We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Genie Energy Stock Rises on Y/Y Earnings & Customer Growth in Q1
Read MoreHide Full Article
Shares of Genie Energy Ltd. (GNE - Free Report) have gained 4.6% since reporting first-quarter 2025 results, outperforming the broader market. During the same period, the S&P 500 index has declined 0.8%. Over the past month, Genie Energy’s stock has risen 6.3%, exceeding the S&P 500’s 2.8% growth.
Revenues & Earnings Reflect Robust Growth
Genie Energy delivered strong financial results for the quarter ended March 31, 2025. Total revenues rose 14.3% year over year to $136.8 million from $119.7 million. The increase was driven by a 17.8% jump in revenues from the Genie Retail Energy (GRE) segment, which contributed $132.5 million. Electricity revenues climbed 16.4% to $104.1 million, and natural gas revenues grew 26.8% to $28.4 million, thanks to increased consumption and per-unit pricing.
Net income attributable to GNE common stockholders was $10.6 million, up 30.9% from $8.1 million in the year-ago period. This translated to diluted earnings per share (EPS) of 40 cents, up from 30 cents in the first quarter of 2024. On a non-GAAP basis, net income increased 24.7% to $11.1 million, and non-GAAP EPS rose to 42 cents from 33 cents.
Genie Energy Ltd. Price, Consensus and EPS Surprise
GRE’s operational performance reflected strategic investments made in 2024 to expand its customer base. The company reported net year-over-year additions of more than 48,000 meters, ending the quarter with 413,000 meters and 402,000 residential customer equivalents, marking 13.3% and 15.6% increases, respectively.
This growth stemmed from deeper market penetration and geographic expansion, including entry into California and plans to offer gas services in Kentucky. The company maintained a steady customer churn rate of 5.5%, unchanged from the prior year and only marginally higher than the previous quarter.
GRE’s income from operations rose 18.2% year over year to $16.8 million, whereas adjusted EBITDA increased 17.1% to $17.1 million. Despite strong top-line growth, GRE’s gross margin declined by 150 basis points to 27.1% due to the acquisition of lower-margin meters through municipal aggregation programs.
Renewables Segment Sees Transition
Genie Renewables (GREW) experienced a 40% year-over-year drop in revenues to $4.3 million, largely attributed to its strategic exit from the commercial-scale solar project business. However, Diversegy, Genie Energy’s energy brokerage arm housed within GREW, posted a 55% increase in revenues and contributed to the majority of the segment’s revenues this quarter.
Despite the brokerage’s gains, GREW posted a loss from operations of $0.9 million, wider than the $0.6-million loss in the first quarter of 2024. The loss reflects continued investments in utility-scale project development. The most notable development in this pipeline is the community solar project in Lansing, NY, which is expected to go live as early as the third quarter. Management anticipates it to be immediately EBITDA accretive upon completion.
Management Commentary & Strategic Direction
CEO Michael Stein emphasized the normalization of margins in the retail energy business compared with the unusually high margins seen in 2022 and parts of 2023. He credited the company’s customer retention programs for sustaining churn rates, noting that strong growth would have typically pressured churn upward.
CFO Avi Goldin highlighted the company’s strong cash flow generation and disciplined cost management. SG&A expenses rose just 4.3% year over year to $23.9 million, while consolidated income from operations increased 30.3% to $12.8 million. Adjusted EBITDA for the quarter totaled $14.4 million, a 22.7% year-over-year increase.
Guidance Reaffirmed
Management reaffirmed its full-year adjusted EBITDA guidance of $40-$50 million. This outlook reflects continued strength in GRE, momentum in the brokerage unit and anticipated contributions from the solar development pipeline in the latter half of the year.
Other Developments
In the quarter, Genie Energy repurchased approximately 127,000 shares of its Class B common stock for $1.9 million and paid out a quarterly dividend of 7.5 cents per share, returning a total of $3.9 million to shareholders. As of March 31, 2025, the company held $210.2 million in cash, restricted cash and marketable securities, up from $201 million at the end of 2024. Working capital stood at $121.2 million and net debt totaled $9 million.
The quarter also saw an expansion in Genie Solar’s development pipeline, which grew to 123 MW across 18 projects. The company added 15 MW and two new projects in the quarter, continuing its pivot to utility-scale solar.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Genie Energy Stock Rises on Y/Y Earnings & Customer Growth in Q1
Shares of Genie Energy Ltd. (GNE - Free Report) have gained 4.6% since reporting first-quarter 2025 results, outperforming the broader market. During the same period, the S&P 500 index has declined 0.8%. Over the past month, Genie Energy’s stock has risen 6.3%, exceeding the S&P 500’s 2.8% growth.
Revenues & Earnings Reflect Robust Growth
Genie Energy delivered strong financial results for the quarter ended March 31, 2025. Total revenues rose 14.3% year over year to $136.8 million from $119.7 million. The increase was driven by a 17.8% jump in revenues from the Genie Retail Energy (GRE) segment, which contributed $132.5 million. Electricity revenues climbed 16.4% to $104.1 million, and natural gas revenues grew 26.8% to $28.4 million, thanks to increased consumption and per-unit pricing.
Net income attributable to GNE common stockholders was $10.6 million, up 30.9% from $8.1 million in the year-ago period. This translated to diluted earnings per share (EPS) of 40 cents, up from 30 cents in the first quarter of 2024. On a non-GAAP basis, net income increased 24.7% to $11.1 million, and non-GAAP EPS rose to 42 cents from 33 cents.
Genie Energy Ltd. Price, Consensus and EPS Surprise
Genie Energy Ltd. price-consensus-eps-surprise-chart | Genie Energy Ltd. Quote
Operational Strength & Customer Growth
GRE’s operational performance reflected strategic investments made in 2024 to expand its customer base. The company reported net year-over-year additions of more than 48,000 meters, ending the quarter with 413,000 meters and 402,000 residential customer equivalents, marking 13.3% and 15.6% increases, respectively.
This growth stemmed from deeper market penetration and geographic expansion, including entry into California and plans to offer gas services in Kentucky. The company maintained a steady customer churn rate of 5.5%, unchanged from the prior year and only marginally higher than the previous quarter.
GRE’s income from operations rose 18.2% year over year to $16.8 million, whereas adjusted EBITDA increased 17.1% to $17.1 million. Despite strong top-line growth, GRE’s gross margin declined by 150 basis points to 27.1% due to the acquisition of lower-margin meters through municipal aggregation programs.
Renewables Segment Sees Transition
Genie Renewables (GREW) experienced a 40% year-over-year drop in revenues to $4.3 million, largely attributed to its strategic exit from the commercial-scale solar project business. However, Diversegy, Genie Energy’s energy brokerage arm housed within GREW, posted a 55% increase in revenues and contributed to the majority of the segment’s revenues this quarter.
Despite the brokerage’s gains, GREW posted a loss from operations of $0.9 million, wider than the $0.6-million loss in the first quarter of 2024. The loss reflects continued investments in utility-scale project development. The most notable development in this pipeline is the community solar project in Lansing, NY, which is expected to go live as early as the third quarter. Management anticipates it to be immediately EBITDA accretive upon completion.
Management Commentary & Strategic Direction
CEO Michael Stein emphasized the normalization of margins in the retail energy business compared with the unusually high margins seen in 2022 and parts of 2023. He credited the company’s customer retention programs for sustaining churn rates, noting that strong growth would have typically pressured churn upward.
CFO Avi Goldin highlighted the company’s strong cash flow generation and disciplined cost management. SG&A expenses rose just 4.3% year over year to $23.9 million, while consolidated income from operations increased 30.3% to $12.8 million. Adjusted EBITDA for the quarter totaled $14.4 million, a 22.7% year-over-year increase.
Guidance Reaffirmed
Management reaffirmed its full-year adjusted EBITDA guidance of $40-$50 million. This outlook reflects continued strength in GRE, momentum in the brokerage unit and anticipated contributions from the solar development pipeline in the latter half of the year.
Other Developments
In the quarter, Genie Energy repurchased approximately 127,000 shares of its Class B common stock for $1.9 million and paid out a quarterly dividend of 7.5 cents per share, returning a total of $3.9 million to shareholders. As of March 31, 2025, the company held $210.2 million in cash, restricted cash and marketable securities, up from $201 million at the end of 2024. Working capital stood at $121.2 million and net debt totaled $9 million.
The quarter also saw an expansion in Genie Solar’s development pipeline, which grew to 123 MW across 18 projects. The company added 15 MW and two new projects in the quarter, continuing its pivot to utility-scale solar.