Vistra Energy Corp. (VST) shares plummeted 6.10% in intraday trading on Wednesday following the release of its disappointing first-quarter 2025 financial results. The energy company reported a significant net loss and missed revenue expectations, overshadowing some positive aspects of its performance.

Vistra swung to a net loss of $268 million in Q1 2025, a stark contrast to the $18 million net income reported in the same period last year. The company's revenue for the quarter came in at $3.93 billion, falling short of analysts' expectations of $4.07 billion. Adding to the gloomy picture, Vistra reported an operating loss of $120 million and a pretax loss of $444 million for the quarter.

The quarterly deficit was primarily driven by unrealized mark-to-market losses on derivative positions as energy prices increased in forward periods. Additionally, higher interest costs, which rose nearly 88% to $319 million, and increased total operating expenses, up about 39% to $693 million, further pressured the company's performance. Despite these challenges, Vistra reaffirmed its 2025 guidance for ongoing operations adjusted EBITDA at between $5.5 billion and $6.1 billion, indicating management's confidence in the company's long-term earnings power. However, this positive outlook was not enough to offset investors' immediate concerns about the substantial losses and revenue miss, leading to the sharp decline in Vistra's stock price.