Genie Energy reported higher profit and margins in the third quarter of 2026 despite lower revenue and a smaller retail customer base. Results improved from a year-earlier quarter marked by unusually volatile energy prices, while the company also reported progress in its renewable-energy and recycled-plastics businesses.
The company said it expects to meet its 2026 adjusted EBITDA target of $32.5 million to $40 million. It also declared a quarterly dividend and repurchased shares during the quarter.
Financial results and capital returns
- Revenue fell to $127.2 million from $138.3 million a year earlier.
- Gross profit rose to $41.2 million from $30.0 million, and gross margin widened to 32.4% from 21.7%.
- Operating income increased to $12.7 million from $7.4 million. Net income attributable to Genie common stockholders rose to $10.2 million from $6.4 million, while earnings per share climbed to $0.39 from $0.25.
- Adjusted EBITDA, a non-GAAP measure, increased to $13.7 million from $8.2 million. Genie said the improvement helped offset the effects of challenging retail energy markets earlier in the year.
- Cash, restricted cash and marketable equity securities totaled $213.8 million at Sept. 30, up from $204.3 million at June 30.
- Genie plans to pay a quarterly dividend of $0.075 per share to Class A and Class B common stockholders on or about Nov. 23. The record date is Nov. 13.
- The company repurchased about 128,000 Class B shares for $2.0 million during the quarter.
Retail energy and growth businesses
- Genie said its retail energy business benefited from gross margins returning to their long-term average under more typical market conditions. In the year-earlier quarter, exceptional energy-price volatility had weighed on margins.
- The margin improvement more than offset lower customer numbers and higher customer-acquisition spending. Year over year, the company’s retail customer count, measured in residential customer equivalents, fell 15%, while meters declined 13%. Genie attributed the declines mainly to the expiration of low-margin aggregation deals in late 2025 and elevated customer attrition.
- At quarter-end, Genie served 337,000 residential customer equivalents and 351,000 meters.
- Genie’s renewable-energy and other growth businesses, grouped as GREW, improved their bottom-line results as Diversegy and Genie Solar became more profitable. Those gains were partly offset by investment in Roded and other early-stage initiatives.
- Diversegy continued collecting residuals from its existing book of business while adding new customers. Genie Solar’s community solar arrays in Lansing and Perry, New York, are now fully operational. The company plans to develop another project in Delhi, New York, with a target of bringing it online in late 2027.
- Roded, which uses proprietary recycling technology to manufacture pallets and other products, has started production on a second line at its facility in Israel to meet demand. Genie is also developing a larger facility in Israel and is close to choosing a U.S. site for Roded’s first international expansion.
What changes for investors
The quarter’s results show higher earnings and cash resources alongside a smaller retail customer base. Genie attributed the profit improvement primarily to stronger retail energy margins and better performance at Diversegy and Genie Solar. The announced dividend and share repurchases return capital to shareholders, while planned solar and Roded expansion represent ongoing investment in the company’s growth businesses.