Genie Energy Reports 16% Revenue Growth but Declines in Profitability for Q2 2025

Genie Energy Ltd. reported its financial results for the second quarter of 2025, revealing a total revenue of $105.3 million, a 16.0% increase from $90.7 million in the same period last year. The company's electricity segment saw a notable rise, generating $89.9 million, up from $78.3 million, while natural gas revenues also increased to $9.1 million from $8.4 million. However, the overall gross profit decreased to $23.5 million from $33.3 million, primarily due to higher costs of revenues, which rose to $81.8 million from $57.4 million. The net income attributable to Genie Energy Ltd. common stockholders was $2.8 million, a significant decline from $9.6 million in the prior year.

In comparison to the previous fiscal period, Genie Energy's financial performance showed a marked decline in profitability, with net income from continuing operations dropping by 70.3% year-over-year for the quarter. The decrease in profitability was attributed to increased costs associated with electricity and natural gas, which outpaced revenue growth. The company reported a gross margin percentage of 21.5%, down from 37.2% in the same quarter of 2024, reflecting the impact of rising operational costs.

Strategically, Genie Energy has been focusing on expanding its operations and enhancing its market presence. The company has made significant investments in its Genie Renewables segment, particularly in solar energy projects. However, the recent enactment of the One Big Beautiful Bill Act, which accelerates the expiration of federal investment tax credits for solar projects, has prompted the company to reevaluate its early-stage solar projects and pause new developments. This legislative change may have implications for Genie Energy's future financial performance and operational strategy.

Operationally, Genie Energy reported a customer base of 419,000 meters served as of June 30, 2025, reflecting a slight increase from 362,000 meters a year earlier. The company experienced a 17.5% increase in electricity consumption among its customers, driven by strong customer acquisitions. However, the average monthly churn rate increased to 4.8% from 4.6% in the previous year, indicating challenges in customer retention. The company also reported a total cash balance of $201.0 million, which it expects to be sufficient to meet its anticipated cash requirements for the next year.

Looking ahead, Genie Energy's management remains cautious about the impact of market conditions and regulatory changes on its operations. The company is actively assessing the implications of the new solar tax credit legislation and is committed to exploring strategic opportunities for growth while managing its operational costs. The outlook for the remainder of 2025 will depend on the company's ability to navigate these challenges and capitalize on its investments in renewable energy.