v3.26.1
Intangible Assets and Out-of-market Contracts (Tables)
 3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets
Intangible assets as of December 31, 2025 consisted of the following:
(in thousands)
Gross carrying amount(1)
Accumulated amortizationNet intangible assets as of December 31, 2025
PPA contracts$255,627 $(47,610)$208,017 
REC contracts28,194 (1,650)26,544 
Trademarks1,364 (631)733 
Channel partner relationships47,071 (28,644)18,427 
Other intangible assets2,219 — 2,219 
Total intangible assets, net$334,475 $(78,535)$255,940 
__________________
(1)Gross carrying amount is adjusted for any write offs or impairment charges due to the termination of the PPA contracts.
Intangible assets as of December 31, 2024 consisted of the following:
(in thousands)
Gross carrying amount(1)
Accumulated amortizationNet intangible assets as of December 31, 2024
PPA contracts$361,512 $(64,820)$296,692 
REC contracts46,235 (5,820)40,415 
Trademarks1,364 (585)779 
Channel partner relationships45,708 (23,433)22,275 
Other intangible assets2,191 — 2,191 
Total intangible assets, net$457,010 $(94,658)$362,352 
__________________
(1)Gross carrying amount is adjusted for any write offs or impairment charges due to the termination of the PPA contracts.
Intangible assets as of March 31, 2026 consisted of the following:
(in thousands)
Gross carrying amount(1)
Accumulated amortizationNet intangible assets as of March 31, 2026
PPA contracts$255,627 $(52,284)$203,343 
REC contracts28,023 (1,676)26,347 
Trademarks1,364 (652)712 
Channel partner relationships47,071 (29,606)17,465 
Other intangible assets5,340 (53)5,287 
Total intangible assets, net$337,425 $(84,271)$253,154 
__________________
(1)Gross carrying amount is adjusted for any write offs or impairment charges due to the termination of the PPA contracts.
Intangible assets as of December 31, 2025 consisted of the following:
(in thousands)
Gross carrying amount(1)
Accumulated amortizationNet intangible assets as of December 31, 2025
PPA contracts$255,627 $(47,610)$208,017 
REC contracts28,194 (1,650)26,544 
Trademarks1,364 (631)733 
Channel partner relationships47,071 (28,644)18,427 
Other intangible assets2,219 — 2,219 
Total intangible assets, net$334,475 $(78,535)$255,940 
__________________
(1)Gross carrying amount is adjusted for any write offs or impairment charges due to the termination of the PPA contracts.
Schedule of Amortization Expense
The following table presents Depreciation expense recorded within Depreciation, amortization and accretion on the Consolidated Statements of Operations for the periods indicated below:
Year ended December 31,
(in thousands)202520242023
Depreciation expense$73,891 $71,125 $113,899 
The following table presents amortization expense for the intangible assets related to the favorable PPA and REC contracts recorded on the Consolidated Statements of Operations, including the Contract amortization, net that was recorded as a reduction to revenue in the Consolidated Statements of Operations for the periods indicated below:
For the years ended December 31,
(in thousands)202520242023
Total Favorable Amortization expense$29,991 $36,577 40,792 
Favorable Contract amortization as a reduction to revenue 26,099 28,445 31,571 
The following table presents Depreciation expense recorded within Depreciation, amortization and accretion on the Consolidated Statements of Operations for the periods indicated below:
Three months ended
March 31,
(in thousands)20262025
Depreciation expense$15,098 $18,496 
The following table presents amortization expense for the intangible assets related to the favorable PPA and REC contracts recorded on the Consolidated Statements of Operations, including the Contract amortization, net that was recorded as a reduction to revenue in the Consolidated Statements of Operations for the periods indicated below:
Three months ended
March 31,
(in thousands)20262025
Total Favorable Amortization expense$5,906 $9,353 
Favorable Contract amortization as a reduction to revenue 4,871 6,970 
Schedule of Out-of-market Contracts
The Company has PPA and REC contracts that were acquired in an unfavorable position (out-of-market contracts) recorded as liabilities. Out-of-market contract liabilities as of December 31, 2025 consisted of the following:
(in thousands)Gross carrying amountAccumulated amortizationNet out-of-market contracts as of December 31, 2025
PPA contracts$(164,190)$26,985 $(137,205)
REC contracts(17,949)15,346 (2,603)
Total out-of-market contracts, net$(182,139)$42,331 $(139,808)
Out-of-market contract liabilities as of December 31, 2024 consisted of the following:
(in thousands)Gross carrying amountAccumulated amortizationNet out-of-market contracts as of December 31, 2024
PPA contracts$(198,629)$23,127 $(175,502)
REC contracts(19,763)14,625 (5,138)
Total out-of-market contracts, net$(218,392)$37,752 $(180,640)
The Company has PPA and REC contracts that were acquired in an unfavorable position (out-of-market contracts) recorded as liabilities. Out-of-market contract liabilities as of March 31, 2026 consisted of the following:
(in thousands)Gross carrying amountAccumulated amortizationNet out-of-market contracts as of March 31, 2026
PPA contracts$(164,190)$29,066 $(135,124)
REC contracts(3,071)799 (2,272)
Total out-of-market contracts, net$(167,261)$29,865 $(137,396)
Out-of-market contract liabilities as of December 31, 2025 consisted of the following:
(in thousands)Gross carrying amountAccumulated amortizationNet out-of-market contracts as of December 31, 2025
PPA contracts$(164,190)$26,985 $(137,205)
REC contracts(17,949)15,346 (2,603)
Total out-of-market contracts, net$(182,139)$42,331 $(139,808)
Schedule of Out-of-market Contract Amortization Expense
The following table presents the contract amortization recorded as an increase to revenue related to out-of-market contract liabilities for the periods indicated below:
Year ended December 31,
(in thousands)202520242023
Out-of-market contract amortization(1)
$18,680 $14,145 23,511 
__________________
(1)For the years ended December 31, 2025, 2024, and 2023, the out-of-market contract amortization includes out-of-market contract terminations of $6.9 million, nil, and $9.0 million, respectively.
The following table presents the contract amortization recorded as an increase to revenue related to out-of-market contract liabilities for the periods indicated below:
Three months ended
March 31,
(in thousands)20262025
Out-of-market contract amortization(1)
$2,412 $3,821 
__________________
(1)For the three months ended March 31, 2026 and 2025, the out-of-market contract amortization includes out-of-market contract terminations of nil and $6.1 million, respectively.
Schedule of Amortization Expense of Finite-Lived Intangible Assets and Out-of-market Contracts, Net
The following table presents the total amortization expense related to the Company’s finite-lived intangible asset and liabilities, net, which includes contract amortization on PPA and REC contract intangible assets and out-
of-market contracts, net and amortization expense on channel partner relationships and trademark intangible assets for the periods indicated:
Year ended December 31,
(in thousands)202520242023
Amortization expense on channel partner relationships and trademark intangible assets, net$3,893 $8,131 $9,221 
Contract amortization on PPA and REC contracts, intangible assets and out-of-market contracts, net7,419 14,301 8,060 
Total amortization expense related to intangible assets and liabilities, net$11,312 $22,432 $17,281 
The following table presents the total amortization expense related to the Company’s finite-lived intangible asset and liabilities, net, which includes contract amortization on PPA and REC contract intangible assets and out-of-market contracts, net and amortization expense on channel partner relationships and trademark intangible assets for the periods indicated:
Three months ended
March 31,
(in thousands)20262025
Amortization expense on channel partner relationships and trademark intangible assets, net$1,035 $2,383 
Contract amortization on PPA and REC contracts, intangible assets and out-of-market contracts, net2,459 (2,921)
Total amortization expense related to intangible assets and liabilities, net$3,494 $(538)
Schedule of Estimated Future Annual Amortization Expense
Estimated future amortization expense, net for the above amortizable intangible assets and out-of-market contracts for each of the next five years and thereafter are as follows:
(in thousands)
Year ended December 31,Amortization Expense
2026$11,810 
202711,554 
202811,506 
202911,413 
203011,317 
Thereafter58,532 
Total$116,132 
Estimated future amortization expense, net for the above amortizable intangible assets and out-of-market contracts for each of the next five years and thereafter are as follows:
(in thousands)
Period ended March 31,Amortization Expense
2026-2027$12,252 
2027-202811,727 
2028-202911,708 
2029-203011,567 
2030-203110,985 
Thereafter57,519 
Total$115,758