Vistra Corp.

Results of Operations

The tables and discussion that follow present period‑over‑period changes in our results of operations and highlight the primary drivers of those variances for the periods presented.

In analyzing and planning for our business, we supplement our use of GAAP financial measures with non-GAAP financial measures, including EBITDA and Adjusted EBITDA as performance measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed (i) with our GAAP results and (ii) the accompanying reconciliations to corresponding GAAP financial measures may provide a more complete understanding of factors and trends affecting our business. Because EBITDA and Adjusted EBITDA are financial measures that management uses to allocate resources, determine our ability to fund capital expenditures, assess performance against our peers, and evaluate overall financial performance, we believe they provide useful information for investors.

These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures and are, by definition, an incomplete understanding of Vistra and must be considered in conjunction with GAAP measures. In addition, non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. We strongly encourage investors to review the condensed consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

When EBITDA or Adjusted EBITDA is discussed in reference to performance on a consolidated basis, the most directly comparable GAAP financial measure to EBITDA and Adjusted EBITDA is Net income (loss).

Consolidated Results of Operations

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

The following table presents Net income (loss), EBITDA and Adjusted EBITDA for the three months ended June 30, 2026:

(a)Corporate and Other includes $9 million of unrealized mark-to-market net losses on interest rate swaps.

(b)Includes nuclear fuel amortization of $30 million and $86 million, respectively, in the Texas and East segments.

(c)Includes involuntary conversion gain recognized from Martin Lake Incident property damage insurance in the Texas segment.

The following table presents Net income (loss), EBITDA and Adjusted EBITDA for the three months ended June 30, 2025:

(a)Corporate and Other includes $26 million of unrealized mark-to-market net losses on interest rate swaps.

(b)Includes nuclear fuel amortization of $30 million and $92 million, respectively, in the Texas and East segments.

(c)Includes involuntary conversion gain recognized from Martin Lake Incident property damage insurance in the Texas segment and revenues from Moss Landing Incident business interruption proceeds in the Asset Closure segment.

(e)Includes the final application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri in the Retail segment.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

The following table presents Net income (loss), EBITDA and Adjusted EBITDA for the six months ended June 30, 2026:

(a)Corporate and Other includes $7 million of unrealized mark-to-market net gains on interest rate swaps.

(b)Includes nuclear fuel amortization of $66 million and $176 million, respectively, in the Texas and East segments.

(c)Includes involuntary conversion gain recognized from Martin Lake Incident property damage insurance in the Texas segment and revenues from Moss Landing Incident business interruption proceeds in the Asset Closure segment.

The following table presents Net income (loss), EBITDA and Adjusted EBITDA for the six months ended June 30, 2025:

(a)Corporate and Other includes $74 million of unrealized mark-to-market net losses on interest rate swaps.

(b)Includes nuclear fuel amortization of $61 million and $176 million, respectively, in the Texas and East segments.

(c)Includes involuntary conversion gain recognized from Martin Lake Incident property damage insurance in the Texas segment and revenues from Moss Landing Incident business interruption proceeds in the Asset Closure segment.

(e)Includes the final application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri in the Retail segment.

Net income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 decreased by $22 million. Adjusted EBITDA for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 increased by $412 million.

Net income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 increased by $1.275 billion. Adjusted EBITDA for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 increased by $671 million.

The primary drivers for the changes in net income and Adjusted EBITDA include:

Results of Operations by Segment

The following section presents the results of operations and net income (loss) of Vistra's reportable business segments. See Note 19 of the Financial Statements for a discussion of the Company's segments as defined under the accounting standards for segment reporting.

Retail

For the three months ended June 30, 2026 compared to three months ended June 30, 2025, Retail net income increased primarily due to a $580 million decrease in unrealized mark-to-market losses on commodity derivative positions, and higher retail margins driven by higher contractual rates, partially offset by a slight decrease in customer consumption due to milder weather.

For the six months ended June 30, 2026 compared to the six months ended June 30, 2025, Retail net income decreased due to a $1.2 billion increase in unrealized mark-to-market losses on commodity derivative positions, a decrease in retail margins primarily due to an increase in excess volumes sold at lower wholesale prices and a decrease in customer consumption due to weather.

Texas

For the three months ended June 30, 2026 compared to three months ended June 30, 2025, Texas net income decreased primarily due to a $453 million decrease in unrealized mark-to-market gains on commodity derivative positions, partially offset by higher energy margins from optimizing the dispatch of select gas units in response to favorable market conditions and Martin Lake Unit 1 return to service.

For the six months ending June 30, 2026 compared to six months ended June 30, 2025, Texas net income increased primarily due to a $2.3 billion increase in unrealized mark-to-market gains on commodity derivative positions and higher energy margins from optimizing the dispatch of select gas units in response to favorable market conditions and Martin Lake Unit 1 return to service.

East

For the three months ended June 30, 2026 compared to the three months ended June 30, 2025, East net income decreased primarily due to a $669 million increase in unrealized mark-to-market losses on commodity derivative positions partially offset by higher realized capacity prices and the addition of the plants acquired in the Lotus Acquisition.

For the six months ending June 30, 2026 compared to six months ended June 30, 2025, East net income increased primarily due to higher realized capacity prices and the addition of plants acquired in the Lotus Acquisition, partially offset by $327 million increase in unrealized mark-to-market losses on commodity derivative positions.

West

For the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, West net income increased primarily due to a $54 million and $14 million, respectively, decrease in unrealized mark-to-market losses on commodity derivative positions and higher realized capacity revenue.

Asset Closure Segment

Asset Closure net loss increased primarily due to incremental costs associated with the Moss Landing Incident, net of property damage and business interruption insurance recoveries, recognized in the three and six months ended June 30, 2026.

Disaggregated Consolidated Statement of Operations Results

Explanations of variations between periods for selected income statement categories are provided below:

For the three months ended June 30, 2026 compared to the three months ended June 30, 2025, operating revenues decreased primarily due to a $611 million increase in unrealized mark-to-market losses on commodity derivative positions, partially offset by higher retail revenue contractual rates, higher wholesale capacity and energy revenues and the addition of plants acquired in the Lotus Acquisition.

For the six months ended June 30, 2026 compared to the six months ended June 30, 2025, operating revenues increased primarily due to a $537 million increase in unrealized mark-to-market gains on commodity derivative positions, higher wholesale capacity and energy revenues and the addition of plants acquired in the Lotus Acquisition.

For the three months ended June 30, 2026 compared to the three months ended June 30, 2025, fuel, purchased power costs, and delivery fees decreased primarily due to a $123 million increase in unrealized mark-to-market gains on commodity derivative positions and lower realized fuel costs from optimizing the dispatch of select gas units in response to favorable market conditions, partially offset by the addition of plants acquired in the Lotus Acquisition.

For the six months ended June 30, 2026 compared to the six months ended June 30, 2025, fuel, purchased power costs, and delivery fees decreased primarily due to a $264 million increase in unrealized mark-to-market gains on commodity derivative positions and lower realized fuel costs from optimizing the dispatch of select gas units in response to favorable market conditions, partially offset by the addition of plants acquired in the Lotus Acquisition.

For the three and six months ended June 30, 2026 and 2025, operating costs increased primarily due to higher maintenance and outage costs, the addition of plants acquired in the Lotus Acquisition, and incremental costs associated with the Moss Landing Incident, net of insurance recoveries, recognized in the three and six months ended June 30, 2026.

For the three and six months ended June 30, 2026 and 2025, depreciation and amortization decreased primarily due to the absence of depreciation and amortization expense recorded for the Moss Landing 300 and 100 MW battery projects and Retail customer relationship intangible assets and other one-time retirements recorded in the six months ended June 30, 2025, partially offset by the addition of plants acquired in the Lotus Acquisition.

For the three months ended June 30, 2026 compared to the three months ended June 30, 2025, selling, general, and administrative expenses decreased primarily due to lower transition and merger costs and legal settlements, partially offset by increases in technology costs of $6 million, stock-based compensation expense of $9 million, and retail selling costs of $10 million.

In the second quarter of 2025, we recognized impairments of $68 million related to development projects we have no plans to complete.

For the six months ended June 30, 2026 compared to the six months ended June 30, 2025, other income (deductions), net decreased primarily due to a decrease of $32 million in involuntary conversion gains for Martin Lake insurance proceeds and a decrease in NDT net gains of $10 million consisting of unrealized losses on investments of $95 million partially offset by realized income of $85 million.

For the three months ended June 30, 2026 compared to the three months ended June 30, 2025, interest expense and related charges increased primarily due to $35 million in debt extinguishment losses on Term Loan B-3 and senior notes repayments, partially offset by a $17 million decrease in unrealized mark-to-market losses on interest rate swaps and an $11 million gain recognized on the settlement and termination of interest rate swaps in April 2026.

For the six months ended June 30, 2026 compared to six months ended June 30, 2025, interest expense and related charges decreased primarily due to an $81 million increase in unrealized mark-to-market gains on interest rate swaps, partially offset by $35 million in debt extinguishment losses on Term Loan B-3 and senior notes repayments.

For the three months ended June 30, 2026 compared to the three months ended June 30, 2025, income tax benefit (expense) decreased primarily due to a higher effective tax rate driven by the discrete impact of mark-to-market adjustments accounted for outside of the Company's forecasted annual effective income tax rate and state income taxes.

For the six months ended June 30, 2026 compared to the six months ended June 30, 2025, income tax benefit (expense) decreased primarily due to an increase in pretax book income.