Genie Energy Q2 2026 Earnings Report

Genie Energy EPS Results

• Actual EPS: $0.43
• Consensus EPS: $0.25
• Beat/Miss: Beat by +$0.18
• One Year Ago EPS: N/A

Genie Energy Revenue Results

• Actual Revenue: $100.40 million
• Expected Revenue: $104.57 million
• Beat/Miss: Missed by -$4.17 million
• YoY Revenue Growth: N/A

Genie Energy Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 8:30AM ET

Genie Energy (NYSE:GNE) (NYSE: GNE) is a diversified energy holding company that operates through two primary segments: upstream oil and natural gas exploration and retail energy supply. Its exploration arm, Genie Energy E&P, pursues development of oil shale resources and conventional hydrocarbon deposits, holding licenses for projects in regions such as Israel’s Shefela basin and Jordan’s oil shale formations. The division also explores select opportunities in North America, leveraging technical partnerships to advance resource evaluation and pilot production programs.

Genie Retail Energy provides electricity and natural gas to residential and small commercial customers under regulated and deregulated frameworks. The segment serves markets in several U.S. states—including New York, Texas, Pennsylvania and New Jersey—as well as in the United Kingdom. In addition to commodity supply, Genie Retail Energy offers value-added services such as rooftop solar installations, battery storage solutions and energy efficiency consulting, positioning itself as a one-stop provider for traditional and distributed energy resources.

Formed in 2011 as a spin-off from IDT Corporation, Genie Energy consolidated a portfolio of energy-related ventures to create a standalone, publicly traded entity focused on both conventional and renewable energy markets. The company is headquartered in Newark, New Jersey, and maintains strategic partnerships to support its exploration activities and retail platforms. By balancing upstream resource development with customer-facing energy services, Genie Energy aims to navigate evolving energy demand and regulatory landscapes.

Genie Energy Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong earnings improvement: Second-quarter net income rose to $11.4 million, or $0.42 per diluted share, from $2.3 million, or $0.09, a year earlier. Adjusted EBITDA increased $4.5 million to $7.5 million.
• Positive Sentiment: Normalized wholesale energy markets restored Genie Retail Energy’s gross margin to its historical range, driving a 42% increase in gross profit and a 97% increase in Adjusted EBITDA despite a 5% revenue decline.
• Neutral Sentiment: GRE’s customer base contracted to 345,000 RCEs and 363,000 meters, partly due to the expiration of low-margin aggregation deals. The company increased spending on higher-cost acquisition channels, which management believes will produce higher-lifetime-value customers and support future results.
• Positive Sentiment: Genie’s GREW segment reached positive EBITDA, supported by strong performance at Diversegy and Genie Solar. Diversegy is expanding its book of business at a double-digit annualized rate, while a second New York community solar project began contributing in the third quarter.
• Positive Sentiment: Roded expanded Israeli pallet production, received government backing for a larger plant, earned certification to monetize plastic credits, and advanced plans for a southeastern U.S. manufacturing site. Management also expects to diversify into additional recycled-plastic products.

Presentation

[Operator]

Morning. Welcome to the Genie Energy Limited.'s Second Quarter 2026 Earnings Call. In today's presentation, Genie Energy Management will discuss Genie's financial and operational results for the three months ended June 30, 2026. During prepared remarks by Genie Energy's Chief Executive Officer, Michael Stein, and Chief Financial Officer, Avi Goldin, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After Avi Goldin's remarks, Michael and Avi will take questions from investors. Any forward-looking statements made during this conference call, either in the prepared remarks or in Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates.

[Operator]

These risks and uncertainties include, but are not limited to, the specific risks and uncertainties discussed in the reports that Genie Energy files periodically with the SEC. Genie Energy assumes no obligation either to update any forward-looking statements that they may have made or may make, or to update the factors that may cause actual results to differ materially from those that they forecast. In their presentation or in the Q&A session, Genie Energy's management may refer to Adjusted EBITDA and other non-GAAP measures. The schedule provided in the Genie Energy earnings release reconciles Adjusted EBITDA to the nearest corresponding GAAP measures. Please note that the Genie Energy earnings release is available on the investor relations page of the Genie website. The earnings release has also been filed on Form 8-K with the SEC. I will now turn the conference over to Michael Stein.

[Michael Stein, CEO at Genie Energy]

Thank you, operator. In the second quarter, Genie delivered strong bottom-line results in both operating segments while continuing to invest in growth opportunities across our businesses and return value to shareholders. At Genie Retail Energy, relatively normalized wholesale energy market conditions enabled us to achieve gross margin on a level comparable to our long-term historical average, and that drove a significant year-over-year improvement in our bottom-line results. GRE's top line declined 5%, primarily reflecting the expiration of aggregation deals over the past year. The deals typically generate low margin revenue, so the impact of their expiration on our bottom line was minimal. At quarter end, we served 345,000 RCEs and 363,000 m compared to 413,000 RCEs and 419,000 m a year earlier.

[Michael Stein, CEO at Genie Energy]

During the second quarter, we added 65,000 gross new customers compared to 70,000 a year earlier. Total customer acquisition expense increased materially as we acquired a higher percentage of customers through higher cost of acquisition channels and fewer through lower cost channels. We approach these low-cost channels opportunistically as they generate lower margin customers compared to higher cost channels. We allowed low-cost channel acquisition volumes to fluctuate depending on how competitive market rates compare to the incumbent utilities offerings. In the second quarter, with these low-cost channels underperforming, we increased our investment in acquisitions through higher cost channels, increasing our base of higher lifetime value customers and building a tailwind that we expect to positively impact the coming quarters.

[Michael Stein, CEO at Genie Energy]

Acquisitions through high-cost channels also enabled us to prioritize further diversification of our customer base through strong growth in some of our newer markets, including Texas power market and California's gas market. At GREW, the top line was flat year-over-year. However, contributions from our Diversegy energy brokerage and Genie Solar businesses enabled the segment to achieve positive EBITDA. Diversegy had a particularly strong quarter as it continues to execute its growth strategy. Both Diversegy and Genie Solar are on track to further expand their bottom lines in the coming quarters. Diversegy continues to build its book of business at a double-digit annualized growth rate. Even better, because new business frequently entails upfront customer payments, growth from a cash perspective has been stronger than what is reflected in EBITDA.

[Michael Stein, CEO at Genie Energy]

This new business will drive revenue growth for several years to come as we earn revenue over the lifetime of the contracts. One of the key drivers for Diversegy's extension has been our ability to leverage AI to optimize our customer acquisition efforts across channels, analyzing the energy requirements of our customers and their industries so that we can tailor our offerings to meet their needs with greater precision. At Genie Solar, we turned on our second community solar project in New York State late in the second quarter, and that will positively impact results starting in the third quarter. GREW's second quarter's results also reflected our continued investment in several early-stage growth initiatives, most notably at Roded. As we've discussed previously, Roded utilizes a patented recycling technology to manufacture useful plastic products from agricultural and other plastic waste. At Roded, we made terrific progress during the quarter.

[Michael Stein, CEO at Genie Energy]

The company continued to expand production in Israel to meet strong local demand for its pallet products. In fact, we are only approaching the production capacity of our current facility and received a commitment from the Ministry of Environmental Protection to underwrite a material portion of the cost of constructing a larger manufacturing plant. To diversify Roded's revenue, we are preparing to begin manufacturing a second product utilizing the same recycled plastic feedstock. Also, the company was certified as a producer of plastic credits through Verra's Plastic Waste Reduction Standard Program, a global platform to incentivize businesses to utilize the vast quantities of waste plastic that otherwise would end up in our oceans or our landfills. This certification will enable Roded to enhance profitability through the monetization of credits it receives for the plastic it collects and converts to finished product.

[Michael Stein, CEO at Genie Energy]

Looking a little further ahead, Roded is moving forward on an international expansion. The company has identified several potential manufacturing sites in the southeastern U.S. and is now working to select the final site, hire key managers and design the initial palettes it will offer for the North American market. To wrap up at Genie Energy, for the balance of the year, we're looking to boost cash generation across GRE, Diversegy, and Genie Solar, make good on operational progress in our growth initiatives, and return value to shareholders through opportunistic stock purchases and our quarterly dividends. I will turn the call over to Avi for his discussion of our financial results.

[Avi Goldin, CFO at Genie Energy]

Thank you, Michael, and thanks to everyone on the call for joining us this morning. My remarks today cover our financial results for the period ended June 30, 2026. In my commentary, I'll compare the results for the second quarter 2026 to the second quarter of 2025 to remove from consideration the seasonal factors that impact our results, particularly our retail energy business. The second quarter, which includes spring and the early stages of the summer cooling season, is typically characterized by moderate levels of electricity consumption and low levels of natural gas consumption. The quarter's financial results were highlighted by strong margin and Adjusted EBITDA expansion of GRE and profitability at GREW, both of which helped to drive an increase in our consolidated bottom-line performance. Consolidated revenue in the second quarter decreased 4.6% to $100.4 million.

[Avi Goldin, CFO at Genie Energy]

GRE revenue decreased 4.9% to $94.1 million as our customer base contracted through the expiration of low margin aggregation deals. The resulting decrease in consumption was partially offset by increased revenue per unit sold for both electricity and natural gas. Sales of electricity, which contribute 89% of GRE's revenues, decreased 7% to $83.6 million. Kilowatt hours sold decreased by 17%, while revenue per kilowatt hour sold increased to 12%. Natural gas revenue decreased 16.2% to $10.6 million. Therms sold decreased 23%, while revenue per therms sold increased to 50%. At GREW, second quarter revenue was relatively unchanged at $6.3 million. Consolidated gross profit increased 43.4% to $33.7 million, while gross margin increased to 33.5%.

[Avi Goldin, CFO at Genie Energy]

At GRE, gross profit increased 42.2% to $30.3 million, and gross margin increased to 32.2%. GRE achieved a gross margin within historical range given normalized commodity market conditions. Note that the year-ago second quarter was impacted by unusually low natural gas profitability. At GREW, gross profit increased 55% to $3.3 million, driven by increased contributions from both Diversegy and Genie Solar, the two more mature businesses within the segment, both of which are already generating cash. Consolidated SG&A increased 28% to $27.2 million, largely reflecting a mix shift of Genie Retail's customer acquisition channels towards higher per acquisition cost methods. Despite their higher costs upfront, these channels typically generate customer cohorts with higher customer lifetime values.

[Avi Goldin, CFO at Genie Energy]

The gross profit increase at GRE drove a $4.3 million year-over-year increase in consolidated income from operations to $6.5 million and a $4.5 million increase in Adjusted EBITDA to $7.5 million. At GRE, income from operations increased 108.3% to $8.3 million and Adjusted EBITDA increased 96.7% to $8.7 million. Strong contributions from Diversegy and Genie Solar enabled GREW to achieve profitability. Income from operations increased to $100,000 from a loss from operations of $200,000 a year earlier, and Adjusted EBITDA increased to $300,000 from an Adjusted EBITDA loss of $97,000 in the second quarter of 2025.

[Avi Goldin, CFO at Genie Energy]

Consolidated net income attributable to Genie common stockholders was $11.4 million or $0.42 per diluted share, compared to $2.3 million or $0.09 per share a year earlier. Turning now to the balance sheet. At June 30, 2026, cash equivalents, long and short-term restricted cash and marketable equity securities totaled $204.3 million. Working capital was $199.6 million. Our net debt totaled $6.8 million, the largest component of which is the financing for our portfolio of operational solar arrays. We repurchased approximately 47,000 shares of our Class B common stock in the second quarter for $659,000, and we paid our regular quarterly dividend, returning an additional $2 million directly to our stockholders.

[Avi Goldin, CFO at Genie Energy]

Wrapping up, normalized energy market conditions helped us to restore margins at GRE to their long-term range. While GREW generated positive EBITDA even as we continue to invest in early-stage growth initiatives. The improved performance has helped us significantly enhance our profitability, while our balance sheet remains strong with robust levels of cash and minimal debt. Operator, back to you for Q&A.

[Operator]

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the star keys. To withdraw your question, please press star, then two. We will now pause momentarily to assemble our roster. The first question today is coming from Matvey Tayts from Freedom Broker. Your line is live.

[Matvey Tayts, Analyst at Freedom Broker]

Yes. Hi, thank you so much. Congratulations on the strong results. My question is about the other income, which has quite significantly impacted the bottom line. Can you elaborate a little bit the breakdown of this other income and how do you see it going forward towards the end of the year? Thank you.

[Avi Goldin, CFO at Genie Energy]

Sure. This is Avi. Thank you for the question. The other income line reflects the change in value of other investments that we have, primarily when we invest balance sheet cash. Those are where we have a very strong cash position. When we make investments that are to use that cash position to get value, those flow through the other investment line. It's difficult to predict what those are going to be, but we expect that to hopefully continue to be positive for the company.

[Matvey Tayts, Analyst at Freedom Broker]

Thank you. One more question is, we see that there is some sort of sensitivity of your profitability and the gas prices, basically which drives also electricity prices. Now with the lower gas prices in the second quarter, we see a positive impact also on your profitability, the rating results. How do you see it going forward towards the year-end? Do you expect also this trend to continue or is it something to be revised from this point of view? Thank you.

[Michael Stein, CEO at Genie Energy]

Hi. Thanks for the question. It's hard to predict, obviously, what markets are going to do. We feel like we're in a good position right now through the rest of the year to capitalize on where the market is, and again, still achieve the guidance that we set out.

[Matvey Tayts, Analyst at Freedom Broker]

Mm-hmm. Great. Again, these higher general expenses, as you mentioned, it's a more expensive acquisition of new clients. You also see it kind of to be paid back in the future as it's a more profitable sort of clients you're onboarding through this higher general expense. Is it correct? Was I understood? Thank you.

[Michael Stein, CEO at Genie Energy]

Yeah. Our sales channels or our customer acquisition channels, in general, are a combination of our door-to-door telemarketing, digital marketing, direct mail, and other kinds of marketing efforts that we do. Some of those channels typically yield higher-margin customers, some of those channels generally are lower cost and yield lower-margin customers. What we were saying is that this quarter, let's say, versus last quarter, when we acquired a similar number of meters this quarter versus last year, the same quarter, the acquisition expense was significantly higher. That's because most of the customer acquisition that was done this quarter was dominated by acquiring those higher-margin customers. Whereas last year in the same quarter, there was a much higher percentage of that customer acquisition that was coming from the lower cost, the lower margin, acquisition channels.

[Matvey Tayts, Analyst at Freedom Broker]

Oh, yeah. Interesting. Thank you so much. The last one, if you're for about this, your new plastic business. Maybe you can share with us estimates, what's the overall market value in Israel and Europe, where you potentially could expand? Just a little bit more on this particular market for the product you now develop.

[Michael Stein, CEO at Genie Energy]

Thank you. Yeah, for sure. Without getting into specific numbers, what I can tell you is that we are currently, like you said, operating. Like we mentioned on the call, we intend to expand to the U.S. The U.S. being obviously a significantly larger market than Israel. Our plan all along has been to start with selling pallets. Pallets is a huge market. Everything that gets shipped essentially goes out on pallets. It is our hope and intention to take market share in that space. Because our cost of raw materials is significantly lower than that of our competitors who are also doing plastic pallets, even for the same level of performance, we think we can take a good deal of market share. Obviously, it takes time in manufacturing, but that's our plan.

[Michael Stein, CEO at Genie Energy]

What's great about the technology and the patents that we have is that the patent is not on creating pallets. The patent is on creating any finished product. As we mentioned on this call, we're already starting to make our second product custom for a customer. We've already started designing it and working out the details with that customer. They're interested, and we know another whole bunch of customers who are also interested in that product. Our intention is to continue to diversify our portfolio of products using the same base material and the same technology so that the market potential is as large as possible. Obviously, as this thing gets more mature, we intend to share more numbers heavily.

[Matvey Tayts, Analyst at Freedom Broker]

Thank you so much. Have a nice day. Thank you.

[Michael Stein, CEO at Genie Energy]

Thank you.

[Operator]

As there are no more questions, this concludes our question-and-answer session and conference call. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Michael Stein, CEO
• Avi Goldin, CFO

Analysts

• Matvey Tayts, Analyst at Freedom Broker