Genie Energy's Q3 Revenue Jumps 23% as Margins Crumble 40%-Can 2026 Turn the Tide?

Genie Energy (NYSE: GRE) reported mixed third-quarter 2025 results on Nov. 3, with revenue rising 23.6% to $138.3 million but adjusted EBITDA declining 40% to $8.2 million as margin pressures persisted. The company reiterated its full-year guidance of $40 million to $50 million in adjusted EBITDA but acknowledged it is likely to fall toward the lower end of the range, in a company press release. Chief Executive Officer Howard Stein emphasized that margin conditions are "gradually improving" and "will continue to strengthen as we get further into 2026," though he provided no explicit comparison to analyst estimates, according to a Seeking Alpha note.

The third-quarter performance was driven by a 25% surge in revenue from Genie's retail electricity and natural gas supplier unit, GRE, which generated $132.4 million. Electricity revenue alone jumped 26% to $126.6 million, with kilowatt hours sold increasing 21% and revenue per unit up 4%. Natural gas revenue rose 15% to $5.8 million, though therm sales remained "substantially unchanged," and gas gross margins turned negative, the Seeking Alpha note said. Consolidated gross profit slid 21% to $30 million, with gross margin contracting to 21.7% from 33.9% a year earlier, the company press release reported.

Chief Financial Officer Avi Goldin attributed the margin compression to "increased wholesale electricity and natural gas costs" and "continued margin compression in our retail business." Despite a 10% decline in consolidated SG&A expenses to $22.6 million, operating income fell 41% to $6.9 million, and net income attributable to Genie common stockholders dropped to $6.7 million, or $0.26 per share, from $10.2 million, or $0.38 per share, in the prior year, the Seeking Alpha note added.

Shareholder returns remained a focus, with Genie repurchasing 124,000 shares for $2 million in the quarter and announcing a $0.075 per share quarterly dividend payable on Nov. 19, the Seeking Alpha note said. The company also highlighted a robust liquidity position, with $206.6 million in cash, cash equivalents, and marketable securities as of Sept. 30, 2025, up from $201.6 million in June. Total debt stood at $8.8 million, and working capital was $113.3 million, according to the company press release.

While the near-term outlook remains cautious, Genie's management pointed to growth in its Renewables segment as a long-term catalyst. Goldin noted "investment in growth initiatives in our Renewables segment" but provided few specifics about current projects or timelines, the Seeking Alpha note said. The company's shares closed at $12.45 on Nov. 3, up 1.2% for the day, as investors weighed the earnings report against broader market volatility tied to Bitcoin's recent surge, the company press release reported.