Genie Energy (NYSE:GNE) reported higher third-quarter profit despite declining revenue, as improved retail energy margins and stronger contributions from its brokerage and solar businesses offset a smaller customer base.
Net income attributable to common stockholders rose to $10.2 million, or $0.39 per diluted share, for the three months ended Sept. 30, 2026, from $6.4 million, or $0.25 per share, a year earlier. Revenue fell 8% to $127.2 million.
Income from operations increased 72% to $12.7 million, while adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, rose 67% to $13.7 million. CEO Michael Stein said the results put the company on track to achieve its full-year adjusted EBITDA guidance range, though he did not provide the range on the call.
Retail Margins Rebound as Customer Base Shrinks
Genie Retail Energy, or GRE, benefited from more typical energy market conditions compared with the year-ago quarter, when commodity price volatility compressed electricity margins and led to negative natural gas margins, Chief Financial Officer Avi Goldin said.
GRE gross margin expanded to 31% from 20.8%, and gross profit rose 36% to $37.5 million. Its income from operations increased 46.5% to $14.9 million, while adjusted EBITDA climbed 45.2% to $15.2 million.
The improvement came despite an 8.7% decline in GRE revenue to $120.8 million. Goldin attributed the decrease in part to the expiration of low-margin aggregation deals in the fourth quarter of 2025 and customer churn. Higher revenue per unit of electricity and natural gas sold partially offset lower consumption.
Electricity revenue fell 10.5% to $113.2 million as kilowatt hours sold declined 18%, although revenue per kilowatt hour rose 9%. Natural gas revenue increased 31% to $7.6 million, with a 35% rise in revenue per therm offsetting a 3% decline in therms sold.
At quarter end, the company served 337,000 residential customer equivalents and 351,000 meters, down 15% and 13%, respectively, from a year earlier. Stein said the company added 61,000 meters during the quarter, up from 47,000 a year earlier, but slightly below the level needed to maintain the customer base at the current churn rate of 6.3%.
Consolidated selling, general and administrative expenses rose 26% to $28.5 million, largely reflecting increased retail customer acquisition spending. Goldin said acquisition costs also rose because the company shifted toward channels with higher upfront costs but typically higher customer lifetime values.
Brokerage and Solar Lift GREW Results
Revenue at GREW, which includes Genie’s energy brokerage, solar and early-stage businesses, rose 8% to $6.4 million. The segment posted income from operations of $777,000, compared with a $345,000 operating loss a year earlier. Adjusted EBITDA improved to $1.1 million from a $201,000 loss.
Goldin said the company was newly separating GREW results for its established profitable businesses, predominantly Diversegy and Genie Solar, from those of its early-stage initiatives. The profitable entities generated $2 million in adjusted EBITDA, more than offsetting an $861,000 adjusted EBITDA loss at the early-stage entities.
Stein said Diversegy continued to collect residuals on its existing customer book while adding customers. He said the Lansing and Perry community solar arrays in New York were fully operational and contributing cash. Genie expects its final community solar project in Delhi, New York, to come online in late 2027.
Roded Expansion and Capital Returns
Genie is investing in Roded, its recycled-plastic manufacturing initiative. Stein said a second production line began operating in Israel during the third quarter and that the business had orders for all current output. The company is ordering machinery intended to double capacity by the third quarter of 2027.
Stein also said Genie expected to submit plans for a new Israeli facility that would more than triple current capacity. National and local governments have provided a financial commitment to help facilitate construction, he said. In the U.S., Genie has begun ordering machinery for two production lines under the Evercore Composites brand and is close to selecting a site in the Southeast.
At Sept. 30, cash equivalents, restricted cash and marketable equity securities totaled $213.8 million, while current and noncurrent debt totaled $6.7 million. During the quarter, Genie repurchased approximately 128,000 Class B shares for $2 million and paid roughly $2 million in dividends.
About Genie Energy (NYSE:GNE)
Genie Energy Ltd. is an energy services company that provides electricity and natural gas to residential and small-business customers through retail energy businesses. Its offerings may include energy supply plans, renewable energy options and related services, with operations conducted through a portfolio of brands and subsidiaries.
The company’s retail energy activities have historically included serving customers in U.S. deregulated energy markets, where consumers can select an independent supplier rather than purchasing supply directly from a regulated utility.
