Genie Energy Q3 revenue falls as customer base shrinks

Overview

• U.S. retail energy provider's Q3 revenue fell 8% yr/yr as customer base contracted

• Q3 EPS rose to $0.39 from $0.25 on improved gross margin

• Company repurchased 128,000 shares for $2 mln in Q3

Outlook

• Genie Energy expects 2026 Adjusted EBITDA of $32.5 mln to $40.0 mln

• Company expects gross margin to remain near long-term average under normalized market conditions

• Company plans to bring new community solar project in Delhi, NY online in late 2027

Result Drivers

• GROSS MARGIN RECOVERY - Co said improved gross margin was due to normalized energy market conditions, offsetting lower customer base and higher acquisition costs

• CUSTOMER BASE CONTRACTION - Co said revenue decline was driven by a smaller customer base, partially offset by higher revenue per unit

• RENEWABLES PROFITABILITY - Co said improved results at Genie Renewables were driven by higher profitability at Diversegy and Genie Solar

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Genie Energy Ltd is $16.00, about 6.4% below its November 4 closing price of $17.09

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)