Shares of Genie Energy Ltd. (GNE Quick QuoteGNE - Free Report) have gained 2.6% since reporting results for 2025. This compares with the S&P 500 index’s 0.1% return over the same time frame. Over the past month, the stock has inched up 2% compared with the S&P 500’s 9.9% rise.

Genie Energy’s 2025 results reflected higher year-over-year revenues but weaker earnings as rising energy costs pressured margins. Total revenues in the Genie Retail Energy (“GRE”) segment rose 18.6% to $478.5 million from $403.3 million in 2024. Electricity revenues increased 17.8% to $412.8 million, while natural gas revenues climbed 26% to $65.7 million.

However, GRE’s operating income fell 21.8% to $44.2 million from $56.5 million a year earlier as the cost of revenues jumped 32.7% to $359.9 million. Gross profit declined 10.3% to $118.5 million. The company attributed the revenue gains primarily to increased customer consumption, customer acquisitions and higher pricing in line with market conditions.

Net income attributable to Genie Energy common stockholders declined 32.4% to $24 million from $35.5 million in 2024. Earnings per share decreased to 90 cents from $1.31 in the prior-year period.

Genie Energy Ltd. Price, Consensus and EPS Surprise

 

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

Retail Energy’s Performance

The retail energy business continued to account for the vast majority of Genie Energy’s operations, representing roughly 95% of consolidated revenues in 2025. Customer growth contributed to stronger electricity and natural gas sales volumes. Electricity consumption increased 15.8% year over year, reflecting an 8.3% rise in average meters served and a 6.9% increase in average consumption per meter. Management said the increase in meter count stemmed from customer acquisitions completed during 2024 and 2025.

Natural gas consumption rose 12.2%, helped by colder weather in several service territories in the first half of 2025. The company also benefited from a 12.3% increase in average revenue per therm sold due to broader market pricing conditions.

Despite higher sales, profitability weakened as wholesale energy procurement costs increased sharply. Genie noted that volatility in electricity and natural gas markets continued to affect margins because the company cannot always pass higher supply costs through to customers, particularly under fixed-rate contracts.

At Dec. 31, 2025, GRE serviced 346,000 meters, down from 423,000 a year earlier, while residential customer equivalents declined to 329,000 from 399,000. The company said customer churn remains a significant factor in the retail energy business, with monthly churn rates averaging between 4% and 7%.

Renewable Energy & Growth Initiatives

Genie Renewables (“GREW”) remained a smaller but expanding part of the business. The segment includes Genie Solar, CityCom Solar, Diversegy and recycling startup Roded. Genie Solar completed construction and began generating power from Lansing Community Solar in upstate New York in November 2025, marking the company’s first owned community solar project.

The company’s solar portfolio includes 9.4 megawatts of operating projects in Ohio and Michigan, 6 megawatts of operational community solar assets in New York, another 4 megawatts under construction and 6 megawatts in permitting. Diversegy, the company’s energy procurement advisory business, accounted for more than 75% of the GREW segment’s revenues in 2025.

Management also highlighted Roded’s plans to launch recycled plastic pallets commercially in Israel during 2026 as it seeks to scale proprietary recycling technology into broader industrial applications.

Regulatory & Market Factors

Management pointed to several regulatory developments affecting the energy and renewable sectors. The company discussed changes tied to federal climate policy and tax incentives, including the “One Big Beautiful Bill Act,” enacted in July 2025, which accelerated the phaseout of several clean energy tax credits established under the Inflation Reduction Act.

The company said these policy shifts could affect project economics, renewable energy demand and supply-chain decisions. Genie also noted ongoing uncertainty around greenhouse gas regulations and renewable portfolio standards across multiple states where it operates.

Weather also remained an important earnings driver. Colder winters typically boost natural gas demand, while hotter summers increase electricity consumption. Genie warned that increasingly volatile weather patterns linked to climate change may continue affecting customer demand and wholesale energy pricing.

Other Developments

During 2025, Genie continued returning capital to shareholders through quarterly dividends of 7.5 cents per share. The company paid out aggregate dividends of approximately $8 million during the year and maintained its quarterly payout into early 2026.

Genie also disclosed that it restated prior financial statements due to accounting errors tied to liabilities associated with its captive insurance subsidiary. Management identified a material weakness in internal controls over financial reporting and said remediation efforts are ongoing. In addition, the company continued addressing litigation and claims connected to discontinued Scandinavian operations, including bankruptcy-related disputes involving former Finnish subsidiary Lumo Finland.