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Genie Reports Continued Margin Compression; Decline In Customer Count Versus June 30, 2025
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In reporting third quarter 2025 earnings, Genie Energy, Ltd. said that its Genie Retail Energy (GRE) segment's Adjusted EBITDA decreased from the year-ago level, as increasing commodity costs continued to pressure margins
"[T]he challenging market conditions that impacted GRE's second quarter results persisted and again weighed on our bottom-line," said Michael Stein, Chief Executive Officer of Genie Energy
At GRE, income from operations decreased 32.4% to $10.2 million for the quarter ending September 30, 2025, from $15.0 million a year ago, and Adjusted EBITDA decreased 32.2% to $10.5 million for the quarter ending September 30, 2025, from $15.5 million a year ago.
"The decreases primarily reflect increased commodity costs absorbed by GRE compared to 3Q24 driven by increased wholesale commodity prices, and amplified by unseasonably hot weather in some service markets during the quarter, and by the impacts of a twelve-month, lower-margin municipal aggregation deal that will expire in 4Q25," Genie said
Genie Retail Energy gross margin was 20.8% for 3Q25 versus 33.8% for 3Q24
Genie Retail Energy gross profit was $27.6 million for 3Q25, versus $35.8 million a year ago
"Looking ahead, we expect that GRE’s margin environment will gradually become more favorable in the fourth quarter and into 2026. For the full year 2025, we expect to achieve our annual guidance range of $40 million to $50 million in Adjusted EBITDA, albeit at the low end of the range," Stein said
GRE was serving 402,000 meters as of 3Q25, versus 419,000 as of 2Q25, and 399,000 a year ago
GRE was serving 396,000 RCEs as of 3Q25, versus 414,000 as of 2Q25 and 380,000 a year ago.
GRE gross meter additions during 3Q25 were 47,000, versus 70,000 in 2Q25 and 104,000 a year ago
GRE churn was 5.1 % for 3Q25, versus 4.8% for 2Q25 and 5.6% a year ago. Churn data excludes the impacts of aggregation deal expirations
GRE continued to prioritize acquisition of high consumption electric meters
In the Genie Renewables (GREW) segment, which includes Genie's Diversegy broker business, third quarter 2025 revenue decreased 2.7% to $6.0 million, from $6.1 million in 3Q24, "as continued strong growth at Diversegy was offset by last year's move away from commercial project development at Genie Solar," Genie said
Diversegy increased revenue by 35% year-over-year, Genie said
"Diversegy, our energy advisory and brokerage business, continued its impressive revenue and bottom-line expansion for the third straight quarter, and we expect that trend will continue," Stein said
GREW's loss from operations increased to $0.3 million for the third quarter of 2025, from $0.2 million in 3Q24, reflecting increased investment in new business initiatives.
For Genie Energy, Ltd. on a consolidated basis, Adjusted EBITDA for the third quarter of 2025 decreased to $8.2 million from $13.6 million a year ago
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November 3, 2025
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Reporting by Paul Ring • ring@energychoicematters.com
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