NRG crushes Q1, residential shows progressive results

HOUSTON — NRG Energy is surging out of the gate in 2025 with a record breaking Q1 performance and some welcome traction in its residential vertical led by Vivint Smart Home. 

Smart Home customer growth saw a 6% net increase and a strong margin expansion of 4% in Q1 2025 compared to the same period in 2024. The segment also saw a continuing record high retention rate of 90%. 

“Our results were driven by a mix of expanded margins, favorable weather and excellent commercial optimization in our East, West and Texas segments, as well as continued customer growth and net service margin expansion in our Smart Home segment,” said CFO Bruce Chung. 

Overall, the Smart Home segment saw revenue of $494 million, 5.6% year-over-year growth, and a net loss reduction of roughly $60 million. 

The Smart Home segment’s performance contributed to a larger momentum that Larry Coben, president and CEO, described as a defining step for NRG as it announced the acquisition of a portfolio of assets from LS Power. 

“First quarter results were exceptional, and we are already tracking at the upper end of our full-year guidance ranges,” he said. “This reflects disciplined execution on margins, supply optimization and strong operating performance across every aspect of our business.” 

It’s a strong performance that proved to be a capstone for Rasesh Patel, EVP and president of NRG Consumer, who is retiring from NRG Energy after making the transition from Vivint in 2023. 

“Rasesh played a central role in the successful integration of Vivint and in building the country's leading smart home and retail energy platform,” said Chung. “His strategic clarity, steady hand and focus on execution have helped define the NRG we are building today.”  

By the numbers: 

• GAAP net income of $750 million 

• GAAP EPS — basic of $3.70 

• Cash provided by operating activities of $855 million 

• Adjusted net income of $531 million 

• Adjusted EPS of $2.68 

• Adjusted EBITDA of $1,126 million, the strongest in the company’s history, as well as 30% higher than the previous year. 

NRG said it is reaffirming its 2025 guidance ranges for adjusted EPS and free cash flow before growth of $6.75 - $7.75 and $1,975 - $2,225 million, respectively.