Genie Energy Ltd. announced mixed results for the second quarter of 2025, with solid operational progress and double-digit topline growth offset by significant margin compression in its Genie Retail Energy (GRE) segment. Total revenues increased 16% year-over-year to $105.3 million. The company reaffirmed its 2025 consolidated Adjusted EBITDA guidance of $40 million to $50 million, contingent on a normalized retail margin environment and continued growth in Genie Renewables (GREW).
The GRE segment's customer base expanded to approximately 419,000 meters served, a 15% year-over-year increase, and 414,000 Residential Customer Equivalents (RCEs), up 20%. However, GRE's income from operations decreased 72.7% to $4.0 million, and Adjusted EBITDA fell 70.5% to $4.4 million. This decline was primarily due to increased wholesale power prices and unseasonably hot weather, which amplified consumption levels and squeezed margins, leading to a gross margin decrease to 21.5% from 37.1% in Q2 2024.
The GREW segment delivered strong performance, with revenue increasing 57.3% to $6.3 million and the segment approaching break-even. Diversegy's revenue surged 59.5% year-over-year. The Lansing community solar project is on track for commissioning in the third quarter of 2025. However, the recently enacted "One Big Beautiful Bill Act" presents a significant challenge, accelerating the expiration of federal investment tax credits for solar projects going online after December 31, 2027.
In response to the "One Big Beautiful Bill Act," Genie Solar is reevaluating the financial viability of its early-stage projects that may no longer qualify for these tax credits and has paused new project developments. Some early-stage projects have been removed from its pipeline. This legislative change necessitates a reassessment of future solar growth strategies.
As of June 30, 2025, Genie Energy held $201.6 million in cash, cash equivalents, restricted cash, and marketable securities. Cash provided by operating activities decreased to $16.5 million from $33.3 million in Q2 2024. The company repurchased approximately 159,000 shares for $2.7 million during the quarter and maintained its quarterly dividend of $0.075 per share.
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