UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549	

		FORM 10-Q			
 
ý      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
 
☐         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from          to          
 
Commission File Number: 001-36559
Via Renewables, Inc.
(Exact name of registrant as specified in its charter)
					
Delaware				46-5453215	
(State or other jurisdiction of
incorporation or organization)				(I.R.S. Employer
Identification No.)	
12140 Wickchester Ln, Suite 100 
Houston, Texas 77079

(Address of principal executive offices)
 
(713) 600-2600
                                                       (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbols(s)	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	VIASP	The NASDAQ Global Select Market	
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 
Yes ý	No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ý	No ☐

Large accelerated filer ☐ 	 Accelerated filer ☐ 
Non-accelerated filer ý   							 	 Smaller reporting company ☐
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
    
	Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
		Yes ☐	No ý

There were 3,792,493 shares of Class A common stock, 3,530,836 shares of Class B common stock and 2,094,372 shares of Series A Preferred Stock outstanding as of April 28, 2026.

VIA RENEWABLES, INC.			
INDEX TO QUARTERLY REPORT ON FORM 10-Q			
For the Quarter Ended March 31, 2026			
		Page No.	
PART I. FINANCIAL INFORMATION			
ITEM 1. FINANCIAL STATEMENTS			
			
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2026 AND DECEMBER 31, 2025  (unaudited)		4	
			
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (unaudited)		6	
			
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (unaudited)		7	
			
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (unaudited)		9	
			
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)		10	
			
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		39	
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		53	
ITEM 4. CONTROLS AND PROCEDURES		55	
PART II. OTHER INFORMATION		56	
ITEM 1. LEGAL PROCEEDINGS		56	
ITEM 1A. RISK FACTORS		56	
ITEM 6. EXHIBITS		57	
SIGNATURES		60	

Cautionary Note Regarding Forward Looking Statements 

This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), can be identified by the use of forward-looking terminology including “may,” “should,” “could,” “likely,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project,” or other similar words. Forward-looking statements appear in a number of places in this Report. All statements, other than statements of historical fact, included in this Report are forward-looking statements. The forward-looking statements include statements regarding the impacts of cash flow generation and liquidity, business strategy, prospects for growth and acquisitions, outcomes of legal proceedings, the timing, availability, ability to pay and amount of cash dividends on our Series A Preferred Stock, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, objectives, beliefs of management, availability and terms of capital, competition, government regulation and general economic conditions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurance that such expectations will prove correct.

The forward-looking statements in this Report are subject to risks and uncertainties. Important factors that could cause actual results to materially differ from those projected in the forward-looking statements include, but are not limited to:

•	changes in commodity prices, the margins we achieve, and interest rates;
•	the sufficiency of risk management and hedging policies and practices;
•	the impact of extreme and unpredictable weather conditions, including hurricanes, heat waves and other natural disasters;
•	federal, state and local regulations, including the industry’s ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;
•	our ability to borrow funds and access credit markets;
•	restrictions and covenants in our debt agreements and collateral requirements;
•	credit risk with respect to suppliers and customers;
•	our ability to acquire customers and actual attrition rates;
•	changes in costs to acquire customers;
•	accuracy of billing systems;
•	our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;
•	significant changes in, or new changes by, the independent system operators (“ISOs”) in the regions we operate;
•	risks related to our recently completed Merger (as defined below) including the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted against us and others relating to the Merger or otherwise, the impact of the Merger on our operations and the amount of the costs, fees, expenses and charges related to Merger; 
•	competition; and
•	the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, in our Quarterly Reports on Form 10-Q in “Item 1A — Risk Factors” of this Report, and in our other public filings and press releases.

You should review the Risk Factors and other factors noted throughout or incorporated by reference in this Report that could cause our actual results to differ materially from those contained in any forward-looking statement. All forward-looking statements speak only as of the date of this Report. Unless required by law, we disclaim any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise. It is not possible for us to predict all risks, nor can we assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

PART I. — FINANCIAL INFORMATION 

ITEM 1. FINANCIAL STATEMENTS

VIA RENEWABLES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share counts)
(unaudited)
	March 31, 2026		December 31, 2025	
Assets				
Current assets:				
Cash and cash equivalents	$	50,591			$	41,760		
Restricted cash		—				1,121		
Accounts receivable, net of allowance for credit losses of $2,490 at March 31, 2026 and $2,670 at December 31, 2025		74,193				85,884		
Accounts receivable—affiliates		5,926				6,265		
Inventory		753				2,928		
Fair value of derivative assets, net		3,007				2,565		
Customer acquisition costs, net		8,038				7,761		
Customer relationships, net		4,205				6,955		
Deposits		3,955				4,903		
Renewable energy credit asset		29,257				25,521		
Other current assets		9,308				10,562		
Total current assets		189,233				196,225		
Property and equipment, net		5,916				6,447		
Fair value of derivative assets, net (1)		482				711		
Customer acquisition costs, net		3,171				3,101		
Customer relationships, net		83				251		
Deferred tax assets		1,619				1,839		
Goodwill		120,343				120,343		
Other assets		2,135				2,372		
Total assets	$	322,982			$	331,289		
				
Liabilities, Series A Preferred Stock and Stockholders' Equity				
Current liabilities:				
Accounts payable	$	29,421			$	40,938		
Accounts payable—affiliates		571				663		
Accrued liabilities		16,693				20,243		
Renewable energy credit liability		15,972				13,040		
Fair value of derivative liabilities, net 		5,191				2,156		
Other current liabilities		58				58		
Total current liabilities		67,906				77,098		
Long-term liabilities:				
Fair value of derivative liabilities, net		728				55		
Long-term portion of Senior Credit Facility		130,000				120,000		
Total liabilities		198,634				197,153		
Commitments and contingencies (Note 12)				
				
Series A Preferred Stock, par value $0.01 per share, 20,000,000 shares authorized, 2,094,372 shares issued and outstanding at March 31, 2026 and 2,327,080 shares issued and outstanding at  December 31, 2025		50,927				56,766		
				
Stockholders’ equity:				
       Common Stock:				
				
Class A common stock, par value $0.01 per share, 120,000,000 shares authorized, 3,792,493 shares issued and outstanding at March 31, 2026 and December 31, 2025		38				38		
Class B common stock, par value $0.01 per share, 60,000,000 shares authorized, 3,530,836 shares issued and outstanding at March 31, 2026 and December 31, 2025 		35				35		

       Additional paid-in capital		40,785				40,538		
       Accumulated other comprehensive loss		(40)			(40)	
       Retained earnings 		25,494				27,110		
     Total stockholders’ equity		66,312				67,681		
Non-controlling interest in Spark HoldCo, LLC		7,109				9,689		
       Total equity		73,421				77,370		
Total liabilities, Series A Preferred Stock and Stockholders’ equity	$	322,982			$	331,289		

(1) Fair value of derivative asset includes $1.2 million and $0.1 million as of March 31, 2026 and December 31, 2025, respectively, related to affiliates.

The accompanying notes are an integral part of the condensed consolidated financial statements.

 VIA RENEWABLES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share data) 
(unaudited) 
	Three Months Ended March 31,	
	2026		2025	
Revenues:				
Retail revenues	$	155,368			$	144,503		
Net asset optimization gain (expense)		3,661				(2,249)	
Other revenue		—				3		
Total Revenues		159,029				142,257		
Operating Expenses:				
Retail cost of revenues		132,618				95,393		
General and administrative 		15,721				16,992		
Depreciation and amortization		5,874				5,028		
Total Operating Expenses		154,213				117,413		
Operating income		4,816				24,844		
Other (expense):				
Interest expense		(2,520)			(1,818)	
Interest and other (expense)/income 		(128)			37		
Total other expenses		(2,648)			(1,781)	
Income before income tax expense 		2,168				23,063		
Income tax expense		454				4,596		
Net income	$	1,714			$	18,467		
Less: Net (loss) income attributable to non-controlling interests		(339)			9,669		
Net income attributable to Via Renewables, Inc. stockholders	$	2,053			$	8,798		
Less: Dividend on Series A Preferred Stock		1,597				2,328		
Net income attributable to stockholders of Class A common stock	$	456			$	6,470		
				
Net income (loss) attributable to Via Renewables, Inc. per share of Class A common stock				
       Basic 	$	0.12			$	1.83		
       Diluted	$	(0.01)		$	1.83		
				
Weighted average shares of Class A common stock outstanding				
       Basic		3,792				3,533		
       Diluted		7,323				3,533		

The accompanying notes are an integral part of the condensed consolidated financial statements.

VIA RENEWABLES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(in thousands)
(unaudited)
Three Months Ended March 31, 2026	
	Issued Shares of Class A Common Stock	Issued Shares of Class B Common Stock	Class A Common Stock	Class B Common Stock	Accumulated Other Comprehensive Loss	Additional Paid-in Capital	Retained Earnings 	Total Stockholders' Equity	Non-controlling Interest	Total Equity	
Balance at December 31, 2025		3,793			3,531		$	38		$	35		$	(40)	$	40,538		$	27,110		$	67,681		$	9,689		$	77,370		
Consolidated net income (loss)		—			—			—			—			—			—			2,053			2,053			(339)		1,714		
Distributions paid to non-controlling unit holders		—			—			—			—			—			—			—			—			(1,994)		(1,994)	
Distribution to controlling interest		—			—			—			—			—			—			(2,072)		(2,072)		—			(2,072)	
Dividends paid to Preferred Stockholders		—			—			—			—			—			—			(1,597)		(1,597)		—			(1,597)	
Changes in ownership interest		—			—			—			—			—			247			—			247			(247)		—		
Balance at March 31, 2026		3,793			3,531		$	38		$	35		$	(40)	$	40,785		$	25,494		$	66,312		$	7,109		$	73,421		

The accompanying notes are an integral part of the condensed consolidated financial statements.

Three Months Ended March 31, 2025	
	Issued Shares of Class A Common Stock	Issued Shares of Class B Common Stock	Class A Common Stock	Class B Common Stock	Accumulated Other Comprehensive Loss	Additional Paid-in Capital	Retained Earnings 	Total Stockholders' Equity	Non-controlling Interest	Total Equity	
Balance at December 31, 2024		3,530			3,794		$	35		$	38		$	(40)	$	39,719		$	26,981		$	66,733		$	14,228		$	80,961		
Consolidated net income		—			—			—			—			—			—			8,798			8,798			9,669			18,467		
Distributions paid to non-controlling unit holders		—			—			—			—			—			—			—			—			(4,887)		(4,887)	
Distribution to controlling interest		263			(263)		3			(3)		—			(223)		—			(223)		—			(223)	
Dividends paid to Preferred Stockholders		—			—			—			—			—			—			(2,328)		(2,328)		—			(2,328)	
Changes in ownership interest		—			—			—			—			—			(267)		—			(267)		267			—		
Balance at March 31, 2025		3,793			3,531		$	38		$	35		$	(40)	$	39,229		$	33,451		$	72,713		$	19,277		$	91,990		

The accompanying notes are an integral part of the condensed consolidated financial statements.

VIA RENEWABLES, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(in thousands)
(unaudited)
	Three Months Ended March 31,	
  	2026		2025	
Cash flows from operating activities:				
Net income	$	1,714			$	18,467		
Adjustments to reconcile net income to net cash flows provided by operating activities:				
Depreciation and amortization expense		5,874				5,028		
Deferred income taxes		220				2,030		
Amortization of deferred financing costs		229				167		
Bad debt expense		229				688		
Gain on derivatives, net		(9,086)				(4,386)	
Current period cash settlements on derivatives, net		13,026				3,900		
Other		136				62		
Changes in assets and liabilities:				
Decrease (increase) in accounts receivable		11,462				(5,688)	
Decrease (increase) in accounts receivable—affiliates		340				(141)	
Decrease in inventory		2,175				1,387		
Increase in customer acquisition costs		(2,811)				(1,500)	
Increase in prepaid and other current assets		(2,209)				(599)	
Decrease in intangible assets—customer acquisition costs		—				7,717		
Decrease in other assets		136				170		
Decrease in accounts payable and accrued liabilities		(11,951)				(3,397)	
(Decrease) increase in accounts payable—affiliates		(92)				919		
Increase in other current liabilities		—				126		
Net cash provided by operating activities		9,392				24,950		
Cash flows from investing activities:				
Purchases of property and equipment		(245)				(1,415)	
Acquisition of Customers		—				(12,590)	
Net cash used in investing activities		(245)				(14,005)	
Cash flows from financing activities:				
Redemption of Series A Preferred Stock		(5,874)				(143)	
Borrowings on notes payable		120,000				138,000		
Payments on notes payable		(110,000)				(143,000)	
Payment of distribution to Class A common stockholders		(2,072)				—		
Payment of distributions to non-controlling unitholders		(1,928)				(6,000)	
Payment of Preferred Stock dividends		(1,563)				(2,429)	
Net cash used in financing activities		(1,437)				(13,572)	
(Decrease) increase in Cash, cash equivalents and Restricted cash		7,710				(2,627)	
Cash, cash equivalents and Restricted cash—beginning of period		42,881				70,259		
Cash, cash equivalents and Restricted cash—end of period	$	50,591			$	67,632		
Supplemental Disclosure of Cash Flow Information:				
Non-cash items:				
        Property and equipment purchase accrual	$	(249)			$	(16)	
Cash paid during the period for:				
Interest 	$	2,152			$	1,621		
Taxes 	$	96			$	104		
                                                                                                                                                                                                                                                                                                  The accompanying notes are an integral part of the condensed consolidated financial statements.

VIA RENEWABLES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1. Formation and Organization 

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, Verde Energy, and Texans Choice Power. Via Energy Solutions (“VES”) is a wholly owned subsidiary of the Company that offers broker services for retail energy customers.

2. Basis of Presentation and Summary of Significant Accounting Policies 

Basis of Presentation

The accompanying interim unaudited condensed 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 Securities and Exchange Commission (“SEC”) as it applies to interim financial statements. This information should be read along with our consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). Our unaudited condensed consolidated 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 unaudited condensed consolidated financial statements.

In the opinion of the Company's management, the accompanying condensed 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 condensed consolidated financial statements. 

Use of Estimates and Assumptions

The preparation of our condensed 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 interim 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 condensed 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 condensed consolidated statements of operations with a corresponding accounts receivable—affiliates or accounts payable —affiliates, respectively, recorded in the condensed 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 condensed consolidated statements of operations with a corresponding accounts receivable—affiliate or accounts payable—affiliate in the condensed consolidated balance sheets. The allocations and related estimates and assumptions are described more fully in Note 13 "Transactions with Affiliates."

On June 13, 2024, we consummated a merger the Company, Retailco, and wholly owned subsidiary of Retailco (the "Merger"), with the Company continuing as the surviving corporation in the Merger. As a result of the Merger, Mr. Maxwell and his affiliates became the owners of all of the issued and outstanding shares of our 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.

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivables and Contract Assets. The amendments in the ASU provide practical expedient and an accounting policy election to simplify the measurement of credit losses for certain receivables and contract assets. Under this practical expedient, entities may elect to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued or made available for issuance. The Company adopted the guidance as of January 1, 2026, and has applied the practical expedient prospectively. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. 

New Accounting Standards Being Evaluated/Standards Not yet adopted 

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.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies and enhances guidance under ASC 270 on interim financial reporting by (i) clarifying the scope of ASC 270 such that it now explicitly applies only to entities that issue complete interim financial statements and related notes under U.S. GAAP, (ii) establishing clear guidance on the form of interim statements and notes, incorporating a comprehensive list of required interim disclosures drawn from across the ASC, and (iii) introducing a requirement to disclose material events and changes occurring after the end of the last annual period that could impact interim results. The ASU will be effective for interim periods beginning in 2028, though early adoption is permitted. This ASU is not expected to have a significant impact on our financial statements.

In December 2025, the FASB issued ASU 2025-12: Codification Improvements. The amendments in this ASU represent changes that (1) clarify, (2) correct errors, or (3) make minor improvements to the Accounting Standards Codification that make it easier to understand and apply. This amendments are effective for the Company’s annual reporting periods beginning July 1, 2027, and interim periods within those annual reporting periods, with early adoption permitted. This ASU is not expected to have a material impact on the Company’s consolidated financial statements.

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 condensed consolidated financial statements.

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).
	Reportable Segments	
	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025	
	Retail Electricity (c)		Retail Natural Gas		Total Reportable Segments		Retail Electricity (c)		Retail Natural Gas		Total Reportable Segments	
												
Primary markets (a)												
New England	$	20,352			$	9,970			$	30,322			$	21,272			$	5,195			$	26,467		
Mid-Atlantic		46,306				22,789				69,095				38,860				20,224				59,084		
Midwest		8,551				13,943				22,494				8,119				12,219				20,338		
Southwest		11,657				21,800				33,457				12,469				26,145				38,614		
	$	86,866			$	68,502			$	155,368			$	80,720			$	63,783			$	144,503		
												
Customer type												
Commercial	$	8,872			$	30,242			$	39,114			$	10,801			$	35,046			$	45,847		
Residential		64,799				24,148				88,947				76,217				28,503				104,720		
Unbilled revenue (b)		13,195				14,112				27,307				(6,298)			234				(6,064)	
	$	86,866			$	68,502			$	155,368			$	80,720			$	63,783			$	144,503		
												
Customer credit risk												
POR	$	63,134			$	34,527			$	97,661			$	55,934			$	28,966			$	84,900		
Non-POR		23,732				33,975				57,707				24,786				34,817				59,603		
	$	86,866			$	68,502			$	155,368			$	80,720			$	63,783			$	144,503		

	Reportable Segments	

	Reportable Segments	
(a) The primary markets include the following states:
•	New England - Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island;
•	Mid-Atlantic - Delaware, Maryland (including the District of Columbia), New Jersey, New York, 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 Condensed Consolidated Financial Information

A reconciliation of the reportable segment operating revenues to consolidated revenues is as follows:

	Three Months Ended March 31,	
 	2026		2025	
Total Reportable Segments Revenue	$	155,368			$	144,503		
Net asset optimization gain (expense)		3,661				(2,249)	
Other Revenue		—				3		
Total Revenues	$	159,029			$	142,257		

We record gross receipts taxes on a gross basis in retail revenues and retail cost of revenues. During the three months ended March 31, 2026 and 2025, our retail revenues included gross receipts taxes of $0.2 million and $0.3 million, respectively, and our retail cost of revenues included gross receipts taxes of $2.4 million and $1.8 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 macro-economic 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.

The following table reflects the Company's beginning and ending balances of our account receivables.

		Three Months Ended March 31,	
		2026		2025	
Beginning balance accounts receivables		$	85,884			$	65,442		
Ending balance of accounts receivables		$	74,193			$	70,442		

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 $0.2 million and $0.7 million was recorded in general and administrative expense in the condensed consolidated statements of operations for the three months ended March 31, 2026 and March 31, 2025, respectively.

A rollforward of our allowance for credit losses for the three months ended March 31, 2026 are presented in the table below (in thousands):
			
Balance at December 31, 2025		$	(2,670)	
Current period credit loss provision			(229)	
Write-offs			414		
Recovery of previous write-offs			(5)	
Balance at March 31, 2026		$	(2,490)	

4. Equity 

Non-controlling Interest

We hold an economic interest and are the sole managing member in Spark HoldCo, with affiliates of Mr. Maxwell 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 March 31, 2025, Spark HoldCo distributed $6.0 million in cash to the non-controlling interest holder, and the non-controlling interest holder transferred 262,891 shares of Class B common stock to the Company. After the distribution and the share transfer, the Company’s equity ownership in Spark HoldCo increased by 3.59%, whereas the equity ownership of the non-controlling interest holder decreased by 3.59%.

During the three months ended March 31, 2026 Spark HoldCo distributed $1.9 million in cash to the non-controlling interest holder and distributed $2.1 million in cash to the controlling interest holder. The distribution during the three months ended March 31, 2026 did not result in share transfer and change in equity ownership.

The following table summarizes the effects of changes in the Company's ownership interest in Spark HoldCo's equity (in thousands):
	Three Months Ended March 31,	
	2026		2025	
Net income attributable to Via Renewables, Inc. stockholders	$	2,053			$	8,798		
Transfers (to) from the non-controlling interest		—				—		
Decrease in Via Renewables additional paid in capital from the equity shift		—				(223)	
Net transfers (to) from non-controlling interest		—				(223)	
Changes from net income attributable to Via Renewables stockholders and transfers (to) from non-controlling interest	$	2,053			$	8,575		

The Company and affiliates owned the following economic interests in Spark HoldCo at March 31, 2026 and December 31, 2025, respectively. 

	The Company	Affiliated Owners	
March 31, 2026		51.79	%		48.21	%	
December 31, 2025		51.79	%		48.21	%	

The following table summarizes the portion of net income and income tax expense attributable to non-controlling interest (in thousands):
	Three Months Ended March 31,	
	2026		2025	
Net (loss) income before taxes allocated to non-controlling interest	$	(345)		$	10,285		
Less: Income tax (benefit) expense  allocated to non-controlling interest		(6)			616		
Net (loss) income attributable to non-controlling interests	$	(339)		$	9,669		

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 per share for the three months ended March 31, 2026 and 2025 (in thousands, except per share data): 
	Three Months Ended March 31,	
	2026	2025	
Net income attributable to Via Renewables, Inc. stockholders	$	2,053		$	8,798		
Less: Dividend on Series A Preferred Stock		1,597			2,328		
Net income attributable to stockholders of Class A common stock	$	456		$	6,470		
			
Basic weighted average Class A common shares outstanding		3,792			3,533		
Basic earnings per share attributable to stockholders	$	0.12		$	1.83		
			
Net income attributable to stockholders of Class A common stock	$	456		$	6,470		
Effect of conversion of Class B common stock to shares of Class A common stock		(505)		—		
Diluted net (loss) income attributable to stockholders of Class A common stock	$	(49)	$	6,470		
			
Basic weighted average Class A common shares outstanding		3,792			3,533		
Effect of dilutive Class B common stock		3,531			—		
Diluted weighted average shares outstanding		7,323			3,533		
			
Diluted (loss) earnings per share attributable to stockholders	$	(0.01)	$	1.83		

The computation of diluted earnings per share for the three months ended March 31, 2025, excludes 3.8 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 condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025 (in thousands):
	March 31, 2026	December 31, 2025	
Assets			
Current assets:			
   Cash and cash equivalents	$	50,510		$	41,646		
   Accounts receivable		73,542			85,819		
   Other current assets		(2,100)			12,564		
   Total current assets		121,952			140,029		
Non-current assets:			
   Goodwill		120,343			120,343		
   Other assets		13,138			14,000		
   Total non-current assets		133,481			134,343		
   Total Assets	$	255,433		$	274,372		
			
Liabilities			
Current liabilities:			
   Accounts payable and accrued liabilities	$	45,390		$	60,540		
   Other current liabilities		13,666			16,935		
   Total current liabilities		59,056			77,475		
Long-term liabilities:			
   Long-term portion of Senior Credit Facility		130,000			120,000		
   Other long-term liabilities		728			55		
   Total long-term liabilities		130,728			120,055		
   Total Liabilities	$	189,784		$	197,530		

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 three months ended March 31, 2026, we paid $1.6 million in dividends to holders of the Series A Preferred Stock. As of March 31, 2026, we had accrued $1.4 million related to dividends to holders of the Series A Preferred Stock. This dividend was paid on April 15, 2026.

On April 15, 2026, we declared a quarterly cash dividend in the amount of $0.65704 per share of Series A Preferred Stock. The dividend will be paid on July 15, 2026 to holders of record on July 1, 2026 of the Series A Preferred Stock.

On January 16, 2026, we announced the redemption of 232,708 shares of our Series A Preferred Stock for a redemption price of $25.00 per share, plus an amount equal to all accumulated and unpaid dividends thereon to, but not including, the redemption date of February 17, 2026. We paid $5.9 million on the redemption date.

On April 20, 2026, we announced the redemption of 209,437 shares of our Series A Preferred Stock for a redemption price of $25.00 per share, plus any declared and unpaid dividends on the Series A Preferred Stock through and including the redemption date, which will be May 20, 2026.

A summary of our preferred equity balance for the three months ended March 31, 2026 is as follows:
		(In thousands)	
Balance at December 31, 2025		$	56,766		
Redemption of Series A Preferred Stock			(5,653)	
Accumulated dividends on Series A Preferred Stock			(186)	
Balance at March 31, 2026		$	50,927		

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 condensed 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 March 31, 2026 and December 31, 2025, we offset $1.3 million and $0.8 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
Commodity	Notional		March 31, 2026		December 31, 2025	
Natural Gas	MMBtu			7,585				7,674		
Electricity	MWh			1,162				951		
Trading 
Commodity	Notional		March 31, 2026		December 31, 2025	
Natural Gas	MMBtu			1,502				2,425		
Electricity	MWh			(2)			—		

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):
	Three Months Ended March 31,	
  	2026		2025	
Gain on non-trading derivatives, net	$	8,575			$	6,554		
Gain (Loss) on trading derivatives, net		511				(2,168)	
Gain on derivatives, net	$	9,086			$	4,386		
Current period settlements on non-trading derivatives		(13,009)			(3,900)	
Current period settlements on trading derivatives		(17)			—		
Total current period settlements on derivatives	$	(13,026)		$	(3,900)	

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 condensed 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):
  	March 31, 2026	
Description	Gross Assets		Gross
Amounts
Offset		Net Assets		Cash
Collateral
Offset		Net Amount
Presented	
Non-trading commodity derivatives 	$	6,921			$	(4,113)		$	2,808			$	(9)		$	2,799		
Trading commodity derivatives		308				(100)			208				—				208		
Total Current Derivative Assets		7,229				(4,213)			3,016				(9)			3,007		
Non-trading commodity derivatives		2,952				(2,468)			484				—				484		
Trading commodity derivatives		145				(147)			(2)			—				(2)	
Total Non-current Derivative Assets		3,097				(2,615)			482				—				482		
Total Derivative Assets	$	10,326			$	(6,828)		$	3,498			$	(9)		$	3,489		

Description	Gross 
Liabilities		Gross
Amounts
Offset		Net
Liabilities		Cash
Collateral
Offset		Net Amount
Presented	
Non-trading commodity derivatives	$	(11,063)		$	5,478			$	(5,585)		$	1,011			$	(4,574)	
Trading commodity derivatives		(708)			91				(617)			—				(617)	
Total Current Derivative Liabilities		(11,771)			5,569				(6,202)			1,011				(5,191)	
Non-trading commodity derivatives		(2,008)			1,035				(973)			278				(695)	
Trading commodity derivatives		(136)			103				(33)			—				(33)	
Total Non-current Derivative Liabilities		(2,144)			1,138				(1,006)			278				(728)	
Total Derivative Liabilities	$	(13,915)		$	6,707			$	(7,208)		$	1,289			$	(5,919)	

  	December 31, 2025	
Description	Gross Assets		Gross
Amounts
Offset		Net Assets		Cash
Collateral
Offset		Net Amount
Presented	
Non-trading commodity derivatives	$	6,668			$	(4,394)		$	2,274			$	—			$	2,274		
Trading commodity derivatives		428				(137)			291				—				291		
Total Current Derivative Assets		7,096				(4,531)			2,565				—				2,565		
Non-trading commodity derivatives		1,882				(968)			915				(204)			711		
Trading commodity derivatives		4				(3)			—				—				—		
Total Non-current Derivative Assets		1,886				(971)			915				(204)			711		
Total Derivative Assets	$	8,982			$	(5,502)		$	3,480			$	(204)		$	3,276		

Description	Gross 
Liabilities		Gross
Amounts
Offset		Net
Liabilities		Cash
Collateral
Offset		Net Amount
Presented	
Non-trading commodity derivatives	$	(7,331)		$	5,335			$	(1,996)		$	1,038			$	(958)	
Trading commodity derivatives		(1,221)			23				(1,198)			—				(1,198)	
Total Current Derivative Liabilities		(8,552)			5,358				(3,194)			1,038				(2,156)	
Non-trading commodity derivatives		(530)			507				(22)			—				(22)	
Trading commodity derivatives		(46)			13				(33)			—				(33)	
Total Non-current Derivative Liabilities		(576)			520				(55)			—				(55)	
Total Derivative Liabilities	$	(9,128)		$	5,878			$	(3,249)		$	1,038			$	(2,211)	

7. Property and Equipment 

Property and equipment consist of the following (in thousands):
	Estimated useful
lives (years)		March 31, 2026		December 31, 2025	
Information technology	2 – 5		$	10,991			$	11,023		
Furniture and fixtures	2 – 5			30				—		
Other	 7			69				69		
Total				11,090				11,092		
Accumulated depreciation				(5,174)			(4,645)	
Property and equipment—net			$	5,916			$	6,447		

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 March 31, 2026 and December 31, 2025, information technology includes $0.8 million and $0.9 million, respectively, of costs associated with assets not yet placed into service. 

Depreciation expense recorded in the condensed consolidated statements of operations was $0.5 million and $0.3 million for the three months ended March 31, 2026 and 2025.

8. Intangible Assets
Goodwill, customer relationships and trademarks consist of the following amounts (in thousands):
	March 31, 2026		December 31, 2025	
Goodwill	$	120,343			$	120,343		
Customer relationships—Other 				
Cost	$	18,090			$	18,090		
Accumulated amortization		(13,802)			(10,884)	
Customer relationships—Other, net	$	4,288			$	7,206		
Trademarks 				
Cost	$	4,040			$	4,040		
Accumulated amortization		(2,525)			(2,424)	
Trademarks, net	$	1,515			$	1,616		

Changes in goodwill, customer relationships (including non-compete agreements) and trademarks consisted of the following (in thousands):
	Goodwill 			Customer Relationships— Other		Trademarks	
Balance at December 31, 2025	$	120,343				$	7,206			$	1,616		
Additions 		—					—				—		
Amortization 		—					(2,918)			(101)	
Balance at March 31, 2026	$	120,343				$	4,288			$	1,515		

Estimated future amortization expense for customer relationships and trademarks at March 31, 2026 is as follows (in thousands): 
Year ending December 31,		
2026 (remaining nine months)	$	4,340		
2027		655		
2028		404		
2029		404		
2030		—		
> 5 years		—		
Total	$	5,803		

9. Debt 
Debt consists of the following amounts as of March 31, 2026 and December 31, 2025 (in thousands):
	March 31, 2026	December 31, 2025	
Long-term debt:			
  Senior Credit Facility (1) (2)	$	130,000		$	120,000		
  Subordinated Debt 		—			—		
Total long-term debt		130,000			120,000		
Total debt	$	130,000		$	120,000		
(1) As of March 31, 2026 and December 31, 2025, the weighted average interest rate on the Senior Credit Facility was 6.91% and 6.95%, respectively.
(2) As of March 31, 2026 and December 31, 2025, we had $37.9 million and $36.7 million in letters of credit issued, respectively.

Capitalized financing costs associated with our Senior Credit Facility (as defined below under "Senior Credit Facility") were $1.1 million and $1.4 million as of March 31, 2026 and December 31, 2025, respectively. Of these amounts, $0.9 million and $0.9 million are recorded in other current assets, and $0.2 million and $0.5 million are recorded in other non-current assets in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively.

Interest expense consists of the following components for the periods indicated (in thousands):
	Three Months Ended March 31,	
	2026		2025	
Senior Credit Facility	$	1,795			$	1,595		
Letters of credit fees and commitment fees		492				40		
Amortization of deferred financing costs 		229				167		
Other		4				16		
Interest Expense	$	2,520			$	1,818		

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. As a result of the First Amendment to the Credit Agreement, we wrote off $0.1 million in deferred financing costs. 

On June 25, 2025, the Co-Borrowers entered into new arrangements with the Agent and the financial institutions party thereto, and other additional financial institutions, to increase the borrowing capacity under the Senior Credit Facility to $250.0 million from $205.0 million. 

Borrowings under the Senior Credit Facility are available for working capital loans, loans to fund acquisitions, swingline loans, letters of credit and, following the First Amendment, for repurchases of Series A Preferred Stock (subject to the terms and conditions therein).

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 March 31, 2026 was 1.21 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 in filings with the SEC, to Adjusted EBITDA of no more than 3.00 to 1.00. Our Maximum Total Leverage Ratio as of March 31, 2026 was 2.35 to 1.00.
 
As of March 31, 2026, 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 Senior Credit Facility contains various customary affirmative covenants that require, among other things, the Company to maintain insurance, pay its obligations and comply with law. The Senior Credit Facility 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 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 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 Senior Credit Facility, 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 March 31, 2026, and December 31, 2025, there were zero outstanding borrowings under the Subordinated Debt Facility. 

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 condensed consolidated balance sheets on a recurring basis by and their level within the fair value hierarchy (in thousands):

	Level 1		Level 2		Level 3		Total	
March 31, 2026								
Non-trading commodity derivative assets	$	176			$	3,107			$	—			$	3,283		
Trading commodity derivative assets		187				19				—				206		
Total commodity derivative assets	$	363			$	3,126			$	—			$	3,489		
Non-trading commodity derivative liabilities	$	—			$	(5,269)		$	—			$	(5,269)	
Trading commodity derivative liabilities		—				(650)			—				(650)	
Total commodity derivative liabilities	$	—			$	(5,919)		$	—			$	(5,919)	

	Level 1		Level 2		Level 3		Total	
December 31, 2025								
Non-trading commodity derivative assets	$	—			$	2,985			$	—			$	2,985		
Trading commodity derivative assets		—				291				—				291		
Total commodity derivative assets	$	—			$	3,276			$	—			$	3,276		
Non-trading commodity derivative liabilities	$	—			$	(980)		$	—			$	(980)	
Trading commodity derivative liabilities		—				(1,231)			—				(1,231)	
Total commodity derivative liabilities	$	—			$	(2,211)		$	—			$	(2,211)	

We had no transfers of assets or liabilities between any of the above levels during the three months ended March 31, 2026 and the year ended December 31, 2025.

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 March 31, 2026 and December 31, 2025, the credit risk valuation adjustment was a reduction of derivative liabilities, net of $0.1 million and less than  $0.1 million, respectively.

11. Income Taxes

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.

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 make 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.

On July 4th, 2025, the One Big Beautiful Bill Act (“OBBB”) was signed into law. The OBBB makes changes to U.S. tax law and includes provisions that beginning in January 2025, make permanent full expensing of tangible personal property, restores EBITDA-based calculations for purposes of the business interest deduction and allows for current expensing of R&D expenditures. Consistent with ASC 740-10  the impact of changes to tax law are recorded in the period of enactment. We recorded the impact of OBBB which resulted in additional deductions related primarily to current expensing of R&D expenditures. OBBB had no material impact on total tax expense for the period. 
 
The effective U.S. federal and state income tax rate for the three months ended March 31, 2026 and 2025 was 20.9% and 19.9%, respectively. The effective tax rate for three months ended March 31, 2026 and 2025 differed from the U.S. federal statutory tax rate of 21% primarily due to state taxes and the benefit provided from Spark HoldCo operating as a limited liability company, which is treated as a partnership for federal and state income tax purposes and is not subject to federal and state income taxes. Accordingly, the portion of earnings attributable to non-controlling interest is subject to tax when reported as a component of the non-controlling interest holders’ taxable income.

12. 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 (she being a customer of Entrust, which Major Energy acts as a successor to) who was charged a variable rate for energy by Major Energy. 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. In September 2024, the Court granted the Company’s motion that argued that Glikin had failed to exhaust her administrative remedies and that, if she wishes to proceed, she must first go to the Maryland Public Service Commission (“Maryland PSC”). On November 6, 2024, Glikin filed a complaint with the Maryland PSC. The Company responded to her complaint on February 28, 2025. On May 19, 2025, the PSC dismissed Plaintiff’s claims for failure to state a claim, concluding that the Company’s pricing practices did not violate Maryland law or applicable regulations and that its descriptions of prices as “competitive” did not constitute fraudulent or deceptive conduct. Plaintiff filed a motion to lift the federal court stay on June 16, 2025, which the Court granted on July 21, 2025. The Company filed a renewed motion to dismiss in federal court; the federal court heard oral arguments on October 7, 2025. On March 31, 2026, the Court granted the motion in part and denied it in part, dismissing with prejudice any breach of contract claim based on the Company’s welcome letter, and dismissed without prejudice Plaintiff’s unjust enrichment claim; the Court denied the motion to dismiss as to Plaintiff’s remaining claims for breach of contract based on the underlying Entrust contract’s variable rate pricing terms, as well as for breach of the implied covenant of good faith and fair dealing. The case remains pending and we do not believe it will have a material impact to the Company.

On March 24, 2024, SUS Cast Products, Inc., a large commercial customer, filed a case against Spark Energy Gas, LLC (09C01-2403-PL-000007) in Indiana Cass County Circuit Court alleging that Spark improperly billed Indiana Transportation Service (“ITS”) fixed capacity charges under their gas supply agreement regulated under the NIPSCO Choice Program. The Company followed the 2010 Indiana Utility Regulatory Commission order in charging the ITS costs to customer and does not believe this case will have a material impact on the Company.

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. One case is pending, Clark v. Via Renewables, Inc. (filed January 30, 2024) which we believe will not have a material impact on the Company, and one case has settled for a di minimis amount, Grant v. Via Renewables, Inc. (filed November 15, 2024, settled January 2026). 

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 in the Delaware Court of Chancery (C.A. No. 2024-0762-KSJM) alleging that the Company’s directors and controlling stockholder breached their fiduciary duties in connection with the Merger. On July 25, 2024, Bruce Taylor, another purported stockholder, filed a related class action (C.A. No. 2024-0794) asserting fiduciary-duty and disclosure claims concerning the proxy statement for the Merger. A prior Section 220 books-and-records action filed by Michael Stutzman (C.A. No. 2024-0545-LM) was subsequently expanded to assert similar claims.  

The Delaware Court of Chancery has consolidated these actions under the caption In re Via Renewables, Inc. Merger Litigation (C.A. No. 2024-0762-KSJM), and appointed lead counsel and a lead plaintiff. The consolidated action remains pending before Vice Chancellor McCormick. Defendants have filed a motion to dismiss this matter which is pending before the Delaware Chancery Court. Oral arguments on such motion are scheduled for May 2026. Related to this action, on January 15, 2026, Jones Walker, LLP filed an action in Louisiana to recover certain legal fees that have been disputed by the Company.

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.

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 and several other virtual settlement discussions. The settlement discussions were unsuccessful, and the Attorney General commenced a lawsuit in Illinois against Spark Energy, LLC and Spark Energy Gas, LCC on January 16, 2025 (“IL AG State Action”). Spark filed a motion to dismiss (“MTD”) the IL AG State Action and simultaneously, proactively filed a federal action raising constitutional issues (“Federal Action”). The IL AG and the Company have exchanged responses regarding the MTD in both cases. All actions are in the early stages, and the parties have resumed settlement negotiations.

New York. Verde Energy USA New York, LLC (“Verde New York”) is the subject of a proceeding before the New York State Public Service Commission (the “NYPSC”) captioned “Proceeding on Motion of the Commission to Seek Consequences Against Verde Energy USA New York, LLC for Violations of the Uniform Business Practices,” Case No. 25-E-0763 (the “Proceeding”). On January 26, 2026, the NYPSC issued an Order Instituting Proceeding and to Show Cause (the “Order”). The Order references allegations by the NYPSC staff that Verde New York violated the NYPSC’s Uniform Business Practices (“UBP”), including with respect to customer enrollment practices and the maintenance and/or production of verifiable proof of customer authorization and related enrollment records, and related compliance with staff information requests. The allegations arose in connection with the activities of a third-party marketing agent retained by Verde New York, whose relationship Verde New York terminated in October 2025 upon discovering the conduct at issue. On March 25, 2026, Verde New York filed a preliminary response to the Order, asserting that it took prompt remedial action upon discovering the issues. On April 9, 2026, the New York State Department of Public Service (the “Department”) issued a Notice of Apparent Violation (“NOAV”) to PTM Marketing & Consulting Inc. (“PTM”), a registered Energy Consultant and the third-party marketing agent previously retained by Verde New York, under Matter No. 26-00718. The NOAV alleges that PTM violated the UBP by engaging in misleading or deceptive conduct through in-person marketing activities conducted on behalf of multiple ESCOs, including Verde New York. The Department cited seven customer complaints filed against Verde New York and sixteen complaints filed against another Company. The Proceeding and the NOAV remain pending. The Company cannot predict the outcome of either matter or reasonably estimate the amount or range of potential loss, if any. The NOAV and the underlying complaints could result in additional regulatory scrutiny of Verde New York’s enrollment practices or be cited in the pending Proceeding. An adverse outcome in the Proceeding could result in the revocation of Verde New York’s eligibility to operate as an ESCO in New York, other operational restrictions, monetary consequences, and/or customer remediation obligations.

State Legislative and Regulatory Developments

From time to time, state legislatures and regulatory commissions propose or adopt new measures that affect the retail energy industry, including changes to licensing, consumer protection, renewable energy content, and market access. The Company actively monitors these developments and participates, either directly or through industry trade associations, in stakeholder discussions to ensure that its perspective and the broader industry position are represented. The Company also attends public meetings and technical sessions to stay informed of emerging policy directions and to provide constructive input on behalf of retail suppliers.

For example, in Maryland, Senate Bill 1, which took effect December 31, 2024, placed new restrictions on how retail suppliers can operate. Under the new law, suppliers are required to send separate bills, adhere to price caps tied to a trailing twelve-month average of standard offer service rates, license sales agents who may not earn commissions, eliminate automatic renewals, and limit contracts to one year. Since the law took effect, no retail suppliers have been actively offering residential supply contracts in the state, resulting in the effective closure of the residential competitive market. However, in the 2026 legislative session, the Maryland General Assembly advanced the Utility RELIEF Act, a sweeping energy package that, among other provisions, aims to bring energy suppliers back into Maryland’s marketplace to compete with the utilities by offering them additional flexibility over current law, including the ability to enter into three-year contracts with customers and charge up to 110% of the standard offer service rate. The House and Senate reached a deal on the legislation on April 8, 2026, and it must be sent to Governor Wes Moore for his signature before the session concludes on April 13. The Company views these developments as potentially favorable for the resumption of competitive retail supply activity in Maryland, though the ultimate impact will depend on the final terms of the enacted legislation and subsequent regulatory implementation.

In Massachusetts, the House of Representatives passed H.5151, a broad energy affordability bill, on February 26, 2026. The bill passed the House 128–27 and now goes to the Senate for consideration. Among its provisions, the legislation includes a provision to give municipalities the option to ban third-party competitive energy suppliers, marketers, or brokers from renewing or executing new contracts in their city or town. The municipal opt-out provision was a compromise that avoided an all-out ban on competitive suppliers while preserving local choice. Municipal aggregation programs would not be impacted by the provision. The bill also includes reforms to automatic renewal practices, third-party verification requirements for in-person and telephonic residential sales, reforms to the purchase of receivables system, protections for low-income customers, restrictions on contract exit fees, and measures to address greenwashing. Consumer advocates and the Attorney General’s office have pointed to over $650 million in excess payments by competitive supply customers compared to basic service rates since 2018 as justification for the reforms. The bill remains subject to Senate action and conference committee reconciliation, and its final form is not yet determined. The Company is actively engaged in monitoring and advocating its position as this legislation progresses.

The Company believes that ongoing engagement and transparency with state policymakers and regulators are essential to maintaining a stable and predictable regulatory environment and mitigating potential risks to its operations. There can be no assurance that legislative or regulatory outcomes in Maryland, Massachusetts, or other states will be favorable to the Company’s business model, and adverse developments could materially affect the Company’s ability to operate, acquire new customers, or retain existing customers in those jurisdictions.

Indirect Tax Audits

As of the date of filing these condensed consolidated financial statements, we are not subject to any indirect tax audits and have not identified any matters that would give rise to additional indirect tax liabilities.

As of March 31, 2026 and December 31, 2025, we had accrued $8.5 million and $10.5 million, respectively, related to litigation and regulatory matters. No accruals related to indirect tax audits were recorded as of March 31, 2026 and December 31, 2025, respectively. The accrual for litigation and regulatory matters, and indirect tax audits is recorded in accrued liabilities on the balance sheet. The outcome of each of these may result in additional expense.

13. 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 condensed 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 condensed 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 condensed consolidated statements of operations with a corresponding accounts receivable—affiliates or accounts payable—affiliates, respectively recorded in the condensed consolidated balance sheets. Transactions with affiliates for sales or purchases of natural gas and electricity are recorded in retail revenues, retail cost of revenues, and net asset optimization revenues in the condensed consolidated statements of operations with a corresponding accounts receivable—affiliate or accounts payable—affiliate recorded in the condensed consolidated balance sheets.

The following tables presents asset and liability balances with affiliates (in thousands):

	March 31, 2026		December 31, 2025	
Assets				
Accounts Receivable - affiliates	$	5,926			$	6,265		
Total Assets - affiliates	$	5,926			$	6,265		

	March 31, 2026		December 31, 2025	
Liabilities				
Accounts Payable - affiliates	$	571			$	663		
Total Liabilities - affiliates	$	571			$	663		

The following table presents revenues and cost of revenues recorded in net asset optimization revenue associated with affiliates for the periods indicated (in thousands):
	Three Months Ended March 31,	
	2026		2025	
Revenue NAO - affiliates 	$	797			$	658		
Less: Cost of Revenue NAO - affiliates 		44				—		
Net NAO - affiliates	$	753			$	658		

The Company's retail cost of revenue includes gains/(losses) related to derivative instruments transactions with affiliates. For the three months ended March 31, 2026 and March 31, 2025, we recognized a loss of $1.2 million and a loss of $0.2 million, respectively, in retail cost of revenue related to derivative instrument 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 $(2.4) million and $(0.6) million for the three months ended March 31, 2026 and 2025, respectively. The Company would have incurred incremental costs of $0.4 million and $0.4 million for the  three months ended March 31, 2026 and 2025, respectively, operating on a stand-alone basis.

Distributions to and Contributions from Affiliates 

During the three months ended March 31, 2026 and 2025, Spark HoldCo made distributions to these affiliates for gross-up distributions of  $0.1 million and zero, respectively, in connection with distributions made between Spark HoldCo and Via Renewables, Inc. for payment of income taxes incurred by us. 

As discussed in Note 4 – Equity, on March 31, 2025, Spark HoldCo distributed $6.0 million in cash to the non-controlling interest holder, and the non-controlling interest holder transferred 262,891 shares of Class B common stock to the Company.

During the three months ended March 31, 2026, Spark HoldCo distributed $1.9 million in cash to the non-controlling interest holder and distributed $2.1 million in cash to the controlling interest holder. The distribution during the three months ended March 31, 2026 did not result in share transfer and change in equity ownership.

Membership Interest Purchase Agreement with NGE Holdco, LLC and Spark Holdco, LLC

On May 23, 2025, we entered into an agreement to acquire 100% of the membership interests in NGE Texas, LLC (“NGE Texas”) for a nominal purchase price of $1 and a working capital payment of approximately $1.0 million, consisting entirely of restricted cash in the form of a Letter of Credit and ERCOT collateral. The primary purpose of the transaction was to obtain NGE Texas’s existing Texas retail electricity license, which is required to operate as a retail electricity provider in the state of Texas.

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 Senior Credit Facility, 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 March 31, 2026 and  December 31, 2025, 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.

14. 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.

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.

  	31,	

Financial data for business segments are as follows (in thousands):
Three Months Ended March 31, 2026	
	Retail
Electricity (1)		Retail
Natural Gas		Corporate
and Other		Eliminations		Consolidated	
Total revenues	$	86,866			$	68,502			$	3,661			$	—			$	159,029		
Retail cost of revenues		80,965				51,653				—				—				132,618		
Less:										
Net asset optimization gain(2)		—				—				3,661				—				3,661		
Net, gain (loss) on non-trading derivative instruments		11,907				(3,332)			—				—				8,575		
Current period settlements on non-trading derivatives		(14,026)			1,017				—				—				(13,009)	
Retail Gross Margin	$	8,020			$	19,164			$	—			$	—			$	27,184		
Add: Reconciling items (3)										(773)	
Gross Profit									$	26,411		
Total Assets at March 31, 2026	$	2,519,762			$	495,916			$	395,468			$	(3,088,164)		$	322,982		
Goodwill at March 31, 2026	$	117,813			$	2,530			$	—			$	—			$	120,343		
(1) Retail Electricity includes related services.
(2) For the three months ended March 31, 2026 we recorded asset optimization revenues of $22.8 million and asset optimization cost of revenues of $19.1 million, which are presented on a net basis in asset optimization revenues.
(3) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.

Three Months Ended March 31, 2025	
	Retail
Electricity(1)		Retail
Natural Gas		Corporate
and Other		Eliminations		Consolidated	
Total revenues	$	80,720			$	63,783			$	(2,246)		$	—			$	142,257		
Retail cost of revenues		58,202				37,189				2				—				95,393		
Less:										
Net asset optimization expense (2)		—				—				(2,249)			—				(2,249)	
Net, gain on non-trading derivative instruments		4,863				1,691				—				—				6,554		
Current period settlements on non-trading derivatives		(3,759)			(141)			—				—				(3,900)	
Retail Gross Margin	$	21,414			$	25,044			$	1			$	—			$	46,459		
Add: Reconciling items (3)										405		
Gross Profit									$	46,864		
Total Assets at December 31, 2025	$	2,310,059			$	362,426			$	383,591			$	(2,724,787)		$	331,289		
Goodwill at December 31, 2025	$	117,813			$	2,530			$	—			$	—			$	120,343		
(1) Retail Electricity includes related services.
(2) For the three months ended March 31, 2025, we recorded asset optimization revenues of  $20.1 million and asset optimization cost of revenues and $22.3 million, respectively, which are presented on a net basis in asset optimization revenues.
(3) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.

15. Customer Acquisitions 
Acquisition of Customer Books 

In April and May 2025, we entered into two asset purchase agreements to acquire up to 16,800 RCEs for a cash purchase price of up to a maximum $1.8 million paid in cash or funded into escrow accounts. These gas customers are located in our existing markets and began transferring in May 2025 and June 2025. As we acquired customers under these acquisition agreements, we made payments to the sellers from the escrow accounts. Funds from the escrow account were released to the sellers as acquired customers transferred from the sellers to the Company in accordance with the asset purchase agreement, and any unallocated balance was returned to the Company once the acquisitions were complete. As of December 31, 2025, we've completed this acquisition and approximately 17,000 RCEs were transferred, and $1.4 million was paid to the sellers. As of  March 31, 2026 and December 31, 2025, the balance in the escrow account was zero and $0.1 million.

16. Subsequent Events

Declaration of Dividends

On April 15, 2026 we declared a quarterly cash dividend in the amount of $0.65704 per share to holders of record of the Series A Preferred Stock on July 1, 2026. The dividend will be paid on July 15, 2026.

Partial Redemption of Series A Preferred Stock

On April 20, 2026, we announced the redemption of 209,437 shares of our Series A Preferred Stock for a redemption price of $25.00 per share, plus any declared and unpaid dividends on the Series A Preferred Stock through and including the redemption date, which will be May 20, 2026.

                                                                                                                                                                                                                                                                                                                     ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Report and the audited consolidated financial statements and notes thereto and management’s discussion and analysis of financial condition and results of operations included in our 2025 Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 5, 2026. Results of operations and cash flows for the three months ended March 31, 2026 are not necessarily indicative of results to be attained for any other period. See “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors.”

Overview

We are an independent retail energy services company founded in 1999 and are organized as a Delaware corporation that provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. We purchase our electricity and natural gas supply from a variety of wholesale providers and bill our customers monthly for the delivery of electricity and natural gas based on their consumption at either a fixed or variable price. Electricity and natural gas are then distributed to our customers by local regulated utility companies through their existing infrastructure. As of March 31, 2026, we operated in 106 utility service territories across 21 states and the District of Columbia.

Our business consists of two operating segments:

•	Retail Electricity Segment. In this segment, we purchase electricity supply through physical and financial transactions with market counterparties and ISOs and supply electricity to residential and commercial consumers pursuant to fixed-price and variable-price contracts. For the three months ended March 31, 2026 and 2025, approximately 56% and 56%, respectively, of our retail revenues were derived from the sale of electricity.

•	Retail Natural Gas Segment. In this segment, we purchase natural gas supply through physical and financial transactions with market counterparties and supply natural gas to residential and commercial consumers pursuant to fixed-price and variable-price contracts. For the three months ended March 31, 2026 and 2025, approximately 44% and 44%, respectively, of our retail revenues were derived from the sale of natural gas.

Recent Developments

Partial Redemption of Series A Preferred Stock

On January 15, 2026, we announced the redemption of 232,708 shares of our Series A Preferred Stock for a redemption price of $25.00 per share, plus an amount equal to all accumulated and unpaid dividends thereon to, but not including, the redemption date of February 17, 2026. We paid $5.9 million on the redemption date.

On April 20, 2026, we announced the redemption of 209,437 shares of our Series A Preferred Stock for a redemption price of $25.00 per share, plus any declared and unpaid dividends on the Series A Preferred Stock through and including the redemption date, which will be May 20, 2026.

Residential Customer Equivalents

We measure our number of customers using residential customer equivalents (“RCEs”). The following table shows our RCEs by segment during the three months ended March 31, 2026:
RCEs:						

RCEs:						
(In thousands)	December 31, 2025	Additions	Attrition	March 31, 2026	% Increase (Decrease) 	
Retail Electricity	225	35	42	218	(3)%	
Retail Natural Gas 	196	18	14	200	2%	
Total Retail 	421	53	56	418	(1)%	

						
The following table details our count of RCEs by geographical location as of March 31, 2026:
RCEs by Geographic Location:							
(In thousands)	Electricity	 % of Total	Natural Gas	 % of Total	Total	 % of Total 	
New England	52	24%	21	11%	73	17%	
Mid-Atlantic	111	51%	53	27%	164	39%	
Midwest	21	10%	32	16%	53	13%	
Southwest	34	15%	94	46%	128	31%	
Total	218	100%	200	100%	418	100%	

The geographical locations noted above include the following states:

•	New England - Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island; 
•	Mid-Atlantic - Delaware, Maryland (including the District of Columbia), New Jersey, New York, Pennsylvania and Virginia;
•	Midwest - Illinois, Indiana, Michigan and Ohio; and
•	Southwest - Arizona, California, Colorado, Florida, Nevada and Texas.

Across our market areas, we have operated under a number of different retail brands. We currently operate under seven retail brands.

Drivers of Our Business

The success of our business and our profitability are impacted by a number of drivers, the most significant of which are discussed below.

Customer Growth

Customer growth is a key driver of our operations. Our ability to acquire customers organically or by acquisition is important to our success as we experience ongoing customer attrition. Our customer growth strategy includes growing organically through traditional sales channels complemented by customer portfolio and business acquisitions.

During the three months ended March 31, 2026, we added approximately 53,000 RCEs primarily through our various organic sales channels. Although we expect to continue to acquire customers organically in the future, our sales rate is dependent on market conditions and may slow in future periods.

While we remain focused on organic sales and identifying customer portfolio and business acquisitions, we cannot ensure that our RCE count will remain at current levels or grow. Our RCE count, as well as the margins we earn on our customers, contribute to our overall profitability, cash flow and ability to pay dividends.

Customer Acquisition Costs 

Managing customer acquisition costs is a key component of our profitability. Customer acquisition costs are those costs related to obtaining customers organically and do not include the cost of acquiring customers through acquisitions, which are recorded as customer relationships.

Customer Attrition

Customer attrition occurs primarily as a result of: (i) customer initiated switches; (ii) residential moves; (iii) disconnection resulting from customer payment defaults; and (iv) proactive non-renewal of contracts. Average monthly customer attrition for the three months ended March 31, 2026 and 2025 was 4.5% and 4.3%, respectively. Customer attrition was higher than prior year primarily due to increased sales activity during three months ended March 31, 2026. 

Customer Credit Risk

Our credit loss expense for the three months ended March 31, 2026 and 2025 was 1.1% and 0.9%, respectively, for non-purchase of receivable market ("non-POR") revenues. As the Company has increased sales activities in non-POR markets, we have experienced a slight increase in credit loss expense during the three months ended March 31, 2026.

Gross Profit

The profit earned between the price we are able to charge customers for retail electricity and natural gas and the cost to serve customers is a key component of the results of our operations. Prices we are able to charge customers for retail electricity and natural gas vary with market conditions, and are subject to regulatory restrictions in many of the markets we serve. Costs to serve customers are tied closely to gas and power commodity markets, which exposes us to significant variability and uncertainties.

Weather Conditions 

Weather conditions directly influence the demand for natural gas and electricity and affect the prices of energy commodities. Our hedging strategy is based on forecasted customer energy usage, which can vary substantially as a result of weather patterns deviating from historical norms. We are particularly sensitive to this variability in our residential customer segment where energy usage is highly sensitive to weather conditions that impact heating and cooling demand.

Our risk management policies direct that we hedge substantially all of our forecasted demand, which is typically hedged to long-term normal weather patterns. We also attempt to add additional protection through hedging from time to time to protect us from potential volatility in markets where we have historically experienced higher exposure to extreme weather conditions. Because we attempt to match commodity purchases to anticipated demand, unanticipated changes in weather patterns can have a significant impact on our operating results and cash flows from period to period.

Asset Optimization

Our asset optimization opportunities primarily arise during the winter heating season when demand for natural gas is typically at its highest. Given the opportunistic nature of these activities and because we account for these activities using the mark to market method of accounting, we experience variability in our earnings from our asset optimization activities from year to year.

Net asset optimization resulted in a gain of $3.7 million and $2.2 million for the three months ended March 31, 2026 and 2025 , respectively. 

Non-GAAP Performance Measures

We use the Non-GAAP performance measures of Adjusted EBITDA and Retail Gross Margin to evaluate and measure our operating results as follows:
 	Three Months Ended March 31,	
(in thousands)	2026		2025	
Adjusted EBITDA (1)	$	14,404			$	27,714		
Retail Gross Margin 	$	27,184			$	46,459		
(1) Adjusted EBITDA for  three months ended March 31, 2026  includes an add back of $2.7 million and less than 0.1 million, respectively, related to non-recurring winter storm loss and merger agreement expense. Adjusted EBITDA for the three months ended March 31, 2025 includes an add back of $(0.2) million related to merger agreement expense.

Adjusted EBITDA. We define “Adjusted EBITDA” as EBITDA less (i) customer acquisition costs incurred in the current period, plus or minus (ii) net (loss) gain on derivative instruments, and (iii) net current period cash settlements on derivative instruments, plus (iv) non-cash compensation expense, and (v) other non-cash and non-recurring operating items. EBITDA is defined as net income (loss) before the provision for income taxes, interest expense and depreciation and amortization. This conforms to the calculation of Adjusted EBITDA in our Senior Credit Facility.

We deduct all current period customer acquisition costs (representing spending for organic customer acquisitions) in the Adjusted EBITDA calculation because such costs reflect a cash outlay in the period in which they are incurred, even though we capitalize and amortize such costs over two years. We do not deduct the cost of customer acquisitions through acquisitions of businesses or portfolios of customers in calculating Adjusted EBITDA.

We deduct our net gains (losses) on derivative instruments, excluding current period cash settlements, from the Adjusted EBITDA calculation in order to remove the non-cash impact of net gains and losses on these instruments. We also deduct non-cash compensation expense that results from the issuance of restricted stock units under our long-term incentive plan due to the non-cash nature of the expense.

We adjust from time to time other non-cash or unusual and/or infrequent charges due to either their non-cash nature or their infrequency. We have historically included the financial impact of weather variability in the calculation of Adjusted EBITDA.

We believe that the presentation of Adjusted EBITDA provides information useful to investors in assessing our liquidity and financial condition and results of operations and that Adjusted EBITDA is also useful to investors as a financial indicator of our ability to incur and service debt, pay dividends and fund capital expenditures. Adjusted EBITDA is a supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, commercial banks and rating agencies, use to assess the following:

•	our operating performance as compared to other publicly traded companies in the retail energy industry, without regard to financing methods, capital structure or historical cost basis; 
•	the ability of our assets to generate earnings sufficient to support our proposed cash dividends; 
•	our ability to fund capital expenditures (including customer acquisition costs) and incur and service debt; and
•	our compliance with financial debt covenants. (Refer to Note 9 “Debt” to Part I, Item 1 of this Report for discussion of the material terms of our Senior Credit Facility, including the covenant requirements for our Minimum Fixed Charge Coverage Ratio and Maximum Total Leverage Ratio) 

The GAAP measures most directly comparable to Adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. The following table presents a reconciliation of Adjusted EBITDA to these GAAP measures for each of the periods indicated.
  	Three Months Ended March 31,	
(in thousands)	2026		2025	
Reconciliation of Adjusted EBITDA to net income:				
Net income	$	1,714			$	18,467		
Depreciation and amortization		5,874				5,028		
Interest expense		2,520				1,818		
Income tax expense		454				4,596		
EBITDA 		10,562				29,909		
Less:				
Gain on derivative instruments		9,086				4,386		
Cash settlements on derivative instruments		(13,026)			(3,900)	
Customer acquisition costs		2,811				1,500		
       Plus:				
       Non-recuring winter storm loss		2,700				—		
Merger agreement expense		13				(209)	
Adjusted EBITDA	$	14,404			$	27,714		
 
The following table presents a reconciliation of Adjusted EBITDA to net cash provided by operating activities for each of the periods indicated.

  	Three Months Ended March 31,	
(in thousands)	2026		2025	
Reconciliation of Adjusted EBITDA to net cash provided by operating activities:				
Net cash provided by operating activities	$	9,392			$	24,950		
Amortization of deferred financing costs		(229)			(167)	
Bad debt expense		(229)			(688)	
Interest expense		2,520				1,818		
Income tax expense		454				4,596		
Merger agreement expense		13				(209)	
Non-recuring winter storm loss		2,700				—		
Changes in operating working capital				
Accounts receivable, prepaids and current assets		(9,593)			6,428		
Inventory		(2,175)			(1,387)	
Accounts payable and accrued liabilities		12,043				2,352		
Other		(492)			(9,979)	
Adjusted EBITDA	$	14,404			$	27,714		
Cash Flow Data:				
Net cash provided by operating activities	$	9,392			$	24,950		
Net cash used in investing activities	$	(245)		$	(14,005)	
Net cash used in financing activities	$	(1,437)		$	(13,572)	

Retail Gross Margin. We define retail gross margin as gross profit less (i) net asset optimization revenues (expenses), (ii) net gains (losses) 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). Retail gross margin is included as a supplemental disclosure because it is a primary performance measure used by our management to determine the performance of our retail natural gas and electricity segments as a result of recurring operations. As an indicator of our retail energy business’s operating performance, retail gross margin should not be considered an alternative to, or more meaningful than, gross profit, its most directly comparable financial measure calculated and presented in accordance with GAAP.

We believe retail gross margin provides information useful to investors as an indicator of our retail energy business’s operating performance.

The GAAP measure most directly comparable to Retail Gross Margin is gross profit. The following table presents a reconciliation of Retail Gross Margin to gross profit for each of the periods indicated.
  	Three Months Ended March 31,	
(in thousands)	2026		2025	
Reconciliation of Retail Gross Margin to Gross Profit				
Total Revenue	$	159,029			$	142,257		
Less:				
Retail cost of revenues		132,618				95,393		
Gross Profit	$	26,411			$	46,864		
Less:				
Net asset optimization gain (expense)		3,661				(2,249)	
Gain on non-trading derivative instruments		8,575				6,554		
Cash settlements on non-trading derivative instruments		(13,009)			(3,900)	
Retail Gross Margin	$	27,184			$	46,459		
Retail Gross Margin - Retail Electricity Segment 	$	8,020			$	21,414		
Retail Gross Margin - Retail Natural Gas Segment	$	19,164			$	25,044		
Retail Gross Margin - Other	$	—			$	1		

Our non-GAAP financial measures of Adjusted EBITDA and Retail Gross Margin should not be considered as alternatives to gross profit. Adjusted EBITDA and Retail Gross Margin are not presentations made in accordance with GAAP and have limitations as analytical tools. You should not consider Adjusted EBITDA or Retail Gross Margin in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA and Retail Gross Margin exclude some, but not all, items that affect gross profit, and are defined differently by different companies in our industry, our definition of Adjusted EBITDA and Retail Gross Margin may not be comparable to similarly titled measures of other companies.

Management compensates for the limitations of Adjusted EBITDA and Retail Gross Margin as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these data points into management’s decision-making process.

Consolidated Results of Operations

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025 
(In Thousands)	Three Months Ended March 31,	
	2026		2025	
Revenues:				
Retail revenues	$	155,368			$	144,503		
Net asset optimization gain (expense)		3,661				(2,249)		
Other revenue		—				3		
Total Revenues		159,029				142,257		
Operating Expenses:				
Retail cost of revenues		132,618				95,393		
General and administrative expense		15,721				16,992		
Depreciation and amortization		5,874				5,028		
Total Operating Expenses		154,213				117,413		
Operating income		4,816				24,844		
Other (expense)/income:				
Interest expense		(2,520)				(1,818)		
Interest and other income		(128)				37		
Total Other (Expenses)/Income		(2,648)				(1,781)		
Income before income tax expense 		2,168				23,063		
Income tax expense		454				4,596		
Net income	$	1,714			$	18,467		
Other Performance Metrics:				
  Adjusted EBITDA (1) (2)	$	14,404			$	27,714		
  Retail Gross Margin (1)	$	27,184			$	46,459		
  Customer Acquisition Costs	$	2,811			$	1,500		
  Average Monthly RCE Attrition		4.5	%			4.3	%	
(1) Adjusted EBITDA and Retail Gross Margin are non-GAAP financial measures. See “ — Non-GAAP Performance Measures” for a reconciliation of Adjusted EBITDA and Retail Gross Margin to their most directly comparable GAAP financial measures.
(2) Adjusted EBITDA for  three months ended March 31, 2026  includes an add back of $2.7 million and less than 0.1 million, respectively, related to non-recurring winter storm loss and merger agreement expense. Adjusted EBITDA for the three months ended March 31, 2025 includes an add back of $(0.2) million related to merger agreement expense.

Total Revenues. Total revenues for the three months ended March 31, 2026 were approximately $159.0 million, an increase of approximately $16.7 million, or 12%, from approximately $142.3 million from the three months ended March 31, 2025, as indicated in the table below (in millions). This increase was primarily due to higher gas and electricity rates and an increase in net asset optimization revenue in the first quarter of 2026 as compared to the first quarter of 2025. This was slightly offset by lower natural gas volumes in the first quarter of 2026 as compared to 2025.
Change in electricity volumes sold	$	2.8		
Change in natural gas volumes sold		(3.0)	
Change in electricity unit revenue per MWh		3.4		
Change in natural gas unit revenue per MMBtu		7.7		
Change in net asset optimization revenue		5.8		
Change in total revenues	$	16.7		

Retail Cost of Revenues. Total retail cost of revenues for the three months ended March 31, 2026 was approximately $132.6 million, an increase of approximately $37.2 million, or 39%, from approximately $95.4 million for the three months ended March 31, 2025, as indicated in the table below (in millions). The increase was primarily driven by higher electricity and natural gas costs due to higher commodity price environment in the first quarter of 2026 as a result of winter storm Fern , as well as changes in the fair value of the retail derivative portfolio, partially offset by lower natural gas volumes sold in first quarter of 2026 as compared to the first quarter of 2025.

Change in electricity volumes sold	$	2.0		
Change in natural gas volumes sold		(1.9)	
Change in electricity unit cost per MWh		17.5		
Change in natural gas unit cost per MMBtu		12.5		
Change in value of retail derivative portfolio		7.1		
Change in retail cost of revenues	$	37.2		

General and Administrative Expense. General and administrative expense for the three months ended March 31, 2026 was approximately $15.7 million, a decrease of approximately $1.3 million, or 8%, as compared to $17.0 million for the three months ended March 31, 2025. This decrease was primarily attributable to a decrease in legal expenses, offset by higher employee costs and higher commissions due to increase in sales activity in the first quarter of 2026 as compared to the first quarter of 2025.

Depreciation and Amortization Expense. Depreciation and amortization expense for the three months ended March 31, 2026 was approximately $5.9 million, an increase of approximately $0.9 million, or 18%, from approximately $5.0 million for the three months ended March 31, 2025. This increase was primarily due to higher amortization expense associated with customer relationship intangibles as result of customer book purchases in 2025.

Customer Acquisition Cost. Customer acquisition cost for the three months ended March 31, 2026 was approximately $2.8 million, an increase of approximately $1.3 million, or 87% from approximately $1.5 million three months ended March 31, 2025, primarily due to an increase in the sales activity in the first quarter of 2026 as compared to the first quarter of 2025.

Operating Segment Results
(in thousands, except volume and per unit operating data)	Three Months Ended March 31,	
  	2026		2025	
				
Retail Electricity Segment				
Total Revenues	$	86,866			$	80,720		
Retail Cost of Revenues		80,965				58,202		
Less: (Loss) gain on non-trading derivatives, net of cash settlements		(2,119)			1,104		
Retail Gross Margin (1)  — Electricity	$	8,020			$	21,414		
Volumes — Electricity (MWhs)		577,224				557,618		
Retail Gross Margin (2) — Electricity per MWh	$	13.89			$	38.40		
				
Retail Natural Gas Segment				
Total Revenues	$	68,502			$	63,783		
Retail Cost of Revenues		51,653				37,189		
Less: Net (Losses) gains  on non-trading derivatives, net of cash settlements		(2,315)			1,550		
Retail Gross Margin (1) — Gas	$	19,164			$	25,044		
Volumes — Gas (MMBtus)		7,097,733				7,454,075		
Retail Gross Margin (2) — Gas per MMBtu	$	2.70			$	3.36		
(1) Reflects the Retail Gross Margin attributable to our Retail Electricity Segment or Retail Natural Gas Segment, as applicable. Retail Gross Margin is a non-GAAP financial measure. See “Non-GAAP Performance Measures” for a reconciliation of Retail Gross Margin to most directly comparable financial measures presented in accordance with GAAP.
(2) Reflects the Retail Gross Margin for the Retail Electricity Segment or Retail Natural Gas Segment, as applicable, divided by the total volumes in MWh or MMBtu, respectively.

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Retail Electricity Segment  

Total revenues for the Retail Electricity Segment for the three months ended March 31, 2026 were approximately $86.9 million, an increase of approximately $6.2 million, or 8%, from approximately $80.7 million for the three months ended March 31, 2025. This increase was largely due to higher electricity rates of $3.4 million and higher electricity volumes of $2.8 million as a result of a larger electricity customer book as compared to the first quarter of 2025.

Retail cost of revenues for the Retail Electricity Segment for the three months ended March 31, 2026 were approximately $81.0 million, an increase of approximately $22.8 million, or 39%, from approximately $58.2 million for the three months ended March 31, 2025. This increase was primarily due to higher electricity costs of $17.5 million as a result of winter storm Fern in first quarter of 2026, change in the fair value of our retail derivative portfolio used for hedging of $3.3 million, and higher electricity volumes of $2.0 million resulting from larger electricity customer book.  

Retail gross margin for the Retail Electricity Segment for the three months ended March 31, 2026 was approximately $8.0 million, a decrease of approximately $13.4 million, or 63%, from approximately $21.4 million for the three months ended March 31, 2025, as indicated in the table below (in millions).
Change in volumes sold	$	0.7		
Change in unit margin per MWh		(14.1)	
Change in retail electricity segment retail gross margin	$	(13.4)	
Retail Natural Gas Segment 

Total revenues for the Retail Natural Gas Segment for the three months ended March 31, 2026 were approximately $68.5 million, an increase of approximately $4.7 million, or 7%, from approximately $63.8 million for the three months ended March 31, 2025. The increase in revenues was primarily attributable to higher natural gas rates, which increased total revenues by approximately by $7.7 million, partially offset by lower volumes sold, which reduced revenues by approximately 3.0 million, as compared to the first quarter of 2025.

Retail cost of revenues for the Retail Natural Gas Segment for the three months ended March 31, 2026 were approximately $51.7 million, an increase of $14.5 million, or 39%, from approximately $37.2 million for the three months ended March 31, 2025. This increase was primarily attributable to higher natural gas cost in the first quarter of 2026 due to winter storm Fern, which resulted in an increase of $12.5 million, and $3.9 million change in the fair value of our retail derivative portfolio used for hedging. These increases were partially offset by lower natural gas volumes, which reduced cost by approximately $1.9 million.

Retail gross margin for the Retail Natural Gas Segment for the three months ended March 31, 2026 was approximately $19.2 million, a decrease of approximately $5.8 million, or 23%, from approximately $25.0 million for the three months ended March 31, 2025, as indicated in the table below (in millions).
Change in volumes sold	$	(1.2)	
Change in unit margin per MMBtu		(4.6)	
Change in retail natural gas segment retail gross margin	$	(5.8)	

Liquidity and Capital Resources

Overview 

Our primary sources of liquidity are cash generated from operations and borrowings under our Senior Credit Facility. Our principal liquidity requirements are to meet our financial commitments, finance current operations, fund organic growth and/or acquisitions and service debt and pay dividends. Our liquidity requirements fluctuate with our level of customer acquisition costs, acquisitions, collateral posting requirements on our derivative instruments portfolio, distributions, the effects of the timing between the settlement of payables and receivables, including the effect of bad debts, weather conditions, and our general working capital needs for ongoing operations. Estimating our liquidity requirements is highly dependent on then-current market conditions, forward prices for natural gas and electricity, market volatility and our then existing capital structure and requirements.

We believe that cash generated from operations and our available liquidity sources will be sufficient to sustain current operations and to pay required taxes. Our ability to pay dividends to the holders of the Series A Preferred Stock in the future will ultimately depend on our RCE count, margins, profitability and cash flow, and the covenants under our Senior Credit Facility.

Liquidity Position

The following table details our available liquidity as of March 31, 2026:
($ in thousands)	March 31, 2026	
Cash and cash equivalents	$	50,591		
Senior Credit Facility Availability (1) 		37,002		
Subordinated Debt Facility Availability (2) 		25,000		
Total Liquidity	$	112,593		
(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of March 31, 2026.
(2) The availability of the Subordinated Facility is dependent on Mr. Maxwell’s willingness and ability to lend. See “—Sources of Liquidity —Subordinated Debt Facility.”

Borrowings and related posting of letters of credit under our Senior Credit Facility are subject to material variations on a seasonal basis due to the timing of commodity purchases to satisfy natural gas inventory requirements and to meet customer demands during periods of peak usage. Additionally, borrowings are subject to borrowing base and covenant restrictions.

Cash Flows 

Our cash flows were as follows for the respective periods (in thousands):
  	Three Months Ended March 31,	
  	2026		2025	
Net cash provided by operating activities	$	9,392			$	24,950		
Net cash used in investing activities	$	(245)		$	(14,005)	
Net cash used in financing activities	$	(1,437)		$	(13,572)	

Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025 

Cash Flows Provided by Operating Activities. Cash flows provided by operating activities for the three months ended March 31, 2026 decreased by $15.6 million compared to the three months ended March 31, 2025. The decrease was primarily the result of changes in working capital for the three months ended March 31, 2026.

Cash Flows Used in Investing Activities. Cash flows used in investing activities decreased by $13.8 million for the three months ended March 31, 2026. The decrease was primarily the result of acquisition of customer books during three months ended March 31, 2025 which didn't occur in three months ended March 31, 2026.

Cash Flows Used in Financing Activities. Cash flows used in financing activities decreased by $12.1 million for the three months ended March 31, 2026, primarily due to reduction in net payment of our Senior Credit Facility by $15.0 million, a decrease in distribution to our non-controlling interest of  $4.1 million, a decrease of $0.8 million dividends to Series A Preferred Stock holders, partially offset by an increase in $5.7 million related to the redemption of Series A Preferred Stock redemption and an increase in distribution to controlling interest of $2.1 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Sources of Liquidity and Capital Resources

The Co-Borrowers maintain the Senior Credit Facility with the Agent. The Senior Credit Facility matures on June 30, 2027 and has a borrowing capacity of $250.0 million.

As of March 31, 2026, we had total commitments of 250.0 million under our Senior Credit Facility, of which $167.9 million was outstanding, including $37.9 million letters of credit.

For a description of the terms and conditions of our Senior Credit Facility, including descriptions of the interest rate, commitment fee, covenants and terms of default, please see Note 9 “Debt” in the notes to our condensed consolidated financial statements.

As of March 31, 2026, we were in compliance with the covenants under our Senior Credit Facility. Based upon existing covenants as of March 31, 2026, we had availability to borrow up to $37.0 million under the Senior Credit Facility. 

Maintaining compliance with our covenants under our Senior Credit Facility may impact our ability to pay dividends on our Series A Preferred Stock.

Amended and Restated Subordinated Debt Facility

In connection with entering into the Senior Credit Facility, we entered into an amended and restated subordinated promissory note (the “Subordinated Debt Facility”), which allows us to draw advances in increments of no less than $1.0 million per advance up to $25.0 million through January 31, 2028. 

See Note 9 “Debt” for further information regarding the Subordinated Debt Facility.

Uses of Liquidity and Capital Resources

Repayment of Current Portion of Senior Credit Facility

Our Senior Credit Facility matures in June 2027, and no amounts are due currently. However, due to the revolving nature of the facility, excess cash available is generally used to reduce the balance outstanding, which at March 31, 2026 was $167.9 million, including $37.9 million of outstanding letters of credit. The current variable interest rate on the facility at March 31, 2026 was 6.91%.

Customer Acquisitions

Our customer acquisition strategy consists of customer growth obtained through organic customer additions as well as opportunistic acquisitions. During the three months ended March 31, 2026 and 2025, we spent a total of $2.8 million and $1.5 million, respectively, on organic customer acquisitions.

Capital Expenditures

Our capital requirements each year are relatively low and generally consist of minor purchases of equipment or information system upgrades and improvements. Capital expenditures for the three months ended March 31, 2026 and 2025 included $0.2 million and $1.4 million, respectively, related to information systems improvements.

Dividends and Distributions

For the three months ended March 31, 2026 we paid $1.6 million in dividends to holders of the Series A Preferred Stock. As of March 31, 2026, we had accrued $1.4 million related to dividends to holders of the Series A Preferred Stock. This dividend was paid on April 15, 2026. For a more detailed explanation of the Company's Series A Preferred Stock, please see Note 5 "Preferred Stock" in the notes to our condensed consolidated financial statements.

For the full year ended December 31, 2026, taking into consideration the amount of dividends already paid and estimating future dividends using the stated most recent dividend rate paid on the Series A Preferred Stock, we would be required to pay dividends of $5.5 million in the aggregate based on the Series A Preferred Stock outstanding as of March 31, 2026.

On April 15, 2026, we declared a dividend in the amount of $0.65704 per share for the Series A Preferred Stock for the first quarter of 2026. Dividends on Series A Preferred Stock will be paid on July 15, 2026 to holders of record on July 1, 2026.

Future dividends are within the discretion of our Board of Directors, which may be required to reduce, eliminate or suspend quarterly cash dividends to the holders of the Series A Preferred Stock. Any future dividends will depend upon our operations, our financial condition, capital requirements and investment opportunities, the performance of our business, cash flows, RCE counts and the margins we receive, as well as restrictions under our Senior Credit Facility. A dividend penalty event would occur if dividends on the Series A Preferred Stock are in arrears for six or more quarterly dividend periods, in which case the dividend rate on the Series A Preferred Stock would increase by 2.00% per annum, and the holders of the Series A Preferred Stock would be entitled to elect two members to our Board of Directors, until the dividend penalty event is cured.

Off-Balance Sheet Arrangements

As of March 31, 2026, we had no material “off-balance sheet arrangements.”

Related Party Transactions

For a discussion of related party transactions, see Note 13 “Transactions with Affiliates” to Part I, Item 1 of this Report.

Critical Accounting Policies and Estimates

Our critical accounting policies and estimates are described in “Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our 2025 Form 10-K. There have been no changes to these policies and estimates since the date of our 2025 Form 10-K.

Refer to Note 2 “Basis of Presentation and Summary of Significant Accounting Policies” to Part I, Item 1 of this Report for a discussion on recent accounting pronouncements.

Contingencies

In the ordinary course of business, we may become party to lawsuits, administrative proceedings and governmental investigations, including regulatory and other matters. 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. For a discussion of the status of current legal and regulatory matters, see Note 12 “Commitments and Contingencies” to Part I, Item 1 of this Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risks relating to our operations result primarily from changes in commodity prices and interest rates, as well as counterparty credit risk. We employ established risk management policies and procedures to manage, measure, and limit our exposure to these risks.

Commodity Price Risk

We hedge and procure our energy requirements from various wholesale energy markets, including both physical and financial markets and through short and long-term contracts. Our financial results are largely dependent on the margin we are able to realize between the wholesale purchase price of natural gas and electricity plus related costs and the retail sales price we charge our customers for these commodities. We actively manage our commodity price risk by entering into various derivative or non-derivative instruments to hedge the variability in future cash flows from fixed-price forecasted sales and purchases of natural gas and electricity in connection with our retail energy operations. These instruments include forwards, futures, swaps, and option contracts traded on various exchanges, such as NYMEX and Intercontinental Exchange, or ICE, as well as over-the-counter markets. These contracts have varying terms and durations, which range from a few days to several years, depending on the instrument. We also utilize similar derivative contracts in connection with our asset optimization activities to attempt to generate incremental gross margin by effecting transactions in markets where we have a retail presence. Generally, any such instruments that are entered into to support our retail electricity and natural gas business are categorized as having been entered into for non-trading purposes, and instruments entered into for any other purpose are categorized as having been entered into for trading purposes.

Our net (loss)/gain on our non-trading derivative instruments, net of cash settlements, was $(4.4) million and $2.7 million for the three months ended March 31, 2026 and 2025.

We have adopted risk management policies to measure and limit market risk associated with our fixed-price portfolio and our hedging activities. For additional information regarding our commodity price risk and our risk management policies, see “Item 1A—Risk Factors” in our 2025 Form 10-K.

We measure the commodity risk of our non-trading energy derivatives using a sensitivity analysis on our net open position. As of March 31, 2026, our Gas Non-Trading Fixed Price Open Position (hedges net of retail load) was a long position of 854,712 MMBtu. An increase of 10% in the market prices (NYMEX) from their March 31, 2026, levels would have increased the fair market value of our net non-trading energy portfolio by $0.5 million. Likewise, a decrease of 10% in the market prices (NYMEX) from their March 31, 2026, levels would have decreased the fair market value of our non-trading energy derivatives by $0.5 million. As of March 31, 2026, our Electricity Non-Trading Fixed Price Open Position (hedges net of retail load) was a long position of 126,877 MWhs. An increase of 10% in the forward market prices from their March 31, 2026, levels would have increased the fair market value of our net non-trading energy portfolio by $0.8 million. Likewise, a decrease of 10% in the forward market prices from their March 31, 2026, levels would have decreased the fair market value of our non-trading energy derivatives by $0.8 million.

Credit Risk 

In many of the utility services territories where we conduct business, Purchase of Receivables (“POR”) programs have been established, whereby the local regulated utility purchases our receivables, and becomes responsible for billing the customer and collecting payment from the customer. This service results in substantially all of our credit risk being with the utility and not to our end-use customer in these territories. Approximately 56% and 59% of our retail revenues were derived from territories in which substantially all of our credit risk was with local regulated utility companies for the three months ended March 31, 2026 and 2025, respectively, all of which had investment grade ratings as of such date. We paid these local regulated utilities a weighted average discount of 0.6% and 1.3%, for the three months ended March 31, 2026 and 2025, respectively of total revenues for customer credit risk protection. 
In certain of the POR markets in which we operate, the utilities limit their collections exposure by retaining the ability to transfer a delinquent account back to us for collection when collections are past due for a specified period.

If our collection efforts are unsuccessful, we return the account to the local regulated utility for termination of service. Under these service programs, we are exposed to credit risk related to payment for services rendered during the time between when the customer is transferred to us by the local regulated utility and the time we return the customer to the utility for termination of service, which is generally one to two billing periods. We may also realize a loss on fixed-price customers in this scenario due to the fact that we will have already fully hedged the customer’s expected commodity usage for the life of the contract.

In non-POR markets (and in POR markets where we may choose to direct bill our customers), we manage customer credit risk through formal credit review in the case of commercial customers, and credit score screening, deposits and disconnection for non-payment, in the case of residential customers. Economic conditions may affect our customers’ ability to pay bills in a timely manner, which could increase customer delinquencies and may lead to an increase in bad debt expense. Our bad debt expense for the three months ended March 31, 2026 and 2025 was 1.1% and 0.9% of non-POR market retail revenues, respectively. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Drivers of Our Business—Customer Credit Risk” for an analysis of our bad debt expense related to non-POR markets during the three months ended March 31, 2026.

We are exposed to wholesale counterparty credit risk in our retail and asset optimization activities. We manage this risk at a counterparty level and secure our exposure with collateral or guarantees when needed. At March 31, 2026, approximately $2.3 million of our total exposure of $3.0 million was either with a non-investment grade counterparty or otherwise not secured with collateral or a guarantee. The credit worthiness of the remaining exposure with other customers was evaluated with no material allowance recorded at March 31, 2026.

Interest Rate Risk

We are exposed to fluctuations in interest rates under our Senior Credit Facility and our Series A Preferred Stock. 

At March 31, 2026, we were co-borrowers under the Senior Credit Facility, under which $130.0 million of variable rate indebtedness was outstanding. Based on the average amount of our variable rate indebtedness outstanding during the three months ended March 31, 2026, a 1.0% increase in interest rates would have resulted in additional annual interest expense of approximately $1.3 million.

On April 15, 2026, our Board of Directors declared a quarterly cash dividend in the amount of $0.65704 per share for the Series A Preferred Stock for the first quarter of 2025 for an aggregate amount of $1.4 million for the quarter. Based on the Series A Preferred Stock outstanding on March 31, 2026, a 1.0% increase in interest rates would have resulted in additional dividends of $0.1 million for the quarter.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost benefit relationship of possible controls and procedures. Based on this evaluation, management concluded that our disclosure controls and procedures were effective as of March 31, 2026.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the three months ended March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

See Note 12 “Commitments and Contingencies” to Part I, Item 1 of this Report, which is incorporated by reference into this Part II, Item 1, for a description of certain ligation, legal proceedings, and regulatory matters.

Item 1A. Risk Factors. 

Holders of Series A Preferred Stock should carefully consider the risk factors under “Item 1A— Risk Factors” in our 2025 Form 10-K. There has been no material change in our risk factors from those described in the 2025 Form 10-K. Our description of risks are not the sole risks for investors in Series A Preferred Stock. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or results of operations.

Item 6. Exhibits	

The exhibits required to be filed by Item 6 are set forth in the Exhibit Index included below.

INDEX TO EXHIBITS 	
  		Incorporated by Reference	
Exhibit	Exhibit Description	Form	Exhibit Number	Filing Date	SEC File No.	
2.1	Agreement and Plan of Merger, dated as of December 29, 2023, by and among Retailco, LLC, NuRetailco LLC and Via Renewables, Inc.	8-K		2.1	1/2/2024	001-36559	
2.2	Asset Purchase Agreement by and between Tomorrow Energy Corp, as Seller, and Spark HoldCo, LLC, as Buyer, dated as of October 22, 2024	8-K		2.1	10/25/2024	001-36559	
3.1	Composite Amended and Restated Certificate of Incorporation of Via Renewables, Inc., as amended through March 21, 2023	10-K		3.1	2/29/2024	001-36559	
3.2	Second Amended and Restated Bylaws of Via Renewables, Inc.	8-K		3.2	8/9/2021	001-36559	
3.3	Certificate of Designations of Rights and Preferences of 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock.	8-A		5	3/14/2017	001-36559	
4.1	Description of Securities	10-Q		4.1	8/1/2024	001-36559	
10.1	Credit Agreement, dated June 30, 2022, by and among Via Renewables, Inc., Spark HoldCo, LLC, and the other subsidiaries of Via Renewables, Inc. and Spark HoldCo, LLC party thereto, as co-borrowers, Woodforest National Bank, as administrative agent, swing bank, swap bank, issuing bank, joint-lead arranger, sole bookrunner and syndication agent, BOKF, NA (d/b/a/ Bank of Texas), as joint-lead arranger and issuing bank, and the other financial institutions party thereto.	8-K		10.1	7/7/2022	001-36559	
10.2	First Amendment to Credit Agreement, dated June 28, 2024, by and among Via Renewables, Inc., Spark HoldCo, LLC, and the other subsidiaries of Via Renewables, Inc. and Spark HoldCo, LLC party thereto, as co-borrowers, Woodforest National Bank, as administrative agent, swing bank, swap bank, issuing bank, joint-lead arranger, sole bookrunner and syndication agent, and the other financial institutions party thereto.	8-K		10.1	6/28/2024	001-36559	
10.3	Amended and Restated Subordinated Promissory Note (Note No. 8), dated June 28, 2024, by and among Via Renewables, Inc., Spark HoldCo, LLC and Retailco, LLC.	8-K		10.2	6/28/2024	001-36559	
10.4	Amendment No. 3 to the Third Amended and Restated Limited Liability Company Agreement of Spark Holdco, LLC, dated as of October 30, 2024, by and between Via Renewables, Inc., Spark HoldCo, LLC, and Retailco, LLC.	10-Q		10.4	10/31/2024	001-36559	
10.5	Letter Agreement dated June 23, 2005, by and among Via Renewables, Inc., Spark HoldCo, LLC, and the other subsidiaries of Via Renewables, Inc. and Spark HoldCo, LLC party thereto, as co-borrowers, Woodforest National Bank, as administrative agent, swing bank, swap bank, issuing bank, joint-lead arranger, sole bookrunner and syndication agent, and the other financial institutions party thereto, supplementing June 30, 2022 Credit Agreement.	8-K			6/6/2025	001-36559	
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.						
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.						
32**	Certifications pursuant to 18 U.S.C. Section 1350.						
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)						
* Filed herewith
** Furnished herewith

 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
						
	Via Renewables, Inc.	

April 30, 2026			/s/ Mike Barajas	
			Mike Barajas	
			Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)