Genie Energy Ltd.

What they do

GRE owns and operates retail energy providers (REPs) including IDT Energy, Residents Energy, Town Square Energy, Southern Federal Power, Evergreen Gas & Electric and Mirabito Natural Gas; these resell electricity and natural gas to residential, small business and small commercial customers in deregulated U.S. markets, mainly the Eastern and Midwestern U.S. and Texas, with Mirabito serving commercial gas customers in Florida. GREW comprises Genie Solar, CityCom Solar, Diversegy LLC and Roded Recycling Industries, in which the company holds 95.5%, 93.8%, 91.5% and 72.2% interests respectively. The company previously operated international retail energy businesses in the UK, Finland and Sweden, which are accounted for as discontinued operations.

Revenue drivers

• Genie Retail Energy (GRE) — Electricity and natural gas resale to residential and small business customers through REPs in deregulated U.S. markets; the larger of the two reporting segments and the main driver of consolidated revenue, with 345,000 RCEs and 363,000 meters at 2Q26.
• Genie Solar (within GREW) — Integrated solar energy business; generated positive segment EBITDA in 2Q26 and added its second community solar project late in the quarter.
• Diversegy (within GREW) — Energy procurement advisory for industrial, commercial and municipal customers; described as having a particularly strong quarter of cash generation and continued book-of-business growth.
• CityCom Solar and Roded (within GREW) — Community solar marketing and recycled-plastic pallet manufacturing; Roded is characterized as an ongoing investment and part of early-stage growth initiatives.

Recent performance

For 2Q26, revenue was $100.4 million versus $105.3 million a year earlier, while gross profit rose to $33.7 million from $23.5 million and gross margin expanded to 33.5% from 22.3%. Income from operations increased to $6.5 million from $2.3 million, net income attributable to Genie common stockholders rose to $11.4 million from $2.3 million, and EPS increased to $0.43 from $0.09. Adjusted EBITDA was $7.5 million versus $3.0 million. GRE's RCEs fell to 345,000 from 413,000 and meters to 363,000 from 419,000, largely reflecting expiration of low-margin aggregation deals; cash, restricted cash and marketable equity securities totaled $204.3 million at June 30, 2026. Full-year 2025 revenue was $502.0 million with net income of $23.7 million, down from 2024 net income of $35.2 million.

Strategy

Management is focused on boosting cash generation across GRE, Diversegy and Genie Solar while making operational progress on growth initiatives. GRE is shifting customer acquisition toward higher-value customer segments and diversifying with growth in Texas power and California gas, accepting higher acquisition costs. GREW is investing in Roded and other early-stage businesses while Diversegy builds its book of business and Genie Solar brings community solar projects online. The company returns capital via a $0.075 per share quarterly dividend and opportunistic buybacks, repurchasing about 48 thousand Class B shares for $659 thousand in 2Q26.

Risks

• Retail energy competition — GRE faces competition from incumbent utilities and other REPs, which can force price reductions, higher costs or lost market share, and commodity cost increases cannot always be passed through to customers.
• Customer churn and acquisition — Growth depends on persuading customers to switch to GRE faster than they churn away; 2Q26 RCEs and meters were down year over year, partly from expired aggregation deals.
• Regulatory change — State legislation or regulation could adversely affect GRE's marketing practices and its ability to acquire and serve customers in deregulated markets.
• Listing and financial reporting matters — The company disclosed a delisting notice or listing-rule failure in April 2026 and reported in March 2026 that previously issued financials were not reliable, both of which create uncertainty.

Outlook

Management maintained full-year 2026 Adjusted EBITDA guidance of $32.5 million to $40 million. It expects 2Q26 customer acquisitions skewed to high-value segments to favorably affect results in coming quarters, and said Diversegy and Genie Solar are on track to expand their bottom lines. Priorities for the balance of the year are cash generation, progress in growth initiatives, and returning value through repurchases and the quarterly dividend.