Genie Energy (GNE -18.86%), a diversified provider of retail energy and renewable energy solutions, released results for the second quarter of fiscal 2025 on August 7, 2025. The main headline from the report was strong revenue expansion, with a 16.0% year-over-year increase in GAAP revenue. This came alongside a contraction in profitability as higher commodity prices and unseasonably hot weather squeezed margins in its core retail division. The company’s Non-GAAP earnings per share were $0.11, while GAAP revenue reached $105.3 million, with no published analyst estimates available for comparison. Overall, there was impressive topline growth, but significant declines across profit metrics and cash flow.
| Metric | Q2 2025 | Analyst Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP / GAAP) | $0.11 | n/a | $0.37 | (70.3 %) |
| Revenue | $105.3 million | n/a | $90.7 million | 16.0 % |
| Adjusted EBITDA | $3.0 million | n/a | $12.0 million | (74.9 %) |
| Gross Margin | 22.3 % | n/a | 36.8 % | (1,450 bps) |
| Net Income Attributable to Genie Common Stockholders | $2.8 million | n/a | $9.6 million | (70.8 %) |
Company Profile and Recent Focus Areas
Genie Energy operates in two main areas: its retail energy arm, Genie Retail Energy (GRE), which supplies electricity and natural gas to homes and small businesses, and Genie Renewables (GREW), which develops solar energy projects and provides energy advisory services. The retail energy business is the largest segment, traditionally representing the majority of total revenue.
Its growth strategy involves acquiring new customers in deregulated energy markets and expanding its solar project pipeline. Key factors for success include its ability to retain customers amid high churn, manage commodity price risks, and adapt to changing regulatory environments -- especially those affecting renewables. In recent years, Genie has also worked to build its presence in renewables through both new project development and acquisitions.
Quarter in Review: Growth Meets Margin Pressure
The retail energy segment registered healthy expansion, with the customer base rising to 419,000 meters—a 14.8% increase from the prior-year period. Residential Customer Equivalents (RCEs), a key measure of customer scale, jumped 20.5%. This customer growth supported a 14.2% rise in GRE segment revenue, but masked substantial pressure on profitability due to external factors.
Profit margins in the GRE segment fell dramatically. Gross margin (GAAP) for Genie Retail Energy decreased to 21.5%, a drop of 1,567 basis points compared to Q2 2024. Genie attributed this mainly to higher wholesale energy prices and increased demand during a stretch of unseasonably hot weather, which raised costs beyond what was passed on to customers. GRE’s income from operations (GAAP) declined 72.7% year over year to $4.0 million, and Adjusted EBITDA dropped by 70.5%, highlighting the severity of margin compression. Customer churn edged up to 4.8%, from 4.6% in Q2 2024.
The Genie Renewables (GREW) segment posted strong top-line results. Revenue in this division (GAAP) surged 57.3% year over year to $6.3 million, driven by solar project development and increased energy brokerage income through its Diversegy business. GREW’s gross margin improved by 7.7 percentage points to 34.5% from 26.8% in Q2 2024, and the segment neared operational break-even, reducing its loss from operations to $0.2 million from $1.4 million in Q2 2024. The segment closed the quarter with 24 solar projects in its pipeline, representing 90 megawatts of capacity, with several projects approaching the construction or commissioning phases.
This growth in renewables faces emerging risks from external policy changes. Following the passage of new federal legislation, Genie had to pause work on early-stage solar projects that may not qualify for investment tax credits, highlighting the ongoing challenge of navigating complex state and federal incentive programs.
On the corporate level, net income attributable to Genie shareholders (GAAP) fell 70.6% year over year to $2.8 million, and operating cash flow was $0.7 million compared to $17.6 million in Q2 2024. Management maintained the quarterly dividend at $0.075 per share and repurchased roughly 159,000 shares for $2.7 million. Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities totaled $201.6 million at June 30, 2025, essentially unchanged over the past twelve months.
Looking Ahead: Guidance and Watchlist Items
Company management reiterated a target of $40–50 million in adjusted EBITDA for FY2025 but cautioned that achieving this depends on a return to more “normalized” retail margin conditions. The second quarter’s much lower result means it must deliver significantly stronger performance in the rest of the year to meet this guidance. No other specific financial forecasts were offered.
Key topics for investors to monitor in the coming quarters include Genie’s ability to restore retail margins through better hedging or cost management, the pace of new solar project completion and regulatory impact on its renewables pipeline, and trends in customer retention versus profitability in the GRE business. The company’s exposure to commodity market volatility and weather-driven demand swings will remain central to results. The quarterly dividend was unchanged at $0.075 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
