Genie Energy(GNE) - 2025 Q1 - Quarterly Results

Q1 2025 Performance Overview CEO Commentary & Strategic Highlights The CEO highlighted strong operational and financial results for Q1 2025, driven by significant customer growth in the Genie Retail Energy (GRE) segment and continued progress in the Genie Renewables (GREW) project pipeline. The company also returned value to shareholders through share repurchases and dividends - Genie Retail Energy (GRE) expanded its customer base with a year-over-year increase of over 48,000 net new meters, reaching approximately 413,000 meters served[4] - Genie Renewables (GREW) is advancing its utility-scale project pipeline, with its first community solar project in Lansing, New York, on track for completion as early as Q3 2025[5] - The company returned value to stockholders by repurchasing approximately 127,000 shares and paying a quarterly dividend of $0.075 per share[5] First Quarter 2025 Financial Highlights Genie Energy reported significant year-over-year growth in Q1 2025, with revenue increasing 14.3% to $136.8 million and net income attributable to common stockholders rising 30.9% to $10.6 million. Adjusted EBITDA also saw a strong increase of 22.7% to $14.4 million. The company maintained its quarterly dividend and continued its share repurchase program Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Revenue | $136.8M | $119.7M | +14.3% | | Gross Profit | $37.4M | $33.8M | +10.6% | | Income from Operations | $12.8M | $9.8M | +30.3% | | Adjusted EBITDA | $14.4M | $11.7M | +22.7% | | Net Income (to common stockholders) | $10.6M | $8.1M | +30.9% | | Diluted EPS (to common stockholders) | $0.40 | $0.30 | +$0.10 | - Cash and cash equivalents, restricted cash, and marketable securities increased to $210.2 million as of March 31, 2025[9] - The company repurchased approximately 127,000 shares of Class B Common stock for $1.9 million during the quarter[9] - A quarterly dividend of $0.075 per share was declared, payable on May 30, 2025[9] Segment Performance Genie Retail Energy (GRE) The Genie Retail Energy (GRE) segment delivered strong growth in Q1 2025, with revenue increasing 17.8% to $132.5 million and income from operations up 18.2% to $16.8 million. This performance was driven by a 13.3% increase in total meters served and higher customer consumption, while maintaining a stable churn rate of 5.5% GRE Financial Performance (Q1 2025 vs Q1 2024) | Metric | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Revenue | $132.5M | $112.5M | +17.8% | | Income from Operations | $16.8M | $14.2M | +18.2% | | Adjusted EBITDA | $17.1M | $14.6M | +17.1% | GRE Operational Metrics (as of period end) | Metric | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | RCEs (in thousands) | 402 | 348 | +15.6% | | Meters (in thousands) | 413 | 365 | +13.3% | | Churn | 5.5% | 5.5% | 0% | Genie Renewables (GREW) The Genie Renewables (GREW) segment reported a 40.0% decrease in revenue to $4.3 million, primarily due to Genie Solar's exit from the commercial-scale projects business. However, the energy brokerage business, Diversegy, saw a 55% revenue increase and now constitutes the majority of GREW's revenue. The segment's operating loss widened slightly to $0.9 million. The solar development pipeline expanded to 123 MW across 18 projects - GREW revenue 40.0% decrease to $4.3 million in Q1 2025 from $7.2 million in Q1 2024, mainly due to exiting the commercial-scale solar project business[13] - Diversegy, the energy brokerage business, increased revenue by 55% year-over-year, contributing the significant majority of GREW revenues[13] Genie Solar Development Pipeline (as of March 31, 2025) | Stage | MW | Project Count | | :--- | :--- | :--- | | Total | 123 | 18 | | Operational Site | 10 | 1 | | Control | 97 | 14 | | Permitting | 6 | 1 | | Construction | 10 | 2 | Financial Position and Cash Flow Balance Sheet and Cash Flow Summary As of March 31, 2025, Genie Energy maintained a strong financial position with $210.2 million in cash and marketable securities, total assets of $384.4 million, and working capital of $121.2 million. Cash flow from operating activities significantly improved, increasing 55.1% to $13.5 million in Q1 2025 compared to $8.7 million in the prior-year quarter Key Balance Sheet and Cash Flow Metrics (as of March 31, 2025) | Metric | Value (in millions) | | :--- | :--- | | Cash, restricted cash, & marketable securities | $210.2 | | Total Assets | $384.4 | | Total Liabilities | $197.0 | | Working Capital | $121.2 | | Cash provided by operating activities (Q1 2025) | $13.5 | - Cash provided by operating activities increased to $13.5 million in Q1 2025, a 55.1% increase from $8.7 million in Q1 2024[15][8] Trended Financial Information Quarterly Financial Trends Q1 2025 results show a significant rebound from Q4 2024, with total revenue reaching a five-quarter high of $136.8 million. Net income returned to strong profitability at $10.6 million after a loss in the previous quarter. Gross margin decreased to 27.3% from higher levels in the preceding three quarters, reflecting changing market conditions or business mix Quarterly Financial Data (in millions, except EPS) | Metric | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q25 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $119.7 | $90.7 | $111.9 | $102.9 | $136.8 | | Gross Profit | $33.8 | $33.3 | $37.9 | $33.5 | $37.4 | | Gross Margin | 28.2% | 36.8% | 33.9% | 32.5% | 27.3% | | Income from operations | $9.8 | $10.6 | $11.7 | $(20.8) | $12.8 | | Net income (to common stockholders) | $8.1 | $9.6 | $10.2 | $(15.3) | $10.6 | | Diluted EPS | $0.30 | $0.36 | $0.38 | $(0.58) | $0.40 | | Adjusted EBITDA | $11.7 | $12.0 | $13.6 | $11.1 | $14.4 | Consolidated Financial Statements Consolidated Balance Sheets As of March 31, 2025, Genie Energy's total assets grew to $384.4 million from $371.3 million at year-end 2024. The increase was primarily driven by a rise in cash and cash equivalents. Total liabilities also increased to $197.0 million from $191.7 million, while total equity improved to $187.4 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $238,508 | $227,447 | | Cash and cash equivalents | $112,544 | $104,456 | | Total Assets | $384,378 | $371,275 | | Total Current Liabilities | $117,317 | $109,812 | | Total Liabilities | $196,988 | $191,724 | | Total Equity | $187,390 | $179,551 | Consolidated Statements of Operations For the three months ended March 31, 2025, Genie Energy's total revenues increased to $136.8 million from $119.7 million in the prior-year period. Gross profit rose to $37.4 million. Despite higher operating expenses, income from operations grew to $12.8 million, and net income attributable to common stockholders increased to $10.6 million, or $0.40 per diluted share Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $136,807 | $119,688 | | Gross Profit | $37,363 | $33,786 | | Income from Operations | $12,831 | $9,849 | | Net Income from Continuing Operations | $10,405 | $8,434 | | Net Income Attributable to Genie Common Stockholders | $10,630 | $8,123 | | Diluted EPS | $0.40 | $0.30 | Consolidated Statements of Cash Flows In Q1 2025, net cash provided by operating activities was $15.3 million, an increase from $12.9 million in Q1 2024. Net cash used in investing activities decreased to $2.1 million. Financing activities used $4.4 million, primarily for dividends and share repurchases. The company ended the period with a net increase in cash, cash equivalents, and restricted cash of $8.8 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,349 | $12,926 | | Net cash used in investing activities | $(2,093) | $(5,844) | | Net cash used in financing activities | $(4,375) | $(7,730) | | Net increase (decrease) in cash | $8,801 | $(574) | Reconciliation of Non-GAAP Financial Measures Explanation of Non-GAAP Measures The company uses non-GAAP measures such as Adjusted EBITDA, Non-GAAP Net Income, and Non-GAAP EPS to supplement its GAAP results. Management believes these metrics provide useful information by excluding certain non-cash or non-routine items (like depreciation, stock-based compensation, and captive insurance liability), offering a clearer view of core operating performance and facilitating comparisons with competitors - Adjusted EBITDA is calculated starting with income from operations, adding back depreciation, amortization, stock-based compensation, and deducting asset impairments[31] - Non-GAAP Net Income starts with GAAP net income and adds back non-cash and/or non-routine items like captive insurance liability and its tax effect[32] Non-GAAP Reconciliations The company provided detailed reconciliations for its non-GAAP metrics. For Q1 2025, Consolidated Adjusted EBITDA was $14.4 million, GRE segment Adjusted EBITDA was $17.1 million, and Consolidated Non-GAAP Net Income was $11.1 million, resulting in a Non-GAAP Diluted EPS of $0.42 Consolidated Adjusted EBITDA Reconciliation (in millions) | Metric | 1Q25 | 1Q24 | | :--- | :--- | :--- | | Income from operations | $12.8 | $9.8 | | Add back: Captive insurance liability | $0.6 | $1.0 | | Add back: Depreciation and amortization | $0.2 | $0.2 | | Add back: Non-cash compensation | $0.7 | $0.7 | | Adjusted EBITDA | $14.4 | $11.7 | GRE Adjusted EBITDA Reconciliation (in millions) | Metric | 1Q25 | 1Q24 | | :--- | :--- | :--- | | Income from operations | $16.8 | $14.2 | | Add back: Depreciation and amortization | $0.1 | $0.1 | | Add back: Stock-based compensation | $0.3 | $0.2 | | Adjusted EBITDA | $17.1 | $14.6 | Consolidated Non-GAAP Net Income Reconciliation (in millions, except EPS) | Metric | 1Q25 | 1Q24 | | :--- | :--- | :--- | | Net income attributable to common stockholders (GAAP) | $10.6 | $8.1 | | Add back: Captive insurance liability | $0.6 | $1.0 | | Income tax effect of adjustment | $(0.2) | $(0.3) | | Non-GAAP net income | $11.1 | $8.9 | | Non-GAAP diluted EPS | $0.42 | $0.33 | Supplemental Information Conference Call Information Genie Energy management will host a conference call at 8:30 AM Eastern on the day of the announcement to discuss the Q1 2025 results and business outlook. A replay of the call will be available via phone and on the company's investor relations website - A conference call is scheduled for 8:30 AM Eastern to discuss financial results[17] - A replay will be available through May 20, 2025, and a recording will be posted on the company's website[18]