Genie Energy Q2 gross margin 33.5% (corrects amount)

Genie Energy Ltd. (NYSE: GNE) reported a gross margin of 33.5% for the second quarter of 2025, a correction from previously stated figures. This margin reflects a notable decline from the prior year’s 36.8%, underscoring the challenges the company faced in maintaining profitability amid rising wholesale energy costs. Despite the margin contraction, the company achieved a 16% year-over-year revenue increase, reaching $105.3 million, driven by growth in both its retail energy and renewables segments.

The decline in gross margin was primarily attributed to elevated wholesale power and gas costs, particularly in the PJM and MISO regions, which were impacted by an unseasonably hot early summer. These cost pressures significantly affected Genie Retail Energy’s profitability, with segment income falling 72.7% to $4 million and adjusted EBITDA declining 70.5% to $4.4 million.

In contrast, Genie Renewables delivered strong performance, with revenues rising 57.3% year over year to $6.3 million. The Diversegy brokerage and advisory business contributed the majority of this growth, while Genie Solar showed improvement in both revenue and profitability.

Management has maintained its 2025 adjusted EBITDA guidance of $40–$50 million, contingent on a return to normalized retail margins and continued growth in the renewables segment.