Genie Energy(US:GNE)2025-11-03 14:30Financial Data and Key Metrics Changes - Genie Energy reported a record-high third-quarter revenue of $138.3 million, a 24% increase year-over-year, driven by sales at its retail supply business, GRE [10] - Diluted EPS decreased to $0.26 from $0.38 year-over-year, reflecting margin pressures from rising commodity prices [4][13] - Consolidated gross profit decreased 21% to $30 million, with gross margin dropping from 33.9% to 21.7% [11][12] - Adjusted EBITDA decreased 40% to $8.2 million, with GRE's adjusted EBITDA also declining [12][13] Business Line Data and Key Metrics Changes - GRE's revenue increased 25% to $132.4 million, with electricity revenue up 26% to $126.6 million, contributing 96% of GRE's revenues [10][11] - The customer base at GRE grew to approximately 318,000 RCEs, a year-over-year increase of 5.4% [6] - GREW's revenue slightly decreased to $6 million, impacted by declines in other business lines despite growth in Diversegy [11][8] Market Data and Key Metrics Changes - The cost of electricity per kilowatt-hour increased 20% year-over-year, while the cost per therm of gas surged 137% [12] - The increase in fixed-price contracts in the retail book has led to lower margins, particularly from a large municipal aggregation deal [5] Company Strategy and Development Direction - The company continues to prioritize the acquisition of high-consumption electric meters and expects margin conditions to improve in Q4 and into 2026 [5][6] - Genie Energy is focusing on growth initiatives in its renewable segment, with projects like Genie Solar's Lansing community solar project expected to generate revenue soon [6][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions affecting margins but expressed confidence in navigating through margin cycles [5][15] - The company expects to achieve the lower end of its annual guidance range of $40-$50 million in adjusted EBITDA for 2025 [9][15] Other Important Information - The company repurchased approximately 124,000 shares for $2 million and paid a quarterly dividend of $0.075 per share [9][14] - Cash and cash equivalents totaled $206.6 million as of September 30, 2025, an increase from the previous quarter [13] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without further inquiries [16]