UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 |
FORM |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbols | Name of exchange on which registered | ||||||
8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share |
Page No. | ||||||||||||||
PART I | ||||||||||||||
Items 1 & 2. | Business and Properties | |||||||||||||
Item 1A. | Risk Factors | |||||||||||||
Item 1B. | Unresolved Staff Comments | |||||||||||||
Item 1C. | Cybersecurity | |||||||||||||
Item 3. | Legal Proceedings | |||||||||||||
Item 4. | Mine Safety Disclosures | |||||||||||||
PART II | ||||||||||||||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |||||||||||||
Stock Performance Graph | ||||||||||||||
Item 6. | Reserved | |||||||||||||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||||
Overview | ||||||||||||||
Drivers of Our Business | ||||||||||||||
Non-GAAP Performance Measures | ||||||||||||||
Consolidated Results of Operations | ||||||||||||||
Operating Segment Results | ||||||||||||||
Liquidity and Capital Resources | ||||||||||||||
Cash Flows | ||||||||||||||
Summary of Contractual Obligations | ||||||||||||||
Off-Balance Sheet Arrangements | ||||||||||||||
Related Party Transactions | ||||||||||||||
Critical Accounting Policies and Estimates | ||||||||||||||
Contingencies | ||||||||||||||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |||||||||||||
Item 8. | Financial Statements and Supplementary Data | |||||||||||||
Index to Consolidated Financial Statements | ||||||||||||||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |||||||||||||
Item 9A. | Controls and Procedures | |||||||||||||
Item 9B. | Other Information | |||||||||||||
Item 9 C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | |||||||||||||
PART III | ||||||||||||||
Item 10. | Directors, Executive Officers and Corporate Governance | |||||||||||||
Item 11. | Executive Compensation | |||||||||||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |||||||||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |||||||||||||
Item 14. | Principal Accounting Fees and Services | |||||||||||||
PART IV | ||||||||||||||
Item 15. | Exhibits, Financial Statement Schedules | |||||||||||||
Item 16. | Form 10-K Summary | |||||||||||||
SIGNATURES | ||||||||||||||
Company / Portfolio | Date Completed | RCEs | Segment | Acquisition Source | ||||||||||
Customer Portfolio | May 2021 | 45,000 | Electricity | Third Party | ||||||||||
Customer Portfolio | July 2021 | 33,000 | Natural Gas | Third Party | ||||||||||
Customer Portfolio (1) | January 2022 | 69,000 | Natural Gas Electricity | Third Party | ||||||||||
Customer Portfolio | August 2022 | 18,700 | Natural Gas | Third Party | ||||||||||
Customer Portfolio | April 2024 | 9,300 | Natural Gas | Third Party | ||||||||||
Customer Portfolio | October 2024 | 58,500 | Natural Gas | Third Party | ||||||||||
Customer Portfolio | October 2024 | 42,100 | Natural Gas Electricity | Third Party |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c ) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Maximum Number (or Approximate Dollar Value) of Shares that May yet be Purchased Under the Plans or Programs | ||||||||||
October 1 - October 31, 2024 | — | $ | — | — | — | |||||||||
November 1 - November 30, 2024 | — | — | — | — | ||||||||||
December 1 - December 31, 2024 | 187,103 | 22.50 | 187,103 | — | ||||||||||
Total | 187,103 | $ | 22.50 | 187,103 | — |
RCEs: | |||||||||||
December 31, | |||||||||||
(In thousands) | 2024 | 2023 | 2022 | ||||||||
Retail Electricity | 232 | 217 | 201 | ||||||||
Retail Natural Gas | 156 | 118 | 130 | ||||||||
Total Retail | 388 | 335 | 331 |
RCEs by Geographic Location: | ||||||||||||||||||||
(In thousands) | Electricity | % of Total | Natural Gas | % of Total | Total | % of Total | ||||||||||||||
New England | 53 | 23% | 13 | 9% | 66 | 17% | ||||||||||||||
Mid-Atlantic | 118 | 51% | 52 | 33% | 170 | 44% | ||||||||||||||
Midwest | 24 | 10% | 24 | 15% | 48 | 12% | ||||||||||||||
Southwest | 37 | 16% | 67 | 43% | 104 | 27% | ||||||||||||||
Total | 232 | 100% | 156 | 100% | 388 | 100% |
(In thousands) | Retail Electricity | Retail Natural Gas | Total | % Net Annual Increase (Decrease) | ||||||||||
December 31, 2021 | 298 | 110 | 408 | 2% | ||||||||||
Additions | 40 | 46 | 86 | |||||||||||
Attrition | (137) | (26) | (163) | |||||||||||
December 31, 2022 | 201 | 130 | 331 | (19)% | ||||||||||
Additions | 118 | 22 | 140 | |||||||||||
Attrition | (102) | (34) | (136) | |||||||||||
December 31, 2023 | 217 | 118 | 335 | 1% | ||||||||||
Additions | 129 | 80 | 209 | |||||||||||
Attrition | (114) | (42) | (156) | |||||||||||
December 31, 2024 | 232 | 156 | 388 | 16% | ||||||||||
Year Ended | Quarter Ended | ||||||||||||||||
December 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
2022 | 3.8% | 4.2% | 4.0% | 3.1% | 3.7% | ||||||||||||
2023 | 3.4% | 3.3% | 3.1% | 3.1% | 3.9% | ||||||||||||
2024 | 3.9% | 4.0% | 4.1% | 3.4% | 3.9% |
Year Ended December 31, | |||||||||||
(In thousands) | 2024 | 2023 | 2022 | ||||||||
Customer Acquisition Costs | $ | 9,508 | $ | 6,736 | $ | 5,870 |
Year Ended December 31, | |||||||||||
2024 | 2023 | 2022 | |||||||||
Total Non-POR Credit Loss as Percent of Revenue | 1.3 | % | 1.7 | % | 3.0 | % | |||||
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
Adjusted EBITDA (1)(2) | $ | 58,581 | $ | 56,855 | $ | 51,793 | |||||||||||
Retail Gross Margin (3) | $ | 141,996 | $ | 136,650 | $ | 114,815 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
Reconciliation of Adjusted EBITDA to Net Income: | |||||||||||||||||
Net income | $ | 61,075 | $ | 26,105 | $ | 11,203 | |||||||||||
Depreciation and amortization | 9,446 | 9,102 | 16,703 | ||||||||||||||
Interest expense | 6,943 | 9,334 | 7,204 | ||||||||||||||
Income tax expense | 16,259 | 11,142 | 6,483 | ||||||||||||||
EBITDA | 93,723 | 55,683 | 41,593 | ||||||||||||||
Less: | |||||||||||||||||
Net, (loss) gain on derivative instruments | (3,720) | (71,493) | 17,821 | ||||||||||||||
Net, cash settlements on derivative instruments | 34,148 | 66,632 | (35,801) | ||||||||||||||
Customer acquisition costs | 9,508 | 6,736 | 5,870 | ||||||||||||||
Plus: | |||||||||||||||||
Non-cash compensation expense | 2,411 | 2,295 | 3,252 | ||||||||||||||
Non-recurring event - winter storm Uri | — | — | (5,162) | ||||||||||||||
Merger agreement expense | 2,383 | 752 | — | ||||||||||||||
Adjusted EBITDA | $ | 58,581 | $ | 56,855 | $ | 51,793 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
Reconciliation of Adjusted EBITDA to net cash provided by operating activities: | |||||||||||||||||
Net cash provided by operating activities | $ | 50,484 | $ | 49,315 | $ | 16,207 | |||||||||||
Amortization of deferred financing costs | (852) | (825) | (1,125) | ||||||||||||||
Bad debt expense | (2,469) | (3,442) | (6,865) | ||||||||||||||
Interest expense | 6,943 | 9,334 | 7,204 | ||||||||||||||
Income tax expense | 16,259 | 11,142 | 6,483 | ||||||||||||||
Non-recurring event - winter storm Uri | — | — | (5,162) | ||||||||||||||
Merger agreement expense | 2,383 | 752 | — | ||||||||||||||
Changes in operating working capital | |||||||||||||||||
Accounts receivable, prepaids, current assets | (734) | (17,159) | 34,731 | ||||||||||||||
Inventory | (987) | (1,281) | 2,423 | ||||||||||||||
Accounts payable, accrued liabilities, current liabilities | (3,380) | 15,206 | (884) | ||||||||||||||
Other | (9,066) | (6,187) | (1,219) | ||||||||||||||
Adjusted EBITDA | $ | 58,581 | $ | 56,855 | $ | 51,793 | |||||||||||
Cash Flow Data: | |||||||||||||||||
Cash flows provided by operating activities | $ | 50,484 | $ | 49,315 | $ | 16,207 | |||||||||||
Cash flows used in investing activities | $ | (4,727) | $ | (1,435) | $ | (6,871) | |||||||||||
Cash flows used in financing activities | $ | (18,093) | $ | (40,636) | $ | (49,305) |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
Reconciliation of Retail Gross Margin to Gross Profit: | |||||||||||||||||
Total Revenues | $ | 398,868 | $ | 435,192 | $ | 460,493 | |||||||||||
Less: | |||||||||||||||||
Retail cost of revenues | 230,791 | 310,744 | 357,096 | ||||||||||||||
Gross Profit | $ | 168,077 | $ | 124,448 | $ | 103,397 | |||||||||||
Less: | |||||||||||||||||
Net asset optimization expense | (2,326) | (7,326) | (2,322) | ||||||||||||||
Net, (loss) gain on non-trading derivative instruments | (4,464) | (70,304) | 17,305 | ||||||||||||||
Net, cash settlements on non-trading derivative instruments | 32,871 | 65,428 | (35,966) | ||||||||||||||
Non-recurring event - winter storm Uri | — | — | 9,565 | ||||||||||||||
Retail Gross Margin | $ | 141,996 | $ | 136,650 | $ | 114,815 | |||||||||||
Retail Gross Margin - Retail Electricity Segment (1) | $ | 93,669 | $ | 87,566 | $ | 82,749 | |||||||||||
Retail Gross Margin - Retail Natural Gas Segment | $ | 47,865 | $ | 47,489 | $ | 32,066 | |||||||||||
Retail Gross Margin - Other | $ | 462 | $ | 1,595 | $ | — |
(In Thousands) | Year Ended December 31, | ||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
Revenues: | |||||||||||||||||
Retail revenues | $ | 399,418 | $ | 439,360 | $ | 462,815 | |||||||||||
Net asset optimization expense | (2,326) | (7,326) | (2,322) | ||||||||||||||
Other revenue | 1,776 | 3,158 | — | ||||||||||||||
Total Revenues | 398,868 | 435,192 | 460,493 | ||||||||||||||
Operating Expenses: | |||||||||||||||||
Retail cost of revenues | 230,791 | 310,744 | 357,096 | ||||||||||||||
General and administrative expense | 74,453 | 68,874 | 61,933 | ||||||||||||||
Depreciation and amortization | 9,446 | 9,102 | 16,703 | ||||||||||||||
Total Operating Expenses | 314,690 | 388,720 | 435,732 | ||||||||||||||
Operating income | 84,178 | 46,472 | 24,761 | ||||||||||||||
Other (expense)/income: | |||||||||||||||||
Interest expense | (6,943) | (9,334) | (7,204) | ||||||||||||||
Interest and other income | 99 | 109 | 129 | ||||||||||||||
Total Other (Expenses)/Income | (6,844) | (9,225) | (7,075) | ||||||||||||||
Income before income tax expense | 77,334 | 37,247 | 17,686 | ||||||||||||||
Income tax expense | 16,259 | 11,142 | 6,483 | ||||||||||||||
Net income | $ | 61,075 | $ | 26,105 | $ | 11,203 | |||||||||||
Other Performance Metrics: | |||||||||||||||||
Adjusted EBITDA (1) (2) | $ | 58,581 | $ | 56,855 | $ | 51,793 | |||||||||||
Retail Gross Margin (1) (3) | $ | 141,996 | $ | 136,650 | $ | 114,815 | |||||||||||
Customer Acquisition Costs | $ | 9,508 | $ | 6,736 | $ | 5,870 | |||||||||||
RCE Attrition | 3.9 | % | 3.4 | % | 3.8 | % | |||||||||||
Distributions paid to Class B non-controlling unit holders and dividends paid to Class A common shareholders | $ | (10,664) | $ | (7,182) | $ | (26,014) | |||||||||||
2024 vs. 2023 | 2023 vs. 2022 | ||||||||||
Change in electricity volumes sold | $ | 4.4 | $ | (60.6) | |||||||
Change in natural gas volumes sold | 3.5 | (2.9) | |||||||||
Change in electricity unit revenue per MWh | (32.6) | 36.3 | |||||||||
Change in natural gas unit revenue per MMBtu | (15.3) | 3.7 | |||||||||
Change in net asset optimization (expense) revenue | 5.0 | (5.0) | |||||||||
Change in other revenue | (1.3) | 3.2 | |||||||||
Change in total revenues | $ | (36.3) | $ | (25.3) |
2024 vs. 2023 | 2023 vs. 2022 | ||||||||||
Change in electricity volumes sold | $ | 3.2 | $ | (46.4) | |||||||
Change in natural gas volumes sold | 2.0 | (2.1) | |||||||||
Change in electricity unit cost per MWh | (37.5) | 17.3 | |||||||||
Change in electricity unit cost per MWh - winter storm Uri | — | 9.6 | |||||||||
Change in natural gas unit cost per MMBtu | (14.2) | (12.5) | |||||||||
Change in value of retail derivative portfolio | (33.3) | (13.8) | |||||||||
Change in other costs | (0.1) | 1.5 | |||||||||
Change in retail cost of revenues | $ | (79.9) | $ | (46.4) |
Year Ended December 31, | |||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
(in thousands, except volume and per unit operating data) | |||||||||||||||||
Retail Electricity Segment | |||||||||||||||||
Total Revenues | $ | 300,347 | $ | 328,466 | $ | 352,750 | |||||||||||
Retail Cost of Revenues | 186,246 | 240,979 | 275,701 | ||||||||||||||
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements | 20,432 | (79) | (15,265) | ||||||||||||||
Non-recurring event - winter storm Uri | — | — | 9,565 | ||||||||||||||
Retail Gross Margin (1) —Electricity | $ | 93,669 | $ | 87,566 | $ | 82,749 | |||||||||||
Volumes—Electricity (MWhs) | 2,035,597 | 2,008,947 | 2,433,906 | ||||||||||||||
Retail Gross Margin (2) —Electricity per MWh | $ | 46.02 | $ | 43.59 | $ | 34.00 | |||||||||||
Retail Natural Gas Segment | |||||||||||||||||
Total Revenues | $ | 99,071 | $ | 110,894 | $ | 110,065 | |||||||||||
Retail Cost of Revenues | 43,231 | 68,202 | 81,395 | ||||||||||||||
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements | 7,975 | (4,797) | (3,396) | ||||||||||||||
Retail Gross Margin (1) —Gas | $ | 47,865 | $ | 47,489 | $ | 32,066 | |||||||||||
Volumes—Gas (MMBtus) | 11,603,745 | 11,252,862 | 11,558,952 | ||||||||||||||
Retail Gross Margin (2) —Gas per MMBtu | $ | 4.12 | $ | 4.22 | $ | 2.77 |
2024 vs. 2023 | 2023 vs. 2022 | ||||||||||
Change in volumes sold | $ | 1.2 | $ | (14.2) | |||||||
Change in unit margin per MWh | 4.9 | 19.0 | |||||||||
Change in retail electricity segment retail gross margin | $ | 6.1 | $ | 4.8 |
2024 vs. 2023 | 2023 vs. 2022 | ||||||||||
Change in volumes sold | $ | 1.5 | $ | (0.8) | |||||||
Change in unit margin per MMBtu | (1.1) | 16.2 | |||||||||
Change in retail natural gas segment retail gross margin | $ | 0.4 | $ | 15.4 |
December 31, | |||||
($ in thousands) | 2024 | ||||
Cash and cash equivalents | $ | 53,150 | |||
Senior Credit Facility Availability (1) | 73,379 | ||||
Subordinated Debt Facility Availability (2) | 25,000 | ||||
Total Liquidity | $ | 151,529 |
Year Ended December 31, | |||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
Net cash provided by operating activities | $ | 50,484 | $ | 49,315 | $ | 16,207 | |||||||||||
Net cash used in by investing activities | $ | (4,727) | $ | (1,435) | $ | (6,871) | |||||||||||
Net cash used in financing activities | $ | (18,093) | $ | (40,636) | $ | (49,305) |
Total | 2025 | 2026 | 2027 | 2028 | 2029 | > 5 years | |||||||||||||||||
Purchase obligations: | |||||||||||||||||||||||
Pipeline transportation agreements | $ | 5.6 | $ | 3.9 | $ | 0.9 | $ | 0.6 | $ | 0.2 | $ | — | $ | — | |||||||||
Other purchase obligations (1) | 7.8 | 5.3 | 2.3 | 0.2 | — | — | — | ||||||||||||||||
Total purchase obligations | $ | 13.4 | $ | 9.2 | $ | 3.2 | $ | 0.8 | $ | 0.2 | $ | — | $ | — | |||||||||
Senior Credit Facility | $ | 106.0 | $ | — | $ | — | $ | 106.0 | $ | — | $ | — | $ | — | |||||||||
Debt | $ | 106.0 | $ | — | $ | — | $ | 106.0 | $ | — | $ | — | $ | — |
MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING | ||||||||
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID: | ||||||||
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND DECEMBER 31, 2023 | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 | ||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 | ||||||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
December 31, 2024 | December 31, 2023 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net of allowance for credit losses of $ | ||||||||||||||
Accounts receivable—affiliates | ||||||||||||||
Inventory | ||||||||||||||
Fair value of derivative assets | ||||||||||||||
Customer acquisition costs, net | ||||||||||||||
Customer relationships, net | ||||||||||||||
Deposits | ||||||||||||||
Renewable energy credit asset | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Fair value of derivative assets | ||||||||||||||
Customer acquisition costs, net | ||||||||||||||
Customer relationships, net | ||||||||||||||
Deferred tax assets | ||||||||||||||
Goodwill | ||||||||||||||
Other assets | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
Liabilities, Series A Preferred Stock and Stockholders' Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accounts payable—affiliates | ||||||||||||||
Accrued liabilities | ||||||||||||||
Renewable energy credit liability | ||||||||||||||
Fair value of derivative liabilities | ||||||||||||||
Other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term liabilities: | ||||||||||||||
Fair value of derivative liabilities | ||||||||||||||
Long-term portion of Senior Credit Facility | ||||||||||||||
Subordinated debt—affiliate | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies (Note 13) | ||||||||||||||
Series A Preferred Stock, par value $ | ||||||||||||||
Stockholders' equity: | ||||||||||||||
Common Stock : | ||||||||||||||
Class A common stock, par value $ |
Class B common stock, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Treasury stock, at cost, | ( | |||||||||||||
Total stockholders' equity | ||||||||||||||
Non-controlling interest in Spark HoldCo, LLC | ( | |||||||||||||
Total equity | ||||||||||||||
Total Liabilities, Series A Preferred Stock and stockholders' equity | $ | $ |
Year Ended December 31, | |||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
Revenues: | |||||||||||||||||
Retail revenues | $ | $ | $ | ||||||||||||||
Net asset optimization expense | ( | ( | ( | ||||||||||||||
Other revenue | |||||||||||||||||
Total revenues | |||||||||||||||||
Operating expenses: | |||||||||||||||||
Retail cost of revenues | |||||||||||||||||
General and administrative | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Total operating expenses | |||||||||||||||||
Operating income | |||||||||||||||||
Other (expense)/income: | |||||||||||||||||
Interest expense | ( | ( | ( | ||||||||||||||
Interest and other income | |||||||||||||||||
Total other (expense)/income | ( | ( | ( | ||||||||||||||
Income before income tax expense | |||||||||||||||||
Income tax expense | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Less: Net income attributable to non-controlling interest | |||||||||||||||||
Net income attributable to Via Renewables, Inc. stockholders | $ | $ | $ | ||||||||||||||
Less: Dividend on Series A preferred stock | |||||||||||||||||
Net income (loss) attributable to stockholders of Class A common stock | $ | $ | $ | ( | |||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Comprehensive income | $ | $ | $ | ||||||||||||||
Less: Comprehensive income attributable to non-controlling interest | |||||||||||||||||
Comprehensive income attributable to Via Renewables, Inc. stockholders | $ | $ | $ | ||||||||||||||
Net income (loss) attributable to Via Renewables, Inc. per share of Class A common stock | |||||||||||||||||
Basic | $ | $ | $ | ( | |||||||||||||
Diluted | $ | $ | $ | ( | |||||||||||||
Weighted average shares of Class A common stock outstanding | |||||||||||||||||
Basic | |||||||||||||||||
Diluted |
Issued Shares of Class A Common Stock | Issued Shares of Class B Common Stock | Treasury Stock | Class A Common Stock | Class B Common Stock | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Additional Paid-In Capital | Retained Earnings (Deficit) | Total Stockholders' Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||
Balance at 12/31/2021: | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Restricted stock unit vesting | — | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||
Consolidated net income (loss) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Distributions paid to non-controlling unit holders | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||
Dividends paid to Class A common stockholders ($ | — | — | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||
Dividends paid to Preferred Stockholders | — | — | — | — | — | — | — | ( | ( | ( | — | ( | ||||||||||||||||||||||||||
Changes in ownership interest | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||
Balance at 12/31/2022: | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Restricted stock unit vesting | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||
Consolidated net income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock issued- reverse stock split | — | — | — | |||||||||||||||||||||||||||||||||||
Distributions paid to non-controlling unit holders | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||
Dividends paid to Class A common stockholders ($ | — | — | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||
Dividends paid to Preferred Stockholders | — | — | — | — | — | — | — | ( | ( | ( | — | ( | ||||||||||||||||||||||||||
Changes in ownership interest | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||
Balance at December 31, 2023 | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Restricted stock unit vesting | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Consolidated net income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Contribution for cash settlement / merger | — | — | — | — | — | — | — | — | — | — |
Distributions paid to non-controlling unit holders | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||
Distribution to controlling interest | ( | — | ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||
Dividends paid to Preferred Stockholders | — | — | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||
Treasury Shares | — | — | — | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Changes in ownership interest | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||||||||
Depreciation and amortization expense | |||||||||||||||||
Deferred income taxes | |||||||||||||||||
Stock based compensation | |||||||||||||||||
Amortization of deferred financing costs | |||||||||||||||||
Bad debt expense | |||||||||||||||||
Gain (loss) on derivatives, net | ( | ||||||||||||||||
Current period cash settlements on derivatives, net | ( | ( | |||||||||||||||
Other | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
(Increase) decrease in accounts receivable | ( | ( | |||||||||||||||
Decrease (increase) in accounts receivable - affiliates | ( | ||||||||||||||||
Decrease (increase) in inventory | ( | ||||||||||||||||
Decrease in customer acquisition costs | ( | ( | ( | ||||||||||||||
Decrease (increase) in prepaid and other current assets | ( | ||||||||||||||||
(Increase) decrease in other assets | ( | ( | |||||||||||||||
Increase (decrease) in accounts payable and accrued liabilities | ( | ||||||||||||||||
Decrease (increase) in accounts payable—affiliates | ( | ( | |||||||||||||||
Decrease in other current liabilities | ( | ( | |||||||||||||||
Decrease in other non-current liabilities | ( | ( | |||||||||||||||
Net cash provided by operating activities | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | ( | ( | ( | ||||||||||||||
Acquisition of Customers | ( | ( | |||||||||||||||
Net cash used in investing activities | ( | ( | ( | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Buyback of Series A Preferred Stock | ( | ||||||||||||||||
Borrowings on notes payable | |||||||||||||||||
Payments on notes payable | ( | ( | ( | ||||||||||||||
Net (paydown) borrowings on subordinated debt facility | ( | ||||||||||||||||
Contribution for cash settlement of merger | |||||||||||||||||
Restricted stock vesting | ( | ( | ( | ||||||||||||||
Payment of dividends to Class A common stockholders | ( | ( | |||||||||||||||
Payment of distributions to non-controlling unitholders | ( | ( | ( | ||||||||||||||
Payment of Preferred Stock dividends | ( | ( | ( | ||||||||||||||
Net cash used in financing activities | ( | ( | ( | ||||||||||||||
Increase (decrease) in Cash and cash equivalents and Restricted Cash | ( | ||||||||||||||||
Cash and cash equivalents and Restricted cash—beginning of period | |||||||||||||||||
Cash and cash equivalents and Restricted cash—end of period | $ | $ | $ | ||||||||||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||||||||
Non-cash items: | |||||||||||||||||
Property and equipment purchase accrual | $ | $ | ( | $ | ( | ||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest | $ | $ | $ | ||||||||||||||
Taxes | $ | $ | $ |
Reportable Segments | |||||||||||||||||||||||||||||||||||
Years ended December 31, 2024 | Years ended December 31, 2023 | Years ended December 31, 2022 | |||||||||||||||||||||||||||||||||
Retail Electricity (c) | Retail Natural Gas | Total Reportable Segments | Retail Electricity | Retail Natural Gas | Total Reportable Segments | Retail Electricity | Retail Natural Gas | Total Reportable Segments | |||||||||||||||||||||||||||
Primary markets (a) | |||||||||||||||||||||||||||||||||||
New England | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Mid-Atlantic | |||||||||||||||||||||||||||||||||||
Midwest | |||||||||||||||||||||||||||||||||||
Southwest | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Customer type | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||
Unbilled revenue (b) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Customer credit risk | |||||||||||||||||||||||||||||||||||
POR | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Non-POR | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ |
Year Ended December 31, | |||||||||||
2024 | 2023 | 2022 | |||||||||
Total Reportable Segments Revenue | $ | $ | $ | ||||||||
Net asset optimization expense | ( | ( | ( | ||||||||
Other Revenue | |||||||||||
Total Revenues | $ | $ | $ |
Balance at December 31, 2023 | $ | ( | |||
Bad debt provision | ( | ||||
Write-offs | |||||
Recovery of previous write offs | ( | ||||
Balance at December 31, 2024 | $ | ( |
Year Ended December 31, 2024 | |||||
Net income attributable to Via Renewables, Inc. stockholders | $ | ||||
Transfers (to) from the non-controlling interest | — | ||||
Decrease in Via Renewables additional paid in capital from the equity shift | ( | ||||
Net transfers (to) from non-controlling interest | ( | ||||
Changes from net income attributable to Via Renewables stockholders and transfers (to) from non-controlling interest | $ |
The Company | Affiliated Owners | |||||||
December 31, 2024 | % | % | ||||||
December 31, 2023 | % | % | ||||||
Year Ended December 31, | |||||||||||
2024 | 2023 | 2022 | |||||||||
Net income allocated to non-controlling interest | $ | $ | $ | ||||||||
Less: Income tax expense allocated to non-controlling interest | |||||||||||
Net income attributable to non-controlling interest | $ | $ | $ |
Year Ended December 31, | |||||||||||
2024 | 2023 | 2022 | |||||||||
Net income attributable to Via Renewables, Inc. stockholders | $ | $ | $ | ||||||||
Less: Dividend on Series A preferred stock | |||||||||||
Net income (loss) attributable to stockholders of Class A common stock | $ | $ | $ | ( | |||||||
Basic weighted average Class A common shares outstanding | |||||||||||
Basic earnings (loss) per share attributable to stockholders | $ | $ | $ | ( | |||||||
Net income (loss) attributable to stockholders of Class A common stock | $ | $ | $ | ( | |||||||
Diluted net income (loss) attributable to stockholders of Class A common stock | $ | $ | $ | ( | |||||||
Basic weighted average Class A common shares outstanding | |||||||||||
Diluted weighted average shares outstanding | |||||||||||
Diluted earnings (loss) per share attributable to stockholders | $ | $ | $ | ( |
December 31, 2024 | December 31, 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable | ||||||||
Other current assets | ||||||||
Total current assets | ||||||||
Non-current assets: | ||||||||
Goodwill | ||||||||
Other assets | ||||||||
Total non-current assets | ||||||||
Total Assets | $ | $ | ||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts Payable and Accrued Liabilities | $ | $ | ||||||
Other current liabilities | ||||||||
Total current liabilities | ||||||||
Long-term liabilities: | ||||||||
Long-term portion of Senior Credit Facility | ||||||||
Subordinated debt—affiliate | ||||||||
Other long-term liabilities | ||||||||
Total long-term liabilities | ||||||||
Total Liabilities | $ | $ |
(in thousands) | ||||||||
Balance at December 31, 2022 | $ | |||||||
Repurchase of Series A Preferred Stock | ||||||||
Accumulated dividends on Series A Preferred Stock | ||||||||
Balance at December 31, 2023 | $ | |||||||
Repurchase of Series A Preferred Stock | ( | |||||||
Accumulated dividends on Series A Preferred Stock | ( | |||||||
Balance at December 31, 2024 | $ |
Commodity | Notional | December 31, 2024 | December 31, 2023 | ||||||||||||||
Natural Gas | MMBtu | ||||||||||||||||
Electricity | MWh |
Commodity | Notional | December 31, 2024 | December 31, 2023 | ||||||||||||||
Natural Gas | MMBtu | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
(Loss) gain on non-trading derivatives, net | $ | ( | $ | ( | $ | ||||||||||||
Gain (loss) on trading derivatives, net | ( | ||||||||||||||||
(Loss) gain on derivatives, net | $ | ( | $ | ( | $ | ||||||||||||
Current period settlements on non-trading derivatives (1) | ( | ||||||||||||||||
Current period settlements on trading derivatives | |||||||||||||||||
Total current period settlements on derivatives (1) | $ | $ | $ | ( |
December 31, 2024 | |||||||||||||||||||||||||||||
Description | Gross Assets | Gross Amounts Offset | Net Assets | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Total Current Derivative Assets | ( | ||||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Trading commodity derivatives | |||||||||||||||||||||||||||||
Total Non-current Derivative Assets | ( | ||||||||||||||||||||||||||||
Total Derivative Assets | $ | $ | ( | $ | $ | $ |
Description | Gross Liabilities | Gross Amounts Offset | Net Liabilities | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||
Trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Total Current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Total Non-current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Total Derivative Liabilities | $ | ( | $ | $ | ( | $ | $ | ( |
December 31, 2023 | |||||||||||||||||||||||||||||
Description | Gross Assets | Gross Amounts Offset | Net Assets | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Total Current Derivative Assets | ( | ||||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Trading commodity derivatives | |||||||||||||||||||||||||||||
Total Non-current Derivative Assets | ( | ||||||||||||||||||||||||||||
Total Derivative Assets | $ | $ | ( | $ | $ | $ |
Description | Gross Liabilities | Gross Amounts Offset | Net Liabilities | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||
Trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Total Current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Trading commodity derivatives | |||||||||||||||||||||||||||||
Total Non-current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Total Derivative Liabilities | $ | ( | $ | $ | ( | $ | $ | ( |
Estimated useful lives (years) | December 31, 2024 | December 31, 2023 | |||||||||||||||
Information technology | $ | $ | |||||||||||||||
Other | |||||||||||||||||
Total | |||||||||||||||||
Accumulated depreciation | ( | ( | |||||||||||||||
Property and equipment—net | $ | $ |
December 31, 2024 | December 31, 2023 | ||||||||||
Goodwill | $ | $ | |||||||||
Customer Relationships—Other | |||||||||||
Cost | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Customer Relationships—Other, net | $ | $ | |||||||||
Trademarks | |||||||||||
Cost | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Trademarks, net | $ | $ |
Goodwill | Customer Relationships— Acquired & Non-Compete Agreements | Customer Relationships— Other | Trademarks | ||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Adjustments | ( | ||||||||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Amortization | ( | ( | |||||||||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | $ |
Year Ending December 31, | |||||
2025 | $ | ||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
> 5 years | |||||
Total | $ |
December 31, 2024 | December 31, 2023 | ||||||||||
Long-term debt: | |||||||||||
Senior Credit Facility (1) (2) | $ | $ | |||||||||
Subordinated Debt | |||||||||||
Total long-term debt | |||||||||||
Total debt | $ | $ |
Years Ended December 31, | |||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
Senior Credit Facility | $ | $ | $ | ||||||||||||||
Letters of credit fees and commitment fees | |||||||||||||||||
Amortization of deferred financing costs | |||||||||||||||||
Other | |||||||||||||||||
Interest expense | $ | $ | $ |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
December 31, 2024 | |||||||||||||||||||||||
Non-trading commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Trading commodity derivative assets | |||||||||||||||||||||||
Total commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Non-trading commodity derivative liabilities | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Trading commodity derivative liabilities | ( | ( | |||||||||||||||||||||
$ | ( | $ | ( | $ | $ | ( | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Non-trading commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Trading commodity derivative assets | |||||||||||||||||||||||
Total commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Non-trading commodity derivative liabilities | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Trading commodity derivative liabilities | ( | ( | |||||||||||||||||||||
$ | $ | ( | $ | $ | ( | ||||||||||||||||||
Number of Shares (in thousands) | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2023 | $ | |||||||
Granted | ||||||||
Dividend reinvestment issuances | ||||||||
Vested | ( | |||||||
Forfeited | ( | |||||||
Unvested at December 31, 2024 | $ |
Number of Shares (in thousands) | Weighted Average Reporting Date Fair Value | |||||||
Unvested at December 31, 2023 | $ | |||||||
Granted | ||||||||
Dividend reinvestment issuances | ||||||||
Vested | ( | |||||||
Forfeited | ( | |||||||
Unvested at December 31, 2024 | $ |
(in thousands) | 2024 | 2023 | 2022 | |||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | $ | $ | |||||||||||||||||
State | ||||||||||||||||||||
Total Current | ||||||||||||||||||||
Deferred: | ||||||||||||||||||||
Federal | ||||||||||||||||||||
State | ||||||||||||||||||||
Total Deferred | ||||||||||||||||||||
Provision for income taxes | $ | $ | $ |
(in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
Expected provision at federal statutory rate | $ | $ | $ | ||||||||||||||
Increase (decrease) resulting from: | |||||||||||||||||
Non-controlling interest | ( | ( | ( | ||||||||||||||
Preferred Stock dividends | |||||||||||||||||
State income taxes, net of federal income tax effect | |||||||||||||||||
Prior year tax adjustments | ( | ||||||||||||||||
Outside Tax basis Adjustment | |||||||||||||||||
Penalties | |||||||||||||||||
Other | |||||||||||||||||
Provision for income taxes | $ | $ | $ |
(in thousands) | 2024 | 2023 | ||||||
Deferred Tax Assets: | ||||||||
Investment in Spark HoldCo | $ | $ | ||||||
Derivative | ||||||||
Fixed Assets and Intangibles | ||||||||
Other | ||||||||
Total deferred tax assets | $ | $ | ||||||
Deferred Tax Liabilities: | ||||||||
Derivative | ( | |||||||
Other | ( | ( | ||||||
Total deferred tax liabilities | $ | ( | $ | ( | ||||
Total deferred tax assets/liabilities | $ | $ |
December 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Accounts Receivable - affiliates | $ | $ | |||||||||
Total Assets - affiliates | $ | $ |
December 31, 2024 | December 31, 2023 | ||||||||||
Liabilities | |||||||||||
Accounts Payable - affiliates | $ | $ | |||||||||
Subordinated Debt - affiliates (1) | |||||||||||
Total Liabilities - affiliates | $ | $ |
December 31, 2024 | December 31, 2023 | December 31, 2022 | |||||||||||||||
Revenue NAO - affiliates | $ | $ | $ | ||||||||||||||
Less: Cost of Revenue NAO - affiliates | |||||||||||||||||
Net NAO - affiliates | $ | $ | $ |
Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
Retail Electricity | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
Total Revenues | $ | $ | $ | ( | $ | — | $ | ||||||||||||||||||||||
Retail cost of revenues | — | ||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Net asset optimization expense | ( | — | ( | ||||||||||||||||||||||||||
( | — | ( | |||||||||||||||||||||||||||
Current period settlements on non-trading derivatives | — | ||||||||||||||||||||||||||||
Retail gross margin | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Add: Reconciling items (1) | |||||||||||||||||||||||||||||
Gross Profit | $ | ||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Goodwill | $ | $ | $ | $ | — | $ |
Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
Retail Electricity | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
Total Revenues | $ | $ | $ | ( | $ | — | $ | ||||||||||||||||||||||
Retail cost of revenues | — | ||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Net asset optimization expense | ( | — | ( | ||||||||||||||||||||||||||
( | ( | — | ( | ||||||||||||||||||||||||||
Current period settlements on non-trading derivatives | — | ||||||||||||||||||||||||||||
Retail gross margin | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Add: Reconciling items (1) | ( | ||||||||||||||||||||||||||||
Gross Profit | $ | ||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Goodwill | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||||||||||||||
Retail Electricity | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
Total Revenues | $ | $ | $ | ( | $ | — | $ | ||||||||||||||||||||||
Retail cost of revenues | — | ||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Net asset optimization expense | ( | — | ( | ||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||
Current period settlements on non-trading derivatives | ( | ( | — | ( | |||||||||||||||||||||||||
Non-recurring event - winter storm Uri | — | ||||||||||||||||||||||||||||
Retail gross margin | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Add: Reconciling items (1) | ( | ||||||||||||||||||||||||||||
Gross Profit | $ | ||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Goodwill | $ | $ | $ | $ | — | $ |
INDEX TO EXHIBITS | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit | Exhibit Description | Form | Exhibit Number | Filing Date | SEC File No. | |||||||||||||||
2.1# | 10-Q | 2.1 | 5/5/2016 | 001-36559 | ||||||||||||||||
2.2# | 10-Q | 2.2 | 5/5/2016 | 001-36559 | ||||||||||||||||
2.3# | 8-K | 2.1 | 8/1/2016 | 001-36559 | ||||||||||||||||
2.4# | 10-Q | 2.4 | 5/8/2017 | 001-36559 | ||||||||||||||||
2.5 | 8-K | 2.1 | 7/6/2017 | 001-36559 | ||||||||||||||||
2.6# | 8-K | 2.1 | 1/16/2018 | 001-36559 | ||||||||||||||||
2.7# | 10-K | 2.7 | 3/9/2018 | 001-36559 | ||||||||||||||||
2.8# | 8-K | 2.1 | 10/25/2018 | 001-36559 | ||||||||||||||||
2.9 | 10-Q | 2.9 | 8/5/2020 | 001-36559 | ||||||||||||||||
2.10 | 8-K | 2.1 | 1/2/2024 | 001-36559 | ||||||||||||||||
2.11 | 8-K | 2.1 | 10/25/2024 | 001-36559 | ||||||||||||||||
3.1 | 10-K | 3.1 | 2/29/2024 | 001-36559 | ||||||||||||||||
3.2 | 8-K | 3.2 | 8/9/2021 | 001-36559 | ||||||||||||||||
3.3 | 8-A | 5 | 3/14/2017 | 001-36559 | ||||||||||||||||
4.1 | 10-K | 4.1 | 3/5/2020 | 001-36559 |
4.2 | S-1 | 4.1 | 6/30/2014 | 333-196375 | ||||||||||||||||
4.3 | 10-Q | 4.1 | 8/1/2024 | 001-36559 | ||||||||||||||||
10.1 | 8-K | 10.1 | 7/7/2022 | 001-36559 | ||||||||||||||||
10.2 | 8-K | 10.1 | 6/28/2024 | 001-36559 | ||||||||||||||||
10.3 | 8-K | 10.2 | 8/4/2014 | 001-36559 | ||||||||||||||||
10.4 | 8-K | 10.1 | 7/17/2019 | 001-36559 | ||||||||||||||||
10.5 | 8-K | 10.4 | 8/4/2014 | 001-36559 | ||||||||||||||||
10.6 | 8-K | 4.1 | 8/4/2014 | 001-36559 | ||||||||||||||||
10.7 | 10-Q | 10.1 | 5/8/2017 | 001-36559 | ||||||||||||||||
10.8 | 8-K | 10.1 | 1/26/2018 | 001-36559 | ||||||||||||||||
10.9 | 8-K | 10.1 | 4/3/2020 | 001-36559 | ||||||||||||||||
10.1 | 10-K | 10.46 | 3/4/2021 | 001-36559 | ||||||||||||||||
10.11 | 8-K | 10.2 | 10/20/2021 | 001-36559 |
10.12 | 8-K | 10.2 | 7/7/2022 | 001-36559 | ||||||||||||||||
10.13 | 8-K | 10.2 | 6/28/2024 | 001-36559 | ||||||||||||||||
10.14† | 8-K | 10.5 | 8/4/2014 | 001-36559 | ||||||||||||||||
10.15† | 8-K | 10.1 | 8/30/2019 | 001-36559 | ||||||||||||||||
10.16† | 8-K | 10.1 | 3/19/2020 | 001-36559 | ||||||||||||||||
10.17† | 10-Q | 10.5 | 11/4/2021 | 001-36559 | ||||||||||||||||
10.18† | 8-K | 10.1 | 11/8/2021 | 001-36559 | ||||||||||||||||
10.19† | 10-K | 10.47 | 3/4/2021 | 001-36559 | ||||||||||||||||
10.20† | 10-Q | 10.3 | 11/4/2021 | 001-36559 | ||||||||||||||||
10.21 | 10-Q | 10.1 | 5/4/2023 | 001-36559 | ||||||||||||||||
10.22 | 8-K | 10.1 | 7/6/2023 | 001-36559 | ||||||||||||||||
21.1* | ||||||||||||||||||||
31.1* | ||||||||||||||||||||
31.2* | ||||||||||||||||||||
32** | ||||||||||||||||||||
101.INS* | XBRL Instance Document. | |||||||||||||||||||
101.SCH* | XBRL Schema Document. | |||||||||||||||||||
101.CAL* | XBRL Calculation Document. | |||||||||||||||||||
101.LAB* | XBRL Labels Linkbase Document. | |||||||||||||||||||
101.PRE* | XBRL Presentation Linkbase Document. | |||||||||||||||||||
101.DEF* | XBRL Definition Linkbase Document. | |||||||||||||||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.INS) |
March 6, 2025 | Via Renewables, Inc. | ||||||||||||||||
By: | /s/ Mike Barajas | ||||||||||||||||
Mike Barajas | |||||||||||||||||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||||||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant in the capacities indicated on March 6, 2025: | |||||||||||||||||
By: | /s/ W. Keith Maxwell III | ||||||||||||||||
W. Keith Maxwell III | |||||||||||||||||
Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer) | |||||||||||||||||
/s/ Mike Barajas | |||||||||||||||||
Mike Barajas | |||||||||||||||||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||||||||||||||
/s/ Stephen Kennedy | |||||||||||||||||
Stephen Kennedy | |||||||||||||||||
Director | |||||||||||||||||
/s/ David Bill III | |||||||||||||||||
David Bill III | |||||||||||||||||
Director | |||||||||||||||||
/s/ Amanda Bush | |||||||||||||||||
Amanda Bush | |||||||||||||||||
Director | |||||||||||||||||
Entity | Jurisdiction | |||||||||||||
Spark HoldCo, LLC | Delaware | |||||||||||||
Spark Energy Gas, LLC | Texas | |||||||||||||
Spark Energy, LLC | Texas | |||||||||||||
Oasis Power Holdings, LLC | Texas | |||||||||||||
Oasis Power, LLC | Texas | |||||||||||||
CenStar Energy Corp. | New York | |||||||||||||
CenStar Operating Company, LLC | Texas | |||||||||||||
Major Energy Services LLC | New York | |||||||||||||
Major Energy Electric Services LLC | New York | |||||||||||||
Respond Power LLC | New York | |||||||||||||
Electricity Maine, LLC | Maine | |||||||||||||
Electricity N.H., LLC | Maine | |||||||||||||
Provider Power Mass, LLC | Maine | |||||||||||||
Perigee Energy, LLC | Texas | |||||||||||||
Verde Energy USA, Inc. | Delaware | |||||||||||||
Verde Energy USA Connecticut, LLC | Delaware | |||||||||||||
Verde Energy USA DC, LLC | Delaware | |||||||||||||
Verde Energy USA Illinois, LLC | Delaware | |||||||||||||
Verde Energy USA Maryland, LLC | Delaware | |||||||||||||
Verde Energy USA Massachusetts, LLC | Delaware | |||||||||||||
Verde Energy USA New Jersey, LLC | Delaware | |||||||||||||
Verde Energy USA New York, LLC | Delaware | |||||||||||||
Verde Energy USA Ohio, LLC | Delaware | |||||||||||||
Verde Energy USA Pennsylvania, LLC | Delaware | |||||||||||||
Verde Energy Solutions, LLC | Delaware | |||||||||||||
Verde Energy USA Trading, LLC | Delaware | |||||||||||||
Verde Energy USA Texas Holdings, LLC | Delaware | |||||||||||||
Verde Energy USA Commodities, LLC | Delaware | |||||||||||||
Verde Energy USA Texas, LLC | Texas | |||||||||||||
Hiko Energy, LLC | New York | |||||||||||||
Via Energy Solutions, LLC | Texas | |||||||||||||
Via Wireless, LLC | Texas |
/s/W. Keith Maxwell III | ||
W. Keith Maxwell III | ||
President and Chief Executive Officer (Principal Executive Officer) |
/s/Mike Barajas | ||
Mike Barajas | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
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Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 248 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Class A Common Stock | |||
Dividends paid to Class A common stockholders (in dollars per share) | $ 0 | $ 0.90625 | $ 3.625 |
Formation and Organization |
12 Months Ended |
---|---|
Dec. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Organization | 1. Formation and Organization Company's Name Change In August 2021, Spark Energy, Inc. changed its name from Spark Energy, Inc. to Via Renewables, Inc. (the "Company"). Organization We are an independent retail energy services company that provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. The Company is a holding company whose sole material asset consists of units in Spark HoldCo, LLC (“Spark HoldCo”). The Company is the sole managing member of Spark HoldCo, is responsible for all operational, management and administrative decisions relating to Spark HoldCo’s business and consolidates the financial results of Spark HoldCo and its subsidiaries. Spark HoldCo is the direct and indirect owner of the subsidiaries through which we operate. We conduct our business through several brands across our service areas, including Electricity Maine, Electricity N.H., Major Energy, Provider Power Massachusetts, Spark Energy, and Verde Energy. Via Energy Solutions (“VES”) is a wholly owned subsidiary of the Company that offers broker services for retail energy customers. Via Wireless is a wholly owned subsidiary of the Company that offers wireless services and equipment to wireless customers.
|
Basis of Presentation and Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Our financial statements are presented on a consolidated basis and include all wholly-owned and controlled subsidiaries. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. All significant intercompany transactions and balances have been eliminated in the consolidated financial statements. In the opinion of the Company's management, the accompanying consolidated financial statements reflect all adjustments that are necessary to fairly present the financial position, the results of operations, the changes in equity and the cash flows of the Company for the respective periods. Such adjustments are of a normal recurring nature, unless otherwise disclosed. Subsequent Events Subsequent events have been evaluated through the date these financial statements are issued. Any material subsequent events that occurred prior to such date have been properly recognized or disclosed in the consolidated financial statements. Use of Estimates and Assumptions The preparation of our consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could materially differ from those estimates. Relationship with our Founder, Sole Common Stock Shareholder, and Chief Executive Officer W. Keith Maxwell, III is the Chief Executive Officer, a director, and the owner of all of the voting power of our common stock through his ownership of Retailco, LLC (“Retailco”). Retailco is a wholly owned subsidiary of TxEx Energy Investments, LLC (“TxEx”), which is wholly owned by Mr. Maxwell. We enter into transactions with and pay certain costs on behalf of affiliates that are commonly controlled by Mr. Maxwell, and these affiliates enter into transactions with and pay certain costs on our behalf. We undertake these transactions in order to reduce risk, reduce administrative expense, create economies of scale, create strategic alliances and supply goods and services among these related parties. These transactions include, but are not limited to, employee benefits provided through the Company’s benefit plans, insurance plans, leased office space, certain administrative salaries, management due diligence, recurring management consulting, and accounting, tax, legal, or technology services. Amounts billed under these arrangements are based on services provided, departmental usage, or headcount, which are considered reasonable by management. As such, the accompanying consolidated financial statements include costs that have been incurred by the Company and then directly billed or allocated to affiliates, and costs that have been incurred by our affiliates and then directly billed or allocated to us, and are recorded net in general and administrative expense on the consolidated statements of operations with a corresponding accounts receivable—affiliates or accounts payable—affiliates, respectively, recorded in the consolidated balance sheets. Additionally, the Company enters into transactions with certain affiliates for sales or purchases of natural gas and electricity, which are recorded in retail revenues, retail cost of revenues, and net asset optimization revenues in the consolidated statements of operations with a corresponding accounts receivable—affiliate or accounts payable—affiliate in the consolidated balance sheets. The allocations and related estimates and assumptions are described more fully in Note 14 "Transactions with Affiliates." On June 13, 2024, we consummated the previously announced Merger contemplated by that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 29, 2023, by and among the Company, Retailco, and Merger Sub, pursuant to which Merger Sub was merged with and into the Company, with the Company continuing as the surviving corporation in the Merger, following which Mr. Maxwell and his affiliates became the owners of all of the issued and outstanding shares of the Company's Class A common stock and Class B common stock. As a result, each previously outstanding share of Class A common stock was converted into the right to receive $11.00 per share at the closing of the Merger (other than: (i) shares of Class A common stock held (a) by the Company or any subsidiary of the Company, or (b) held or beneficially owned by Mr. Maxwell and any person or entity controlled by Mr. Maxwell, including Retailco, Merger Sub and NuDevco Retail, and other than certain dissenting shares). As a result of the Merger, all of the Company’s outstanding restricted stock units were converted into $11.00 per share (other than those owned by Mr. Maxwell, which were cancelled for no consideration). Effective as of the end of trading on June 13, 2024, the Class A common stock ceased to trade on NASDAQ. Cash and Cash Equivalents Cash and cash equivalents consist of all unrestricted demand deposits and funds invested in highly liquid instruments with original maturities of three months or less. The Company periodically assesses the financial condition of the institutions where these funds are held and believes that its credit risk is minimal with respect to these institutions. Restricted Cash As part of the customer acquisitions in April 2024 and October 2024, we funded an escrow account, the balance of which is reflected as restricted cash in our consolidated balance sheet. As we acquire customers and other conditions of the asset purchase agreement are met, we make payments to the sellers from the escrow account. As of December 31, 2024, the balance in the escrow account was $15.9 million. See Note 16 "Customer Acquisitions" for further discussion. As of December 31 2024, we have $1.2 million in escrow account related to Maine regulatory settlement. See Note 13. "Commitments and Contingencies" for further discussion. Inventory Inventory primarily consists of natural gas used to fulfill and manage seasonality for fixed and variable-price retail customer load requirements and is valued at the lower of weighted average cost or net realizable value. Purchased natural gas costs are recognized in the consolidated statements of operations, within retail cost of revenues, when the natural gas is sold and delivered out of the storage facility using the weighted average cost of the gas sold. As of December 31, 2024 and 2023, the Company also holds approximately $0.1 million and $0.5 million, respectively of wireless device inventory which is valued at the lower of cost or net realizable value. Customer Acquisition Costs The Company capitalizes direct response advertising costs that consist primarily of hourly and commission-based telemarketing costs, door-to-door agent commissions and other direct advertising costs associated with proven customer generation in its balance sheet. These costs are amortized over to two years. As of December 31, 2024 and 2023, the net customer acquisition costs were $9.2 million and $7.0 million, respectively, of which $7.1 million and $5.2 million were recorded in current assets, and $2.1 million and $1.8 million were recorded in non-current assets. Amortization of customer acquisition costs was $7.1 million, $4.8 million, and $2.1 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is recorded in depreciation and amortization in the Consolidated Statements of Operations. Customer acquisition costs do not include customer acquisitions through merger and acquisition activities, which are recorded as customer relationships. Recoverability of customer acquisition costs is evaluated based on a comparison of the carrying amount of such costs to the future net cash flows expected to be generated by the customers acquired, considering specific assumptions for customer attrition, per unit gross profit, and operating costs. These assumptions are based on forecasts and historical experience. No impairments of customer acquisition costs were recorded for the years ended December 31, 2024, 2023 and 2022. Customer Relationships Customer contracts recorded as part of mergers or acquisitions are reflected as customer relationships in our balance sheet. The Company has recorded capitalized customer relationship of $8.0 million and $0.3 million, net of amortization, as current assets as of December 31, 2024 and 2023, respectively, and $3.5 million and $0.1 million, net of amortization, as non-current assets as of December 31, 2024 and 2023, respectively, related to these intangible assets. These intangibles are amortized on a straight-line basis over the estimated average life of the related customer contracts acquired, which ranges from eighteen months to three years. The acquired customer relationships intangibles are reflective of the acquired companies’ customer base, and were valued at the respective dates of acquisition using an excess earnings method under the income approach. Using this method, the Company estimated the future cash flows resulting from the existing customer relationships, considering attrition as well as charges for contributory assets, such as net working capital, fixed assets, and assembled workforce. These future cash flows were then discounted using an appropriate risk-adjusted rate of return by retail unit to arrive at the present value of the expected future cash flows. Customer relationships are amortized to depreciation and amortization based on the expected future net cash flows by year, bifurcated between hedged and unhedged and amortized to depreciation and amortization based on the expected future cash flows by year and expensed to retail cost of revenue based on the expected term of the underlying fixed price contract in each reporting period, respectively. During the twelve months ended December 31, 2022, the Company changed the estimated average life for Customer Relationships — Other from three years to eighteen months resulting in approximately $0.9 million of additional amortization recorded in the twelve months ended December 31, 2022. Customer relationship amortization expense was $0.8 million, $2.5 million, and $12.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. We review customer relationships for impairment whenever events or changes in business circumstances indicate the carrying value of the intangible assets may not be recoverable. Impairment is indicated when the undiscounted cash flows estimated to be generated by the intangible assets are less than their respective carrying value. If an impairment exists, a loss is recognized for the difference between the fair value and carrying value of the intangible assets. No impairments of customer relationships were recorded for the years ended December 31, 2024, 2023 and 2022. Trademarks We record trademarks as part of our acquisitions which represent the value associated with the recognition and positive reputation of an acquired company to its target markets. This value would otherwise have to be internally developed through significant time and expense or by paying a third party for its use. These intangibles are amortized over the estimated ten-year life of the trademark on a straight-line basis. The fair values of trademark assets were determined at the date of acquisition using a royalty savings method under the income approach. Under this approach, the Company estimates the present value of expected cash flows resulting from avoiding royalty payments to use a third party trademark. The Company analyzes market royalty rates charged for licensing trademarks and applied an expected royalty rate to a forecast of estimated revenue, which was then discounted using an appropriate risk adjusted rate of return. As of December 31, 2024 and 2023, we had recorded $2.0 million and $2.4 million related to these trademarks in other assets. Amortization expense was $0.4 million, $0.4 million, and $0.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. We review trademarks for impairment whenever events or changes in business circumstances indicate the carrying value of the intangible assets may not be recoverable. Impairment is indicated when the undiscounted cash flows estimated to be generated by the intangible assets are less than their respective carrying value. If an impairment exists, a loss is recognized for the difference between the fair value and carrying value of the intangible assets. No impairments of trademarks were recorded for the years ended December 31, 2024, 2023 and 2022. Deferred Financing Costs Costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense using the straight-line method over the life of the related long-term debt. These costs are included in other assets in our consolidated balance sheets. Property and Equipment The Company records property and equipment at historical cost. Depreciation expense is recorded on a straight-line method based on estimated useful lives, which range from 2 to 7 years, along with estimates of the salvage values of the assets. When items of property and equipment are sold or otherwise disposed of, any gain or loss is recorded in the consolidated statements of operations. The Company capitalizes costs associated with certain of its internal-use software projects. Costs capitalized are those incurred during the application development stage of projects such as software configuration, coding, installation of hardware and testing. Costs incurred during the preliminary or post-implementation stage of the project are expensed in the period incurred, including costs associated with formulation of ideas and alternatives, training and application maintenance. After internal-use software projects are completed, the associated capitalized costs are depreciated over the estimated useful life of the related asset. Interest costs incurred while developing internal-use software projects are also capitalized. Capitalized interest costs for the years ended December 31, 2024, 2023 and 2022 were not material. Goodwill Goodwill represents the excess of cost over fair value of the assets of businesses acquired in accordance with FASB ASC Topic 350 Intangibles-Goodwill and Other ("ASC 350"). The goodwill on our consolidated balance sheet as of December 31, 2024 is associated with both our Retail Natural Gas and Retail Electricity segments. We determine our segments, which are also considered our reporting units, by identifying each unit that engaged in business activities from which it may earn revenues and incur expenses, had operating results regularly reviewed by the segment manager for purposes of resource allocation and performance assessment, and had discrete financial information. Goodwill is not amortized, but rather is assessed for impairment whenever events or circumstances indicate that impairment of the carrying value of goodwill is likely, but no less often than annually as of October 31. We compare our estimate of the fair value of the reporting unit with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, we would recognize a goodwill impairment loss for the amount by which the reporting unit's carrying value exceeds its fair value. In accordance with our accounting policy, we completed our annual assessment of goodwill impairment as of October 31, 2024 during the fourth quarter of 2024, using a quantitative assessment approach, and the test indicated no impairment. Treasury Stock Treasury stock consists of Company's own common stock that has been issued, but subsequently reacquired by the Company. Treasury stock does not reduce the number of shares issued but does reduce the number of shares outstanding. These shares are not eligible to receive cash dividends. We use the cost method to account for treasury shares. As of the date of the Merger, the number of shares of treasury stock was reduced to zero. Revenues and Cost of Revenues Our revenues are derived primarily from the sale of natural gas and electricity to customers, including affiliates. Revenues are recognized by the Company based on consideration specified in contracts with customers when performance obligations are satisfied by transferring control over products to a customer. Utilizing these criteria, revenue is recognized when the natural gas or electricity is delivered to the customer. Similarly, cost of revenues is recognized when the commodity is delivered. Revenues for natural gas and electricity sales are recognized under the accrual method. Natural gas and electricity sales that have been delivered but not billed by period end are estimated. Accrued unbilled revenues are based on estimates of customer usage since the date of the last meter read provided by the utility. Volume estimates are based on forecasted volumes and estimated customer usage by class. Unbilled revenues are calculated by multiplying these volume estimates by the applicable rate by customer class. Estimated amounts are adjusted when actual usage is known and billed. Costs for natural gas and electricity sales are similarly recognized under the accrual method. Natural gas and electricity costs that have not been billed to the Company by suppliers but have been incurred by period end are estimated. The Company estimates volumes for natural gas and electricity delivered based on the forecasted revenue volumes, estimated transportation cost volumes and estimation of other costs associated with retail load that varies by commodity utility territory. These costs include items like ISO fees, ancillary services and renewable energy credits. Estimated amounts are adjusted when actual usage is known and billed. Our asset optimization activities, which primarily include natural gas physical arbitrage and other short term storage and transportation transactions, meet the definition of trading activities and are recorded on a net basis in the consolidated statements of operations in net asset optimization revenues. The Company recorded asset optimization revenues, primarily related to physical sales or purchases of commodities, of $23.0 million, $24.6 million and $86.7 million for the years ended December 31, 2024, 2023 and 2022, respectively, and recorded asset optimization costs of revenues of $25.3 million, $31.9 million and $89.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, which are presented on a net basis in asset optimization revenues in the Consolidated Statements of Operations. Other revenue is derived from contracts with customers through the provision of wireless and other services and the sale of wireless equipment. These revenues are recognized under the accrual method, over time as wireless and other services are provided and at the time of delivery of wireless equipment. Costs for wireless and other services and the sale of wireless equipment are similarly recognized on the accrual basis, including costs to procure wireless data and wireless devices. Natural Gas Imbalances The consolidated balance sheets include natural gas imbalance receivables and payables, which primarily result when customers consume more or less gas than has been delivered by the Company to local distribution companies (“LDCs”). The settlement of natural gas imbalances varies by LDC, but typically the natural gas imbalances are settled in cash or in kind on a monthly, quarterly, semi-annual or annual basis. The imbalances are valued at their estimated net realizable value. The Company recorded an imbalance receivable of $0.1 million and $0.2 million in other current assets on the consolidated balance sheets as of December 31, 2024 and 2023, respectively. The Company recorded an imbalance payable of zero and zero in other current liabilities on the consolidated balance sheets as of December 31, 2024 and 2023, respectively. Derivative Instruments The Company uses derivative instruments such as futures, swaps, forwards and options to manage the commodity price risks of its business operations. All derivatives are recorded in the consolidated balance sheets at fair value. Derivative instruments representing unrealized gains are reported as derivative assets while derivative instruments representing unrealized losses are reported as derivative liabilities. We offset amounts in the consolidated balance sheets for derivative instruments executed with the same counterparty where we have a master netting arrangement. As part of our asset optimization activities, we manage a portfolio of commodity derivative instruments held for trading purposes. Changes in fair value of and amounts realized upon settlements of derivatives instruments held for trading purposes are recognized in earnings in net asset optimization revenues. To manage the retail business, the Company holds derivative instruments that are not for trading purposes and are not designated as hedges for accounting purposes. Changes in the fair value of and amounts realized upon settlement of derivative instruments not held for trading purposes are recognized in retail costs of revenues. Income Taxes The Company follows the asset and liability method of accounting for income taxes where deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in those years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. Amounts owed or refundable on current year returns is included as a current payable or receivable in the consolidated balance sheet. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. The Company recognizes interest and penalties related to unrecognized tax benefits within the provision for income taxes on continuing operations in our consolidated statements of operations. During the year ended December 31, 2024 and 2023 our accrued liabilities included income tax payable of $1.5 million and $2.5 million, respectively. During the year ended December 31, 2024 and 2023 our other current assets included income tax receivable of $5.4 million and $2.1 million, respectively. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to stockholders (the numerator) by the weighted-average number of Class A common shares outstanding for the period (the denominator). Class B common shares are not included in the calculation of basic earnings per share because they are not participating securities and have no economic interests. Diluted earnings per share is similarly calculated except that the denominator is increased by potentially dilutive securities. We use the treasury stock method to determine the potential dilutive effect of our outstanding unvested restricted stock units and use the if-converted method to determine the potential dilutive effect of our Class B common stock. Non-controlling Interest Net income attributable to non-controlling interest represents the Class B Common stockholders' interest in income and expenses of the Company. The weighted average ownership percentages for the applicable reporting period are used to allocate the income (loss) before income taxes to each economic interest owner. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recently adopted accounting pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, requiring public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. The amendments in the ASU improve reportable segment disclosures by adding and enhancing annual and interim disclosure requirements, clarifying circumstances in which entities can disclose multiple segment measures of profit or loss, providing new segment disclosure requirements for entities with a single reportable segment, and adding other disclosure requirements. We adopted ASU 2023-07 effective January 1, 2024, and the adoption of this standard did not have a material impact on the Company's consolidated financial statements. See Note 15. Segment Reporting Information in the accompanying notes to the consolidated financial statements for further detail. New Accounting Standards Being Evaluated/Standards Not yet adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires enhanced income tax disclosures, particularly related to a reporting entity's effective tax rate reconciliation and income taxes paid. For the rate reconciliation, the update requires additional categories of information about federal, state, and foreign taxes and details about significant reconciling items, subject to a quantitative threshold. Income taxes paid must be similarly disaggregated by federal, state, and foreign based on a quantitative threshold. The ASU will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply retrospectively. We are evaluating the impact of adoption on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). ASU 2024-03 seeks to improve information about cost of sales and selling, general, and administrative expenses to assist investors in better understanding an entity’s cost structure and forecasting future cash flows. The updated guidance is effective for the Company for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the effect of this update on its consolidated financial statements and related disclosures. The Company considers the applicability and impact of all ASUs. New ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.
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Revenues | 3. Revenues Our revenues are derived primarily from the sale of natural gas and electricity to customers, including affiliates. Revenue is measured based upon the quantity of gas or power delivered at prices contained or referenced in the customer's contract, and excludes any sales incentives (e.g. rebates) and amounts collected on behalf of third parties (e.g. sales tax). Our revenues also include asset optimization activities. Asset optimization activities consist primarily of purchases and sales of gas that meet the definition of trading activities per FASB ASC Topic 815, Derivatives and Hedging. They are therefore excluded from the scope of FASB ASC Topic 606, Revenue from Contracts with Customers. Other revenue is derived from contracts with customers through the provision of wireless and other services and the sale of wireless equipment. Revenues for electricity and natural gas sales are recognized under the accrual method when our performance obligation to a customer is satisfied, which is the point in time when the product is delivered and control of the product passes to the customer. Electricity and natural gas products may be sold as fixed-price or variable-price products. The typical length of a contract to provide electricity and/or natural gas is 12 months. Customers are billed and typically pay at least monthly, based on usage. Electricity and natural gas sales that have been delivered but not billed by period end are estimated and recorded as accrued unbilled revenues based on estimates of customer usage since the date of the last meter read provided by the utility. Volume estimates are based on forecasted volumes and estimated residential and commercial customer usage. Unbilled revenues are calculated by multiplying these volume estimates by the applicable rate by customer class (residential or commercial). Estimated amounts are adjusted when actual usage is known and billed. The following table discloses revenue by primary geographical market, customer type, and customer credit risk profile (in thousands). The table also includes a reconciliation of the disaggregated revenue to revenue by reportable segment (in thousands).
(a) The primary markets include the following states: •New England - Connecticut, Maine, Massachusetts and New Hampshire; •Mid-Atlantic - Delaware, Maryland (including the District of Columbia), New Jersey, New York and Pennsylvania and Virginia; •Midwest - Illinois, Indiana, Michigan and Ohio; and •Southwest - Arizona, California, Colorado, Florida, Nevada and Texas. (b) Unbilled revenue is recorded in total until it is actualized, at which time it is categorized between commercial and residential customers. (c) Retail Electricity includes services. Reconciliation to Consolidated Financial Information A reconciliation of the reportable segment operating revenues to consolidated revenues is as follows:
We record gross receipts taxes on a gross basis in retail revenues and retail cost of revenues. During the year ended December 31, 2024, 2023 and 2022 our retail revenues included gross receipts taxes of $1.1 million, $1.0 million and $1.3 million respectively. During the year ended December 31, 2024, 2023 and 2022, our retail cost of revenues included gross receipts taxes of $5.6 million, $5.2 million and $5.2 million, respectively. Accounts Receivables and Allowance for Credit Losses The Company conducts business in many utility service markets where the local regulated utility purchases our receivables, and then becomes responsible for billing the customer and collecting payment from the customer (“POR programs”). These POR programs result in substantially all of the Company’s credit risk being linked to the applicable utility, which generally has an investment-grade rating, and not to the end-use customer. The Company monitors the financial condition of each utility and currently believes its receivables are collectible. In markets that do not offer POR programs or when the Company chooses to directly bill its customers, certain receivables are billed and collected by the Company. The Company bears the credit risk on these accounts and records an appropriate allowance for credit losses to reflect any losses due to non-payment by customers. The Company’s customers are individually insignificant and geographically dispersed in these markets. The Company writes off customer balances when it believes that amounts are no longer collectible and when it has exhausted all means to collect these receivables. For trade accounts receivables, the Company accrues an allowance for credit losses by business segment by pooling customer accounts receivables based on similar risk characteristics, such as customer type, geography, aging analysis, payment terms, and related macroeconomic factors. Expected credit loss exposure is evaluated for each of our accounts receivables pools. Expected credits losses are established using a model that considers historical collections experience, current information, and reasonable and supportable forecasts. The Company writes off accounts receivable balances against the allowance for credit losses accounts when the accounts receivable is deemed to be uncollectible. We assess the adequacy of the allowance for credit losses through review of an aging of customer accounts receivable and general economic conditions in the markets that we serve. Bad debt expense of $2.5 million, $3.4 million and $6.9 million was recorded in general and administrative expense in the consolidated statements of operations for the years ended December 31, 2024, 2023 and 2022, respectively. A rollforward of our allowance for credit losses for the year ended December 31, 2024 is presented in the table below (in thousands):
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 4. Equity Non-controlling Interest We hold an economic interest and are the sole managing member in Spark HoldCo, with affiliates of Mr. Maxwell and majority shareholder holding the remaining economic interests in Spark HoldCo. As a result, we consolidate the financial position and results of operations of Spark HoldCo, and reflect the economic interests owned by these affiliates as a non-controlling interest. On December 31, 2024, Spark HoldCo distributed $5.0 million in cash to the non-controlling interest holder. As a result of this distribution, the non-controlling interest holder agreed to transfer 206,273 of its shares of Class B Common Stock (the non-controlling interest in Spark HoldCo) to the Company, and the Company modified those shares of Class B Common Stock to be shares of Class A Common Stock. After the distribution and the share transfer, the Company’s equity ownership in Spark HoldCo increased by 2.82%, whereas the equity ownership of the non-controlling interest holder decreased by 2.82%. The following table summarizes the effects of changes in the Company's ownership interest in Spark HoldCo's equity (in thousands):
The Company and affiliates owned the following economic interests in Spark HoldCo at December 31, 2024 and December 31, 2023, respectively.
The following table summarizes the portion of net income (loss) and income tax expense (benefit) attributable to non-controlling interest (in thousands):
Class A Common Stock and Class B Common Stock As a result of the Merger, on June 13, 2024, Mr. Maxwell and his affiliates became the owners of all of the issued and outstanding shares of Class A common stock and Class B common stock. Effective as of the end of trading on June 13, 2024, the Class A common stock ceased to trade on NASDAQ. Dividends on Class A Common Stock Dividends declared for the Company's Class A common stock are reported as a reduction of retained earnings, or a reduction of additional paid in capital to the extent retained earnings are exhausted. During the years ended December 31, 2024, 2023, and 2022, we paid dividends on our Class A common stock of zero, $2.9 million, and $11.5 million. Dividends paid per share on each share of Class A common stock totaled zero for the year ended December 31, 2024, $0.90625 for the year ended December 31, 2023, and $3.625 for the year ended December 31, 2022, respectively. In order to pay our stated dividends to holders of our Class A common stock, our subsidiary, Spark HoldCo is required to make corresponding distributions to holders of its units, including those holders that own our Class B common stock (our non-controlling interest holder). As a result, during the year ended December 31, 2024, Spark HoldCo made corresponding distributions of zero to our non-controlling interest holders. In April 2023, we announced that our Board of Directors elected to temporarily suspend the quarterly cash dividend on the Class A common stock. During the second, third and fourth quarter of 2024, we did not pay dividends to the holders of the Company's Class A common stock and did not make corresponding distributions to our non-controlling interest holders. Preferred Stock The Company has 20,000,000 shares of authorized preferred stock for which there were 3,380,440 and 3,567,543 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively. See Note 5 "Preferred Stock" for a further discussion of preferred stock. Issuance of Class A Common Stock Upon Vesting of Restricted Stock Units For the years ended December 31, 2024, 2023, and 2022, 95,592, 68,439, and 58,033, respectively of restricted stock units vested, with 61,709, 46,466, and 42,268, respectively of shares of common stock distributed to the holders of these units. Differences between shares vested and issued were a result of 33,883, 21,973, and 15,765 shares of common stock withheld by the Company to cover taxes owed on the vesting of such units. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to stockholders (the numerator) by the weighted-average number of Class A common shares outstanding for the period (the denominator). Class B common shares are not included in the calculation of basic earnings per share because they are not participating securities and have no economic interests. Diluted earnings per share is similarly calculated except that the denominator is increased by potentially dilutive securities. The following table presents the computation of basic and diluted income (loss) per share for the years ended December 31, 2024, 2023, and 2022 (in thousands, except per share data):
The computation of diluted earnings per share for the year ended December 31, 2024 excludes 4.0 million shares of Class B common stock because the effect of their conversion was antidilutive. The Company's outstanding shares of Series A Preferred Stock were not included in the calculation of diluted earnings per share because they contain only contingent redemption provisions that have not occurred. Variable Interest Entity Spark HoldCo is a variable interest entity due to its lack of rights to participate in significant financial and operating decisions and its inability to dissolve or otherwise remove its management. Spark HoldCo owns all of the outstanding membership interests in each of our operating subsidiaries. We are the sole managing member of Spark HoldCo, manage Spark HoldCo's operating subsidiaries through this managing membership interest, and are considered the primary beneficiary of Spark HoldCo. The assets of Spark HoldCo cannot be used to settle our obligations except through distributions to us, and the liabilities of Spark HoldCo cannot be settled by us except through contributions to Spark HoldCo. The following table includes the carrying amounts and classification of the assets and liabilities of Spark HoldCo that are included in our consolidated balance sheet as of December 31, 2024 and 2023 (in thousands):
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Preferred Stock | 5. Preferred Stock Holders of the Series A Preferred Stock have no voting rights, except in specific circumstances of delisting or in the case the dividends are in arrears as specified in the Series A Preferred Stock Certificate of Designations. The Series A Preferred Stock accrued dividends at an annual percentage rate of 8.75% through April 14, 2022. The floating rate period for the Series A Preferred Stock began on April 15, 2022. The dividend on the Series A Preferred Stock will accrue at an annual rate equal to the sum of (a) Three-Month LIBOR (if it then exists), or an alternative reference rate as of the applicable determination date and (b) 6.578%, based on the $25.00 liquidation preference per share of the Series A Preferred Stock. The liquidation preference provisions of the Series A Preferred Stock are considered contingent redemption provisions because there are rights granted to the holders of the Series A Preferred Stock that are not solely within our control upon a change in control of the Company. Accordingly, the Series A Preferred Stock is presented between liabilities and the equity sections in the accompanying condensed consolidated balance sheets. As of April 15, 2022, we have the option to redeem our Series A Preferred Stock. Following the cessation of the publication of U.S. LIBOR on June 30, 2023, we use Three Month CME Term SOFR plus a tenor spread of 0.26161 percent (or 26.161 bps) to calculate the dividend rate on the Series A Preferred Stock pursuant to the rules of the Adjustable Interest Rate (LIBOR) Act. As a result of the Merger, holders of the Company’s Series A Preferred Stock were provided an optional limited change of control conversion right (the “Conversion Right”), available at the option of the holder, for $8.07 per share in cash. On June 27, 2024, the Company provided notice to the holders of the Series A Preferred Stock of the Conversion Right. Holders of the Series A Preferred Stock were entitled to exercise the Conversion Right through July 26, 2024. No holders of the Series A Preferred Stock exercised the Conversion Right. During the year ended December 31, 2024, we paid $10.9 million in dividends to holders of the Series A Preferred Stock. As of December 31, 2024, we had accrued $2.4 million related to dividends to holders of the Series A Preferred Stock. This dividend was paid on January 15, 2025. During the year ended December 31, 2023, the Company paid $10.3 million in dividends to holders of the Series A Preferred Stock and had accrued $2.7 million as of December 31, 2023. On January 15, 2025, the Company declared a quarterly cash dividend in the amount of $0.69635 per share of Series A Preferred Stock. The dividend will be paid on April 15, 2025 to holders of record on April 1, 2025 of the Series A Preferred Stock. On December 18, 2024, we purchased 187,103 shares of our Series A Preferred Stock, at a purchase price of $22.50 per share, for a total cost of $4.2 million in cash, pursuant to a tender offer for the Series A Preferred Stock commenced in November 2024. A summary of our preferred equity balance for the years ended December 31, 2024 and 2023 is as follows:
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Derivative Instruments | 6. Derivative Instruments We are exposed to the impact of market fluctuations in the price of electricity and natural gas, basis differences in the price of natural gas, storage charges, renewable energy credits ("RECs"), and capacity charges from independent system operators. We use derivative instruments in an effort to manage our cash flow exposure to these risks. These instruments are not designated as hedges for accounting purposes, and accordingly, changes in the market value of these derivative instruments are recorded in the cost of revenues. As part of our strategy to optimize pricing in our natural gas related activities, we also manage a portfolio of commodity derivative instruments held for trading purposes. Our commodity trading activities are subject to limits within our Risk Management Policy. For these derivative instruments, changes in the fair value are recognized currently in earnings in net asset optimization revenues. Derivative assets and liabilities are presented net in our consolidated balance sheets when the derivative instruments are executed with the same counterparty under a master netting arrangement. Our derivative contracts include transactions that are executed both on an exchange and centrally cleared, as well as over-the-counter, bilateral contracts that are transacted directly with third parties. To the extent we have paid or received collateral related to the derivative assets or liabilities, such amounts would be presented net against the related derivative asset or liability’s fair value. As of December 31, 2024 and 2023, we offset zero and $5.2 million, respectively, in collateral to net against the related derivative liability's fair value. The specific types of derivative instruments we may execute to manage the commodity price risk include the following: •Forward contracts, which commit us to purchase or sell energy commodities in the future; •Futures contracts, which are exchange-traded standardized commitments to purchase or sell a commodity or financial instrument; •Swap agreements, which require payments to or from counterparties based upon the differential between two prices for a predetermined notional quantity; and •Option contracts, which convey to the option holder the right but not the obligation to purchase or sell a commodity. The Company has entered into other energy-related contracts that do not meet the definition of a derivative instrument or for which we made a normal purchase, normal sale election and are therefore not accounted for at fair value including the following: •Forward electricity and natural gas purchase contracts for retail customer load; •Renewable energy credits; and •Natural gas transportation contracts and storage agreements. Volumes Underlying Derivative Transactions The following table summarizes the net notional volumes of our open derivative financial instruments accounted for at fair value by commodity. Positive amounts represent net buys while bracketed amounts are net sell transactions (in thousands): Non-trading
Trading
Gains (Losses) on Derivative Instruments Gains (losses) on derivative instruments, net and current period settlements on derivative instruments were as follows for the periods indicated (in thousands):
(1) Excludes settlements of $0.2 million related to acquisition, for the year ended December 31, 2022. Gains (losses) on trading derivative instruments are recorded in net asset optimization revenues and gains (losses) on non-trading derivative instruments are recorded in retail cost of revenues on the consolidated statements of operations. Fair Value of Derivative Instruments The following tables summarize the fair value and offsetting amounts of our derivative instruments by counterparty and collateral received or paid (in thousands):
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | 7. Property and Equipment Property and equipment consist of the following (in thousands):
Information technology assets include software and consultant time used in the application, development and implementation of various systems including customer billing and resource management systems. As of each of December 31, 2024 and 2023, information technology includes $2.3 million and $1.5 million, respectively, of costs associated with assets not yet placed into service. Depreciation expense recorded in the consolidated statements of operations was $1.1 million, $1.4 million and $1.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | 8. Intangible Assets Goodwill, customer relationships and trademarks consist of the following amounts (in thousands):
Changes in goodwill, customer relationships (including non-compete agreements) and trademarks consisted of the following (in thousands):
During the twelve months ended December 31, 2022, the Company changed the estimated average life for Customer Relationships — Other from three years to eighteen months, resulting in approximately $0.9 million of additional amortization recorded in the twelve months ended December 31, 2022. Estimated future amortization expense for customer relationships and trademarks at December 31, 2024 is as follows (in thousands):
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Debt |
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Debt | 9. Debt Debt consists of the following amounts as of December 31, 2024 and 2023 (in thousands):
(1) As of December 31, 2024 and 2023, the weighted average interest rate on the Senior Credit Facility was 7.59% and 8.60%, respectively. (2) As of December 31, 2024 and 2023, we had $25.6 million and $24.3 million in letters of credit issued, respectively. Capitalized financing costs associated with our Senior Credit Facility were $1.7 million and $1.2 million as of December 31, 2024 and 2023, respectively. Of these amounts, $0.7 million and $0.8 million are recorded in other current assets, and $1.0 million and $0.4 million are recorded in other non-current assets in the consolidated balance sheets as of December 31, 2024 and 2023, respectively. Interest expense consists of the following components for the periods indicated (in thousands):
Senior Credit Facility The Company and Spark Holdco (together with certain subsidiaries of the Company and Spark Holdco, the “Co-Borrowers”) maintain a senior secured borrowing base credit facility with Woodforest National Bank, as administrative agent (the “Agent”), swing bank, swap bank, issuing bank, joint-lead arranger, sole bookrunner and syndication agent, and the other financial institutions party thereto as lenders. As further described below, on June 28, 2024, the Company entered into the First Amendment (the "First Amendment") to its senior credit facility (as amended by the First Amendment, the “Senior Credit Facility”). The Senior Credit Facility matures on June 30, 2027 and has a borrowing capacity of $205.0 million. As a result of the First Amendment to the Credit Agreement, we wrote off $0.1 million in deferred financing costs. Borrowings under the Senior Credit Facility bear interest at the following rates depending on the classification of the borrowing and provided further that at no time shall the interest rate be less than four percent (4.0%) per annum: •The Base Rate (a rate per annum equal to the greatest of (a) the prime rate, (b) the Federal Funds Rate plus ½ of 1% and (c) Term Secured Overnight Financing Rate (“SOFR”) for a one month tenor plus 1.0%, provided, that the Base Rate shall not at any time be less than 0%), plus an applicable margin of 2.25% to 3.50% depending on the type of borrowing and the average outstanding amount of loans and letters of credit under the Senior Credit Facility at the end of the prior fiscal quarter; •The Term SOFR (a rate equal to the forward looking secured overnight financing rate published by the SOFR administrator on the website of the Federal Reserve Bank of New York or any successor source with either a comparable tenor (for any calculation with respect to a SOFR loan) or a one month tenor (for any calculation with respect to a Base Rate loan)), plus an applicable margin of 3.25% to 4.50% depending on the type of borrowing and the average outstanding amount of loans and letters of credit under the Senior Credit Facility at the end of the prior fiscal quarter; or • The Daily Simple SOFR (a rate equal to the forward looking secured overnight financing rate published by the SOFR administrator on the website of the Federal Reserve Bank of New York or any successor source and applied on a daily basis by the Agent in accordance with rate recommendations for daily loans), plus an applicable margin of 3.25% to 4.50% depending on the type of borrowing and the average outstanding amount of loans and letters of credit under the Senior Credit Facility at the end of the prior fiscal quarter, plus a liquidity premium added by the Agent to each borrowing. The Co-Borrowers are required to pay a non-utilization fee of 0.50% quarterly in arrears on the unused portion of the Senior Credit Facility. In addition, the Co-Borrowers are subject to additional fees including an upfront fee, an annual administrative agency fee, an arrangement fee and letter of credit fees. The Senior Credit Facility contains covenants that, among other things, require the maintenance of specified ratios or conditions including: •Minimum Fixed Charge Coverage Ratio. The Company must maintain a minimum fixed charge coverage ratio of not less than 1.10 to 1.00. The Minimum Fixed Charge Coverage Ratio is defined as the ratio of (a) Adjusted EBITDA to (b) the sum of, among other things, consolidated interest expense, letter of credit fees, non-utilization fees, earn-out payments, certain restricted payments, taxes, and payments made on or after July 31, 2020 related to the settlement of civil and regulatory matters if not included in the calculation of Adjusted EBITDA. Our Minimum Fixed Charge Coverage Ratio as of December 31, 2024 was 1.49 to 1.00. •Maximum Total Leverage Ratio. The Company must maintain a ratio of (x) the sum of all consolidated indebtedness (excluding eligible subordinated debt and letter of credit obligations), plus (y) gross amounts reserved for civil and regulatory liabilities identified filings with the SEC, to Adjusted EBITDA of no more than 3.00 to 1.00. Our Maximum Total Leverage Ratio as of December 31, 2024 was 2.01 to 1.00. The First Amendment eliminated the Maximum Senior Secured Leverage Ratio covenant and amended the Maximum Total Leverage Ratio covenant to no more than 3.00 to 1.00 from no more than 2.50 to 1.00. As of December 31, 2024, the Company was in compliance with financial covenants under the Senior Credit Facility. The Company continues to manage the impact of commodity costs on financial covenant compliance. Maintaining compliance with our covenants under our Senior Credit Facility may impact our ability to pay dividends on our Series A Preferred Stock. The Credit Agreement contains various customary affirmative covenants that require, among other things, the Company to maintain insurance, pay its obligations and comply with law. The Credit Agreement also contains customary negative covenants that limit the Company's ability to, among other things, incur certain additional indebtedness, grant certain liens, engage in certain asset dispositions, merge or consolidate, make certain payments, distributions and dividends, investments, acquisitions or loans, materially modify certain agreements, and enter into transactions with affiliates. The Senior Credit Facility is secured by pledges of the equity of the portion of Spark HoldCo owned by the Company, the equity of Spark HoldCo’s subsidiaries, the Co-Borrowers’ present and future subsidiaries, and substantially all of the Co-Borrowers’ and their subsidiaries’ present and future property and assets, including intellectual property assets, accounts receivable, inventory and liquid investments, and control agreements relating to bank accounts. The Company is entitled to pay cash dividends to the holders of its Series A Preferred Stock and Class A common stock so long as: (a) no default exists or would result therefrom; (b) the Co-Borrowers are in pro forma compliance with all financial covenants before and after giving effect thereto; and (c) the outstanding amount of all loans and letters of credit do not exceed the borrowing base limits. The Credit Agreement Senior Credit Facility contains certain customary representations and warranties and events of default. Events of default include, among other things, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults and cross-acceleration to certain indebtedness, certain events of bankruptcy, certain events under ERISA, material judgments in excess of $5.0 million, certain events with respect to material contracts, and actual or asserted failure of any guaranty or security document supporting the Senior Credit Facility to be in full force and effect. A default will also occur if at any time W. Keith Maxwell III ceases to, directly or indirectly, beneficially own at least fifty-one percent (51%) of the Company’s outstanding Class A common stock and Class B common stock on a combined basis, and a controlling percentage of the voting equity interest of the Company, and certain other changes in control. If such an event of default occurs, the lenders under the Senior Credit Facility would be entitled to take various actions, including the acceleration of amounts due under the facility and all actions permitted to be taken by a secured creditor. Subordinated Debt Facility The Company maintains an Amended and Restated Subordinated Promissory Note in the principal amount of up to $25.0 million (the “Subordinated Debt Facility”), by and among the Company, Spark HoldCo and Retailco. The Subordinated Debt Facility allows the Company to draw advances in increments of no less than $1.0 million per advance up to $25.0 million. In connection with entering into the First Amendment to the Credit Agreement, the Company entered into an amended and restated subordinated promissory note with Spark HoldCo and Retailco, which extends the maturity date of the note to January 31, 2028. Borrowings are at the discretion of Retailco. Advances thereunder accrue interest at an annual rate equal to the prime rate as published by the Wall Street Journal plus two percent (2.0%) from the date of the advance. The Company has the right to capitalize interest payments under the Subordinated Debt Facility. The Subordinated Debt Facility is subordinated in certain respects to our Senior Credit Facility pursuant to a subordination agreement. The Company may pay interest and prepay principal on the Subordinated Debt Facility so long it is in compliance with the covenants under the Senior Credit Facility, is not in default under the Senior Credit Facility and has minimum availability of $5.0 million under the borrowing base under the Senior Credit Facility. Payment of principal and interest under the Subordinated Debt Facility is accelerated upon the occurrence of certain change of control or sale transactions. As of December 31, 2024 and 2023, there were zero outstanding borrowings under the Subordinated Debt Facility.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 10. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes the credit standing of counterparties involved and the impact of credit enhancements. We apply fair value measurements to our commodity derivative instruments based on the following fair value hierarchy, which prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels: •Level 1—Quoted prices in active markets for identical assets and liabilities. Instruments categorized in Level 1 primarily consist of financial instruments such as exchange-traded derivative instruments. •Level 2—Inputs other than quoted prices recorded in Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 primarily include non-exchange traded derivatives such as over-the-counter commodity forwards and swaps and options. •Level 3—Unobservable inputs for the asset or liability, including situations where there is little, if any, observable market activity for the asset or liability. The Level 3 category includes estimated earnout obligations related to our acquisitions. As the fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3), the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. These levels can change over time. In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities measured and recorded at fair value in our consolidated balance sheets on a recurring basis by and their level within the fair value hierarchy (in thousands):
We had no transfers of assets or liabilities between any of the above levels during the years ended December 31, 2024, 2023 and 2022. Our derivative contracts include exchange-traded contracts valued utilizing readily available quoted market prices and non-exchange-traded contracts valued using market price quotations available through brokers or over-the-counter and on-line exchanges. In addition, in determining the fair value of our derivative contracts, we apply a credit risk valuation adjustment to reflect credit risk, which is calculated based on our or the counterparty’s historical credit risks. As of December 31, 2024 and 2023, the credit risk valuation adjustment was a reduction of derivative liabilities, net of $0.1 million and $0.3 million, respectively.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | 11. Stock-Based Compensation Restricted Stock Units We maintain a Long-Term Incentive Plan ("LTIP") for employees, consultants and directors of the Company and its affiliates who perform services for the Company. The purpose of the LTIP is to provide a means to attract and retain individuals to serve as directors, employees and consultants who provide services to the Company by affording such individuals a means to acquire and maintain ownership of awards, the value of which is tied to the performance of the Company’s Class A common stock. The LTIP provides for grants of cash payments, stock options, stock appreciation rights, restricted stock or units, bonus stock, dividend equivalents, and other stock-based awards with the total number of shares of stock available for issuance under the LTIP not to exceed 2,750,000 shares. Restricted stock units granted to our officers, employees, non-employee directors and certain employees of our affiliates who perform services for the Company vest over approximately one year for non-employee directors and ratably over approximately to four years for officers, employees, and employees of affiliates, with the initial vesting date occurring in May of the subsequent year. Each restricted stock unit is entitled to receive a dividend equivalent when dividends are declared and distributed to shareholders of Class A common stock. These dividend equivalents are retained by the Company, reinvested in additional restricted stock units effective as of the record date of such dividends and vested upon the same schedule as the underlying restricted stock unit. The Company measures the cost of awards classified as equity awards based on the grant date fair value of the award, and the Company measures the cost of awards classified as liability awards at the fair value of the award at each reporting period. The Company has utilized an estimated 10% annual forfeiture rate of restricted stock units in determining the fair value for all awards excluding those issued to executive level recipients and non-employee directors, for which no forfeitures are estimated to occur. The Company has elected to recognize related compensation expense on a straight-line basis over the associated vesting periods. Although the restricted stock units allow for cash settlement of the awards at the sole discretion of management of the Company, management intends to settle the awards by issuing shares of the Company’s Class A common stock. Merger and Delisting of Class A Common Stock On June 13, 2024, we consummated the previously announced Merger, following which Mr. Maxwell and his affiliates became the owners of all of the issued and outstanding shares of Class A common stock and Class B common stock. Effective as of the end of trading on June 13, 2024, the Class A common stock ceased to trade on NASDAQ. For a more detailed description of the Merger, please see Note 2 “Basis of Presentation and Summary of Significant Accounting Policies” in the notes to our consolidated financial statements. As a result of the Merger, all of the Company’s outstanding restricted stock units were converted into $11.00 per share (other than those owned by Mr. Maxwell, which were cancelled for no consideration). The total payout for the settlement of restricted stock units was $0.6 million, which was paid by Retailco. This was recorded as contribution from non-controlling interest. Total stock-based compensation expense for the years ended December 31, 2024, 2023 and 2022 was $2.4 million, $2.3 million and $3.2 million. Of the $2.4 million stock-based compensation for 2024, $1.7 million was recorded as accelerated expense due to conversion as a result of merger transaction. Total income tax expense/(benefit) related to stock-based compensation recognized in net income (loss) was $0.2 million, $0.2 million and less than $0.1 million for the years ended December 31, 2024, 2023 and 2022. Equity Classified Restricted Stock Units Restricted stock units issued to employees and officers of the Company are classified as equity awards. The fair value of the equity classified restricted stock units is based on the Company’s Class A common stock price as of the grant date. The Company recognized stock based compensation expense of $2.4 million, $2.3 million and $3.1 million for the years ended December 31, 2024, 2023 and 2022, respectively of which $1.6 million was recorded as accelerated expense due to conversion as a result of the Merger. This expense was recorded in general and administrative expense with a corresponding increase to additional paid in capital. The following table summarizes equity classified restricted stock unit activity for the year ended December 31, 2024:
For the year ended December 31, 2024, 88,004 restricted stock units vested, with 33,883 shares of Class A common stock distributed to the holders of these units and 54,121 shares of Class A common stock withheld by the Company to cover taxes owed on the vesting of such units. As of December 31, 2024, there was zero unrecognized compensation cost related to the Company’s equity classified restricted stock units. Change in Control Restricted Stock Units In 2018, the Company granted Change in Control Restricted Stock Units ("CIC RSUs") to certain officers that vest upon a "Change in Control", if certain conditions are met. The CIC RSUs vested upon completion of the Merger. The equity classified restricted stock unit table above includes 16,465 CIC RSUs as the conditions for Change in Control was met. The Company recognized $0.2 million stock compensation accelerated expense related to the CIC RSUs during for the year ended December 31, 2024. Liability Classified Restricted Stock Units Restricted stock units issued to non-employee directors of the Company and employees of certain of our affiliates are classified as liability awards as the awards are either to a) non-employee directors that allow for the recipient to choose net settlement for the amount of withholding taxes dues upon vesting or b) to employees of certain affiliates of the Company and are therefore not deemed to be employees of the Company. The fair value of the liability classified restricted stock units is based on the Company’s Class A common stock price as of the reported period ending date. The Company recognized stock based compensation expense of $0.1 million, less than $0.1 million, and $0.1 million for the year ended December 31, 2024, 2023 and 2022 of which less than $0.1 million was recorded as accelerated expense due to conversion as a result of Merger for the year ended December 31, 2024. The following table summarizes liability classified restricted stock unit activity for the year ended December 31, 2024. The following table summarizes liability classified restricted stock unit activity and unvested restricted stock units for the year ended December 31, 2024:
For the year ended December 31, 2024, 7,588 restricted stock units vested, with 7,588 shares of Class A common stock distributed to the holders of these units and zero shares of Class A common stock withheld by the Company to cover taxes owed on the vesting of such units. As of December 31, 2024, there was zero of total unrecognized compensation cost related to the Company’s liability classified restricted stock units.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 12. Income Taxes We and our subsidiaries, CenStar and Verde Energy USA, Inc. ("Verde Corp") are each subject to U.S. federal income tax as corporations. CenStar and Verde Corp file consolidated tax returns in jurisdictions that allow combined reporting. Spark HoldCo and its subsidiaries, with the exception of CenStar and Verde Corp, are treated as flow-through entities for U.S. federal income tax purposes, and, as such, are generally not subject to U.S. federal income tax at the entity level. Rather, the tax liability with respect to their taxable income is passed through to their members or partners. Accordingly, we are subject to U.S. federal income taxation on our allocable share of Spark HoldCo's net U.S. taxable income. In our financial statements, we report federal and state income taxes for our share of the partnership income attributable to our ownership in Spark HoldCo and for the income taxes attributable to CenStar and Verde Corp. Net income attributable to non-controlling interest includes the provision for income taxes related to CenStar and Verde Corp. We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and the tax bases of the assets and liabilities. We apply existing tax law and the tax rate that we expect to apply to taxable income in the years in which those differences are expected to be recovered or settled in calculating the deferred tax assets and liabilities. Effects of changes in tax rates on deferred tax assets and liabilities are recognized in income in the period of the tax rate enactment. A valuation allowance is recorded when it is not more likely than not that some or all of the benefit from the deferred tax asset will be realized. The provision for income taxes for the years ended December 31, 2024, 2023, and 2022 included the following components:
The effective income tax rate was 21%, 30%, and 37% for the years ended December 31, 2024, 2023, and 2022, respectively. The following table reconciles the income tax benefit that would result from application of the statutory federal tax rate, 21%, for the years ended December 31, 2024, 2023, and 2022 respectively, to the amount included in the consolidated statement of operations:
Total income tax expense for the years ended December 31, 2024, 2023 and 2022 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income primarily due to state income taxes and the impact of permanent differences between book and taxable income, most notably the income attributable to non-controlling interest, which gets taxed at the non-controlling interest partner level. The components of our deferred tax assets as of December 31, 2024 and 2023 are as follows:
We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. In making this determination, we consider all available positive and negative evidence and makes certain assumptions. We consider, among other things, our deferred tax liabilities, the overall business environment, our historical earnings and losses, current industry trends, and our outlook for future years. We believe it is more likely than not that our deferred tax assets will be utilized, and accordingly have not recorded a valuation allowance on these assets. The tax years 2018 through 2023 remain open to examination by the major taxing jurisdictions to which the Company is subject to income tax. Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of December 31, 2024 and 2023 there was no liability, and for the years ended December 31, 2024, 2023 and 2022, there was no expense recorded for interest and penalties associated with uncertain tax positions or unrecognized tax positions. Additionally, the Company does not have unrecognized tax benefits as of December 31, 2024 and 2023.
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Commitments and Contingencies |
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Dec. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies From time to time, we may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal Proceedings Below is a summary of our currently pending material legal proceedings. We are subject to lawsuits and claims arising in the ordinary course of our business. The following legal proceedings are in various stages and are subject to substantial uncertainties concerning the outcome of material factual and legal issues. Accordingly, unless otherwise specifically noted, we cannot currently predict the manner and timing of the resolutions of these legal proceedings or estimate a range of possible losses or a minimum loss that could result from an adverse verdict in a potential lawsuit. While the lawsuits and claims are asserted for amounts that may be material should an unfavorable outcome occur, management does not currently expect that any currently pending matters will have a material adverse effect on our financial position or results of operations. Consumer Lawsuits Similar to other energy service companies (“ESCOs”) operating in the industry, from time-to-time, the Company is subject to class action lawsuits in various jurisdictions where the Company sells natural gas and electricity. On January 14, 2021, Glikin, et al. v. Major Energy Electric Services, LLC, a purported variable rate class action was filed by a Maryland customer in the United States District Court, Southern District of New York, attempting to represent a class of all Major Energy customers (including customers of companies Major Energy acts as a successor to) in the United States charged a variable rate for electricity or gas by Major Energy during the applicable statute of limitations period up to and including the date of judgment. The Company moved this case to the United States District Court for the District of Maryland (Case No. 1:21-cv-03251-MJM) and in December 2023 filed a motion to dismiss the lawsuit. On September 18, 2024, the Court found that Plaintiff’s claims were unexhausted, stayed the case and ordered that Plaintiff must first present Plaintiff’s claims to the Maryland Public Service Communion (“MPSC”) before the Court may adjudicate them. Plaintiff filed its claim with the MPSC and that claim is pending. The Company is vigorously defending this matter; however, given the current early stage of this matter, we cannot predict the outcome of this case at this time. On December 18, 2023, Foote v. Electricity N.H., LLC (“ENH”), a purported Telephone Consumer Protection Act (the “TCPA”) class action was filed in the United States District Court for the District of New Hampshire. This matter was dismissed with prejudice on August 2024. From time-to-time the Company and its operating subsidiaries receive TCPA-based lawsuits, which are without merit as the Company has a robust telemarketing compliance program in place. Three cases are pending, at early stages of litigation: (1) Clark v. Via Renewables, Inc. (filed January 30, 2024), (2) Picardi v. Major Energy Electric Services, Inc. (October 30, 2024), and (3) Grant v. Via Renewables, Inc. (November 15, 2024). The Company is vigorously defending these claims. Corporate Matter Lawsuits The Company may from time to time be subject to legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition. On July 19, 2024, Joshua Amburgey, a purported stockholder of the Company at the time of the Merger, filed a verified class action complaint, Joshua Amburgey, on behalf of himself and all others similarly situated v. Via Renewables, Inc., et al., Case No. 2024-0762-KSJM (Del. Ch.) (the “Amburgey Action”) in the Court of Chancery of the State of Delaware (“Delaware Court”) against the Company and Amanda E. Bush, Stephen Kennedy and Kenneth Hartwick in their capacities as members of the Company’s Special Transaction Committee of the Board of Directors (“Special Committee”), as well as Mr. Maxwell, Retailco, LLC, TxEx Energy Investments, LLC, Electric Holdco, LLC, NuDevco Retail Holdings, LLC and NuDevco Retail, LLC. Plaintiff alleges that the defendants breached their fiduciary duties owed to the Company’s public stockholders in connection with the Merger. On July 25, 2024, Bruce Taylor, a purported stockholder of the Company at the time of the Merger, filed a verified class action complaint, Bruce Taylor v. W. Keith Maxwell III, et al., Case No. 2024-0794 (Del. Ch.) (the “Taylor Action”) in the Delaware Court against the Special Committee, and Mike Barajas, in his capacity as the Company’s Chief Financial Officer, as well as Mr. Maxwell in his capacity as controlling stockholder of the Company. Plaintiff alleges that the defendants breached their fiduciary duties and participated in the provision of a materially untrue and misleading proxy statement to Company’s minority stockholders in connection with the Merger. On May 22, 2024, Michael Stutzman, a purported stockholder of the Company that previously delivered a Records Request, filed a complaint, Michael Stutzman v. Via Renewables, Inc., Case No. 2024-0545-LM (Del. Ch.) (the “220 Complaint”) in the Delaware Court against the Company. The 220 Complaint seeks to compel the inspection of certain Company books and records pursuant to Section 220 of the Delaware General Corporation Law relevant to the Merger. Regulatory Matters Many state regulators have increased scrutiny on retail energy providers, across all industry providers. We are subject to regular regulatory inquiries, license renewal reviews, and preliminary investigations in the ordinary course of our business. Below is a summary of our currently pending material state regulatory matters. The following state regulatory matters are in various stages and are subject to substantial uncertainties concerning the outcome of material factual and legal issues. Accordingly, we cannot currently predict the manner and timing of the resolution of these state regulatory matters or estimate a range of possible losses or a minimum loss that could result from an adverse action. Management does not currently expect that any currently pending state regulatory matters will have a material adverse effect on our financial position or results of operations. Connecticut. On May 21, 2024, the Connecticut Public Utility Regulatory (“PURA”) issued a Notice of Violation and Assessment of Civil Penalty (“NOV”) to Major Energy in which PURA stated it had reason to believe that one of Major Energy’s on-line vendors violated certain Electric Supplier Laws and Aggregator Rulings. The Company worked cooperatively with PURA and has finalized a full and final settlement for $2.0 million, to be paid in three installments to the Connecticut electric distribution companies as a donation to reduce Connecticut residential hardship customer arrearages. The settlement was approved by PURA in mid-July 2024 (and accrued as of June 30, 2024). The third and final installment was paid in November 2024. Illinois. On July 26, 2023, Spark Energy, LLC received a demand letter from a law firm representing the Office of the Illinois Attorney General alleging that Spark Energy, LLC’s marketing and sales practices may have not been in compliance with Illinois law. The letter offered, in the interest of efficiency and minimizing litigation costs, a settlement demand to resolve the matter. The Company has agreed to engage in mediation with the law firm to try to resolve this matter. The Company met for an all-day mediation in August 2024. The Company voluntarily worked with the firm to reach a settlement, however, settlement discussions to date were not successful and the Attorney General commenced a lawsuit in Illinois against Spark Energy, LLC and Spark Energy Gas, LLC in January 2025. The Company intends to vigorously defend against this lawsuit. Maine. On February 9, 2023, Maine Commission’s Consumer Assistance and Safety Division (“Advocacy Staff”) filed a Request for Formal Investigation requesting that the Maine Commission open a formal, enforcement investigation to review whether Company’s subsidiary, Electricity Maine, LLC (EME), is in compliance with the Maine Commission’s Rules. During a special deliberative session, the same day, the Maine Commission announced it would proceed with a formal investigation of EME, which was noticed in a Notice of Enforcement Investigation issued February 10, 2023 (Docket No. 2023-00024). The Company met with Advocacy Staff over the course of several months to address concerns. As a result, the Company and the Advocacy Staff have agreed to a settlement in principle pursuant to which customers would receive certain limited refunds on their energy bill. On October 18, 2024, the Maine Commission approved EME’s proposed settlement (“Settlement”). The Company is currently complying with the Settlement. Maryland. Maryland SB1, sponsored by Senator Augustine (D-Prince George’s County) and Delegate Crosby (D- St. Mary’s County), was signed into law in May 2024. In addition to numerous green energy requirements, pricing restrictions, and burdensome new consumer protections, Maryland SB1 prohibits residential purchase of receivables (POR) for contracts executed or renewed after December 31, 2024. Maryland SB1's effect has been to largely make it extremely difficult for all retail energy providers to offer Maryland residential consumers energy choice. The Company is working to minimize economic impacts of Maryland SB1 to the Company. Ohio. On August 14, 2024, the Public Utility Commission of Ohio (“PUCO”) sent Major Energy a notice of probable non-compliance regarding approximately fifty-five consumer complaints during the time period January 3, 2023 through April 12, 2024. The Company is working cooperatively with PUCO to resolve this matter, provided its detailed response to the probable non-compliance on October 24, 2024, met with PUCO several times to discuss this matter, and believes this matter will not have a material impact on the Company. In addition to the matters disclosed above, in the ordinary course of business, the Company may from time to time be subject to regulators initiating informal reviews or issuing subpoenas for information as means to evaluate the Company and its subsidiaries’ compliance with applicable laws, rules, regulations and practices. Although there can be no assurance in this regard, the Company does not expect any of those regulatory reviews to have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Indirect Tax Audits We are undergoing various types of indirect tax audits spanning from years 2020 to 2024 for which additional liabilities may arise. At the time of filing these consolidated financial statements, these indirect tax audits are at an early stage and subject to substantial uncertainties concerning the outcome of audit findings and corresponding responses. As of December 31, 2024 and December 31, 2023 we had accrued $11.9 million and $6.3 million, respectively, related to litigation and regulatory matters and $0.8 million and $0.7 million, respectively, related to indirect tax audits. The accrual for litigation and regulatory matters, and indirect tax audit is recorded in accrued liabilities on the balance sheet. The outcome of each of these may result in additional expense.
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Transactions with Affiliates |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions with Affiliates | 14. Transactions with Affiliates Transactions with Affiliates We enter into transactions with and pay certain costs on behalf of affiliates that are commonly controlled in order to reduce risk, reduce administrative expense, create economies of scale, create strategic alliances and supply goods and services to these related parties. We also sell and purchase natural gas and electricity with affiliates. We present receivables and payables with the same affiliate on a net basis in the consolidated balance sheets as all affiliate activity is with parties under common control. Affiliated transactions include certain services to the affiliated companies associated with employee benefits provided through our benefit plans, insurance plans, leased office space, administrative salaries, due diligence work, recurring management consulting, and accounting, tax, legal, or technology services. Amounts billed are based on the services provided, departmental usage, or headcount, which are considered reasonable by management. As such, the accompanying consolidated financial statements include costs that have been incurred by us and then directly billed or allocated to affiliates, as well as costs that have been incurred by our affiliates and then directly billed or allocated to us, and are recorded net in general and administrative expense on the consolidated statements of operations with a corresponding accounts receivable—affiliates or accounts payable—affiliates, respectively, recorded in the consolidated balance sheets. Transactions with affiliates for sales or purchases of natural gas and electricity, are recorded in retail cost of revenues, and net asset optimization revenues in the consolidated statements of operations with a corresponding accounts receivable—affiliate or accounts payable—affiliate recorded in the consolidated balance sheets. The following tables presents asset and liability balances with affiliates (in thousands):
(1) The Subordinated Debt Facility allows us to draw advances in increments of no less than $1.0 million per advance up to the maximum principal amount of the Subordinated Debt Facility, subject to Retailco’s discretion. Advances thereunder accrue interest at an annual rate equal to the prime rate as published by the Wall Street Journal plus two percent (2.0%) from the date of the advance. See Note 9 "Debt" for a further description of terms and conditions of the Subordinated Debt Facility. The following table presents revenues and cost of revenues recorded in net asset optimization revenue associated with affiliates for the periods indicated (in thousands):
The Company's retail cost of revenue include gains/(losses) related to derivative instruments transactions with affiliates. For the years ended December 31, 2024, 2023 and 2022, respectively, we recognized gain of $1.1 million, $0.5 million and zero and in retail cost of revenue related to derivative instruments settlements. Cost Allocations Where costs incurred on behalf of the affiliate or us cannot be determined by specific identification for direct billing, the costs are allocated to the affiliated entities or us based on estimates of percentage of departmental usage, wages or headcount. The total net amount direct billed and allocated to/(from) affiliates was $(4.3) million, $1.5 million and $2.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. The Company would have incurred incremental costs of $1.5 million, $1.5 million and $1.6 million for the years ended December 31, 2024, 2023 and 2022, respectively, operating on a stand-alone basis. Distributions to and Contributions from Affiliates During the years ended December 31, 2024, 2023 and 2022, we made distributions to affiliates of Mr. Maxwell of zero , $3.6 million and $14.5 million, respectively, for payments of quarterly distributions on their respective Spark HoldCo units. During the years ended December 31, 2024, 2023 and 2022, we also made distributions to these affiliates for gross-up distributions of $6.6 million, $0.7 million, and $0.1 million, respectively, in connection with distributions made between Spark HoldCo and Via Renewables, Inc. for payment of income taxes incurred by us. On June 13, 2024, we consummated the previously announced Merger, following which Mr. Maxwell and his affiliates became the owners of all of the issued and outstanding shares of the Company's Class A common stock and Class B common stock. For a more detailed description of the Merger, please see Note 2. Basis of Presentation and Summary of Significant Accounting Policies” in the notes to our condensed consolidated financial statements. As a result of the Merger, all of the Company’s outstanding restricted stock units were converted into $11.00 per share (other than those owned by Mr. Maxwell, which were cancelled for no consideration). The total payout for the settlement of restricted stock units was $0.6 million, which was paid by Retailco. This was recorded as contribution from non-controlling interest for the year ended December 31, 2024. Spark HoldCo Distribution As discussed in Note 4 – Equity, on December 31, 2024, Spark HoldCo distributed $5.0 million in cash to the non-controlling interest holder, and the non-controlling interest holder transferred 206,273 shares of Class B common stock to the Company. Subordinated Debt Facility The Company maintains an Amended and Restated Subordinated Promissory Note in the principal amount of up to $25.0 million (the “Subordinated Debt Facility”), by and among the Company, Spark HoldCo and Retailco. The Subordinated Debt Facility allows the Company to draw advances in increments of no less than $1.0 million per advance up to $25.0 million through January 31, 2028. In connection with entering into the First Amendment to the Credit Agreement, the Company entered into an amended and restated subordinated promissory note with Spark HoldCo and Retailco, which extends the maturity date of the note to January 31, 2028. Borrowings are at the discretion of Retailco. Advances thereunder accrue interest at an annual rate equal to the prime rate as published by the Wall Street Journal plus two percent (2.0%) from the date of the advance. As of December 31, 2024 and 2023, there were zero outstanding borrowings under the Subordinated Debt Facility. See Note 9 "Debt" for a further description of terms and conditions of the Subordinated Debt Facility.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | 15. Segment Reporting Our reportable business segments are retail electricity and retail natural gas. The retail electricity segment consists of electricity sales and transmission to residential and commercial customers. The retail natural gas segment consists of natural gas sales to, and natural gas transportation and distribution for, residential and commercial customers. The Chief Executive Officer, who is also the Chief Operating Decision Maker (“CODM”), determines the reportable business segments by considering the strategic operating units used to make financial decisions, allocate resources and assess performance of our business. For the years ended December 31, 2024, 2023 and 2022, we recorded asset optimization revenues of $23.0 million, $24.6 million and $86.7 million and asset optimization cost of revenues of $25.3 million, $31.9 million and $89.0 million, respectively, which are presented on a net basis in asset optimization revenues. The primary metric used by the CODM in managing the Company, assessing segment performance, and allocating resources is retail gross margin. We use retail gross margin to assess the performance of our operating segments. We define retail gross margin as gross profit less (i) net asset optimization (expenses) revenues, (ii) net (losses) gains on non-trading derivative instruments, (iii) net current period cash settlements on non-trading derivative instruments, and (iv) gains (losses) from non-recurring events (including non-recurring market volatility). We deduct net gains (losses) on non-trading derivative instruments, excluding current period cash settlements, from the retail gross margin calculation in order to remove the non-cash impact of net gains and losses on these derivative instruments. We deduct net gains (losses) from non-recurring events (including non-recurring market volatility) to ensure retail gross margin reflects operating performance that is not distorted by non-recurring events or extreme market volatility. Retail gross margin should not be considered an alternative to, or more meaningful than, operating income (loss), as determined in accordance with GAAP. The Company’s CODM reviews significant expenses on a consolidated level. Financial data for business segments are as follows (in thousands):
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments, current period settlements on non-trading activities and non recurring event. Significant Customers For each of the years ended December 31, 2024, 2023 and 2022, we did not have any significant customers that individually accounted for more than 10% of our consolidated retail revenue. Significant Suppliers For each of the years ended December 31, 2024, 2023 and 2022, we had two, two, and three significant suppliers that individually accounted for more than 10% of our consolidated retail cost of revenues. For each of the years ended December 31, 2024, 2023 and 2022, these suppliers accounted for 35%, 28% and 61% of our consolidated cost of revenue.
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Customer Acquisitions |
12 Months Ended |
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Dec. 31, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Customer Acquisitions | 16. Customer Acquisitions Acquisition of Customer Books In August 2022, we entered into an agreement to acquire up to approximately 18,700 RCEs and derivatives related to the customer load under a five-year contingent fee structure based on gas volumes billed and collected for the acquired customer contracts. The customers transferred in the fourth quarter of 2022, and are located in our existing markets. In April 2024, we entered into an asset purchase agreement to acquire up to approximately 12,556 RCEs for a cash purchase price of up to a maximum of $2.3 million. These customers began transferring in June of 2024, and were in our existing markets. During the twelve months ended December 31, 2024, approximately 9,300 RCEs were transferred. As part of the acquisition, we funded an escrow account, the balance of which is reflected as restricted cash in our consolidated balance sheet. As we acquired customers, we made payments to the sellers from the escrow account. As of December 31, 2024, we've completed this acquisition. The balance in the escrow account was $0.4 million as of December 31, 2024, which will be returned to the Company in the first quarter of 2025. In October 2024, we entered into two asset purchase agreements to acquire up to 100,600 RCEs for a cash purchase price of up to a maximum $16.9 million paid in cash or funded into escrow accounts. These customers are located in our existing markets and began transferring in December of 2024 and January of 2025. As we acquire customers under these acquisition agreements, we will make payments to the sellers from the escrow accounts. Funds from the escrow account will be released to the sellers as acquired customers transfer from the sellers to the Company in accordance with the asset purchase agreement, and any unallocated balance will be returned to the Company once the acquisitions are complete. During the twelve months ended December 31, 2024, approximately 72,700 RCEs were transferred. As of December 31, 2024, the balance is the escrow accounts is $15.5 million. Acquisition of Broker Books In January 2022, we entered into an asset purchase agreement and agreed to acquire the rights to broker contracts for approximately 1,000 customer meters for a cash price of $0.4 million, which was paid upon execution of the contract. In January 2022, we entered into an asset purchase agreement to acquire the rights to broker contracts for approximately 900 customer meters for a cash price of $0.6 million, pending certain conditions to close. We paid approximately $0.3 million as a deposit at the time the asset purchase agreement was executed. The conditions to close were met in June 2022, at which time approximately $0.3 million was paid to the seller.
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events Declaration of Dividends On January 15, 2025, we declared a quarterly cash dividend in the amount of $0.69635 per share to holders of record of the Series A Preferred Stock on April 1, 2025. The dividend will be paid on April 15, 2025. Series A Preferred Stock Tender offer On February 19, 2025 we purchased 6,353 shares of our Series A Preferred Stock at a purchase price of $22.50 per share, in cash, less applicable withholding taxes and without interest, pursuant to a tender offer for the Series A Preferred Stock commenced in January 2025. On February 27, 2025, we initiated a tender offer to purchase up to 200,000 shares of our Series A Preferred Stock for a purchase price of $24.00 per share, in cash. The number of shares proposed to be purchased represents approximately 5.9% of the outstanding Series A Preferred Stock. The tender offer will expire on Friday, March 28, 2025. If 200,000 shares of Series A Preferred Stock are tendered and purchased pursuant to the tender offer, the aggregate purchase price will be approximately $4.8 million.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
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Pay vs Performance Disclosure | |||
Net income attributable to Via Renewables, Inc. stockholders | $ 28,255 | $ 14,975 | $ 7,578 |
Insider Trading Arrangements |
3 Months Ended |
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Dec. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Procedures |
12 Months Ended |
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Dec. 31, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
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Dec. 31, 2024 | |
Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | Via Renewables, Inc. recognizes the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of our data. Managing Material Risks & Integrated Overall Risk Management Via Renewables, Inc. has strategically integrated cybersecurity risk management into our broader risk management framework to promote a company-wide culture of cybersecurity risk management. This integration ensures that cybersecurity considerations are an integrated part of our decision-making processes at every level. Our risk management team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. Engage Third parties on Risk Management Recognizing the complexity and evolving nature of cybersecurity threats, Via Renewables, Inc. engages with a range of external experts, including cybersecurity assessors, consultants and auditors in evaluating and testing our risk management systems. These partnerships enable us to leverage specialized knowledge and insights, ensuring our cybersecurity strategies and processes remain at the forefront of industry best practices. Oversee Third-party Risk Because we are aware of the risks associated with third-party service providers, Via Renewables, Inc. implements stringent processes to oversee and manage these risks. We conduct thorough security assessments of all third-party providers before engagement and maintain ongoing monitoring to ensure compliance with our cybersecurity standards. This approach is designed to mitigate risks related to data breaches or other security incidents originating from third parties. Risks from Cybersecurity Threats We have not encountered cybersecurity challenges that have materially impaired our operations or financial standing.
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Cybersecurity Risk Management Processes Integrated [Flag] | true |
Cybersecurity Risk Management Processes Integrated [Text Block] | Via Renewables, Inc. has strategically integrated cybersecurity risk management into our broader risk management framework to promote a company-wide culture of cybersecurity risk management. This integration ensures that cybersecurity considerations are an integrated part of our decision-making processes at every level. Our risk management team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. |
Cybersecurity Risk Management Third Party Engaged [Flag] | true |
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false |
Cybersecurity Risk Board of Directors Oversight [Text Block] | The Board of Directors is acutely aware of the critical nature of managing risks associated with cybersecurity threats. The Board has established a robust oversight mechanism to ensure effective governance in managing risks associated by cybersecurity threats because we recognize the significant of these threats to our operations integrity and stakeholder confidence. Board of Directors Oversight The Audit Committee is central to the Board’s oversight of cybersecurity risks and bears the primary responsibility for this domain. The Audit Committee is composed of board members with diverse expertise including, risk management, technology, and finance, equipping them to oversee cybersecurity risks effectively. Management’s Role Managing Risk The Chief Operating Officer plays a pivotal role in informing the Audit Committee on cybersecurity risks. The Chief Operating Officer provides comprehensive briefings to the Audit Committee on a regulatory basis, with a minimum frequency of once per year. These briefings encompass a broad range of topics including: •Current cybersecurity landscape and emerging threats; •Status of ongoing cybersecurity initiatives and strategies; •Incident reports and learnings from any cybersecurity events; and •Compliance with regulatory requirements and industry standards. In addition to our scheduled meetings, the Audit Committee and Chief Operating Officer maintain an ongoing dialogue regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity domain, ensuring the Board’s oversight is proactive and responsive. The Audit Committee actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives. This involvement ensures that cybersecurity considerations are integrated into the broader strategic objectives of Via Renewables, Inc. The Audit Committee conducts an annual review of the Company’s cybersecurity program and the effectiveness of its risk management strategies. This review helps in identifying areas for improvement and ensuring the alignment of cybersecurity efforts with the overall risk management framework. Risk Management Personnel Primary responsibility for assessing, monitoring and managing our cybersecurity risk rests with the Director of Infrastructure. With over 27 years of experience in the field of cybersecurity, the Director of Infrastructure brings a wealth of expertise to his role. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our Director of Infrastructure oversees our governance programs, tests our compliance with standards, remediates known risks, and leads our employee training program. Monitor Cybersecurity Incidents The Director of Infrastructure is continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques. This ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. The Director of Infrastructure implements and oversees processes for the regulatory monitoring of our information systems. This includes the deployment of advanced security measures and regular system audits to identify potential vulnerabilities. In the event of a cybersecurity incident, the Director of Infrastructure is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents. Reporting to the Board of Directors The Director of Infrastructure, in his capacity, regularly informs the Chief Financial Officer (CFO) and Chief Operating Officer (COO) of all aspects related to cybersecurity risks and incidents. The CFO and COO regularly inform the Chief Executive Officer (CEO) of such risk and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks facing Via Renewables, Inc. Furthermore, significant cybersecurity mattes, and strategic risk management decisions are escalated to the Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues.
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Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | The Audit Committee is central to the Board’s oversight of cybersecurity risks and bears the primary responsibility for this domain. The Audit Committee is composed of board members with diverse expertise including, risk management, technology, and finance, equipping them to oversee cybersecurity risks effectively. |
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | The Chief Operating Officer plays a pivotal role in informing the Audit Committee on cybersecurity risks. The Chief Operating Officer provides comprehensive briefings to the Audit Committee on a regulatory basis, with a minimum frequency of once per year. These briefings encompass a broad range of topics including: •Current cybersecurity landscape and emerging threats; •Status of ongoing cybersecurity initiatives and strategies; •Incident reports and learnings from any cybersecurity events; and •Compliance with regulatory requirements and industry standards. In addition to our scheduled meetings, the Audit Committee and Chief Operating Officer maintain an ongoing dialogue regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity domain, ensuring the Board’s oversight is proactive and responsive. The Audit Committee actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives. This involvement ensures that cybersecurity considerations are integrated into the broader strategic objectives of Via Renewables, Inc. The Audit Committee conducts an annual review of the Company’s cybersecurity program and the effectiveness of its risk management strategies. This review helps in identifying areas for improvement and ensuring the alignment of cybersecurity efforts with the overall risk management framework.
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Cybersecurity Risk Role of Management [Text Block] | Management’s Role Managing Risk The Chief Operating Officer plays a pivotal role in informing the Audit Committee on cybersecurity risks. The Chief Operating Officer provides comprehensive briefings to the Audit Committee on a regulatory basis, with a minimum frequency of once per year. These briefings encompass a broad range of topics including: •Current cybersecurity landscape and emerging threats; •Status of ongoing cybersecurity initiatives and strategies; •Incident reports and learnings from any cybersecurity events; and •Compliance with regulatory requirements and industry standards. In addition to our scheduled meetings, the Audit Committee and Chief Operating Officer maintain an ongoing dialogue regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity domain, ensuring the Board’s oversight is proactive and responsive. The Audit Committee actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives. This involvement ensures that cybersecurity considerations are integrated into the broader strategic objectives of Via Renewables, Inc. The Audit Committee conducts an annual review of the Company’s cybersecurity program and the effectiveness of its risk management strategies. This review helps in identifying areas for improvement and ensuring the alignment of cybersecurity efforts with the overall risk management framework. Risk Management Personnel Primary responsibility for assessing, monitoring and managing our cybersecurity risk rests with the Director of Infrastructure. With over 27 years of experience in the field of cybersecurity, the Director of Infrastructure brings a wealth of expertise to his role. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our Director of Infrastructure oversees our governance programs, tests our compliance with standards, remediates known risks, and leads our employee training program. Monitor Cybersecurity Incidents The Director of Infrastructure is continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques. This ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. The Director of Infrastructure implements and oversees processes for the regulatory monitoring of our information systems. This includes the deployment of advanced security measures and regular system audits to identify potential vulnerabilities. In the event of a cybersecurity incident, the Director of Infrastructure is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents. Reporting to the Board of Directors The Director of Infrastructure, in his capacity, regularly informs the Chief Financial Officer (CFO) and Chief Operating Officer (COO) of all aspects related to cybersecurity risks and incidents. The CFO and COO regularly inform the Chief Executive Officer (CEO) of such risk and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks facing Via Renewables, Inc. Furthermore, significant cybersecurity mattes, and strategic risk management decisions are escalated to the Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues.
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Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | Management’s Role Managing Risk The Chief Operating Officer plays a pivotal role in informing the Audit Committee on cybersecurity risks. The Chief Operating Officer provides comprehensive briefings to the Audit Committee on a regulatory basis, with a minimum frequency of once per year. These briefings encompass a broad range of topics including: •Current cybersecurity landscape and emerging threats; •Status of ongoing cybersecurity initiatives and strategies; •Incident reports and learnings from any cybersecurity events; and •Compliance with regulatory requirements and industry standards. In addition to our scheduled meetings, the Audit Committee and Chief Operating Officer maintain an ongoing dialogue regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity domain, ensuring the Board’s oversight is proactive and responsive. The Audit Committee actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives. This involvement ensures that cybersecurity considerations are integrated into the broader strategic objectives of Via Renewables, Inc. The Audit Committee conducts an annual review of the Company’s cybersecurity program and the effectiveness of its risk management strategies. This review helps in identifying areas for improvement and ensuring the alignment of cybersecurity efforts with the overall risk management framework. Risk Management Personnel Primary responsibility for assessing, monitoring and managing our cybersecurity risk rests with the Director of Infrastructure. With over 27 years of experience in the field of cybersecurity, the Director of Infrastructure brings a wealth of expertise to his role. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our Director of Infrastructure oversees our governance programs, tests our compliance with standards, remediates known risks, and leads our employee training program. Monitor Cybersecurity Incidents The Director of Infrastructure is continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques. This ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. The Director of Infrastructure implements and oversees processes for the regulatory monitoring of our information systems. This includes the deployment of advanced security measures and regular system audits to identify potential vulnerabilities. In the event of a cybersecurity incident, the Director of Infrastructure is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents. Reporting to the Board of Directors The Director of Infrastructure, in his capacity, regularly informs the Chief Financial Officer (CFO) and Chief Operating Officer (COO) of all aspects related to cybersecurity risks and incidents. The CFO and COO regularly inform the Chief Executive Officer (CEO) of such risk and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks facing Via Renewables, Inc. Furthermore, significant cybersecurity mattes, and strategic risk management decisions are escalated to the Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues.
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Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | With over 27 years of experience in the field of cybersecurity, the Director of Infrastructure brings a wealth of expertise to his role. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our Director of Infrastructure oversees our governance programs, tests our compliance with standards, remediates known risks, and leads our employee training program. |
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | In addition to our scheduled meetings, the Audit Committee and Chief Operating Officer maintain an ongoing dialogue regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity domain, ensuring the Board’s oversight is proactive and responsive. The Audit Committee actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives. This involvement ensures that cybersecurity considerations are integrated into the broader strategic objectives of Via Renewables, Inc. The Audit Committee conducts an annual review of the Company’s cybersecurity program and the effectiveness of its risk management strategies. This review helps in identifying areas for improvement and ensuring the alignment of cybersecurity efforts with the overall risk management framework.
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Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Dec. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Our financial statements are presented on a consolidated basis and include all wholly-owned and controlled subsidiaries. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. All significant intercompany transactions and balances have been eliminated in the consolidated financial statements. In the opinion of the Company's management, the accompanying consolidated financial statements reflect all adjustments that are necessary to fairly present the financial position, the results of operations, the changes in equity and the cash flows of the Company for the respective periods. Such adjustments are of a normal recurring nature, unless otherwise disclosed.
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Subsequent Events | Subsequent Events Subsequent events have been evaluated through the date these financial statements are issued. Any material subsequent events that occurred prior to such date have been properly recognized or disclosed in the consolidated financial statements.
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Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could materially differ from those estimates.
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Relationship with our Founder, Sole Common Stock Shareholder, and Chief Executive Officer | Relationship with our Founder, Sole Common Stock Shareholder, and Chief Executive Officer W. Keith Maxwell, III is the Chief Executive Officer, a director, and the owner of all of the voting power of our common stock through his ownership of Retailco, LLC (“Retailco”). Retailco is a wholly owned subsidiary of TxEx Energy Investments, LLC (“TxEx”), which is wholly owned by Mr. Maxwell. We enter into transactions with and pay certain costs on behalf of affiliates that are commonly controlled by Mr. Maxwell, and these affiliates enter into transactions with and pay certain costs on our behalf. We undertake these transactions in order to reduce risk, reduce administrative expense, create economies of scale, create strategic alliances and supply goods and services among these related parties. These transactions include, but are not limited to, employee benefits provided through the Company’s benefit plans, insurance plans, leased office space, certain administrative salaries, management due diligence, recurring management consulting, and accounting, tax, legal, or technology services. Amounts billed under these arrangements are based on services provided, departmental usage, or headcount, which are considered reasonable by management. As such, the accompanying consolidated financial statements include costs that have been incurred by the Company and then directly billed or allocated to affiliates, and costs that have been incurred by our affiliates and then directly billed or allocated to us, and are recorded net in general and administrative expense on the consolidated statements of operations with a corresponding accounts receivable—affiliates or accounts payable—affiliates, respectively, recorded in the consolidated balance sheets. Additionally, the Company enters into transactions with certain affiliates for sales or purchases of natural gas and electricity, which are recorded in retail revenues, retail cost of revenues, and net asset optimization revenues in the consolidated statements of operations with a corresponding accounts receivable—affiliate or accounts payable—affiliate in the consolidated balance sheets. The allocations and related estimates and assumptions are described more fully in Note 14 "Transactions with Affiliates." On June 13, 2024, we consummated the previously announced Merger contemplated by that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 29, 2023, by and among the Company, Retailco, and Merger Sub, pursuant to which Merger Sub was merged with and into the Company, with the Company continuing as the surviving corporation in the Merger, following which Mr. Maxwell and his affiliates became the owners of all of the issued and outstanding shares of the Company's Class A common stock and Class B common stock. As a result, each previously outstanding share of Class A common stock was converted into the right to receive $11.00 per share at the closing of the Merger (other than: (i) shares of Class A common stock held (a) by the Company or any subsidiary of the Company, or (b) held or beneficially owned by Mr. Maxwell and any person or entity controlled by Mr. Maxwell, including Retailco, Merger Sub and NuDevco Retail, and other than certain dissenting shares). As a result of the Merger, all of the Company’s outstanding restricted stock units were converted into $11.00 per share (other than those owned by Mr. Maxwell, which were cancelled for no consideration). Effective as of the end of trading on June 13, 2024, the Class A common stock ceased to trade on NASDAQ.
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all unrestricted demand deposits and funds invested in highly liquid instruments with original maturities of three months or less. The Company periodically assesses the financial condition of the institutions where these funds are held and believes that its credit risk is minimal with respect to these institutions.
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Restricted Cash | Restricted Cash As part of the customer acquisitions in April 2024 and October 2024, we funded an escrow account, the balance of which is reflected as restricted cash in our consolidated balance sheet. As we acquire customers and other conditions of the asset purchase agreement are met, we make payments to the sellers from the escrow account. As of December 31, 2024, the balance in the escrow account was $15.9 million. See Note 16 "Customer Acquisitions" for further discussion. As of December 31 2024, we have $1.2 million in escrow account related to Maine regulatory settlement. See Note 13. "Commitments and Contingencies" for further discussion.
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Inventory | Inventory Inventory primarily consists of natural gas used to fulfill and manage seasonality for fixed and variable-price retail customer load requirements and is valued at the lower of weighted average cost or net realizable value. Purchased natural gas costs are recognized in the consolidated statements of operations, within retail cost of revenues, when the natural gas is sold and delivered out of the storage facility using the weighted average cost of the gas sold. As of December 31, 2024 and 2023, the Company also holds approximately $0.1 million and $0.5 million, respectively of wireless device inventory which is valued at the lower of cost or net realizable value.
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Customer Acquisition Costs | Customer Acquisition Costs The Company capitalizes direct response advertising costs that consist primarily of hourly and commission-based telemarketing costs, door-to-door agent commissions and other direct advertising costs associated with proven customer generation in its balance sheet. These costs are amortized over to two years. As of December 31, 2024 and 2023, the net customer acquisition costs were $9.2 million and $7.0 million, respectively, of which $7.1 million and $5.2 million were recorded in current assets, and $2.1 million and $1.8 million were recorded in non-current assets. Amortization of customer acquisition costs was $7.1 million, $4.8 million, and $2.1 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is recorded in depreciation and amortization in the Consolidated Statements of Operations. Customer acquisition costs do not include customer acquisitions through merger and acquisition activities, which are recorded as customer relationships. Recoverability of customer acquisition costs is evaluated based on a comparison of the carrying amount of such costs to the future net cash flows expected to be generated by the customers acquired, considering specific assumptions for customer attrition, per unit gross profit, and operating costs. These assumptions are based on forecasts and historical experience.
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Customer Relationships and Trademarks | Customer Relationships Customer contracts recorded as part of mergers or acquisitions are reflected as customer relationships in our balance sheet. The Company has recorded capitalized customer relationship of $8.0 million and $0.3 million, net of amortization, as current assets as of December 31, 2024 and 2023, respectively, and $3.5 million and $0.1 million, net of amortization, as non-current assets as of December 31, 2024 and 2023, respectively, related to these intangible assets. These intangibles are amortized on a straight-line basis over the estimated average life of the related customer contracts acquired, which ranges from eighteen months to three years. The acquired customer relationships intangibles are reflective of the acquired companies’ customer base, and were valued at the respective dates of acquisition using an excess earnings method under the income approach. Using this method, the Company estimated the future cash flows resulting from the existing customer relationships, considering attrition as well as charges for contributory assets, such as net working capital, fixed assets, and assembled workforce. These future cash flows were then discounted using an appropriate risk-adjusted rate of return by retail unit to arrive at the present value of the expected future cash flows. Customer relationships are amortized to depreciation and amortization based on the expected future net cash flows by year, bifurcated between hedged and unhedged and amortized to depreciation and amortization based on the expected future cash flows by year and expensed to retail cost of revenue based on the expected term of the underlying fixed price contract in each reporting period, respectively. During the twelve months ended December 31, 2022, the Company changed the estimated average life for Customer Relationships — Other from three years to eighteen months resulting in approximately $0.9 million of additional amortization recorded in the twelve months ended December 31, 2022. Customer relationship amortization expense was $0.8 million, $2.5 million, and $12.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. We review customer relationships for impairment whenever events or changes in business circumstances indicate the carrying value of the intangible assets may not be recoverable. Impairment is indicated when the undiscounted cash flows estimated to be generated by the intangible assets are less than their respective carrying value. If an impairment exists, a loss is recognized for the difference between the fair value and carrying value of the intangible assets.Trademarks We record trademarks as part of our acquisitions which represent the value associated with the recognition and positive reputation of an acquired company to its target markets. This value would otherwise have to be internally developed through significant time and expense or by paying a third party for its use. These intangibles are amortized over the estimated ten-year life of the trademark on a straight-line basis. The fair values of trademark assets were determined at the date of acquisition using a royalty savings method under the income approach. Under this approach, the Company estimates the present value of expected cash flows resulting from avoiding royalty payments to use a third party trademark. The Company analyzes market royalty rates charged for licensing trademarks and applied an expected royalty rate to a forecast of estimated revenue, which was then discounted using an appropriate risk adjusted rate of return. As of December 31, 2024 and 2023, we had recorded $2.0 million and $2.4 million related to these trademarks in other assets. Amortization expense was $0.4 million, $0.4 million, and $0.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. We review trademarks for impairment whenever events or changes in business circumstances indicate the carrying value of the intangible assets may not be recoverable. Impairment is indicated when the undiscounted cash flows estimated to be generated by the intangible assets are less than their respective carrying value. If an impairment exists, a loss is recognized for the difference between the fair value and carrying value of the intangible assets.
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Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense using the straight-line method over the life of the related long-term debt. These costs are included in other assets in our consolidated balance sheets.
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Property and Equipment | Property and Equipment The Company records property and equipment at historical cost. Depreciation expense is recorded on a straight-line method based on estimated useful lives, which range from 2 to 7 years, along with estimates of the salvage values of the assets. When items of property and equipment are sold or otherwise disposed of, any gain or loss is recorded in the consolidated statements of operations.
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Internal-Use Software | The Company capitalizes costs associated with certain of its internal-use software projects. Costs capitalized are those incurred during the application development stage of projects such as software configuration, coding, installation of hardware and testing. Costs incurred during the preliminary or post-implementation stage of the project are expensed in the period incurred, including costs associated with formulation of ideas and alternatives, training and application maintenance. After internal-use software projects are completed, the associated capitalized costs are depreciated over the estimated useful life of the related asset. Interest costs incurred while developing internal-use software projects are also capitalized. |
Goodwill | Goodwill Goodwill represents the excess of cost over fair value of the assets of businesses acquired in accordance with FASB ASC Topic 350 Intangibles-Goodwill and Other ("ASC 350"). The goodwill on our consolidated balance sheet as of December 31, 2024 is associated with both our Retail Natural Gas and Retail Electricity segments. We determine our segments, which are also considered our reporting units, by identifying each unit that engaged in business activities from which it may earn revenues and incur expenses, had operating results regularly reviewed by the segment manager for purposes of resource allocation and performance assessment, and had discrete financial information. Goodwill is not amortized, but rather is assessed for impairment whenever events or circumstances indicate that impairment of the carrying value of goodwill is likely, but no less often than annually as of October 31. We compare our estimate of the fair value of the reporting unit with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, we would recognize a goodwill impairment loss for the amount by which the reporting unit's carrying value exceeds its fair value. In accordance with our accounting policy, we completed our annual assessment of goodwill impairment as of October 31, 2024 during the fourth quarter of 2024, using a quantitative assessment approach, and the test indicated no impairment.
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Treasury Stock | Treasury Stock Treasury stock consists of Company's own common stock that has been issued, but subsequently reacquired by the Company. Treasury stock does not reduce the number of shares issued but does reduce the number of shares outstanding. These shares are not eligible to receive cash dividends. We use the cost method to account for treasury shares. As of the date of the Merger, the number of shares of treasury stock was reduced to zero.
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Revenues and Cost of Revenues | Revenues and Cost of Revenues Our revenues are derived primarily from the sale of natural gas and electricity to customers, including affiliates. Revenues are recognized by the Company based on consideration specified in contracts with customers when performance obligations are satisfied by transferring control over products to a customer. Utilizing these criteria, revenue is recognized when the natural gas or electricity is delivered to the customer. Similarly, cost of revenues is recognized when the commodity is delivered. Revenues for natural gas and electricity sales are recognized under the accrual method. Natural gas and electricity sales that have been delivered but not billed by period end are estimated. Accrued unbilled revenues are based on estimates of customer usage since the date of the last meter read provided by the utility. Volume estimates are based on forecasted volumes and estimated customer usage by class. Unbilled revenues are calculated by multiplying these volume estimates by the applicable rate by customer class. Estimated amounts are adjusted when actual usage is known and billed. Costs for natural gas and electricity sales are similarly recognized under the accrual method. Natural gas and electricity costs that have not been billed to the Company by suppliers but have been incurred by period end are estimated. The Company estimates volumes for natural gas and electricity delivered based on the forecasted revenue volumes, estimated transportation cost volumes and estimation of other costs associated with retail load that varies by commodity utility territory. These costs include items like ISO fees, ancillary services and renewable energy credits. Estimated amounts are adjusted when actual usage is known and billed. Our asset optimization activities, which primarily include natural gas physical arbitrage and other short term storage and transportation transactions, meet the definition of trading activities and are recorded on a net basis in the consolidated statements of operations in net asset optimization revenues. The Company recorded asset optimization revenues, primarily related to physical sales or purchases of commodities, of $23.0 million, $24.6 million and $86.7 million for the years ended December 31, 2024, 2023 and 2022, respectively, and recorded asset optimization costs of revenues of $25.3 million, $31.9 million and $89.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, which are presented on a net basis in asset optimization revenues in the Consolidated Statements of Operations. Other revenue is derived from contracts with customers through the provision of wireless and other services and the sale of wireless equipment. These revenues are recognized under the accrual method, over time as wireless and other services are provided and at the time of delivery of wireless equipment. Costs for wireless and other services and the sale of wireless equipment are similarly recognized on the accrual basis, including costs to procure wireless data and wireless devices.
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Natural Gas Imbalances | Natural Gas Imbalances The consolidated balance sheets include natural gas imbalance receivables and payables, which primarily result when customers consume more or less gas than has been delivered by the Company to local distribution companies (“LDCs”). The settlement of natural gas imbalances varies by LDC, but typically the natural gas imbalances are settled in cash or in kind on a monthly, quarterly, semi-annual or annual basis. The imbalances are valued at their estimated net realizable value.
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Derivative Instruments | Derivative Instruments The Company uses derivative instruments such as futures, swaps, forwards and options to manage the commodity price risks of its business operations. All derivatives are recorded in the consolidated balance sheets at fair value. Derivative instruments representing unrealized gains are reported as derivative assets while derivative instruments representing unrealized losses are reported as derivative liabilities. We offset amounts in the consolidated balance sheets for derivative instruments executed with the same counterparty where we have a master netting arrangement. As part of our asset optimization activities, we manage a portfolio of commodity derivative instruments held for trading purposes. Changes in fair value of and amounts realized upon settlements of derivatives instruments held for trading purposes are recognized in earnings in net asset optimization revenues. To manage the retail business, the Company holds derivative instruments that are not for trading purposes and are not designated as hedges for accounting purposes. Changes in the fair value of and amounts realized upon settlement of derivative instruments not held for trading purposes are recognized in retail costs of revenues. Derivative assets and liabilities are presented net in our consolidated balance sheets when the derivative instruments are executed with the same counterparty under a master netting arrangement. Our derivative contracts include transactions that are executed both on an exchange and centrally cleared, as well as over-the-counter, bilateral contracts that are transacted directly with third parties. To the extent we have paid or received collateral related to the derivative assets or liabilities, such amounts would be presented net against the related derivative asset or liability’s fair value.
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Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes where deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in those years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. Amounts owed or refundable on current year returns is included as a current payable or receivable in the consolidated balance sheet. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. The Company recognizes interest and penalties related to unrecognized tax benefits within the provision for income taxes on continuing operations in our consolidated statements of operations. During the year ended December 31, 2024 and 2023 our accrued liabilities included income tax payable of $1.5 million and $2.5 million, respectively. During the year ended December 31, 2024 and 2023 our other current assets included income tax receivable of $5.4 million and $2.1 million, respectively.
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Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to stockholders (the numerator) by the weighted-average number of Class A common shares outstanding for the period (the denominator). Class B common shares are not included in the calculation of basic earnings per share because they are not participating securities and have no economic interests. Diluted earnings per share is similarly calculated except that the denominator is increased by potentially dilutive securities. We use the treasury stock method to determine the potential dilutive effect of our outstanding unvested restricted stock units and use the if-converted method to determine the potential dilutive effect of our Class B common stock.
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Non-controlling Interest | Non-controlling Interest Net income attributable to non-controlling interest represents the Class B Common stockholders' interest in income and expenses of the Company. The weighted average ownership percentages for the applicable reporting period are used to allocate the income (loss) before income taxes to each economic interest owner.
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Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.
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Recently adopted accounting pronouncements and New Accounting Standards Being Evaluated/Standards Not yet adopted | Recently adopted accounting pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, requiring public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. The amendments in the ASU improve reportable segment disclosures by adding and enhancing annual and interim disclosure requirements, clarifying circumstances in which entities can disclose multiple segment measures of profit or loss, providing new segment disclosure requirements for entities with a single reportable segment, and adding other disclosure requirements. We adopted ASU 2023-07 effective January 1, 2024, and the adoption of this standard did not have a material impact on the Company's consolidated financial statements. See Note 15. Segment Reporting Information in the accompanying notes to the consolidated financial statements for further detail. New Accounting Standards Being Evaluated/Standards Not yet adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires enhanced income tax disclosures, particularly related to a reporting entity's effective tax rate reconciliation and income taxes paid. For the rate reconciliation, the update requires additional categories of information about federal, state, and foreign taxes and details about significant reconciling items, subject to a quantitative threshold. Income taxes paid must be similarly disaggregated by federal, state, and foreign based on a quantitative threshold. The ASU will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply retrospectively. We are evaluating the impact of adoption on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). ASU 2024-03 seeks to improve information about cost of sales and selling, general, and administrative expenses to assist investors in better understanding an entity’s cost structure and forecasting future cash flows. The updated guidance is effective for the Company for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the effect of this update on its consolidated financial statements and related disclosures. The Company considers the applicability and impact of all ASUs. New ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.
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Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes the credit standing of counterparties involved and the impact of credit enhancements. We apply fair value measurements to our commodity derivative instruments based on the following fair value hierarchy, which prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels: •Level 1—Quoted prices in active markets for identical assets and liabilities. Instruments categorized in Level 1 primarily consist of financial instruments such as exchange-traded derivative instruments. •Level 2—Inputs other than quoted prices recorded in Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 primarily include non-exchange traded derivatives such as over-the-counter commodity forwards and swaps and options. •Level 3—Unobservable inputs for the asset or liability, including situations where there is little, if any, observable market activity for the asset or liability. The Level 3 category includes estimated earnout obligations related to our acquisitions. As the fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3), the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. These levels can change over time. In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy.
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregated Revenue | The table also includes a reconciliation of the disaggregated revenue to revenue by reportable segment (in thousands).
(a) The primary markets include the following states: •New England - Connecticut, Maine, Massachusetts and New Hampshire; •Mid-Atlantic - Delaware, Maryland (including the District of Columbia), New Jersey, New York and Pennsylvania and Virginia; •Midwest - Illinois, Indiana, Michigan and Ohio; and •Southwest - Arizona, California, Colorado, Florida, Nevada and Texas. (b) Unbilled revenue is recorded in total until it is actualized, at which time it is categorized between commercial and residential customers. (c) Retail Electricity includes services. Reconciliation to Consolidated Financial Information A reconciliation of the reportable segment operating revenues to consolidated revenues is as follows:
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Schedule of Accounts Receivable, Allowance for Credit Loss | A rollforward of our allowance for credit losses for the year ended December 31, 2024 is presented in the table below (in thousands):
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Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Economic Interests | The Company and affiliates owned the following economic interests in Spark HoldCo at December 31, 2024 and December 31, 2023, respectively.
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Schedule of Noncontrolling interest | The following table summarizes the effects of changes in the Company's ownership interest in Spark HoldCo's equity (in thousands):
The following table summarizes the portion of net income (loss) and income tax expense (benefit) attributable to non-controlling interest (in thousands):
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Schedule of Computation of Earnings (Loss) Per Share | The following table presents the computation of basic and diluted income (loss) per share for the years ended December 31, 2024, 2023, and 2022 (in thousands, except per share data):
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Schedule of Carrying Amounts and Classification of Variable Interest Entities | The following table includes the carrying amounts and classification of the assets and liabilities of Spark HoldCo that are included in our consolidated balance sheet as of December 31, 2024 and 2023 (in thousands):
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Preferred Stock (Tables) |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Preferred Equity Balance | A summary of our preferred equity balance for the years ended December 31, 2024 and 2023 is as follows:
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Derivative Instruments (Tables) |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Volumetric Underlying Derivative Transactions | The following table summarizes the net notional volumes of our open derivative financial instruments accounted for at fair value by commodity. Positive amounts represent net buys while bracketed amounts are net sell transactions (in thousands): Non-trading
Trading
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Schedule of Gains (Losses) on Derivative Instruments | Gains (losses) on derivative instruments, net and current period settlements on derivative instruments were as follows for the periods indicated (in thousands):
(1) Excludes settlements of $0.2 million related to acquisition, for the year ended December 31, 2022.
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Schedule of Offsetting Assets | The following tables summarize the fair value and offsetting amounts of our derivative instruments by counterparty and collateral received or paid (in thousands):
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Schedule of Offsetting Liabilities |
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Property and Equipment (Tables) |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands):
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Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill, Customer Relationships and Trademarks | Goodwill, customer relationships and trademarks consist of the following amounts (in thousands):
Changes in goodwill, customer relationships (including non-compete agreements) and trademarks consisted of the following (in thousands):
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Schedule of Estimated Future Amortization Expense | Estimated future amortization expense for customer relationships and trademarks at December 31, 2024 is as follows (in thousands):
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consists of the following amounts as of December 31, 2024 and 2023 (in thousands):
(1) As of December 31, 2024 and 2023, the weighted average interest rate on the Senior Credit Facility was 7.59% and 8.60%, respectively. (2) As of December 31, 2024 and 2023, we had $25.6 million and $24.3 million in letters of credit issued, respectively.
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Schedule of Components of Interest Expense | Interest expense consists of the following components for the periods indicated (in thousands):
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present assets and liabilities measured and recorded at fair value in our consolidated balance sheets on a recurring basis by and their level within the fair value hierarchy (in thousands):
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Classified Restricted Stock Unit Activity and Unvested Restricted Stock Units | The following table summarizes equity classified restricted stock unit activity for the year ended December 31, 2024:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2024, 2023, and 2022 included the following components:
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Schedule of Reconciliation of Income Tax Provision | The following table reconciles the income tax benefit that would result from application of the statutory federal tax rate, 21%, for the years ended December 31, 2024, 2023, and 2022 respectively, to the amount included in the consolidated statement of operations:
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Schedule of Deferred Tax Assets | The components of our deferred tax assets as of December 31, 2024 and 2023 are as follows:
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Transactions with Affiliates (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following tables presents asset and liability balances with affiliates (in thousands):
(1) The Subordinated Debt Facility allows us to draw advances in increments of no less than $1.0 million per advance up to the maximum principal amount of the Subordinated Debt Facility, subject to Retailco’s discretion. Advances thereunder accrue interest at an annual rate equal to the prime rate as published by the Wall Street Journal plus two percent (2.0%) from the date of the advance. See Note 9 "Debt" for a further description of terms and conditions of the Subordinated Debt Facility. The following table presents revenues and cost of revenues recorded in net asset optimization revenue associated with affiliates for the periods indicated (in thousands):
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Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Data for Business Segments | Financial data for business segments are as follows (in thousands):
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments, current period settlements on non-trading activities and non recurring event.
|
Revenues - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 2,469 | $ 3,442 | $ 6,865 |
Retail Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Gross receipts taxes | 1,100 | 1,000 | 1,300 |
Retail Cost of Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Gross receipts taxes | $ 5,600 | $ 5,200 | $ 5,200 |
Revenues - Schedule of Rollforward of Our Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Bad debt provision | $ 2,469 | $ 3,442 | $ 6,865 |
Trade Accounts Receivable | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | (4,496) | ||
Bad debt provision | (2,469) | ||
Write-offs | 4,150 | ||
Recovery of previous write offs | (135) | ||
Ending balance | $ (2,950) | $ (4,496) |
Equity - Change in NCI (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Class of Stock [Line Items] | |||
Net income attributable to Via Renewables, Inc. stockholders | $ 28,255 | $ 14,975 | $ 7,578 |
Decrease in Via Renewables additional paid in capital from the equity shift | (502) | ||
Net transfers (to) from non-controlling interest | (502) | ||
Changes from net income attributable to Via Renewables stockholders and transfers (to) from non-controlling interest | 27,753 | ||
Additional Paid-In Capital | |||
Class of Stock [Line Items] | |||
Decrease in Via Renewables additional paid in capital from the equity shift | $ (502) |
Equity - Schedule of Economic Interests (Details) - Spark Hold Co |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Class of Stock [Line Items] | ||
Economic interest | 48.20% | 44.92% |
Affiliated Owners | ||
Class of Stock [Line Items] | ||
Economic interest | 51.80% | 55.08% |
Equity - Schedule of Net Income and Income Tax Expense (Benefit) Attributable to Non-Controlling Interest (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Equity [Abstract] | |||
Net income allocated to non-controlling interest | $ 35,805 | $ 14,302 | $ 5,585 |
Less: Income tax expense allocated to non-controlling interest | 2,985 | 3,172 | 1,960 |
Less: Net income attributable to non-controlling interest | $ 32,820 | $ 11,130 | $ 3,625 |
Preferred Stock - Schedule of Preferred Equity Balance (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 88,065 | $ 87,713 |
Repurchase of Series A Preferred Stock | (4,545) | 0 |
Accumulated dividends on Series A Preferred Stock | (299) | 352 |
Ending balance | $ 83,221 | $ 88,065 |
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral paid | $ 0.0 | $ 5.2 |
Derivative Instruments - Schedule of Volumetric Underlying Derivative Transactions (Details) - Buy MWh in Thousands, MMBTU in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024
MMBTU
MWh
|
Dec. 31, 2023
MWh
MMBTU
|
|
Non-trading | Natural Gas | ||
Derivatives, Fair Value [Line Items] | ||
Net notional volume | 5,716 | 6,254 |
Non-trading | Electricity | ||
Derivatives, Fair Value [Line Items] | ||
Net notional volume | MWh | 987 | 1,029 |
Trading | Natural Gas | ||
Derivatives, Fair Value [Line Items] | ||
Net notional volume | 2,988 | 1,016 |
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total | $ 8,210 | $ 6,983 |
Accumulated depreciation | (2,979) | (2,273) |
Property and equipment—net | $ 5,231 | 4,710 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 2 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 7 years | |
Information technology | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 8,141 | 6,983 |
Information technology | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 2 years | |
Information technology | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 5 years | |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 7 years | |
Total | $ 69 | $ 0 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 1.1 | $ 1.4 | $ 1.7 |
Information technology | |||
Property, Plant and Equipment [Line Items] | |||
Assets not yet placed into service | $ 2.3 | $ 1.5 |
Intangible Assets - Schedule of Goodwill, Customer Relationships and Trademarks (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 120,343 | $ 120,343 | $ 120,343 | $ 120,343 |
Total | 13,540 | |||
Customer Relationships—Other, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | 12,852 | 968 | ||
Accumulated amortization | (1,332) | (487) | ||
Total | 11,520 | 481 | 2,800 | 8,751 |
Trademarks, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | 4,040 | 4,040 | ||
Accumulated amortization | (2,020) | (1,616) | ||
Total | $ 2,020 | $ 2,424 | $ 2,828 | $ 3,532 |
Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) $ in Thousands |
Dec. 31, 2024
USD ($)
|
---|---|
Year Ending December 31, | |
2025 | $ 8,424 |
2026 | 3,904 |
2027 | 404 |
2028 | 404 |
2029 | 404 |
> 5 years | 0 |
Total | $ 13,540 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Total long-term debt | $ 106,000 | $ 97,000 |
Total debt | 106,000 | 97,000 |
Letters of credit issued | 25,600 | 24,300 |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 0 | $ 0 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 7.59% | 8.60% |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 106,000 | $ 97,000 |
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Line of Credit Facility [Line Items] | |||
Letters of credit fees and commitment fees | $ 1,148 | $ 1,640 | $ 1,637 |
Amortization of deferred financing costs | 852 | 825 | 1,125 |
Interest expense | 6,943 | 9,334 | 7,204 |
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Senior Credit Facility | 4,891 | 6,802 | 4,333 |
Other | |||
Line of Credit Facility [Line Items] | |||
Senior Credit Facility | $ 52 | $ 67 | $ 109 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Credit risk valuation adjustment (less than) | $ 0.1 | $ 0.3 |
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Current: | |||
Federal | $ 4,372 | $ 4,028 | $ 3,045 |
State | 1,724 | 1,960 | 1,476 |
Total Current | 6,096 | 5,988 | 4,521 |
Deferred: | |||
Federal | 8,122 | 4,031 | 1,505 |
State | 2,041 | 1,123 | 457 |
Total Deferred | 10,163 | 5,154 | 1,962 |
Provision for income taxes | $ 16,259 | $ 11,142 | $ 6,483 |
Income Taxes - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 21.00% | 30.00% | 37.00% |
Income tax penalties and interest liability | $ 0 | $ 0 | |
Income tax penalties and interest expense | 0 | 0 | $ 0 |
Unrecognized tax benefits | $ 0 | $ 0 |
Income Taxes - Schedule of Income Tax Benefit Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Expected provision at federal statutory rate | $ 16,240 | $ 7,822 | $ 3,714 |
Increase (decrease) resulting from: | |||
Non-controlling interest | (6,600) | (2,090) | (963) |
Preferred Stock dividends | 1,692 | 1,596 | 1,198 |
State income taxes, net of federal income tax effect | 3,402 | 2,671 | 1,918 |
Prior year tax adjustments | (131) | 148 | |
Outside Tax basis Adjustment | 1,330 | 1,220 | 225 |
Penalties | 0 | 0 | 238 |
Other | 195 | 54 | 5 |
Provision for income taxes | $ 16,259 | $ 11,142 | $ 6,483 |
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Tax Assets: | ||
Investment in Spark HoldCo | $ 4,539 | $ 12,241 |
Derivative | 0 | 405 |
Fixed Assets and Intangibles | 1,673 | 2,047 |
Other | 172 | 685 |
Total deferred tax assets | 6,384 | 15,378 |
Deferred Tax Liabilities: | ||
Derivative Liabilities | (117) | 0 |
Other | (179) | (96) |
Total deferred tax liabilities | (296) | (96) |
Total deferred tax assets/liabilities | $ 6,088 | $ 15,282 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
May 21, 2024 |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Litigation And Regulatory Matters | |||
Loss Contingencies [Line Items] | |||
Contingent liabilities | $ 11.9 | $ 6.3 | |
Indirect Tax Audits | |||
Loss Contingencies [Line Items] | |||
Contingent liabilities | $ 0.8 | $ 0.7 | |
Notice of Violation and Assessment of Civil Penalty | |||
Loss Contingencies [Line Items] | |||
Settlement | $ 2.0 |
Segment Reporting - Narrative (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024
USD ($)
supplier
|
Dec. 31, 2023
USD ($)
supplier
|
Dec. 31, 2022
USD ($)
supplier
|
|
Segment Reporting [Abstract] | |||
Asset optimization revenue | $ 23.0 | $ 24.6 | $ 86.7 |
Asset optimization cost of revenues | $ 25.3 | $ 31.9 | $ 89.0 |
Cost of Revenue | |||
Concentration Risk [Line Items] | |||
Number of significant suppliers | supplier | 2 | 2 | 3 |
Cost of Revenue | Supplier Concentration Risk | Two Largest Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 35.00% | 28.00% | |
Cost of Revenue | Supplier Concentration Risk | Three Largest Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 61.00% |
Customer Acquisitions (Details) $ in Millions |
1 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Oct. 31, 2024
USD ($)
kWh
|
Apr. 30, 2024
USD ($)
kWh
|
Aug. 31, 2022
kWh
|
Jun. 30, 2022
USD ($)
|
Jan. 31, 2022
USD ($)
customer
|
Dec. 31, 2024
USD ($)
kWh
|
|
Residential Customer Equivalent | ||||||
Asset Acquisition [Line Items] | ||||||
Residential customer equivalent (in kwh) | kWh | 12,556 | 18,700 | 9,300 | |||
Period of contingency | 5 years | |||||
Payments to acquire assets | $ 2.3 | |||||
Escrow deposit | $ 0.4 | |||||
Broker Contracts | ||||||
Asset Acquisition [Line Items] | ||||||
Number of customers | customer | 1,000 | |||||
Asset acquisition, broker contract cash price | $ 0.4 | |||||
Rights to Broker Contracts | ||||||
Asset Acquisition [Line Items] | ||||||
Payments to acquire assets | $ 0.3 | |||||
Number of customers | customer | 900 | |||||
Asset acquisition, consideration | $ 0.6 | |||||
Asset acquisition, consideration, deposit | $ 0.3 | |||||
Residential Customer Equivalent, Two Purchase Agreements | ||||||
Asset Acquisition [Line Items] | ||||||
Residential customer equivalent (in kwh) | kWh | 100,600 | 72,700 | ||||
Payments to acquire assets | $ 16.9 | |||||
Escrow deposit | $ 15.5 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
Feb. 27, 2025 |
Feb. 19, 2025 |
Jan. 15, 2025 |
Dec. 18, 2024 |
---|---|---|---|---|
Subsequent Event [Line Items] | ||||
Shares repurchased (in shares) | 187,103 | |||
Shares repurchased (in dollars per share) | $ 22.50 | |||
Shares repurchased | $ 4.2 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares repurchased (in shares) | 6,353 | |||
Shares repurchased (in dollars per share) | $ 22.50 | |||
Series A Preferred Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Quarterly cash dividend (in dollars per share) | $ 0.69635 | |||
Shares repurchased (in shares) | 200,000 | |||
Shares repurchased (in dollars per share) | $ 24.00 | |||
Preferred stock, shares outstanding, percentage | 5.90% | |||
Shares repurchased | $ 4.8 |
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