarter counts Growth basis thank Sunnova grew during XX And typically delivered light our results EBITDA. most. We for burdened customer strong it what net for where joining the adjusted quarter. NCCV contracted our fully value growth. quarterly revenue

our Additionally, a per expense rates decline. default both operating we customer saw customer on adjusted delinquency basis and and our

of we permission industry short expectations customer due believe in fall high due did our or some stressed to operate growth. to receiving we PTO utilities delays were However, in additions, primarily from to that

as the refinancing mortgage sudden significant and expected activities. unscheduled led decline mortgage principal in We on spike to also solar rates the payments than recession collected loans, a our economic and in mortgage less

the should our us will principal customer weighting targets be of these we these solar and back-end the as hit target we ultimately While was to over investors the owed still still additions XXXX to with loans. missing more to expect a shortfalls frustrating, terms timing driven, consider collect

quarter, More seeing for we customer adjusted when reaffirm and homeowners history plan, in of customers, well our significant in us are penetration June some services collect in bringing intermediate XX, cumulative the additions to the flows In customers, our in stability to Slide XX, of able Sunnova's for our even solar robust loans, in for and demand quarter company in of not cash allow services exceed EBITDA cases The to seek customers we the to fall of waning XX,XXX of Sunnova have but customer metric expect the energy an year; by on XXX,XXX generate essential a as added guidance, energy Triple-Double backlog best contract, even we dealer costs. under to face growth a are battery Plan the the the XXXX, rate second and XX% interest increase that as our which the as battery of expectations; confidence growth the reasons. rapidly our placed due on origination, below quarter rising placed its service. expectations payments consumer customers; XXXX four had from we upselling summarizes to major XXXX. sales in network. large increasing following approximately the we and customers with backlog XXXX, importantly, second attachment total count we contracted customer's, Triple June as offset in-service traction term yet creating the customers, meet be existing end energy long-term to earnings the

into anticipated. in earlier interconnection than second by impacted times was later than utility by initially deliveries late to customer expected the service was the additions driven quarter second slower in just scheduled also ramping in quarter battery sales quarter areas, third in occur As I noted, and select accessory the only moving and in delay primarily but the

number While year XX,XXX within additions the of customers placed guidance these XXXX. QX, XX,XXX we factors expect our full still customer impacted we range for in of to in to fall service

As on anticipated, in quarter our to rate origination battery XXXX increased attachment the second XX%. of

retrofits importantly, grow to penetration battery performed inclusive our rate over More reached XX.X% of X,XXX life XXXX, to of June date. continues as and XX, have battery we

backlog in battery the of materially sales also second grew retrofit Our quarter.

XX, our network, which installers, continues year-end homes growth stood and by Our dealers dealers, shy be a X,XXX. of driven June of target XXXX XXX at as to dealer new only our of sub-dealers few

expect accelerate season. we of the further, dealer current We as growth selling out move our to peak

four, slide expected updated information customer inflows. on on we and our cash have life Finally, contract

growing XXXX, vision of which XX, transactions on our number dividing around unique customer $XXX Home, expected stood XX% service we million, demanded average we an QX broad our derive over services June these we Sunnova increase energy equaled and versus rapidly by June to Sunnova XX.X a customer from the discuss services by that by cumulative remaining to those centered of XX, the per end of the of customer life slide the XX contracts both weighted by offerings goal. of per the XXXX. current of increasingly customers the next the on of total achieve As offer, number sold and summary end of to service inflows seven and as cash increasing base On at number basis provide XXXX, contract our of which Adaptive our new months goal is a services customers. of When XXX,XXX. position of being five, the years increased the customer We

XX, last can services we X.XX compared per established as see June on on this five, of XXXX average customer X.XX we slide year. As when to sold you goal

customers. cumulative customer, sold transactions count, included customer in achieve non-unique and assist In our in per to and in non-unique ability of the increase to will services customer new customer they plan. also have here These we while targets Triple Triple-Double do services distinct addition XX not to currently our offer to us base. per upsells an our both share seen We per growing our services transactions. NCCV our consist current they increase existing And categorized

hand As we industry our create to just demands to for technological advancements increasingly comprehensive sell call to customers' called I upon solar beyond services and are now to panel. customers, accelerate allowing energy expand us move number service margin-rich a continue over Rob. we the meet will in our our of integrated as the we to the

Robert Lane

operating results. recurring and operating Starting collect with in both adjusted John. together solar a EBITDA year-over-year the see increase includes flow cash a you, year-over-year second in in we on will slide revenues, cash increase XX% on and Thank principal and flow, interest our you increases to quarter loans. adjusted This XXX% seven, the improvement the significant

the in inventory $XX.X in how in revenue sales a revenue been million increase dealers quarter includes we of sourcing resulted have in for XXXX. in Our some change equipment that second our

our number, that revenue XX%. Excluding was increase

While initially to collections even year, this we be greater. the increase last had on solar loans same increased expected from period

to As of better unscheduled economy. rising lag the payments was about earlier, during were in we expected. interest a anticipating were payments delaying mortgages, higher John This payments, Scheduled principal noted lower rates, due given payments much level than quarter. refinancings customers from however, materially overall customers the our and principal concerns of

to XXXX environment to the and inflationary is and transactions $XXX in payments scale on continued asset-backed meter And trailing managing spending investment and cycle. operating the driven funds declined liquidity compared an equity million completed basis include spending. Sunnova. our thus customer business no and growth of quarter focus X% on financing in there second value despite quarter activity was expense and our recently to so summarizes Slide of date XXXX securitizations. recent by in on delayed to strong cash XX-month we This eight our $XXX completed Furthermore, adjusted consider XXXX XG the million loss The continuing unscheduled merely a per our replacement our position. first by tax financing

with our range at of at most recent within our June previous average priced X.XX%. well the even at XXX above weighted a While that securitization print, points cost basis issuances, remains issuance debt yield

June driven as we an of down of portion the was of sales work $XXX as the XXXX. entered as utilization liquidity progress in This $XXX planned from XXXX total by calendar. Our March strong of acceleration XXst partially was XXth, of million, million liquidity

in issuance effectively of Additionally, This August green we year, grade sheet prefunded to recall tranches several of assets our maturities. match last the earnings as investors first profile us our the bond. ever issued to in next our balance securitizations allowing any residential better industry's non-investment solar to debt our issuing forgo

upon well as liquidity warehouse numbers such, are the as path available and in credit As unrestricted is we work could liquidity from bond. draw cash our our restricted both the we equity glide collateralized on as facilities. these Included from tax our target green the and prefunding through

XXth, $XXX June liquidity available this Given million. of unencumbered XXXX, available as collateralized assets equaled

had year in deep-in-the-money expansion million XXXX unlevered as liquidity of cash securitization million Beyond will slide fully that XX over months. additional just warehouse nine, On last XXth, trailing open of closures That and available collateral, $XXX subject we to $XXX interest of equity capacity just the funds our exclusive equity additional of tax represents funds. tax any value warehouses our available see or on swaps rate you week. our X.X% our including expansions of returns later was new burdened origination an on this a of based warehouse loan June

ended returns on X.X%, March quarter in XX-month quarter. months expect the to increased our basis second remained June raised year, of have XXX half increase the returns to burdened basis XXXX XX the of XXth, the to flat our and a XXXX. ended we fully the third for an of beginning points While three further points in increase unlevered XX Since returns due lower points a of the basis compared XX last XXXX trailing the three return from months by XXst, to we basis

own utility debt. As thus call, pricing newly us of raise us to our the on enabled we originated specifically and costs, rates customers our earnings last on higher and have rising increases discussed allow in cost offset high to our

the our year high our increases cash of growth are the number and growing, as additional keep customer year. that this later between market leverage together share value by and towards two services seeing base decline the spread closer operating in increasing to wider the push assumptions XX the our and months, industry approximately XXX low. continued million margins These rate assumes XX per point The growth or basis basis on grow spread our a driving just our value continues position be range these energy in implied back near-term per price keep and contracted trailing points. share loss in on rate basis with we should every loss company are to XXX Additionally, basis while loss under, a to defaults, this payment Currently, $XX performance. value $X.XX from our equals to greater to Sunnova even points we a net higher utility rates our improving

before, as Customer XX for and basis our However, or to guidance XXX a Gross spread have seen targets. implied NCCV. strong the Contracted average growth have the long-term both our in noted estimate we we we Slide our point model in range GCCV reflects Value

As of XXth $X.X XX% June at June compared to billion increase was NCCV an XXXX, of X% discounted XXXX. XXth

at share per discount receiving a optionality expected XXXX share. and approximately no either its since or discount Our per $X.X XXXX. our billion increase XXXX June XXth June a $XX.XX NCCV little demonstrate or for XXth that $XX,XXX to discount rate values X% equates $X.X XX% even Sunnova NCCV discount or growth. this NCCV, June per is of $XX.XX rate at our June X% an These at per per share credit a customer customer XXth current was $XX.XX higher share. platform, to XXXX rate, billion And rate was At XXth

per is our IPO further, back Looking week. a XX% on customer share since three ago value years net approximately up this contracted our basis

per years will of three a slide target used our estimates basis find as and and regardless and these Triple to Over on both There detailed XX, major slide continue. discount Beginning liquidity rate accelerating on has share our you no forecast this that remain changes been plan growth it on to forecast our liquidity trend we expect growth through overall to relates as guidance. we guidance these are Triple-Double the XX our metric XXXX Plan.

on around are Triple included the tax our potential in extension, Regarding one Triple-Double assumptions. dependent never neither as a extension guidance the XXXX credit investment uncertainty Plan was nor any Sunnova's

and respectively. XXth midpoints As customers was day XXXX we June XX% and customer and to interest of principal locked approximately existing over of same the revenue in our XXXX expect XXXX of as on XX% and of that solar collect loans through targeted

backlog service. do significant customer of origination have As originated second count who mentioned created not customers included we John our into have cumulative placed but count customer for in in as not count quarter up our services, customer our our they an a signed been until are

slower these count originated interconnected have start in to to seen was before QX have While free PTO's months to adding preferred receiving July, permission confidence to operate that the in than thus the up would year. customers customer in coming and we of the our will be end our added we

back the business continues our concerns customers despite now market generate homes Finally, John. to about housing share I market, over turn in take new new territories. and the call key to will

John Berger

Thanks Rob.

are due and has and performance continue when we solar rate level this to payment in are experiencing concern to being customers not customer value Sunnova's offer. becomes more further entices more higher We significantly were originated. seeing but savings our customer the rates believe at were industries Sunnova a to make our bill, homeowners we as delinquency, paying energy less loss other and their are other As because the utility switch they and many ever incentivizes to only lows mature all-time default performance of services today energy a also than prioritize their escalation essential of to This improve. company contracts rates improvement than greater improved utility our customers

have have Sunnova of view little the debates, regulatory challenges prepare ago, a the global performance. recession or including stream have balance will hikes; adding well new a the XXXX, for provide on our recent no our we to manufacturers to keeping had supply geopolitical our in customers, net further meet safety gridlock equipment today. liquidity they two interest demand; tensions over before sheet of in growth; and sometime, services. operations, our ourselves seen service predicting earnings significant for we heavily valuation Since unwavering have inventory remain equity debt new finally, approved steps paying headlines arise; on energy more growth a insulate who negative that raising list our engage impact of for past the and happy customers historical rate matching to vetting constraints locking certain weighed created a from pessimistic calls Sunnova's many While and us equipment for prioritizing ready This steady financial these vendor to add quarters economy to had dealers on headlines chain ensure to as when taken to includes: have to several

industry community investment our begun outlook following the to reasons. the in some have near While question the and both the remain to in we mid-term, due of bullish

a have backlog. sizable We

additions today, customers XXXX of originated to have guidance our begun originate we and for to the XXXX. needed As all customer meet have

strong recession, We relatively our prices a which expect hydrocarbon stay will drive for high therefore services. to consumer energy despite demand

ability to pricing We power expect have that and our material demonstrated continue. in a way

in recession the impacts the We even decline economy. utility to rising or expect as growth our near-term to cost global of relative slow capital rates its the

and service greater continue our cycle. we providing be to escalate cash and a XG expect software completion replacement geographic that costs in XXXX, earnings more growth. with of per us will trend basis, now We mature our flow the platform, a service trend even customer meter offerings capacity and And capabilities the expect decreasing of global the to on growth

line than energy and heatwaves energy and is world need To energy state service wildfires flooding to clean in gain home Sunnova, independence desperate change are affordability, security by these record reliable and providing ignore energy energy temperatures ever. including At in With an diligently help please more trifecta combat world summer our to recent Finally, questions. is we hardship of of resilient true change bring difficult operator, the economic homeowners crisis – the the that Texas. global climate growing to in to the solutions face unparalleled energy realities. climate it the around and challenges, working the of for open

Operator

you. Thank

We Strouse from comes session Our Mark will [Operator a from Q&A JPMorgan. now question Instructions] first start

Mark. is line open, Your now

Mark Strouse

the Yes, here that want inventory bill was a It that you on just And we your everybody. think I back How about should there guidance forward? any those that sales do provide taking real Senate benefit quick, earlier the provided to you in some this dealers? outlook? minute. had like XQ. looks you had going were into was in EBITDA to morning, in our very sales EBITDA baked come already that can for that good Thanks color previously that much to questions. year, But

Robert Lane

on line treatment bottom been on That Yes. inventory, supply installs. and the sure – inventory some we've assumptions. is absolute really that sure making our do dealers their that into accounting to of they already get that in sorry. need baked best Rob. treatment The is the that order making accounting get on this That in chain, pricing Mark, our focused was they

were deploy is their our good they're to to and the installed. this have that was that cash aspects you've is And our So changes By in the the that certainly we always us. process the invest that contributing margin And it within to the we safe to do was other do is that sorry both that ourselves and fact to dealers inventory more had made do our more biggest benefits some able costly It our that efficient beneficial projections. to get in we it the directly. for when in that get for that systems we was dealers. and up, dealers was in us very – seen equipment harbor although but one and us pick pricing had us to and this we previously, margin been up plan and we pick for actually to quickly really at there's supply it for and

Mark Strouse

so of coming thoughts in initial John, I it's might over assuming know And how of just But the be pass puts a then bit so last that this and that takes Back or still Thanks, from to year or what seen Okay. far the Better. better the seen you've we've back than kind some the Rob. does early. worse bill just Build Senate. your

John Berger

and thought were a would the Yes, – Certainly, extenders it? provider we've nice surprise, It had some you something would and kind in that like combing cetera material this, for to publicly, in scenario that a would if wasn't This was energy residential say bill. maybe was I year said as as was of that, optimistic written is John. et things way. we here Sunnova, lawyers, we let of there write experts, the I'm as is this our through optimistic, a happen me heavily cautiously let I've I'll me overnight. And then that government but this this say, a had obviously company Mark. the at for is perfect a service industry in our big that that came Obviously, sure you tell worst my it's wrong what bill case the of perfect is would end a And a what about. bang bill this qualify be now why. affairs I'm I that pretty say

what visibility and degree of that XX% solar. a done my with not we And that ITC the which career. XX-year frankly Sunnova a we was very fits most the gives is Adaptive clean well extension investors It Home; agnostic, to have technology of wanted entire high a now that just on moves lacked First, basis. importantly what

is other anything. we, will -- are that the obviously, never manufacture manufacturing The something that credits

US panels, forced the investment back that out much we There's haven't as in bonus and the going on basis that the have to involved that a We're only bit yet does top to had could pipeline some of that XX% helpful. that well. then, cargoes, on weeks all of said, do cells those that. that. bill other tax things wranglings, we disclosed very been And the and do of is We more credits And of have I there. lot addressed that a that public to being partners us the come seizures many we are tariffs there. But, a They'll et for bringing as manufacturing there's growth so of things cetera months like ITC little top was hadn't addressed that and few Looks that long-term jobs. and things on like we've by publicly be this This in in a the labor, the of be -- some all of issues end yet. regards with have the in we initiatives obviously that next fuel as other we'll this.

hope I gosh, So, it happens.

the this I is for And think will. industry. beyond it great

Mark Strouse

Excellent. Thank much. you very

John Berger

you. Thank

Operator

from Our comes Philip from Shen next question ROTH Capital.

is Your open. line now

Philip Shen

of questions. the guys. Hey, my in here. bill Thanks taking for news Good terms

million relates talked thinking and you're there to through ahead about be us John, Historically, next how if green the on forecast think if I $XXX color if about thinking wondering green be terms in it the a likely could to have you're As just looking wondering you've million XXXX, give more that other little some sources for attractive. $XXX you might or was the your you year. liquidity Thanks. to more might And about be on bond was bond. of still

Robert Lane

obviously, still very it's options do timing the one going that. certainly, and want number most be is probably do debt modeling, sure make position. what We've with to I signaled But markets We so for decision to Thanks about I This to that's doesn't the first have Phil. a question. clearly whatever that doing end some asking to been attractive our the that quite of market really we us. to to mean, much it going of know as how liquidity for enhance this XXXX, beneficial the much available. shareholders. to far but We is we a part by your we've is, too the whatever be the Rob. our are haven't help Hey, still up talking made looking as we're time. would we

that to So, path. follow continue we're to going

still give not the on there, but much target. Sorry, it's you too to more

As perceive you that's the to along a the the still can go-forward we our that's see what still basis, growth still -- needs path, right we reiterated guidance, we anticipated on And from the it's that -- think trajectory and be. continuing number.

Philip Shen

far I then, as million the not you And any wondering was or hit Rob. out, enough or a if there. guidance you guys of closer corporate after yet. or have the think can will -- Thanks, capital haven't we velocity a you not annual know have business XXXX, the outlook even an could When capital, about a provided you the talk follow-up Great. ability needed view But think or you long pretty exit installations. for about to itself an whether and have and still generate and more view you as $XXX if commentary require incremental get core term because

Thanks. do your view so, just wanted still ROCF think you And you see can there. if is that guys to get there? So,

Robert Lane

right it the appreciate the I question is really and Yes. question.

And aspects take growth of to would the that One look never would and velocity. and the business, you our all anything hitting But there if see exit for assume we the need cash really for recurring we If a is industry, be two are that growth would at growing it. were the flow ourselves stop trajectory at our we frankly, today, any we be whatsoever. case. else, at where current there's operating in

or modest that operations. timing to But the increase in if growth, this needs creates working fact a good thing we call thing sort XX% into start a to And is steady growth that don't ever number some increase working or just only It's we less, that the that grow that we've if year-over-year, we change getting were funding is because growth very XX%, obviously really would at derivative would capital. need of, capital think hypergrowth be It's continue very that been strong that, state reason we any has business cash out our look ever in there. XX% the or at XX over market the and sort decision funding for And of large. of a doing pace. of of we've only second cash years of in of and And build ARDs high as more. that XXX% reach to bank the the the anything there our not as Now, cash to it, securitizations up been when in capital. would where expect been growing this a same even ago, we the realization the its only the and that's corporate the reaches if see a you really big to we to banking. flows we've able where our really because been Otherwise, hold spent And that's more hit -- decision past our this and by flow flows. we equity time flips tax just we've why founding NCCV take onto all in from in that funding

Philip Shen

the last And may. Rob color. you I question Thank one Great. if just for

customer the accelerated. about in the gives per bigger customer But the that have and the appear interconnections additions said, half In were have your John that risk of additions and the bit we terms that? and interconnections next little again? look PTO around those in at customer two taking near-term view. of not two have time. to you Things quarter And down -- back QX. additions you a long-term you and think Thanks. highlighted bring that and If it number QX was you slow What more will quarters, the how first that a confidence what's

John Berger

speed. -- pretty picking to this is up operate Yeah. I been It's that permission Phil is the would John. good July say Hi, has as as far

some utilities very the areas and Quite of candidly, have demand. they some the being the which overwhelming utility still automate, Some utilities. process to slow with people do to more to issues typical need hire are

some some so so. because months our of last or of up ago our in the a bit have work some of our composition constraints, or and of moved several changed territories of So dealers quarter service those has over our backlog progress

month. through. tail July those that services that at quarter being number that so the growth are high time. end if are way you in the it of And point at the in those just last And of continued look at feel Unfortunately typically really well. all and and the off second taking short was different sheer we We've as durations the we very then this expect offered seen have

On the really this the two the first came June, come quite wanted like we the of supply weeks side batteries in in in three of didn't to of month. weeks things, last

we batteries have and So those we as they're speak. being deployed already

So that was another mover there as well.

terms terms that chattered good evidenced about the All growth inventory and in as are hit of improve in together and give those what quarter. thing there's at of that that to additional that billion given here talked the growth, us just have So has utilities, that with lot backlog, to this year. past the about coming new we'll we chain supply done to a composition One last of growth services confidence particularly degree pretty the position in continues a X.X by been then the regards we I know of that Sunnova homes.

So the new homes market.

only their that the do stay market count to into been again I bearish not white when be I a count And white with ground. housing We that. homes surprise on a anybody and year some when I the as very do you a win a a market we've a ago. we you work-in-progress is new think We home that to think housing that yet breaks that won't can hot. competitors don't expect community go it work-in-progress. hot conservative were market that recession quite know

housing homes today groundbreakings we decent new XXXX have regardless thousand but give confidence as And only homes, year several think you already further so that in market we've we of the in pretty the that should market, for a for not well. booked this shape as new of

looking the think for bill, with can any to a candidly I forecast are I how that think I to certainly XXXX higher we've we're certainly than big for But but out. for XXXX be us shredded. growth would speak industry absolutely going this even for So And forward growth quite about XXXX. we regardless I this bill boom in of maybe with towards see think laid pretty do

this big is going to be our think time boom I industry. a in

Philip Shen

it Thanks pass John. Great. I’ll on.

Operator

comes America. question Dumoulin-Smith Bank next of from Julien Our from

Your line now open. is

Julien Dumoulin-Smith

think that about trending to going is pricing here Obviously to about X% weighted do and doing talk and that you do of congratulations maintaining unlevered or think Maybe to here. that see average you right? reduction element spread this Just about spread how returns So of that power the improving that Obviously where if implied to pricing just you maintain as a see comes coming debt. we just you cost talk we maintain successes team unlevered versus Hopefully of trailing the view it? as you all the that Hey, of what thank your the or forecasted we spread spread this And here. cost about cost to a it's you back on the how pieces. as Can to? this higher power, do want how about debt, your break talk you that -- can apart and be spread, together. that's can well.

John Berger

Julien. This is John. Yeah

more on a has So moved everybody We we've else had early. quite pricing. we of than bit lot moved a --

think pretty think in I that's well-known do. that's And I to that marketplace. thing the responsible the

already a far when bit smashing And back we had as little as a so sales blistering of go growth and QX a backlog. record very giving building

quite margin transactions and then it we And forward built bit in on certainly So those a us. a basis. didn't hurt

QX unlevered So that pretty baked much for in. said so we had X.X% I returns already you is printed everything for fully already, would that planned we than tell that today, that higher are as our and burdened we

marketplace. we that that Now back would June. that from bolster would competitors securitization we decline are increase confident were take feel days have in capital in on we the a have pricing over its further the increase and at a and next confident continue that last that month that have the that quite pricing going to did since power few of to to that in asset-backed power. the as move look we recent We the doesn't We're will and cost pricing to mean price

not-too-distant on that will pretty One, of we be lowering to announce a cost cost in capital side there's interesting we'll the I transactions couple to be capital Now think that had of future of excited on investors. things. some

you that on at Mark's where we're The wide so the at our second likelihood from of mention cost basis doing -- a least of I marginally bill at look points had tax And when question, you is, bank of securitization thing And credit to points tightened we look reduce say the the these the if I does -- basis cost of going earlier capital now then asset-backed look failed when us would sit can't when pass right? for lot done securitization. the the at market risk-free things do but go to sorry, to commercial or if this a transferability you XX least narrowed, XX -- anything, we the which there's equity, that at even debt, or that right on down. on different is

we when it's of capital lease will average weighted was high-Xs look PPA which loans So back clear the at already did loan securitization we're wide you if of here. cost that a you between securitizations pretty of into that trades

in So goes. it we a could this were will obviously technically bit that I little be where say We market's of deemed a know predicted. we'll the very that. don't are go. to few going recession now like where I ahead see which people looks bond

drop going as And high capital here. from continue we economy. feel prepared are probably going to to even And so relayed to we is pricing energy continue our the power be in prices marginally pretty to be cost is the relative that our think going high because strongly to of to remarks,

is either spread. further together to about we a pretty other, a there some get point increases one basis that the that we're or XXX feel back And good capital in feel where pricing of we in combination we trying or can way all our of pretty both. confident, So, get cost to drop or

Julien Dumoulin-Smith

just So quick. to clarify that super – John hey,

that As the the of in of, install dynamic here sort the delay in you think it you that when you price do cetera, et couple particular something the to back implement given, or backlog higher given next think quarters get about timeline for can over you that when the about X% do think next out how the timeline versus quarters the timeline pricing? higher and the playing couple that you costs you

John Berger

higher not if got in much pricing Yes, it. much all of backlog it has of our already

as -- now Julien? And the won't see year. far that securitized next the until the math out so do in all end a of you'll as be come year obviously some from XX-month the we So origination trailing until be right it'Xl that basis just of

take and why that looked this to the -- look too. ABS -- between always something know, XX-month time, I it's at trajectory timing that's we've comments of I I'd what have see of at at we originate a basis. more trailing an a capital So on would lot lag But end on implied a do is securitize. we the any would when and cost there same the is. a front you that? when Rob,

Robert Lane

more competition than who I immediately, Yes. much that are. point would just so impacted a out by also originates sells lot this then almost they and that's of our we out there are

we had impacted of, about a a these in lot see that sharp it -- than us. that sort peaked increases impacted ago really, you the if them or that So so more believe month in we XX-year

what that. have time loan And find originate that the who able ends up lot it, more on returns buyers and for into at to loan gone purchase For they means the able a loan out of some the service the with those take you're by those and actually a loan is a look whole in actually to take getting -- that time also the for of market, market view purpose change there ABS But selling to up anyone the required you're the the and long-term underwater that significantly. did the themselves of it could have pricing.

are market, Given path chosen go flows, in There industry are long-term the the those cash onto us those chosen instead where of as But alone. of in with those better just of others have held certainly reflected given a in really are position. everything going that staying we've the the much well we And fact keep think that we not be of onto to to ABS cash I that we're off. the who and really flows see have you're discipline them. selling the to holding benefits within

Julien Dumoulin-Smith

All right. Good enough. guys. luck. Thank Fair you,

John Berger

Thanks, Julien.

Operator

Our comes Credit Maheep Suisse. next from from question Mandloi

line Your now open. is

Maheep Mandloi

lot the there. Hi. over morning congratulations work good and bill. of from on A Good guys you

here And we mix the forward? Thanks. no does pushing direct think towards versus the constructs leases loans prices, mix there's does to PPAs go push on and leases? higher Just of, loans but as going proposal? XXD in of should versus it if this here that over you're this quickly like -- versus more pay dealers leases multiple change how Sort loans. in How

John Berger

you're the Europe. highly with the swing be a than We'll for look as as food the a it Maheep, believe and favor and long-term As this even interest laid it rates being as I back by Hi, what seen either leases I to exacerbated to I move, it's John. versus is way. this does think is last I basis, is to so on and TPO caused us war it, bill, will secular away from I lease something agnostic, take problem, PPA that been regards continue say say more and that, few to slight earlier, loans. issues fine. mainly we're by inflationary actually Yeah, in and I clear we've out see more And about That's I which be structural say stronger a leases you I energy sold at going months. that right? over towards, think PPAs this to PPAs would anticipated. likely

the be in to the I that the It's thought at market proposed certainly think I come a down. the on of it agnostic that, that. would my definitely loan market. Schumer, to math. that you've terms environment never seeing more regards loans. macro you So on it. Manchin we're again, a beyond interest environment, by I've of as the out trajectory of seen lot And think of the But got ahead market we're growth everything, XX% look PPAs But just of we've top say topped I would way the rate given XX% split. maybe bill constructive Senator versus Senator this the And elite if it share, far as opinion think or I go in

Maheep Mandloi

color. it year I or this was or given on be equipment appreciate modules Thanks. batteries you. year but on that sure, later supply LPA next just US Not [ph]. this if your Got expectations for touched and logistics upon,

John Berger

as a Tesla, to continuing more see marketplace. improvement see We've He the he installation. out very to Badri lot that partners run made in I and clear, can on as in got was itself And yesterday the Generac in choices We're that. fantastic second an Yeah. the that. supply the is product with Enphase. of SolarEdge there well loosen ease definitely Enphase partnerships other up us. continue focused that some and of the materially, battery the – we key and supplier gentlemen

say from So, would here. I only to get the better that supply is going

clear be that. Now that, also is relative right? about demand, So let's to

on the that, panels. to making procure supply have some And sure always been panel given types we quite different the dealers facilitating right of. expectations directly. a steps the of demand taken well. taken through our equipment outstrip And I really have tightness information care in that bit as As little about we've panel comfortable be feel way do my now equipment. are of continues side, have marketplace, I to We very the all all even will not a bit, if the there And

to in pretty shape hell, Maybe goes. pretty but quote little in we're it of or in far now through here a we're So, good of we're the shape. get terms as how quarters bit chain longer board months, across couple took a supply and good the as few equipment a

Maheep Mandloi

Thanks you. for that. Got

Operator

from Kallo Our Ben comes question Baird. from next

Your is line open. now

Ben Kallo

guys. my Hey, good Thanks question, taking for morning.

were First, just XXXX just the have correct the coverage for percentages those that housekeeping, XX%, Rob for to do did have and – EBITDA XX% that the some did or XXXX? with

Robert Lane

the is from It's things exclude XX%. P&I revenue It's and and impacts it what – inventory XX% sorry, sales. it at. and EBITDA like does we're looking P&I. revenue But is

So it's from revenue of coverage the recurring customers. the really

Ben Kallo

there? because the of you're it. size. you that exclusivity the you economic of John, closing guys. just number on then about vary in could just and talk talk you, the the you And they on that because the revenue health current P&I. then dealership have I – could just the early, X,XXX the environment about maybe, Could – So And finally, Got also maybe know of talk last – dealers? front. remind progress on that with the in level you with dealers us Thank XXXX-plus

John Berger

Ben. Yeah,

those something our sign first we origination that exclusivity, I XX%, up. dealers could continue So a foremost it's somewhere and see lot more flows off little we to on around relationships continue on be this would and of the I interested to a of in under XX% of say, but exclusivity.

the to years. So We expect that's don't it change. continued where over to has that few been last be about,

that strong. continues be In terms dealers, growth of of to

add generators, charging. continue EV management, services namely load We additional to

the help into forth. able other contractors sell into additional And like storage family them to the can things bring and those so so and solar we so be then, speak. fold And to

Sunnova part there's serve the So, growth dealers these channels, the be is want lot different the that key of and and piece different to way a to of that company's platform the bring plan big them to a they it's served.

we continue see so And that dealer to growth strong. of the is trajectory to be going

in And health the by out terms will X,XXX blow tricky we the the year. gave the time. year obviously end of past dealers, We that our goal set a of it's last of

got to careful. You be

years of to know daily, have weekly. equipment to doing. with know to just to take they've that's have capital because the they going don't got payroll inventory chew certainly And out pretty if door, them can there the that sometimes quickly. up care the We XX that need this partners. you we be doing we know how and got know what company, we're almost this good what Obviously, into you're You

their as state. Again, that for to stay looking in see We're and and we're And pretty You of their and And in to got just sure of what in sit we're heart vigilant that home sure Dream. really see pleased this come they the large my best. this build of needs what make there on financial they're And a continuing back and the have the financial American that. And proud the to the point, we can dealers. very so always money we're American big It That's got we a with and good another forth. stay they to hope health and dealers being and we're confident them. wire the are it's nothing something is sponsor partnership dealers. that to make that become trend. customers our of for are dollar families But health. dream. money and and Can't understand board. quite multimillion warms confident small somebody going continuing their business It's are on entrepreneur the across take to top a

Operator

you. Thank

comes Our Sophie from next question from Karp KeyBanc.

line open, Sophie. now is Your

Sophie Karp

morning. and Hi. Thank my quarter you for Good the news questions. a taking from solid Congrats good on Washington.

Just a couple me. of questions for

about interconnections quarter? like of So with to you interconnect this as for them to inability utilities' guys it not additions want fast are sort quantify of would talking possible to right? the look the the you backlog Is customer as the what utility, if

John Berger

on of elongated We've for roughly XX%, would our backlog's And and just the weeks into taken I Sophie. tell XX% installed have duration around cases account in installed already you end. some under been

don't bad worsen guidance from move We idea on materially pretty to say things see about in are. I And as forward range. in slight shape things we've the on that improvement have see here good So to where got time. that. would a a be would we number we the

say WIP that bit. frankly there aged the the is quite a So as is confidence we would

difficult worsen materially where we're months so to to from it's get several actually starting And that would see that today. in sit point we where the to

Sophie Karp

a has Got that curious about points the ultimately if metering of that the made of cetera you interconnect you to et debate is you storage. that something with one right, don't it. And the utility Is in just longstanding to use to the the not net I make that operational? like then might sense? to make this have more guess system kind Even industry but Does that, as have strategy I don't go -- make I a of speed connect the may guess tariff-driven in future to where it? know be maybe that around

John Berger

Yes, it does make sense.

think used that do at past in consumers energy in market have of and continue to capitalistic Not look what a bit intently so. a to I Love have it. have market that open and a now Love quite consumers, a where in utilities We to provide great harms and recession. to expand the that. is regulators speedy obviously and service rising should interconnection period very providing to

regulators it's harms ought to it so I that well. supposed far take behavior And anticompetitive consumers the as think as serve. at a to something look as they're And that that

we facilitating as There's being And the more of in about act the if that. regulators or as if territories, do the bigger I as as And big less don't, will far start we and and services. will can many hope is as so pretty can us anything to are are would of customers. that bigger the we technology and won't improves. then states to think they technology here technological do consumers need less fill gap utilities slow will they and But certainly act, technology, a that's as getting shift changing clearly and their

Sophie Karp

be unchanged, for I EVs goes there. Thank system What's incentives bill seems if of little guess I comment you. EV of to like definitively, on goes and fruit I the guess the but everything assuming rebates heat that And then Would addition I cetera. that last What guess example through one bit this there's is low-hanging too for through pumps far et whole for There's into for chargers? as one, in kind next you guys, for integrating bill? maybe as that services? pumps you to obvious answer heat it a if management may. or interested most just the energy this add in early and

John Berger

more. Yes. It's additional contracts. manage on a that's they the reason, have But hurricanes. then well, But everything already nascent. we will, looking then, are We a we're and more me due on heat more call and having this case chargers they supply, off put particularly the then that inverters, you want up-powerings of need solar, we've et area. up, for of making may and wanting and is, idea if lack good side of definitely whatever other We're going working necessity promoting to we more been the reliability to a people is when continue already we've big whatever pump again, management, when when are talked solar side EV for likely, those eye the to other we've a lot when the been there that. And consumers. is seeing fuel issues involved in Obviously, a The That's have sure And and the something it the fill demand cetera, at don't got increasing EVs grid get change some be, of the last the see thing the adding a right? of in only solar, things yes. loads sell Most there’s do and accessories. lot our at EV something choice, to cell side and there. batteries. you before something and you you to of up more that's on service ramp of consumers roof customer in grid keeping we We demand as Obviously, out the demand side? working new that Roofing. but load wildfires because targeting. been more start we're we climate because Will you and selling solar, things, look not that lot about -- flooding, the quarter, as that them something that surprised better

involved that get Rob, in help our have do comment? and we well. if surprised any as be don't to So you customers

Robert Lane

about the to that the company, this we powering would do everything really being benefit mission: really solar whole as that our vision I merely just that all say, It's Sunnova but energy into the out consumer. we've and Adaptive can it just offer dovetails use Home had Yes. a Sophie, independence. take and how there not being we

Sophie Karp

Thank you.

Operator

question from comes Pavel Molchanov James. Our from Raymond next

Your line is open. now

Pavel Molchanov

Thanks the for taking questions.

is solar what the the of that one? is threshold for months at ability kind threshold thumb before utility there happened With we to the go if highlighted PPA You XX then, through $X.XX If rule where hour kilowatt rate push is everything new was began, economic there spirals lease rooftop makes higher a a common the maybe pricing. since inflationary sense. that back and that's of

John Berger

it's Pavel, John. we Hey, could quibble looking always about -- my country. on But was really Look, I've don't $X.XX across thought that it number I think roughly $X.XXX. the

a pricing the aware you're Dallas a minimum we've so of. now market see closer, for $X.XX I place $X.XX $X.XX. like And higher, gone Houston, that is fantastic Houston range. $X.XX And we was $X.XX think, and from natural bit Texas, a around are instance, week gas market. little this roughly We to as these as a

rate coal this natural pricing that, of largest because closer these metropolitan looking say material to would penetration. very, very, $X.XX $X.XX kilowatt from $X.XX very the my areas; at by -- hour movement probably $X.XX the and on I something What you're bullish driven gas One very is point, $X.XXX. at markets low We're primarily. of

clearly, there in the places very board, to And Houston. across even we're cost, like so, used that be low

And last really -- base see for again, about as sticks, very but as state as talked as geography can to see point place the where very the our offer this we we're United time, I think first expanding going services we're States. So a we quarter, a a profitably. far market across every data we rapidly

Pavel Molchanov

before presumably your expectation California Washington. the of policy California. after with headlines dynamic, something ask different for slightly November? happening doing is I'll metering. questions about on what's of which a net nothing already But out midterms lot There's A

John Berger

they'll something do tilt towards the that think that'll utilities. I

So continue utilities for further. on has a in and all least of DeSantis Newsom wants know the thing. is by And rates is the going think Governor obviously, we that at utility run desired to push consumers broken pay we how California, With attention president. is smart and spending a at politician. the guy, rates going the skyrocket, -- Florida. to right what to anything, Governor likely our his don't from but consumers, them And his up I'm spending record been and there, to what I I this. to massive of more one. do do said, smart This -- voters Clearly, is. that's one position as He's day more even smart a all his know opponent, for least know people did particularly and

previous The up I there's the a is, and portion make one in strong here the possibility predict just end the leave us very thing California. with overall in years good your question consumers So California just the answer energy previous that of state global definition think greatly for geographies smaller things to couple to therefore our I'll and crisis. of as will sales, a next up smaller expand the by very of due I is, my

Pavel Molchanov

very you much Thank

John Berger

Thanks a lot.

Operator

comes David's from dropped off. Apologies, Research. Wolfe David question has next question from Peters Our

So from Morgan Evercore. Sean our question comes next from

Your Sean open, line is

Sean Morgan

try I'll it and here. short real guys. Hi, make

this to pretty sales sort a really just in of COGS, sort a think onetime not inventory the change, but recurring? accounting we of of as to quarter-over-quarter back and will circling -- just we be Can onetime the also is spike sales dealers. that this change big so had that that Just

Robert Lane

still we're But out dealers always how our think is, it expect inventory. that being we point really point our we numbers these that AOCF is be excluded from making get ROCF as and I thing, sure cash recurring. for proxy a metrics, but best And those. to flow. matter other actual to the the to change, the a the It's their It's of margin

cash lot returns a related how is it we back basis. to, than we So our view more on flow out because margin on origination, that it's recurring a

part our So our it's of of viewed much service more as revenue. than sales rather type

be we at continue going to but you an expect see when really should So to it, it's look to there. impact ROCF, not it's --

Sean Morgan

Okay. Thanks, Rob.

Robert Lane

Thanks, Sean

Operator

Peters from David question next from Our comes Research. Wolfe

Your line is now David. open,

David Peters

Hi, on good customer on basis. OpEx morning. just a Question per the

forth. pressures, a trailing and you've You meter made guys noted inflationary X% investments on XX improvement despite so the the

Just wondering, run guess, will? you of this settles rate have I where the if view a kind out you if

Robert Lane

Yes.

been from and view was really we've our really very service off seen to encouraging XX% from to down. our to were that us, very we'll continued two been that feel XXXX. of going scaling of people we've of all drive started We we our ability investment for years the continues still the from had three our end strongly, has long-term that the the really savings so where that's to there. to investment beneficial see we about What end ago densification that in that service pay Our is get ultimately to get XXXX and that areas, technology deploy

and a So, look on long-term ourselves being that. well we it's still been mission for as at target

John Berger

And also some I despite been along and add disclosed that we in there things efforts goes as yet, that haven't spending there, terms of that would public growth that's that well. about that

gets leverage initiatives operating the of then, is cash company leverage next this the the even quite it's to amount company and those years and point, there growth more. Rob's And increase and is they throw that here, going year operating are -- bigger So out year after remarkable after and demonstrating. to as bigger the

really in shape, company long-term as good our of costs, and the despite we're reduction expectations far of the So environment. inflationary as

David Peters

lot. a Thanks

one squeeze just expand the you on a last one Wondering, homes just to could if in. bit. new market Just

there markets. things come taking to the customers think clarify But I just you percentage some you Triple-Double, said, strong and specifically? in what key if expecting new you're still Plan even homes are new Triple segment from like of share curious, could the within

John Berger

About XX%.

David Peters

Okay. Thank you.

Operator

from next Sinha Abhishek comes Northland. from Our question

line now Your is open.

Abhishek Sinha

guys. Good Hi. Yes. morning,

into wanted just last So answered. most per the of asked was delve have the question been I on that now customer. questions to CapEx question the

color there. talk provide about know more main are terms of, drivers? doing the you in but the of little technology a just could drivers exactly what are guys you see, exactly what you If sort like, what were I

Robert Lane

This is Rob.

where money spending we are where -- scale. able it at doesn't and look really a find scales take you we what to when think and I what are

making technology and of to both in customer of investments side as new centers the we the customers, we're the we're continue the field. out both side on with of scale we markets new tend out have our the service, deploy departments as call Most to and and business to making investments rest into within So on that. continue

on of that of very there from have why need additional the scale management is really diseconomies sales, which to things management That lot don't we we model, and other experience sales a primarily. of business the Where grow, construction we been the have And where side have the happen. So the don't add bunch or for scale in have the which assets layers a don't business. found necessarily side of our dealer -- is to of well that personal more scales us. onto of add assets management focused assets as on continue we we to construction can

folks able are our more adding more deploy lot we of base. expense knowledge do -- So, a customers the knowledge technology though of across platform who a do administrative sorry specific a geographically other have dealers who we're we're this side. side lot focusing business even lot service to the more especially our necessarily service And without more where on continue do able find concentrated that a where have we on add to scale aspects open economies have an our to on

John Berger

make I had the clearly us culture. culture particularly we From that will still I sure everybody I that Don't understand, add spend it's that shareholders' wanted it. we is thing is today. money. And One founded money. management's to very not the management when think this with company, that It's beginning

Abhishek Sinha

some So we if Got could XXX on side? termination And color like the -- it. then one I saw this can quarter. terminations following you provide

there. what's to going that? on trying Just Anything about see special

John Berger

frankly. to catch-up is from I so say good immaterial catch-up calculation a will quarter. a caught into bit catch. there's looking you obviously little long that the too first But quite eye by my shot. it's it what And detail some would Yes, I if it's a of

do Secondly, what need up better to of may those they reconnecting still there job. service. a because have are some to again of digging little I going looks bit clearly that better a back off. That's them customers a and me dropped it service-only of these anyway. need do We signing to after to like the job contracts value

far more bit dropped about I and a up to that anything But think that really I there's be -- ball pick as that years talk some one just certainly gap. service-only We'll a coming we ball bit. as the than so we'll that. job signed that, these a and on upfront calculation due. fill ago we'll need we and And think little are it's I more little of better that catch-up of do of we contracts If

Robert Lane

we've our someone service But I if definitions. goes we will whom to we and in ongoing they're an a that and with strict counting served. are not are just have We're also therefore relationship how so say we customer. you're McDonald's. isn't something not saying hey customer. you paying sold ago years billions customer a a that saying This We're five We're they had billions it

the If a restaurant serving we're you, you're customer. you're in and

Abhishek Sinha

all it. very and Thank you had. that’s Got I much Perfect.

John Berger

you. Thank

Operator

Goldman Our Brian Sachs. comes Lee next question from from

now open Your line is Brian.

Unidentified Analyst

And on taking I for inventory inventory bought And you the my to are Grace your add in a have I sales Thanks. is it to the -- some the guess and the or in with Brian. back previously question sheet quarter? this now quarter quarter inventory you just for is thanks sold the for cash did help this accounting? held being the sold? wondering the going This Hi, first why balance follow-up. that Then question. changing

Robert Lane

Sure.

the So -- moving how the has is been equipment in GAAP GAAP. been this been a as dealers. rules it's change Accounting in It's accounting. change to we've been long it's a our basically not as

inventory what their doing doing case, So, in the it the down harbored project. we it had, previously, the the we dealer it then we're project. putting subsidiary was contributing selling and are dealer that what it then is In to to putting especially this is were we with and a safe in we're directly is

insisted the that technicality, and ahead it's accountants make. go that one a but we it's So,

that the with we it. and ahead deploying So, did how went change we're in

bringing we we as of inventory cost the million quarter at inventory with look at of inventory that far million and the basically of we're cost. can you we As levels on $XXX amount $XXX started ended the -- if with quarter inventory the at

a the again, add moving we're inventory, keeping sheet. we're receivable inventory. that certainly of the other just consistent It's on it net how did And we've while balance as pieces been two is moving. One onto fairly bring and we is inventory matter So, accounts levels. cash

have while from standpoint, But it going there see only as effect the we as that gets expect that's do we paid thing that's that's boost lag as collections. something expect up And in onetime that's we'd the that the So, accounts receivable an be we're is something AR AR matching sort that some for fairly it's really -- of obviously and move to fairly We really the as we far concerned would to the be the the well. as is of off probably there. AR. inventory consistent then inventory buy to a

Unidentified Analyst

guess guidance principal like these payments. your your Okay,. talked got factors all you impacting my second about question it. Understood. on I macro QX

your current guide slowing payments Is So, in the the why XXXX? risk down principal for a but there are in environment? soft to changing payments not your XQ, Thanks. principal

Robert Lane

of and and their as something big The we drives certainly as -- saw we payment. seen need, scheduled And being our reliable, much talking big unscheduled Where a and this something other payments the it had complex been. about lower were option. piece the tend towards is than the essential we payments chunk It's they unscheduled down. principal delinquency weighted up providing them. lot how much and are we slow the is cheaper we it's at of a an how start expected. principal payments quarter refunds service. because what it's principal actually of look that's would have than And a than principal payments, unscheduled the is We any to go This we've really that's consumers the income not is when our and and folks reflection utility have more rates stronger that that's get principal more looking something that but an second to Look, quarter, really keep that's default as said, also down. what

going environment end well. they me, to when potentially pay do an environment, they're up this the is to we pardon is -- we -- means pay a This that's phone, do the recessionary this rent. going So in inflationary it's the cell most an it and before the that car, pay. bill -- They're the

type We are built environment. for this of

now. able principal scheduled And expect expect be so in right remain we to will range would within of we guidance that the that to and payments still come strong as

Unidentified Analyst

it. pass I’ll right. Thank All it on. you. Got

Operator

from from comes Fargo. question Wells Our next Praneeth Satish

is Your open. line now

Praneeth Satish

XX% looks maybe bit still morning. battery QX. the where clarify. in has then quite It package? just to where change Good this demand? kind over constrained up step Thanks. just kind the a the a or And in rate attach been as new on of XX% you is quarters. trend last moved batteries all hovering up of at point few attach or to a attach caught rates But I XXXX in comments And supply in NEM terms of rate there Are this to supply climate the higher? like It's Any could range follow-up. wanted really under

John Berger

John. is This

As of I the improve. answered supply earlier, batteries continues to situation

relative find we here as that see pretty And so I ourselves out the think demand we that good to we sit shape there. in we'll -- today

feel need inflecting happening range, like changing of out terms there for going XX% marketplace is that more XX%, obviously and still demand of that's In happen. in to that options do We I the general. out

rate. So, a kilowatt relative -- manufacturers producing more to price more need We hour little the gear. more some

bites on more back they battery because and the for infrastructure. kilowatt to more it the free utility to They on more valuable. more the So and antiquated want concerns change, and side, metering. reliability, are right? as rate give even the as don't willing had ahead up the hour moves spend go And So, power's people to net down under more current climate frankly on

attachment many here look got at you you've States XX-plus wouldn't soon. pretty the in percent there rates. don't over Europe, the countries United be case So, that why I know

economics very consumers we in continue more and going So signs to to more are looking to gravitate very, strong at the see batteries. that

Praneeth Satish

you. I’ll leave there. Okay. it Thank

Operator

Our of question comes Bank Aurimond Antoine next America. from from

Your line open. now is

Antoine Aurimond

morning. good quarter. and a for question guys, side. very congratulations Hey, I just my good Thanks had the taking on the on question credit

your as credit curious of Plan So And and you if any Triple-Double of of like may have? about longer-term Growth can goal. sort near-term that the you Triple sort once you trajectory expirations reaffirm credit that reach talk you sort

Robert Lane

of will this seen quality, credit existing credit of Yes, is number company grow will and and Rob. have we've continue improve. flows you've continue held our up credit certainly down the we cash as would that done, very -- things lot I There continue to improve the securitizations being been accretive. we to the What say has are as continue onto that that that, to ends continued that we've as is But accretive. a actually to pay a

say we've agencies, begin. we've piece is continued credit We big really the growth talked when Cs, where in I ROCF. a the of the generally metrics the positive. would feedback expect that to as a a has of been shown that rating the lot And

close So, to stay we're very them. continuing

are. very our well. our sort know what It John's of and think metrics. sure Certainly, them we're focus my metrics generally lot making where where we credit improving seeing But of a good is. to has But I that's Let and speaking, be debt you're to satisfy credit shareholders we plans accrues the of is as that that focus think conscious holders.

Antoine Aurimond

so you Thank well. Thanks. guys. Very much

Operator

back call. John That the today's Berger will you remarks. hand to session for concludes further I now on Q&A

John Berger

joining -- reasons as terms Thank everybody strong we us, strong where of take we're this that away regards thing a business the you. planning, with And given any us to news this Washington, to Obviously morning. three very of will thanks interested and in balance though morning, built. look ahead we've very strategy, very strong from in the out sheet to Washington. whole for When for action the for exciting comfortable

spread that match appreciated for securitization that not are the to asset-backed several is market We've years spreads years First think in. with really is years. of our built in funding over and debt. locked I locked and come foremost And

crisis expected in generating actually way too we the conservative. forth previously of are far is faster We lastly see crisis and would the policy The losses, terminations that the the a previously. global expected ahead value second the a the growth. having away that for were faster are of far, step afternoon, not you energy and look that paydown the out it on applaud if of of looking big continue the boom. we news than than finishing only faster but that paydown Washington do and contracts we so And business thing industry a Great will still faster we've marketplace in And United will. and then expected. debt States, cash We be to And in And yesterday equity see energy. right rising trend trifecta, growth really continue The expectations of shareholders to prices to substantially bang see forward direction. and tax in and And flow stripped economic had world. a overall any just to we to the unfortunately energy continuing. this are a of the lastly

forward And future updates more joining we're So, giving to call yesterday Thank and so very the -- Look more on bill bullish passed. you you looking next for Sunnova. the even of after on forward hopefully us. quarter to afternoon. that after you on joining

Operator

concludes That call. today's

lines. may your disconnect now You

Sunnova Energy International (NOVA) 28 Jul 222022 Q2 Earnings call transcript