Shares of Genie Energy, Ltd. (GNE Quick QuoteGNE - Free Report) slipped 0.7% following the release of its first-quarter 2026 results compared with the S&P 500’s 0.4% decline over the same period. However, over the past month, the stock has gained 1.3%, trailing the S&P 500’s 5.2% advance.

Genie Energy reported mixed first-quarter 2026 results, with revenues reaching a record quarterly level, even as profitability declined sharply from the prior-year period. Total revenues increased 4% year over year to $142.3 million from $136.8 million, supported by higher natural gas sales and strong growth in the renewables segment.

However, gross profit fell 20.2% to $29.8 million, while gross margin narrowed to 20.9% from 27.3%. Net income attributable to Genie common stockholders dropped 73.4% to $2.8 million from $10.4 million a year earlier. Diluted earnings per share declined to 11 cents from 40 cents in the prior-year quarter. Adjusted EBITDA decreased 80.4% year over year to $2.8 million from $14.4 million.

Genie Energy Ltd. Price, Consensus and EPS Surprise

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

Retail Energy Performance Weakens Amid Commodity Volatility

Genie Retail Energy (“GRE”), the company’s largest segment, generated revenues of $134.8 million in the quarter, up 1.7% year over year. Electricity revenues declined 4.5% to $99.4 million, while natural gas revenues rose 24.4% to $35.4 million. The company attributed the revenue growth primarily to volatility in energy commodity markets that led to higher energy prices.

Despite the revenue increase, profitability in the segment deteriorated significantly. GRE income from operations fell 60.6% to $6.6 million, while Adjusted EBITDA declined 59.1% to $7 million. Gross margin for the segment narrowed to 21.6% from 27.1% in the year-ago quarter. Management said that severe winter weather and extreme cold in the first two months of the quarter drove sharp increases in electricity and gas procurement costs, compressing margins. During the earnings call, management noted that power and gas costs increased 28% and 55% per unit, respectively, though hedging and pricing strategies partially offset the impact.

Operationally, GRE ended the quarter with 354,000 residential customer equivalents (RCEs), down 11.7% year over year, and 364,000 meters, down 11.8%. However, gross meter additions increased 38.2% to 84,000 during the quarter. Churn edged up to 5.8% from 5.5%. Management stated that the company intentionally reduced lower-margin municipal aggregation customers over the past year to improve customer quality.

Renewables Segment Posts Higher Revenues but Wider Loss

Genie Renewables (“GREW”) posted revenues of $7.5 million, up 74.2% year over year, driven by sales of Genie Solar’s remaining solar panel inventory and growth in several new initiatives. However, the segment recorded a loss from operations of $2.4 million compared with a loss of $0.9 million in the prior-year quarter.

The decline in profitability was attributed to a write-down of the carrying value of remaining solar panel inventory and increased investment in early-stage growth initiatives. Gross margin in the renewables segment contracted sharply to 9.9% from 33.7% a year earlier.

Management highlighted progress in several renewable and emerging businesses. Genie Solar completed and powered up its Lansing, N.Y., community solar project in fourth-quarter 2025 and expects to complete another pre-operational community solar project during the second quarter of 2026. The company said that Genie Solar is expected to remain profitable for the rest of 2026.

GNE Management Lowers Full-Year Outlook

Genie Energy lowered its full-year 2026 Adjusted EBITDA guidance to a range of $32.5-$40 million from the prior range of $40-$50 million. CEO Michael Stein said that the revision reflected margin compression in retail energy operations and increased spending on customer acquisition and growth initiatives.

Management indicated that operating conditions improved in March and expects stronger performance through the remainder of the year. During the conference call, Stein described GRE as a “strongly cash-generative business” that periodically experiences margin compression but also benefits from periods of elevated profitability.

The company also emphasized growth opportunities in Roded, its majority-owned venture focused on converting agricultural waste plastics into commercial plastic products. Management said that Roded has already reached capacity on its first production line in Israel and is building a second line, expected to begin operations during the current quarter.

GNE’s Balance Sheet and Capital Allocation

Genie Energy ended the quarter with $199.8 million in cash, cash equivalents, restricted cash and marketable equity securities. Total assets stood at $376.5 million, while liabilities summed at $131.2 million. Working capital was $188.4 million.

Cash flow from continuing operating activities turned negative at $6.5 million compared to the positive operating cash flow of $13.5 million in the year-ago quarter. The company declared a quarterly dividend of 7.5 cents per share payable in June.

Other Developments at GNE

During the quarter, Genie Energy continued restructuring certain renewable operations, including the wind-down of legacy solar activities and the liquidation of remaining solar panel inventory. The company also increased investments in early-stage ventures, including Roded and insurance-related operations. Management said that the insurance subsidiary experienced growth in fourth-quarter 2025 and first-quarter 2026 sales activity, with revenue contributions beginning to emerge during the quarter.