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1. Company Snapshot

1.a. Company Description

Genie Energy Ltd., through its subsidiaries, supplies electricity and natural gas to residential and small business customers in the United States, Finland, Sweden, Japan, and internationally.It operates in three segments: Genie Retail Energy (GRE); GRE International; and Genie Renewables.The company also engages in the provision of energy advisory and brokerage services; solar panel manufacturing and distribution; solar installation design; and project management activities.


Genie Energy Ltd.was incorporated in 2011 and is headquartered in Newark, New Jersey.

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1.b. Last Insights on GNE

Genie Energy's recent performance was negatively impacted by rising energy costs, which squeezed margins and cut profits. Despite a 24% year-over-year revenue increase in Q3, the company's earnings fell due to cost pressures. The company's cautious guidance for the rest of 2025 also contributed to the negative performance. Additionally, the company's Q3 earnings call highlighted the challenges posed by increasing energy costs. Genie Energy's financial results were also impacted by its retail energy and renewable energy solutions business.

1.c. Company Highlights

2. Genie Energy's Mixed Q2 2025 Results: Margin Compression Weighs on Bottom Line

Genie Energy Limited reported a 16% increase in consolidated revenue to $105.3 million for the second quarter of 2025, driven by growth at both Genie Retail Energy (GRE) and Genie Renewables. However, the company's bottom line was impacted by significant margin compression at GRE, resulting in a 30% decrease in consolidated gross profit to $23.5 million and a gross margin decrease of 1,400 basis points to 22%. The company's earnings per share (EPS) came in at -$0.09, missing estimates of $0.18. Consolidated income from operations for the quarter was $2 million, with adjusted EBITDA of $3 million, down from $9.5 million and $12.5 million, respectively, in the second quarter of 2024.

Publication Date: Aug -26

📋 Highlights
  • GRE Customer Growth:: Increased to 419,000 meters served (15% YoY) but faced significant margin compression.
  • GREW Performance:: Revenue rose 44% and approached breakeven, showing strong operational improvement.
  • Diversegy Growth:: Revenue surged 50% YoY, profitability jumped 3,000% YoY due to brokerage and advisory services.
  • Genie Solar Surge:: Revenue hit $1 billion, 6x the year-ago level, driven by operating arrays.
  • Consolidated EBITDA Decline:: Fell to $3 million (from $12.5 million in Q2 2024) amid 30% gross profit drop to $23.5 million.

Segment Performance

GRE expanded its customer base to approximately 419,000 meters served, representing a year-over-year increase of 15%. Revenue at GRE increased 14% to $99 million, driven by the growth in customer base. However, margin compression at GRE weighed on the company's bottom line results. Genie Renewables' subsidiary, Genie Renewables West (GREW), delivered strong results, with revenue increasing 44% and approaching breakeven. Diversegy, the company's brokerage and energy advisory business, reported a revenue increase of over 50% and profitability increase of almost 3,000%. Genie Solar's revenue jumped over 6 times the year-ago level to $1 billion, reflecting a solid quarter from its portfolio of operating arrays.

Operational Highlights and Outlook

According to Michael Stein, CEO, "We think things are starting to calm down on the wholesale front, and that's what gives us confidence that we should be able to pull off our guidance." The company hedges its business at a very high percentage, which helps mitigate risks. Weather had a significant impact on margins, with Stein noting that a 15% to 20% change in weather can make a big difference in margins. The company's captive insurance subsidiary is performing well, with a conservative investment strategy and starting to sell health insurance leveraging existing marketing channels.

Valuation and Growth Prospects

Genie Energy's current valuation metrics indicate a Price-to-Sales Ratio of 0.89 and an EV/EBITDA ratio of 18.35. Analysts estimate revenue growth of 8.6% for the next year. With a Return on Equity (ROE) of 4.17% and a Return on Invested Capital (ROIC) of 3.02%, the company's profitability metrics are relatively modest. The stock's current valuation may be factoring in some growth prospects, but the margin compression and misses in EPS may put a dent in investor confidence.

3. NewsRoom

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Genie Energy Q3 Earnings Fall Y/Y on Cost Pressures, Revenues Rise

Nov -05

Source: zacks.com

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Genie Energy Ltd. (GNE) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -03

Source: seekingalpha.com

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Genie Energy Announces Third Quarter 2025 Results

Nov -03

Source: globenewswire.com

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Genie Energy to Report Third Quarter 2025 Results

Oct -17

Source: globenewswire.com

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Genie Energy Q2 Earnings Decline Y/Y Amid Squeezed Margins

Aug -12

Source: zacks.com

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Genie Energy Ltd. (GNE) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

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Genie Energy (GNE) Q2 Revenue Up 16%

Aug -07

Source: fool.com

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Genie Energy Announces Second Quarter 2025 Results

Aug -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.53%)

6. Segments

Genie Retail Energy

Expected Growth: 7.4%

Growing demand for renewable energy, increasing competition in the US retail energy market, and expansion of Genie Retail Energy's customer base are expected to drive growth.

Genie Renewables

Expected Growth: 10.3%

Growing demand for renewable energy, decreasing costs of solar and wind power, and increasing government incentives drive growth in the renewable energy market, positioning Genie Renewables for success.

7. Detailed Products

Electricity

Genie Energy Ltd. offers electricity services to residential, commercial, and industrial customers, providing competitive pricing and flexible plans.

Natural Gas

Genie Energy Ltd. supplies natural gas to customers, offering a range of plans and pricing options to suit different needs and budgets.

Renewable Energy

Genie Energy Ltd. provides renewable energy solutions, including solar and wind power, to help customers reduce their carbon footprint and energy costs.

Energy Efficiency Solutions

Genie Energy Ltd. offers energy-efficient solutions, including LED lighting and smart home devices, to help customers reduce energy consumption and costs.

Energy Consulting Services

Genie Energy Ltd. provides energy consulting services, helping businesses optimize their energy usage and reduce costs.

8. Genie Energy Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Genie Energy Ltd. operates in the energy industry, which is characterized by a moderate threat of substitutes. While there are alternative energy sources available, they are not yet widely adopted, and Genie Energy's products and services remain competitive.

Bargaining Power Of Customers

Genie Energy Ltd. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Genie Energy Ltd. relies on a network of suppliers to provide raw materials and services. While the company has some bargaining power due to its size and scale, suppliers also have some leverage due to the specialized nature of their products and services.

Threat Of New Entrants

The energy industry is characterized by high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to enter the market and compete with established players like Genie Energy Ltd.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share. Genie Energy Ltd. faces intense competition from rivals, which can lead to pricing pressure and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.13%
Debt Cost 4.84%
Equity Weight 98.87%
Equity Cost 4.84%
WACC 4.84%
Leverage 1.15%

11. Quality Control: Genie Energy Ltd. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Entergy

A-Score: 6.5/10

Value: 4.8

Growth: 3.6

Quality: 4.7

Yield: 7.0

Momentum: 9.0

Volatility: 10.0

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Edison

A-Score: 6.4/10

Value: 8.3

Growth: 5.3

Quality: 7.5

Yield: 9.0

Momentum: 1.0

Volatility: 7.3

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Duke Energy

A-Score: 6.4/10

Value: 5.5

Growth: 4.7

Quality: 4.6

Yield: 7.0

Momentum: 6.5

Volatility: 10.0

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Suburban Propane

A-Score: 6.2/10

Value: 6.4

Growth: 2.4

Quality: 5.1

Yield: 10.0

Momentum: 4.5

Volatility: 8.7

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Genie Energy

A-Score: 4.7/10

Value: 4.6

Growth: 6.1

Quality: 5.4

Yield: 5.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Via Renewables

A-Score: 4.7/10

Value: 8.0

Growth: 4.7

Quality: 5.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.16$

Current Price

14.16$

Potential

-0.00%

Expected Cash-Flows