Financial Analysis

"Commitments and Contingencies Commitments NRG has entered into long-term contractual arrangements related to energy products, including power purchases, gas transportation and storage, fuel and transportation services and generation projects. These contracts are not included in the consolidated balance sheet as of December 31, 2025. As of December 31, 2025, the Company's minimum commitments under such outstanding agreements are estimated as follows: Period (In millions) 2026 $ 2,795 2027 2,512 2028 1,602 2029 1,023 2030 739 Thereafter 1,517 Total (a) $ 10,188 (a) The year 2026 does not include an additional $1.4 billion of short-term commitments The Company's actual costs may be significantly higher than these estimated minimum unconditional long-term firm commitments with remaining term in excess of one year. For the years ended December 31, 2025, 2024 and 2023, the costs of fuel and purchased energy were $14.2 billion, $12.2 billion and $13.4 billion, respectively. First Lien Structure NRG has granted first liens to certain counterparties on a substantial portion of property and assets owned by NRG and the guarantors of its senior debt. NRG uses the first lien structure to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedges. To the extent that the underlying hedge positions for a counterparty are out-of-the-money to NRG, the counterparty would have …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Long-term Debt and Finance Leases Long-term debt and finance leases consisted of the following: As of December 31, (In millions, except rates) 2025 2024 Interest rate % Recourse debt: Senior Notes, due 2028 $ 821 $ 821 5.750 Senior Notes, due 2029 733 733 5.250 Senior Notes, due 2029 500 500 3.375 Senior Notes, due 2029 798 798 5.750 Senior Notes, due 2031 1,030 1,030 3.625 Senior Notes, due 2032 480 480 3.875 Senior Notes, due 2033 925 925 6.000 Senior Notes, due 2034 950 950 6.250 Senior Notes, due 2034 1,250 5.750 Senior Notes, due 2036 2,400 6.000 Convertible Senior Notes, due 2048 232 2.750 Senior Secured First Lien Notes, due 2025 500 2.000 Senior Secured First Lien Notes, due 2027 900 900 2.450 Senior Secured First Lien Notes, due 2029 500 500 4.450 Senior Secured First Lien Notes, due 2030 625 4.734 Senior Secured First Lien Notes, due 2033 740 740 7.000 Senior Secured First Lien Notes, due 2035 625 5.407 Term Loan B, due 2031 2,299 1,317 SOFR + 1.750 Tax-exempt bonds 466 466 4.000 - 4.750 T.H. Wharton TEF loan, due 2045 189 3.000 Cedar Bayou 5 TEF loan, due 2045 255 3.000 Greens Bayou 6 TEF loan, due 2045 90 3.000 Subtotal recourse debt 16,576 10,892 Finance leases 24 14 various Subtotal long-term debt and finance leases (including current maturities) 16,600 10,906 Less current maturities (31) (996) Less debt issuance costs (146) (86) Discounts (11) (12) Total long-term debt and finance leases $ 16,412 $ 9,812 Debt includes the following discounts: As of December 31, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables represent the Companys disaggregation of revenue from contracts with customers for the years ended December 31, 2025, 2024, and 2023: For the Year Ended December 31, 2025 (In millions) Texas East West/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home $ 7,172 $ 2,502 $ 1,167 $ 2,144 $ (18) $ 12,967 Business 3,724 10,965 1,887 16,576 Total retail revenue (a) 10,896 13,467 3,054 2,144 (18) 29,543 Energy revenue (a) 49 441 101 (1) 590 Capacity revenue (a) 267 14 (1) 280 Mark-to-market for economic hedging activities (b) 7 10 (5) 12 Contract amortization (6) (6) Other revenue (a) 194 87 23 (10) 294 Total revenue 11,139 14,263 3,202 2,144 (35) 30,713 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 36 8 120 164 Less: Realized and unrealized ASC 815 revenue 31 167 10 (6) 202 Total revenue from contracts with customers $ 11,108 $ 14,060 $ 3,184 $ 2,024 $ (29) $ 30,347 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ $ 37 $ $ $ $ 37 Energy revenue 55 (1) 54 Capacity revenue 63 63 Other revenue 31 5 36 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 For the Year Ended December 31, 2024 (In millions) Texas East West/Other Vivint Smart Home Corp …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock-Based Compensation The Company's stock-based compensation consists of awards granted under the NRG LTIP and following the acquisition of Vivint Smart Home in March 2023, the Vivint LTIP. NRG Energy, Inc. Long-Term Incentive Plan As of December 31, 2025 and 2024, a total of 25,000,000 shares of NRG common stock were authorized for issuance under the NRG LTIP. There were 6,648,805 and 7,188,824 shares of common stock remaining available for grants under the NRG LTIP as of December 31, 2025 and 2024, respectively. The NRG LTIP is subject to adjustments in the event of reorganization, recapitalization, stock split, reverse stock split, stock dividend, and a combination of shares, merger or similar change in NRG's structure or outstanding shares of common stock. As of December 31, 2025, the outstanding awards under the NRG LTIP include restricted stock units, deferred stock units and relative performance stock units. NRG Energy, Inc. 2020 Omnibus Incentive Plan (Legacy Vivint) Effective March 10, 2023, in connection with the Vivint Smart Home Acquisition, as discussed in Note 4, Acquisitions and Dispositions, NRG assumed the NRG Energy, Inc. 2020 Omnibus Incentive Plan (Legacy Vivint) (formerly known as Vivint Smart Home, Inc. Long-Term Incentive Plan) or Vivint LTIP. In addition to the rollover awards converted as part of the acquisition, the Vivint LTIP provides for issuances of time-based restricted stock units and performance-based restricted stock units. As of December …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value of Financial Instruments For cash and cash equivalents, funds deposited by counterparties, restricted cash, accounts and other receivables, accounts payable and cash collateral paid and received in support of energy risk management activities, the carrying amount approximates fair value because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The estimated carrying value and fair value of the Company's long-term debt, including current portion, is as follows: As of December 31, 2025 2024 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Convertible Senior Notes (a) $ $ $ 232 $ 509 Other long-term debt, including current portion 16,565 16,405 10,648 10,252 Total long-term debt, including current portion (b) $ 16,565 $ 16,405 $ 10,880 $ 10,761 (a) The Company settled all of the outstanding Convertible Senior Notes as of July 8, 2025. For further discussion, see Note 12, Long-term Debt and Finance Leases (b) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets The fair value of the Company's publicly-traded long-term debt and the Term Loan B are based on quoted market prices and are classified as Level 2 within the fair value hierarchy. The estimated fair values of the T.H. Wharton TEF loan, the Cedar Bayou 5 TEF loan and the Greens Bayou 6 TEF loan are determined using discounted cash flow methodologies, and ar …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangibles Goodwill The following table presents the changes in goodwill for the years ended December 31, 2025 and 2024 based on the Company's reportable segments: (in millions) Texas East West/Other Vivint Smart Home Total Balance as of January 1, 2024 $ 643 $ 721 $ 192 $ 3,523 $ 5,079 Impairment (15) (15) Sale of Airtron (43) (43) Foreign currency translation adjustments (10) (10) Balance as of December 31, 2024 $ 643 $ 721 $ 124 $ 3,523 $ 5,011 Foreign currency translation adjustments 6 6 Balance as of December 31, 2025 $ 643 $ 721 $ 130 $ 3,523 $ 5,017 Intangible Assets The Company's intangible assets as of December 31, 2025, primarily reflect intangible assets established with the acquisitions of various companies, including Vivint Smart Home, Direct Energy, other retail acquisitions and Texas Genco. Intangible assets are comprised of the following: Customer relationships These intangibles represent the fair value at the acquisition date of acquired businesses' customer base from the acquisition of Vivint Smart Home, Direct Energy and other acquisitions. Customer relationships are amortized to depreciation and amortization expense based on the expected discounted future net cash flows by year. Emission Allowances These intangibles primarily consist of SO 2 emission allowances, including those established with the 2006 acquisition of Texas Genco, RGGI emission credits and California carbon allowances. These emission allowances are held-for-use and are …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The income tax provision consisted of the following amounts: Year Ended December 31, (In millions, except effective income tax rate) 2025 2024 2023 Current U.S. Federal $ (17) $ 55 $ 26 State 49 82 84 Foreign 16 5 (12) Total current 48 142 98 Deferred U.S. Federal 221 333 50 State 11 (134) (61) Foreign (10) (18) (98) Total deferred 222 181 (109) Total income tax expense/(benefit) $ 270 $ 323 $ (11) Effective income tax rate 23.8 % 22.3 % 5.2 % On July 4, 2025, the OBBB was enacted into law. The OBBB includes changes to U.S. tax law applicable to NRG beginning in 2025. The impact of the OBBB on the Companys consolidated financial statements has been reflected in its current and deferred taxes, however, there is no material impact to income tax expense for the year ended December 31, 2025. The IRA enacted on August 16, 2022, introduced new provisions including a 15% corporate alternative minimum tax and a 1% excise tax on net share repurchases with both taxes effective beginning in fiscal year 2023 for NRG. On September 12, 2024, Treasury and the IRS released proposed regulations that provide guidance on the application of the CAMT. The proposed regulations allow the exclusion of unrealized mark-to-market gains and losses, related to qualified hedge transactions, from adjusted financial statement income. The Company will continue to evaluate the applicable corporation status and the impact of the CAMT based on the proposed guidance. As of December 31, 2025, NRG as …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company leases generating facilities, land, office and equipment, railcars, fleet vehicles and storefront space at retail stores. Operating leases with an initial term greater than twelve months are recognized as right-of-use assets and lease liabilities in the consolidated balance sheets. The Company made an accounting policy election, as permitted by ASC 842, for all asset classes not to recognize right-of-use assets and lease liabilities in the consolidated balance sheets for its short-term leases, which are leases that have a lease term of twelve months or less. For the initial measurement of lease liabilities, the discount rate that the Company uses is either the rate implicit in the lease, if known, or its incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the payments for the lease. The Company recognizes lease expense for all operating leases on a straight-line basis over the lease term. In the future, should another systematic basis become more representative of the pattern in which the lessee expects to consume the remaining economic benefit of the right-of-use asset, the Company will use that basis for lease expense. The Company considers a contract to be or to contain a lease when both of the following conditions apply: 1) an asset is either explicitly or implicitly identified in the contract and 2) the contract conveys to the Company t …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Developments - Guidance Adopted in 2025 ASU 2023-09 In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures , or ASU 2023-09. The guidance in ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. Further the amendments of ASU 2023-09 require certain disclosures on income tax expense and income taxes paid. The Company adopted the new guidance effective December 31, 2025 on a prospective basis. Because the amendments update disclosure requirements only, it did not have an impact on the Companys results of operations, cash flows, or statement of financial position. Recent Accounting Developments - Guidance Not Yet Adopted ASU 2024-03 In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses , or ASU 2024-03. The guidance in ASU 2024-03 requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial sta …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Benefit Plans and Other Postretirement Benefits NRG sponsors and operates defined benefit pension and other postretirement plans. NRG pension benefits are available to eligible non-union and union employees through various defined benefit pension plans. These benefits are based on pay, service history and age at retirement. Most pension benefits are provided through tax-qualified plans. NRG also provides postretirement health and welfare benefits for certain groups of employees. Cost sharing provisions vary by the terms of any applicable collective bargaining agreements. NRG maintains two separate qualified pension plans, the NRG Pension Plan for Bargained Employees and the NRG Pension Plan. Participation in the NRG Pension Plan for Bargained Employees depends upon whether an employee is covered by a bargaining agreement. The NRG Pension Plan was frozen for non-union employees on December 31, 2018. The Company has terminated the defined benefit component of the Pension Plan for Employees of Direct Energy Marketing Limited and is currently awaiting regulatory approval. NRG expects to contribute $32 million to the Company's pension plans in 2026. NRG Defined Benefit Plans The annual net periodic benefit cost/(credit) related to NRG's pension and other postretirement benefit plans include the following components: Year Ended December 31, Pension Benefits (In millions) 2025 2024 2023 Service cost benefits earned $ 3 $ 3 $ 5 Interest cost on benefit obligation 45 48 50 Expected re …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Related Party Transactions NRG provides services to some of its related parties, who are accounted for as equity method investments, under operations and maintenance agreements. Fees for the services under these agreements include recovery of NRG's costs of operating the plants. Certain agreements also include fees for administrative service, a base monthly fee, profit margin and/or annual incentive bonus. The following table summarizes NRG's material related party transactions with third-party affiliates: Year Ended December 31, (In millions) 2025 2024 2023 Revenues from Related Parties Included in Revenues Gladstone $ 3 $ 4 $ 4 Ivanpah (a) 50 60 78 Midway-Sunset 5 4 2 Total $ 58 $ 68 $ 84 (a) Includes fees under project management agreements with each project company

RelatedPartyTransactionsDisclosureTextBlock

Revenue Recognition The Company's policies with respect to its various revenue streams are detailed below. The Company generally applies the invoicing practical expedient to recognize revenue for the revenue streams detailed below, except in circumstances where the invoiced amount does not represent the value transferred to the customer. Retail Revenue Gross revenues for energy sales and services to retail customers are recognized as the Company transfers the promised goods and services to the customer. Payment terms are generally 15 to 60 days. For the majority of its electricity and natural gas contracts, the Companys performance obligation with the customer is satisfied over time and performance obligations for its electricity and natural gas products are recognized as the customer takes possession of the product. The Company also allocates the contract consideration to distinct performance obligations in a contract for which the timing of the revenue recognized is different. Additionally, customer discounts and incentives reduce the contract consideration and are recognized over the term of the contract. Energy sales and services that have been delivered but not billed by period end are estimated. Accrued unbilled revenues are based on estimates of customer usage since the date of the last meter reading provided by the independent system operators, utilities, or electric distribution companies. Volume estimates are based on daily forecasted volumes and estimated customer …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Reporting The Companys segment structure reflects how management makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the retail, wholesale and generation businesses with a geographical focus except for Vivint Smart Home operations which are reported within the Vivint Smart Home segment. Corporate represents the corporate business activities, and corporate shared services, to support the Companys operating segments. The accounting policies of the segments are the same as those applied in the consolidated financial statements as disclosed in Note 2, Summary of Significant Accounting Policies . NRG's chief operating decision maker (""CODM""), its chief executive officer, uses more than one measure to evaluate the performance of its segments and allocate resources, including net income/(loss) and various non-GAAP financial measures such as adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA. Net income/(loss) and Adjusted EBITDA are used to review business performance and allocate resources as it provides a clearer view of segment profitability by focusing on operational performance. Additionally, operating expenses impact on each operating segment results are analyzed. On a monthly basis, Adjusted EBITDA is compared against the budget, latest forecast, and prior period. The Company had no customer that comprised more than 10% of the Company's consolidated revenues …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company's consolidated financial statements have been prepared in accordance with U.S. GAAP. The ASC, established by the FASB, is the source of authoritative U.S. GAAP to be applied by nongovernmental entities. In addition, the rules and interpretative releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. The consolidated financial statements include NRG's accounts and operations and those of its subsidiaries in which the Company has a controlling interest. All significant intercompany transactions and balances have been eliminated in consolidation. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist through arrangements that do not involve controlling voting interests. As such, NRG applies the guidance of ASC 810, Consolidations, or ASC 810, to determine when an entity that is insufficiently capitalized or not controlled through its voting interests, referred to as a VIE, should be consolidated. Credit Losses In accordance with ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , or ASU No. 2016-13, retail trade receivables are reported on the balance sheet net of the allowance for credit losses within accoun …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Capital Structure For the period from December 31, 2022 to December 31, 2025, the Company had 10,000,000 shares of preferred stock authorized and 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's preferred and common shares issued and outstanding for each period presented: Preferred Shares Common Shares Issued and Outstanding Issued Treasury Outstanding Balance as of December 31, 2022 423,897,001 (194,335,971) 229,561,030 Issuance of Series A Preferred Stock 650,000 Shares issued under ESPP 191,249 191,249 Shares issued under LTIPs 1,109,611 1,109,611 Share repurchases (22,730,940) (22,730,940) Retirement of treasury stock (157,676,142) 157,676,142 Balance as of December 31, 2023 650,000 267,330,470 (59,199,520) 208,130,950 Shares issued under ESPP 242,070 242,070 Shares issued under LTIPs 1,959,134 1,959,134 Share repurchases (11,725,563) (11,725,563) Partial settlement of Capped Call Options (2,588) (2,588) Retirement of treasury stock (64,225,546) 64,225,546 Balance as of December 31, 2024 650,000 205,064,058 (6,460,055) 198,604,003 Shares issued under ESPP 175,907 175,907 Shares issued under LTIPs 1,792,902 1,792,902 Share repurchases (9,971,620) (9,971,620) Settlement of Capped Call Options (a) (4,211,054) (4,211,054) Conversions of Convertible Senior Notes 3,986,469 3,986,469 Retirement of treasury stock (7,028,345) 7,028,345 Balance as of December 31, 2025 650,000 199,828,615 (9,452,008) 190,376,607 Shares issued under LT …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Commitments First Lien Structure NRG has granted first liens to certain counterparties on a substantial portion of property and assets owned by NRG and the guarantors of its senior debt. NRG uses the first lien structure to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedges. To the extent that the underlying hedge positions for a counterparty are out-of-the-money to NRG, the counterparty would have a claim under the first lien program. As of September 30, 2025, all hedges under the first liens were at-the-money on a counterparty aggregate basis. Contingencies The Company's material legal proceedings are described below. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. NRG records accruals for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Company believes it has established an adequate accrual for the applicable legal matters, including regulatory and environmental matters as further discussed in Note 15, Regulatory Matters , and Note 16, Environmental Matters . In addition, legal costs are expensed as incurred. Management has assessed each of the following matters based on current information and made a judgment co …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated Revenues The following tables represent the Companys disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2025 and 2024: Three months ended September 30, 2025 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home $ 2,265 $ 600 $ 235 $ 532 $ (19) $ 3,613 Business 1,035 2,166 468 3,669 Total retail revenue (a) 3,300 2,766 703 532 (19) 7,282 Energy revenue (a) 16 132 148 Capacity revenue (a) 87 87 Mark-to-market for economic hedging activities (b) 28 6 34 Contract amortization 1 1 Other revenue (a) 63 16 6 (2) 83 Total revenue 3,379 3,030 715 532 (21) 7,635 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 1 34 35 Less: Realized and unrealized ASC 815 revenue 23 68 8 (2) 97 Total revenue from contracts with customers $ 3,356 $ 2,961 $ 673 $ 532 $ (19) $ 7,503 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ $ 9 $ $ $ $ 9 Energy revenue 16 (2) 14 Capacity revenue 16 16 Other revenue 23 (1) 2 24 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Three months ended September 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value of Financial Instruments For cash and cash equivalents, funds deposited by counterparties, restricted cash, accounts and other receivables, accounts payable and cash collateral paid and received in support of energy risk management activities, the carrying amounts approximate fair values because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The estimated carrying value and fair value of the Company's long-term debt, including current portion, is as follows: September 30, 2025 December 31, 2024 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Convertible Senior Notes (a) $ $ $ 232 $ 509 Other long-term debt, including current portion 12,013 11,837 10,648 10,252 Total long-term debt, including current portion (b) $ 12,013 $ 11,837 $ 10,880 $ 10,761 (a) The Company settled all of the outstanding Convertible Senior Notes as of July 8, 2025. For further discussion, see Note 7, Long-term Debt and Finance Leases (b) Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets The fair value of the Company's publicly-traded long-term debt and the Term Loan B are based on quoted market prices and are classified as Level 2 within the fair value hierarchy. The estimated fair values of the T.H. Wharton TEF loan and the Cedar Bayou 5 TEF loan are determined using discounted cash flow methodologies, and are classified as Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Effective Income Tax Rate The income tax provision consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions, except rates) 2025 2024 2025 2024 Income/(Loss) before income taxes $ 238 $ (1,014) $ 1,070 $ 733 Income tax expense/(benefit) 86 (247) 272 251 Effective income tax rate 36.1 % 24.4 % 25.4 % 34.2 % For the three months ended September 30, 2025, the effective tax rate was higher than the statutory rate of 21%, primarily due to the state tax expense. For the nine months ended September 30, 2025, the effective tax rate was higher than the statutory rate of 21%, primarily due to the state tax expense, partially offset with favorable permanent differences. For the three months ended September 30, 2024, the effective tax rate was higher than the statutory rate of 21%, primarily due to the state tax expense. For the nine months ended September 30, 2024, the effective tax rate was higher than the statutory rate of 21%, primarily due to the state tax expense and permanent differences. On July 4, 2025, H.R.1 - One Big Beautiful Bill Act (OBBB) was enacted into law. The OBBB includes changes to U.S. tax law that will be applicable to NRG beginning in 2025. The impact of the OBBB on the Companys condensed consolidated financial statements has been reflected in its third quarter current and deferred taxes, however, there is no material impact to the income tax expense for the three and nine months ended September 30, 202 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Long-term Debt and Finance Leases Long-term debt and finance leases consisted of the following: (In millions, except rates) September 30, 2025 December 31, 2024 Interest rate % Recourse debt: Senior Notes, due 2028 $ 821 $ 821 5.750 Senior Notes, due 2029 733 733 5.250 Senior Notes, due 2029 500 500 3.375 Senior Notes, due 2029 798 798 5.750 Senior Notes, due 2031 1,030 1,030 3.625 Senior Notes, due 2032 480 480 3.875 Senior Notes, due 2033 925 925 6.000 Senior Notes, due 2034 950 950 6.250 Convertible Senior Notes, due 2048 232 2.750 Senior Secured First Lien Notes, due 2025 500 500 2.000 Senior Secured First Lien Notes, due 2027 900 900 2.450 Senior Secured First Lien Notes, due 2029 500 500 4.450 Senior Secured First Lien Notes, due 2033 740 740 7.000 Term Loan B, due 2031 2,305 1,317 SOFR + 1.750 Tax-exempt bonds 466 466 1.250 - 4.750 T.H. Wharton TEF loan, due 2045 177 3.000 Cedar Bayou 5 TEF loan, due 2045 200 3.000 Subtotal recourse debt 12,025 10,892 Finance leases 18 14 various Subtotal long-term debt and finance leases (including current maturities) 12,043 10,906 Less current maturities (777) (996) Less debt issuance costs (99) (86) Discounts (12) (12) Total long-term debt and finance leases $ 11,155 $ 9,812 Recourse Debt Issuance of Unsecured Notes and Secured Notes On October 8, 2025, the Company issued $3.65 billion in aggregate principal amount of senior unsecured notes, consisting of (i) $1.25 billion aggregate principal amount of 5.750% senior notes due 2034 ( …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Developments Guidance Not Yet Adopted ASU 2023-09 In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures , or ASU 2023-09. The guidance in ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. Further the amendments of ASU 2023-09 require certain disclosures on income tax expense and income taxes paid. The Company is adopting the new guidance for the annual period ending December 31, 2025. ASU 2023-09 amends disclosure requirements only and will not have an impact on the Companys results of operations, cash flows, or statement of financial position. ASU 2024-03 In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses , or ASU 2024-03. The guidance in ASU 2024-03 requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Related Party Transactions NRG provides services to some of its related parties, which are accounted for as equity method investments, under operations and maintenance agreements. Fees for the services under these agreements include recovery of NRG's costs of operating the plants. Certain agreements also include fees for administrative services, a base monthly fee, profit margin and/or annual incentive bonus. The following table summarizes NRG's material related party transactions with third-party affiliates: Three months ended September 30, Nine months ended September 30, (In millions) 2025 2024 2025 2024 Revenues from Related Parties Included in Revenue Gladstone $ 1 $ 1 $ 2 $ 2 Ivanpah (a) 14 12 38 37 Midway-Sunset 2 1 4 3 Total $ 17 $ 14 $ 44 $ 42 (a) Also includes fees under project management agreements with each project company

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Revenue Recognition Performance Obligations As of September 30, 2025, estimated future fixed fee performance obligations are $453 million for the remaining three months of fiscal year 2025, and $1.6 billion, $1.3 billion, $871 million, $549 million and $249 million for the fiscal years 2026, 2027, 2028, 2029 and 2030, respectively. These performance obligations include Vivint Smart Home products and services, as well as cleared auction MWs in the PJM, ISO-NE, NYISO and MISO capacity auctions. The cleared auction MWs are subject to penalties for non-performance. Disaggregated Revenues The following tables represent the Companys disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2025 and 2024: Three months ended September 30, 2025 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home $ 2,265 $ 600 $ 235 $ 532 $ (19) $ 3,613 Business 1,035 2,166 468 3,669 Total retail revenue (a) 3,300 2,766 703 532 (19) 7,282 Energy revenue (a) 16 132 148 Capacity revenue (a) 87 87 Mark-to-market for economic hedging activities (b) 28 6 34 Contract amortization 1 1 Other revenue (a) 63 16 6 (2) 83 Total revenue 3,379 3,030 715 532 (21) 7,635 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 1 34 35 Less: Realized and unrealized ASC 815 revenue 23 68 8 (2) 97 Total revenue from contracts with customers $ 3,356 $ 2,961 $ 673 $ 532 $ (19) $ 7,503 (a) The followin …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Reporting The Companys segment structure reflects how management makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus except for Vivint Smart Home operations which are reported within the Vivint Smart Home segment. Corporate represents the corporate business activities, and corporate shared services, to support the Companys operating segments. Beginning in the fourth quarter of 2024, Corporate now includes interest expense related to its consolidated debt financing activities and income tax expense related to its consolidated U.S. federal, foreign and state income taxes conforming to the way the Company internally manages and monitors the business. Prior periods amounts have been recast for comparative purposes to reflect this change, which had no impact on the Companys consolidated financial position, results of operations, and cash flows. The accounting policies of the segments are the same as those applied in the consolidated financial statements as disclosed in Note 2, Summary of Significant Accounting Policies , to the Companys 2024 Form 10-K. NRGs chief operating decision maker (""CODM""), its chief executive officer, uses more than one measure to evaluate the performance of its segments and allocate resources, including net income/(loss) and various non-GAAP financial measures such as adjusted earnings before interest, taxe …

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Summary of Significant Accounting Policies Depreciation and Amortization The Company's depreciation and amortization included in the condensed consolidated statement of operations consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions) 2025 2024 2025 2024 Amortization of capitalized contract costs related to fulfillment $ 57 $ 34 $ 146 $ 82 Amortization of capitalized contract costs related to customer acquisition 80 57 217 149 Amortization of customer relationships and other intangible assets 152 192 460 610 Depreciation of property, plant and equipment 71 69 207 204 Total depreciation and amortization $ 360 $ 352 $ 1,030 $ 1,045 Credit Losses Retail trade receivables are reported on the consolidated balance sheet net of the allowance for credit losses within accounts receivables, net. Long-term receivables are recorded net of allowance for credit losses in other non-current assets on the consolidated balance sheet. The Company accrues a provision for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. The following table represents the activity in the allowance for credit losses for the three …

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Changes in Capital Structure As of September 30, 2025 and December 31, 2024, the Company had 10,000,000 shares of preferred stock authorized and 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's preferred and common stock issued and outstanding: Preferred Common Issued and Outstanding Issued Treasury Outstanding Balance as of December 31, 2024 650,000 205,064,058 (6,460,055) 198,604,003 Shares issued under LTIPs 1,668,474 1,668,474 Shares issued under ESPP 81,903 81,903 Shares repurchased (7,874,491) (7,874,491) Settlements of Capped Call Options (a) (4,211,054) (4,211,054) Conversions of Convertible Senior Notes 3,986,469 3,986,469 Retirement of treasury stock (7,028,345) 7,028,345 Balance as of September 30, 2025 650,000 199,704,187 (7,448,883) 192,255,304 Shares issued under LTIPs 62,600 62,600 Shares issued under ESPP 94,004 94,004 Shares repurchased (772,500) (772,500) Balance as of October 31, 2025 650,000 199,766,787 (8,127,379) 191,639,408 (a) Consists of partial settlement of 134 shares on June 2, 2025 and final settlement of 4,210,920 shares on July 8, 2025 Common Stock Share Repurchases The Companys long-term capital allocation policy is to target allocating approximately 80% of cash available for allocation, after debt reduction, to be returned to shareholders. The Company is actively repurchasing shares under its existing $3.7 billion share repurchase program, which began in 2023. On October 16, 2025, the Board of Di …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing