Executive Summary

Q4 2023 delivered modest profitability on a non-GAAP basis with Adjusted EBITDA of $13.3M and Retail Gross Margin of $33.7M, while GAAP Net Loss was $(0.9)M driven by a $(6.2)M mark-to-market hedge loss .
Year-over-year improvement is notable: Q4 GAAP Net Loss narrowed from $(27.5)M in Q4 2022, aided by a $31.7M reduction in hedge mark-to-market losses; however, tax expense rose $6.8M .
Liquidity increased to $116.0M at year-end, providing flexibility amid continued suspension of the common dividend; the Series A preferred dividend of $0.75960/share was declared for Q4 .
Management emphasized steady organic growth, disciplined hedging through ERCOT volatility, and openness to tuck-in acquisitions as 2024 themes .

What Went Well and What Went Wrong

What Went Well

Retail Gross Margin rose to $33.7M in Q4, driven by higher natural gas unit margins; Adjusted EBITDA increased to $13.3M vs. $12.6M in Q4 2022 (non-GAAP) .
Quote: “We finished the year with higher Net Income and Adjusted EBITDA compared to the prior year due to favorable market conditions. Our organic sales channels have performed well… and slightly grow the book for the year.” — CEO Keith Maxwell .
Year-end liquidity strengthened to $115.99M, supported by cash and revolver availability, enhancing financial flexibility .

What Went Wrong

Q4 GAAP results were pressured by a $(6.2)M mark-to-market hedge loss, contributing to $(0.9)M Net Loss; tax expense was up $6.8M YoY .
Increased net asset optimization expense, customer acquisition spend, and G&A offset part of the Retail Gross Margin gains and non-GAAP add-back related to a pending merger .
Electric unit margins were lower and volumes declined, partially offset by stronger natural gas unit margins .

Financial Results

Headline metrics versus prior quarters

Metric	Q2 2023	Q3 2023	Q4 2023
Revenue ($USD Millions)	$91.399	$110.239	$101.702
Net Income ($USD Millions)	$19.086	$14.659	$(0.869)
Adjusted EBITDA ($USD Millions, non-GAAP)	$12.013	$12.756	$13.275
Gross Profit ($USD Millions)	$45.473	$39.189	$25.375
Retail Gross Margin ($USD Millions, non-GAAP)	$30.726	$31.888	$33.706
EPS Basic ($USD)	$1.67	$1.49	N/A
EPS Diluted ($USD)	$1.67	$1.47	N/A

Notes: Q4 EPS not disclosed in the press release/8-K package; GAAP Net Loss shown for Q4 from reconciliation .

Segment breakdown (Retail Gross Margin, quarterly)

Segment RGM ($USD Millions)	Q2 2023	Q3 2023	Q4 2023
Electricity	$22.994	$25.991	$18.112
Natural Gas	$7.646	$5.160	$14.822
Other	$0.086	$0.737	$0.772

KPIs

KPI	Q2 2023	Q3 2023	Q4 2023
Liquidity ($USD Millions)	$86.331	$98.843	$115.990
RCE Count (’000)	346	337	N/A (not disclosed)
Attrition	N/A	Avg quarterly attrition 3.1%	Avg monthly attrition 3.4%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Series A Preferred Dividend per share	Q4 2023	N/A	$0.75960; payable Apr 15, 2024 to holders of record Apr 1, 2024	Announced
Common Dividend	Ongoing (Q2–Q4 2023)	Suspended since Apr 19, 2023	Suspended (no reinstatement timing)	Maintained
Business Outlook	2024	Qualitative	“Target organic growth… keep door open for tuck-in acquisitions; hedging mitigated ERCOT summer; expecting similar outcomes in 2024.”	Qualitative reiteration

No explicit numerical guidance for revenue, margins, OpEx, tax rate, or segment targets was provided in Q4 materials .

Earnings Call Themes & Trends

Note: The Q4 2023 earnings call transcript could not be retrieved due to a document inconsistency; themes below reflect press releases/8-Ks.

Topic	Previous Mentions (Q2 2023)	Previous Mentions (Q3 2023)	Current Period (Q4 2023)	Trend
Hedging/Risk Management	Emphasis on hedging; improved electricity RGM and ERCOT-related preparedness	“Navigated one of the hottest ERCOT summers” via risk management and diversification	Hedge mark-to-market loss in Q4; management says hedging mitigated ERCOT summer	Continuing discipline; quarterly volatility persists
Weather Impact	Lower commodity prices aided margins; volumes mixed	ERCOT heat wave discussed; raised liquidity	Mild year overall; ERCOT summer impact mitigated	Normalizing conditions
Customer Growth/Attrition	RCE up to 346k; organic channels strong	+24k RCEs added; attrition down to 3.1%	Organic channels “performed well”; average monthly attrition 3.4%	Mixed: growth steady; attrition manageable
Liquidity/Balance Sheet	Liquidity $86.3M	Liquidity $98.8M; paying down debt	Liquidity $116.0M	Improving
Dividends	Common dividend suspended; preferred paid	Suspension reiterated; preferred paid	Preferred paid; common suspended	Status quo
M&A/Strategic	Focus on organic/inorganic channels	“Strategically invest” in customer growth	Open to tuck-in acquisitions; one-time merger costs add-back	Optionality intact

Management Commentary

“We finished the year with higher Net Income and Adjusted EBITDA compared to the prior year due to favorable market conditions… stay on top of attrition and slightly grow the book for the year.” — Keith Maxwell, CEO .
“Our business does well in normal market conditions and weather patterns… we were able to mitigate [ERCOT summer]… We’ll continue to target organic growth… keeping the door open for any potential tuck-in acquisitions.” — Keith Maxwell .
“Via was able to navigate one of the hottest ERCOT summers on record due to our proven risk management policies and portfolio diversification… added approximately 24,000 RCEs in the third quarter…” .
“We are proud to announce another strong quarter marked by organic growth in our customer book and continued financial discipline.” .
“We’re strengthening our balance sheet… lower our total debt and increase our liquidity… objective is to build on this favorable momentum…” .

Q&A Highlights

Q4 2023 earnings call transcript could not be retrieved due to a document inconsistency; Q&A themes and any guidance clarifications are unavailable at this time. We will update upon transcript access .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q2–Q4 2023 EPS and Revenue were unavailable during this session due to an SPGI request limit error; consequently, beats/misses versus consensus cannot be assessed at this time. Values would be retrieved from S&P Global when accessible.

Key Takeaways for Investors

Non-GAAP performance in Q4 remained resilient with Adjusted EBITDA of $13.3M and Retail Gross Margin of $33.7M despite GAAP Net Loss, highlighting strong underlying unit margins (especially in natural gas) .
Year-over-year Q4 improvement is material (Net Loss narrowed from $(27.5)M in Q4 2022), primarily due to a sharp reduction in hedge mark-to-market losses .
Liquidity climbed to ~$116.0M at year-end, offering flexibility to pursue organic growth and potential tuck-in acquisitions while the common dividend remains suspended .
Segment mix matters: Q4 electricity RGM declined while natural gas RGM increased significantly; monitor commodity price trends and hedging impacts on segment margins heading into 2024 .
Elevated tax expense and higher customer acquisition/G&A costs offset part of margin gains; discipline on opex and acquisition economics will be key to sustaining EBITDA .
Management’s consistent focus on risk management through ERCOT volatility and diversified portfolio construction remains central to the thesis .
With consensus estimates unavailable, near-term stock reaction is likely tied to narrative on liquidity, hedging discipline, and 2024 organic growth posture communicated in the press release .

Additional Data References

Full year results: Net Income $26.1M; Adjusted EBITDA $56.9M; Gross Profit $124.4M; Retail Gross Margin $136.7M .
Liquidity detail: Cash $42.595M; Senior Credit Facility availability $48.395M; Subordinated facility availability $25.000M .

Via Renewables, Inc. (VIA)·Q4 2023 Earnings Summary