Genie Energy Announces Third Quarter 2025 Results

Core Insights - Genie Energy reported a record third quarter revenue of $138.3 million, representing a 23.6% increase from $111.9 million in the same quarter last year, driven by higher electricity consumption and rising commodity prices [6][8][24] - Despite the revenue growth, the company faced challenges with a decrease in gross profit and margins due to increased commodity costs, leading to a decline in net income and Adjusted EBITDA [6][9][12] Financial Performance - Revenue increased by 23.6% to $138.3 million from $111.9 million [6][8] - Gross profit decreased by 20.8% to $30.0 million from $37.9 million, with gross margin falling to 21.7% from 33.9% [6][8] - Income from operations dropped to $6.9 million from $11.7 million, a decrease of 40.6% [6][8] - Adjusted EBITDA fell to $8.2 million from $13.6 million, a decline of 39.5% [6][8] - Net income attributable to common stockholders decreased to $6.7 million, or $0.26 per diluted share, compared to $10.2 million, or $0.38 per diluted share in the prior year [6][8][24] Segment Performance - Genie Retail Energy (GRE) saw a revenue increase of 25.1% to $132.4 million, but income from operations decreased by 32.4% to $10.2 million due to rising commodity costs [9][12] - The electricity customer base grew to approximately 318,000 RCEs, a year-over-year increase of 5.4%, while total RCEs increased by 4.2% to 396,000 [2][11] - Genie Renewables (GREW) reported a slight revenue decrease of 2.7% to $6.0 million, impacted by a strategic shift away from commercial project development [12][19] Shareholder Returns - The company repurchased approximately 124,000 shares for $2.0 million during the third quarter and declared a quarterly dividend of $0.075 per share [5][6] - Cash and cash equivalents, along with marketable securities, totaled $206.6 million as of September 30, 2025 [14][24] Future Outlook - The company anticipates a gradual improvement in GRE's margin environment in the fourth quarter and into 2026, with an expected Adjusted EBITDA range of $40 million to $50 million for the full year 2025 [6][12]