Genie Energy NYSE: GNE reported higher second-quarter profitability as normalized wholesale energy market conditions restored margins at its retail energy business, while its growth segment reached positive EBITDA.
For the three months ended June 30, 2026, consolidated revenue declined 4.6% year over year to $100.4 million. However, consolidated gross profit rose 43.4% to $33.7 million, producing a gross margin of 33.5%. Income from operations increased by $4.3 million to $6.5 million, while adjusted EBITDA rose by $4.5 million to $7.5 million.
Net income attributable to Genie common stockholders reached $11.4 million, or $0.42 per diluted share, compared with $2.3 million, or $0.09 per share, in the prior-year quarter.
Retail Energy Margins Return to Historical Range
Genie Retail Energy, or GRE, generated revenue of $94.1 million, down 4.9% from a year earlier. CEO Michael Stein said the decline primarily reflected the expiration of aggregation deals, which generally carry low margins. He said the impact of those expirations on bottom-line results was minimal.
GRE's gross profit increased 42.2% to $30.3 million, while its gross margin rose to 32.2%. CFO Avi Goldin said the business achieved a margin within its historical range as commodity market conditions normalized. The year-earlier period had been affected by unusually low natural gas profitability, he said.
Electricity sales, which accounted for 89% of GRE revenue, fell 7% to $83.6 million. Kilowatt-hours sold declined 17%, while revenue per kilowatt-hour increased 12%. Natural gas revenue declined 16.2% to $10.6 million, with therms sold down 23% and revenue per therm increasing 50%.
At the end of the quarter, GRE served 345,000 retail customer equivalents and 363,000 meters, compared with 413,000 RCEs and 419,000 meters a year earlier. The company added 65,000 gross new customers during the quarter, compared with 70,000 in the same period of 2025.
Customer acquisition expense increased materially as GRE shifted more of its marketing toward higher-cost channels that management said typically generate customers with greater lifetime value. Stein said lower-cost channels can produce lower-margin customers and are used opportunistically depending on the competitiveness of market rates relative to incumbent utility offerings.
He added that the company increased acquisitions through higher-cost channels when lower-cost channels underperformed, with growth in newer markets including Texas electricity and California natural gas.
Growth Segment Posts Positive EBITDA
Revenue in Genie’s GREW segment was essentially unchanged from a year earlier at $6.3 million. Still, gross profit increased 55% to $3.3 million, driven by increased contributions from energy brokerage Diversegy and Genie Solar.
GREW reported income from operations of $100,000, compared with a $200,000 operating loss in the prior-year quarter. Adjusted EBITDA was $300,000, compared with an adjusted EBITDA loss of $97,000 a year earlier.
Stein said Diversegy continued to build its book of business at a double-digit annualized growth rate. He noted that new customer business frequently involves upfront payments, meaning cash growth has been stronger than what is reflected in EBITDA. Revenue from those contracts is earned over their terms, he said.
Diversegy has also used artificial intelligence to optimize customer acquisition across channels and tailor offerings based on customers’ energy requirements and industries, Stein said.
Genie Solar began operating its second New York community solar project late in the second quarter. Stein said the project is expected to begin contributing to results in the third quarter.
Roded Advances Recycling Expansion Plans
GREW’s results also included continuing investments in early-stage initiatives, particularly Roded, which uses patented recycling technology to turn agricultural and other plastic waste into plastic products.
According to Stein, Roded expanded production in Israel to meet demand for its pallet products and is approaching the capacity of its current facility. The company received a commitment from Israel’s Ministry of Environmental Protection to underwrite a material portion of the cost of a larger manufacturing plant, he said.
Roded is also preparing to manufacture a second product using the same recycled plastic feedstock. In addition, it was certified as a producer of plastic credits under Verra’s Plastic Waste Reduction Standard Program, which management said could allow it to monetize credits associated with collected and converted waste plastic.
The company has identified potential manufacturing sites in the southeastern United States and is working to select a location, hire managers and design its initial North American pallet offerings. Stein said the company ultimately intends to diversify its product portfolio beyond pallets using the same base materials and technology.
Cash Position and Shareholder Returns
As of June 30, Genie held $204.3 million in cash equivalents, restricted cash and marketable equity securities, with working capital of $199.6 million. Net debt totaled $6.8 million, primarily related to financing for its operating solar arrays.
During the quarter, the company repurchased approximately 47,000 Class B common shares for $659,000 and paid $2 million through its regular quarterly dividend.
Goldin said the company’s improved profitability and balance sheet position leave it with robust cash and minimal debt. Stein said management’s priorities for the balance of the year include increasing cash generation at GRE, Diversegy and Genie Solar, advancing growth initiatives, and returning capital through opportunistic share purchases and quarterly dividends.
About Genie Energy (NYSE:GNE)
Genie Energy Ltd. 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.
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