Sunrun Inc. (RUN) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $16.88 million, or $ 0.16 a share in the quarter, against a net loss of $2.77 million, or $0.41 a share in the last year period.

Revenue during the quarter surged 35.63 percent to $112.03 million from $82.60 million in the previous year period. Gross margin for the quarter expanded 353 basis points over the previous year period to 12.50 percent. Operating margin for the quarter stood at negative 45.55 percent as compared to a negative 75.97 percent for the previous year period.

Operating loss for the quarter was $51.03 million, compared with an operating loss of $62.75 million in the previous year period.

"We are pleased to deliver Q3 results that beat targets on customer installations, net present value and cost improvements, and to raise guidance slightly for the full year," said Lynn Jurich, Sunrun's chief executive officer. "We have achieved these targets by consistently executing our strategy of delivering the industry's most valuable and satisfied customer base, aligning our product offerings with customer demand and taking share in attractive markets. We are proud to partner with our growing base of customers to lead a transition to clean energy that will grow for decades to come."

The company has spent $545.69 million cash to meet investing activities during the nine month period as against cash outgo of $431.85 million in the last year period.

Cash flow from financing activities was $676.54 million for the nine month period, up 10.07 percent or $61.90 million, when compared with the last year period.

Cash and cash equivalents stood at $207.48 million as on Sep. 30, 2016, down 21.11 percent or $55.53 million from $263.01 million on Sep. 30, 2015.

Working capital drops significantly

Sunrun Inc. has witnessed a decline in the working capital over the last year. It stood at $102.33 million as at Sep. 30, 2016, down 38.92 percent or $65.20 million from $167.52 million on Sep. 30, 2015. Current ratio was at 1.38 as on Sep. 30, 2016, down from 1.72 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 15 days for the last year period. Days sales outstanding went down to 41 days for the quarter compared with 63 days for the same period last year.

Days inventory outstanding has decreased to 40 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding went down to 74 days for the quarter from 102 for the same period last year.