Via Renewables, Inc.VIASP
Via Renewables, Inc. Segments Disclosure
15. Segment Reporting
Our reportable business segments are retail electricity and retail natural gas. The retail electricity segment consists of electricity sales and transmission to residential and commercial customers. The retail natural gas segment consists
of natural gas sales to, and natural gas transportation and distribution for, residential and commercial customers. The Chief Executive Officer, who is also the Chief Operating Decision Maker (“CODM”), determines the reportable business segments by considering the strategic operating units used to make financial decisions, allocate resources and assess performance of our business.
For the years ended December 31, 2024, 2023 and 2022, we recorded asset optimization revenues of $23.0 million, $24.6 million and $86.7 million and asset optimization cost of revenues of $25.3 million, $31.9 million and $89.0 million, respectively, which are presented on a net basis in asset optimization revenues.
The primary metric used by the CODM in managing the Company, assessing segment performance, and allocating resources is retail gross margin. We use retail gross margin to assess the performance of our operating segments. We define retail gross margin as gross profit less (i) net asset optimization (expenses) revenues, (ii) net (losses) gains on non-trading derivative instruments, (iii) net current period cash settlements on non-trading derivative instruments, and (iv) gains (losses) from non-recurring events (including non-recurring market volatility).
We deduct net gains (losses) on non-trading derivative instruments, excluding current period cash settlements, from the retail gross margin calculation in order to remove the non-cash impact of net gains and losses on these derivative instruments. We deduct net gains (losses) from non-recurring events (including non-recurring market volatility) to ensure retail gross margin reflects operating performance that is not distorted by non-recurring events or extreme market volatility. Retail gross margin should not be considered an alternative to, or more meaningful than, operating income (loss), as determined in accordance with GAAP.
The Company’s CODM reviews significant expenses on a consolidated level.
Financial data for business segments are as follows (in thousands):
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Retail Electricity | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
| Total Revenues | $ | 300,347 | $ | 99,071 | $ | (550) | $ | — | $ | 398,868 | |||||||||||||||||||
| Retail cost of revenues | 186,246 | 43,231 | 1,314 | — | 230,791 | ||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Net asset optimization expense | — | — | (2,326) | — | (2,326) | ||||||||||||||||||||||||
| Net, (loss) gain on non-trading derivative instruments | (7,000) | 2,536 | — | — | (4,464) | ||||||||||||||||||||||||
| Current period settlements on non-trading derivatives | 27,432 | 5,439 | — | — | 32,871 | ||||||||||||||||||||||||
| Retail gross margin | $ | 93,669 | $ | 47,865 | $ | 462 | $ | — | $ | 141,996 | |||||||||||||||||||
Add: Reconciling items (1) | 26,081 | ||||||||||||||||||||||||||||
| Gross Profit | $ | 168,077 | |||||||||||||||||||||||||||
Total Assets | $ | 1,867,055 | $ | 126,911 | $ | 317,408 | $ | (1,966,435) | $ | 344,939 | |||||||||||||||||||
| Goodwill | $ | 117,813 | $ | 2,530 | $ | — | $ | — | $ | 120,343 | |||||||||||||||||||
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Retail Electricity | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
| Total Revenues | $ | 328,466 | $ | 110,894 | $ | (4,168) | $ | — | $ | 435,192 | |||||||||||||||||||
| Retail cost of revenues | 240,979 | 68,202 | 1,563 | — | 310,744 | ||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Net asset optimization expense | — | — | (7,326) | — | (7,326) | ||||||||||||||||||||||||
| Net, gain on non-trading derivative instruments | (58,554) | (11,750) | — | — | (70,304) | ||||||||||||||||||||||||
| Current period settlements on non-trading derivatives | 58,475 | 6,953 | — | — | 65,428 | ||||||||||||||||||||||||
| Retail gross margin | $ | 87,566 | $ | 47,489 | $ | 1,595 | $ | — | $ | 136,650 | |||||||||||||||||||
Add: Reconciling items (1) | (12,202) | ||||||||||||||||||||||||||||
| Gross Profit | $ | 124,448 | |||||||||||||||||||||||||||
| Total Assets | $ | 1,613,642 | $ | 48,303 | $ | 301,892 | $ | (1,660,003) | $ | 303,834 | |||||||||||||||||||
| Goodwill | $ | 117,813 | $ | 2,530 | $ | — | $ | — | $ | 120,343 | |||||||||||||||||||
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments and current period settlements on non-trading activities.
| Year Ended December 31, 2022 | |||||||||||||||||||||||||||||
| Retail Electricity | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
| Total Revenues | $ | 352,750 | $ | 110,065 | $ | (2,322) | $ | — | $ | 460,493 | |||||||||||||||||||
| Retail cost of revenues | 275,701 | 81,395 | — | — | 357,096 | ||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Net asset optimization expense | — | — | (2,322) | — | (2,322) | ||||||||||||||||||||||||
| Net, Gain on non-trading derivative instruments | 11,351 | 5,954 | — | — | 17,305 | ||||||||||||||||||||||||
| Current period settlements on non-trading derivatives | (26,616) | (9,350) | — | — | (35,966) | ||||||||||||||||||||||||
| Non-recurring event - winter storm Uri | 9,565 | — | — | — | 9,565 | ||||||||||||||||||||||||
| Retail gross margin | $ | 82,749 | $ | 32,066 | $ | — | $ | — | $ | 114,815 | |||||||||||||||||||
Add: Reconciling items (1) | (11,418) | ||||||||||||||||||||||||||||
| Gross Profit | $ | 103,397 | |||||||||||||||||||||||||||
| Total Assets | $ | 1,802,649 | $ | 123,490 | $ | 313,490 | $ | (1,908,679) | $ | 330,950 | |||||||||||||||||||
| Goodwill | $ | 117,813 | $ | 2,530 | $ | — | $ | — | $ | 120,343 | |||||||||||||||||||
(1) Reconciling item includes net asset optimization expenses, net loss and gain on non-trading derivative instruments, current period settlements on non-trading activities and non recurring event.
Significant Customers
For each of the years ended December 31, 2024, 2023 and 2022, we did not have any significant customers that individually accounted for more than 10% of our consolidated retail revenue.
Significant Suppliers
For each of the years ended December 31, 2024, 2023 and 2022, we had two, two, and three significant suppliers that individually accounted for more than 10% of our consolidated retail cost of revenues. For each of the years ended December 31, 2024, 2023 and 2022, these suppliers accounted for 35%, 28% and 61% of our consolidated cost of revenue.About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.