Shares of Genie Energy Ltd. (GNE Quick QuoteGNE - Free Report) have slipped 0.4% since reporting third-quarter 2025 results on Nov. 3, 2025, underperforming the S&P 500 index’s 1.2% decline in the same period. Over the past month, the stock has fallen 4.3% against the S&P 500’s 2.1% growth, suggesting that investor sentiment has cooled following a weaker-than-expected quarter and a cautious near-term outlook.

Genie Energy’s third-quarter results reflected a solid top-line performance but a sharp contraction in margins due to elevated energy costs. Revenues increased 23.6% year over year to $138.3 million, marking a record quarterly total for the company, driven by stronger electricity consumption per meter, rising commodity prices, and growth in the customer base at Genie Retail Energy (GRE).

However, earnings lagged as profitability came under pressure. Gross profit declined 20.8% year over year to $30 million, and adjusted EBITDA dropped 39.5% to $8.2 million. Net income attributable to common stockholders fell 33.9% to $6.7 million, translating to a diluted EPS of 26 cents versus 38 cents a year ago.

Genie Energy Ltd. Price, Consensus and EPS Surprise

 

Genie Energy Ltd. price-consensus-eps-surprise-chart | Genie Energy Ltd. Quote

Genie Retail Energy: Growth in Volume But Margin Pressure Persists

GRE, the company’s core retail energy business, reported year-over-year revenue growth of 25.1% to $132.4 million, fueled by higher average electricity usage and customer growth. Electricity revenues rose 25.7% to $126.6 million, whereas natural gas revenue increased 14.7% to $5.8 million. The total customer base grew 4.2% to 396,000 RCEs, with electricity RCEs up 5.4%. However, the segment’s profitability weakened sharply as wholesale commodity costs surged. Operating income dropped 32.4% to $10.2 million and adjusted EBITDA declined 32.2% to $10.5 million.

Management attributed the margin compression to rising wholesale energy prices that outpaced the protection provided by the company’s hedge positions, exacerbated by unseasonably hot summer weather. A 12-month, lower-margin municipal aggregation contract also pressured profitability but is expected to expire in the fourth quarter. The segment’s gross margin contracted to 20.8% from 33.8% in the prior-year period.

Genie Renewables: Modest Revenue, Investments Weigh on Profit

Genie Renewables (“GREW”) posted revenues of $6 million, down slightly from $6.1 million a year earlier, as robust gains at Diversegy — the energy advisory and brokerage unit — were offset by lower solar project revenues following Genie Solar’s shift away from commercial project development. Diversegy continued its strong momentum, with revenue rising 35% year over year, marking its third consecutive quarter of double-digit growth. GREW’s operating loss widened modestly to $0.3 million, reflecting increased investment in new growth ventures.

One of these early-stage ventures, Roded, a recycled plastic pallet business based in Israel, began generating revenues in the quarter. Genie Energy plans to scale production and explore international expansion. Meanwhile, Genie Solar neared the completion of its Lansing community solar project, expected to start contributing to revenues in the fourth quarter, and progressed on the Perry, NY, array build-out. However, management paused some early-stage solar projects following recent changes in federal energy tax credit policy.

Financial Position & Capital Returns

Genie Energy maintained a strong balance sheet at the quarter-end with $206.6 million in cash, restricted cash and marketable equity securities, up from $201.6 million in the prior quarter. Total assets stood at $394.1 million and working capital was $113.3 million. Total debt remained modest at $8.8 million, largely tied to solar asset financing.

Reflecting its commitment to shareholder returns, the company repurchased about 124,000 shares of Class B stock for $2 million and paid out a quarterly dividend of 7.50 cents per share in the quarter.

Management Commentary & Outlook

Chief executive officer, Michael Stein, acknowledged that “challenging market conditions,” which affected the second quarter, persisted through the summer, squeezing GRE’s margins. He noted that while fixed-rate municipal contracts drove high volume, they yielded lower profitability amid market volatility. Stein expressed optimism that the margin environment would “gradually become more favorable in the fourth quarter and into 2026,” supported by stabilizing commodity prices and a greater mix of high-consumption electric meters.

Chief financial officer, Avi Goldin, added that electricity costs per kilowatt hour rose 20% year over year, while natural gas costs surged 137%, leading to a negative gross margin on gas sales. Nonetheless, SG&A expenses declined 10% to $22.6 million due to disciplined expense control, particularly in payroll and customer acquisition. Both executives reaffirmed the 2025 adjusted EBITDA guidance of $40-$50 million, albeit at the low end of the range.

Other Developments

In addition to renewable project milestones, Genie Energy continued to optimize its capital structure and strengthen its cash position. The company also reaffirmed its quarterly dividend policy and share repurchase program as part of its ongoing capital allocation strategy. No acquisitions or divestitures were disclosed in the quarter. Management reiterated its confidence in navigating through the current margin cycle, highlighting its track record of maintaining profitability through volatile energy markets.

In summary, Genie Energy’s third-quarter 2025 results showcased solid revenue growth but underscored the impacts of energy price volatility on profitability. The company’s diversified operations, healthy balance sheet and disciplined capital management offer some resilience, yet near-term earnings visibility remains constrained by commodity cost pressures.

As Genie Energy transitions into 2026, investor attention will likely focus on the recovery of GRE’s margins, execution in its renewable energy projects and progress in scaling its nascent ventures like Roded — key elements that can determine whether the recent share-price decline marks a temporary pause or a prolonged correction.