10-Q · May 7, 2026
Vistra Corp. reported Q1 2026 results with a significant revenue increase of 43.3% year-over-year, reaching $5.64 billion, and an impressive EPS of $2.89, compared to -$0.93 in Q1 2025. The company's strong performance…
Earnings analysis · 10-Q
VST earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Vistra's Q2 2026 results were mixed: revenue fell 5.5% year over year to $4.017 billion and diluted EPS was $0.908, but Adjusted EBITDA rose 31% to $1.744 billion and operating margin improved to approximately 13.8%…
Read full summary
Vistra's Q2 2026 results were mixed: revenue fell 5.5% year over year to $4.017 billion and diluted EPS was $0.908, but Adjusted EBITDA rose 31% to $1.744 billion and operating margin improved to approximately 13.8% from 12.1%. Texas and East segment EBITDA improved materially, while Retail sales volumes declined to 31,800 GWh from 33,267 GWh and East net income was pressured by $629 million of unrealized hedging losses. Liquidity expanded to $6.295 billion, although cash fell to $435 million and the company incurred substantial debt repayments, investment commitments, collateral requirements, and Moss Landing-related costs. No new quantitative guidance was provided, and the company stated that there were no material changes to the risk factors in its 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.908
- Operating margin
- 13.8%
What stood out
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Operating Margin Improved Year Over Year
Q2 operating revenue was $4.017 billion, down $233 million, or 5.5%, from $4.250 billion in Q2 2025 and down $1.623 billion, or 28.8%, from $5.640 billion in Q1 2026. Operating income was $553 million, implying a 13.8% operating margin versus 12.1% in Q2 2025 and 26.6% in Q1 2026.
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Adjusted EBITDA Rose Despite EPS Decline
Diluted EPS was $0.908 versus $0.81 in Q2 2025, but declined from $2.87 in Q1 2026. Net income was $305 million, down $22 million year over year, while Adjusted EBITDA increased $412 million to $1.744 billion.
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Texas Earnings More Than Doubled
Texas Adjusted EBITDA increased to $311 million from $142 million, supported by higher energy margins from optimizing gas-unit dispatch and the return of the 815 MW Martin Lake Unit 1 to service in February 2026.
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East Benefits From Capacity Prices
East Adjusted EBITDA increased to $642 million from $418 million, driven primarily by higher realized capacity prices and plants added in the Lotus Acquisition. East production from natural gas facilities increased to 15,805 GWh from 12,198 GWh.
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Operating Cash Flow Strengthened
Six-month operating cash flow increased to $2.222 billion from $1.171 billion, a $1.051 billion improvement. Management attributed the increase partly to a $180 million decrease in net margin deposits supporting hedging activities.
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Liquidity Expanded Materially
Available liquidity increased to $6.295 billion at June 30, 2026 from $2.783 billion at December 31, 2025, despite cash declining to $435 million from $785 million. Revolving-credit availability increased to $4.408 billion and commodity-linked availability to $1.452 billion.
What to watch
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Heavy Capital Allocation and Debt Uses
Cash declined by $350 million to $435 million at June 30, 2026. Six-month financing uses included $2.450 billion of Term Loan B-3 repayments, $1.8 billion of credit-facility repayments, $1.3 billion of senior-note repayments, $925 million of receivables-facility repayments, $709 million of share repurchases, and $250 million of dividends.
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Higher Hedging Collateral and Market Risk
Commodity and hedging exposure remains significant: $1.874 billion of cash and eligible assets and $3.006 billion of letters of credit were posted with counterparties at June 30, 2026, versus $1.577 billion and $2.489 billion, respectively, at December 31, 2025. Average commodity VaR rose to $459 million from $224 million in 2025.
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Maintenance and Supply-Chain Cost Pressure
Supply-chain constraints and labor shortages have increased equipment and labor costs and led to deferral or abandonment of some solar and battery capital expenditures. The company also reported $853 million of Q2 operating costs versus $733 million in Q2 2025, primarily due to higher maintenance, outage, acquired-plant, and Moss Landing costs.
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New Digital-Infrastructure Commitment
The company committed up to $1 billion to the Helix Fund, including a callable initial $500 million commitment and a further $500 million contingent commitment. The timing and amount of future capital calls are outside Vistra's control.
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Moss Landing Costs Remain Elevated
Asset Closure net loss increased to $116 million from $43 million in Q2 2025 because of incremental Moss Landing Incident costs net of insurance recoveries. The Moss Landing incident continues to create operating and remediation exposure.
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Counterparty Concentration Risk
Wholesale credit exposure before collateral was $2.648 billion and net exposure was $2.481 billion at June 30, 2026. One counterparty represented $236 million, or 36%, of net wholesale-segment exposure, creating concentration risk if that counterparty defaults.
Management's outlook
No new quantitative revenue, EPS, or Adjusted EBITDA guidance was provided in the 10-Q. The filing states that Vistra expects sufficient liquidity through at least the next 12 months, including the Cogentrix transaction, 2026 and 2027 debt maturities, and the $500 million initial Helix Fund commitment when called.
Earlier filings 4
10-Q · November 8, 2024
Vistra reported a strong Q3 with operating revenues of $6,288 million (versus $4,086 million a year ago) and diluted EPS of $5.25 (vs $1.25 prior year), driven by higher margins and operating income. Operating income…
10-Q · November 7, 2023
Vistra reported Q3 operating revenues of $4,086 million and diluted EPS of $1.25 for the three months ended September 30, 2023. Revenues declined materially vs. the prior-year quarter while operating margin improved;…
10-K · February 25, 2022
Vistra positions itself as an integrated retail and generation platform leading a clean power transition, targeting net-zero carbon by 2050 and expanding its Vistra Zero portfolio to 7,300 MW by year-end 2026. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.