Executive Summary

Q1 2025 delivered double‑digit top-line growth with normalized retail margins: revenue rose 14.3% to $136.8M, diluted EPS increased to $0.40, and adjusted EBITDA rose 22.7% to $14.4M, driven by GRE customer growth and higher per‑meter consumption .
GRE revenue grew 17.8% to $132.5M and income from operations increased 18.2% to $16.8M; churn held at 5.5% amid stable commodity pricing and retention initiatives .
GREW revenue fell 40% to $4.3M due to the strategic exit from commercial projects, but Diversegy posted a record quarter and GREW’s margin mix improved (gross margin 33.7%) even as operating loss widened to $0.9M .
Management confirmed FY 2025 consolidated adjusted EBITDA guidance of $40–$50M and reiterated active capital returns via repurchases and a $0.075 quarterly dividend—key narrative supports for the stock into the year .

What Went Well and What Went Wrong

What Went Well

Strong consolidated execution: revenue +14.3% to $136.8M, EPS +$0.10 to $0.40, adjusted EBITDA +22.7% to $14.4M YoY; “robust increases in revenue, profitability and cash generation” (CEO) .
Retail energy growth with normalized margins: “GRE is back at a reasonable year‑over‑year comparative baseline” with meters up >48k YoY to ~413k and RCEs to 402k; churn stable at 5.5% .
GREW mix improvement and project milestones: gross margin at 33.7% (up from 22.0% YoY) and Lansing community solar “on track for completion as early as the third quarter… EBITDA accretive immediately” (CEO) .

What Went Wrong

Consolidated gross margin compressed to 27.3% (-90 bps YoY), driven by lower electricity margins and acquisition of lower‑margin municipal aggregation meters; average revenue per kWh declined 5.7% YoY .
GREW top‑line decline (-40% YoY to $4.3M) reflecting the exit from commercial‑scale solar; segment operating loss widened to $0.9M .
Renewables pipeline still early stage: only 10 MW operational out of 123 MW pipeline; continued investment weighed on near‑term GREW profitability .

Financial Results

Headline Metrics vs Prior Quarters

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$111.9	$102.9	$136.8
Diluted EPS ($)	$0.38	$(0.58)	$0.40
Gross Margin (%)	33.9%	32.5%	27.3%
Operating Margin (%)	10.4%	(20.2)%	9.4%
Adjusted EBITDA ($USD Millions)	$13.6	$11.1	$14.4

Narrative drivers:

Q1 vs Q4: seasonal uplift (winter consumption), customer base expansion, and normalized retail margins lifted revenue and profitability; Q4 figures were depressed by a $30.9M non‑cash captive insurance reserve .
Q1 YoY: electricity kWh sold +23.5% with average revenue per kWh -5.7%; natural gas revenue +26.8% on higher therms and rate; consolidated SG&A up 4.3% .

Segment Breakdown

Segment Metric	Q3 2024	Q4 2024	Q1 2025
GRE Revenue ($M)	$105.8	$98.4	$132.5
GRE Gross Margin (%)	33.8%	32.4%	27.1%
GRE Income from Operations ($M)	$15.0	$12.6	$16.8
GREW Revenue ($M)	$6.1	$4.5	$4.3
GREW Gross Margin (%)	34.9%	33.9%	33.7%
GREW Income from Operations ($M)	$(0.2)	$(0.7)	$(0.9)

KPIs (GRE Operational Metrics)

KPI (End of Period)	Q3 2024	Q4 2024	Q1 2025
RCEs (000s)	380	399	402
Meters (000s)	399	422	413
Gross Adds (000s)	104	92	61
Churn (%)	5.6%	5.3%	5.5%

Balance Sheet/Cash Flow Highlights (Q1 2025)

Cash, restricted cash, and marketable equity securities: $210.2M; total assets $384.4M; total liabilities $197.0M; working capital $121.2M .
Cash from operating activities: $13.5M (continuing operations) .

Q1 2025 vs Estimates

Metric	Wall St. Consensus	Actual
Revenue ($USD Millions)	N/A*	$136.8
Diluted EPS ($)	N/A*	$0.40
Adjusted EBITDA ($USD Millions)	N/A*	$14.4

*Values retrieved from S&P Global. S&P Global consensus for Q1 2025 EPS and revenue was unavailable (coverage was limited); tool returned actuals only.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA (Consolidated)	FY 2025	$40–$50M (maintained in Q4 2024)	$40–$50M (confirmed)	Maintained
Dividend per share	Quarterly	$0.075 per share (ongoing)	$0.075 per share payable May 30, 2025; record May 19, 2025	Maintained
Capital returns (repurchases)	Ongoing	Active buybacks noted (Q4/Q1)	Repurchased ~127k shares for $1.9M; intent to continue repurchases	Ongoing program

No quantitative guidance provided for revenue, margins, OpEx, OI&E, or tax rate.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Retail margin normalization	Q3: Robust margins but lower per‑meter consumption; Q4: heavy non‑cash captive insurance reserve depressed reported results	“Normalized results in both periods”; margins in sustainable range; GRE revenue/OpInc +18% YoY	Normalizing and sustainable
Customer base growth	Q3: +36k net meters; Q4: +23.5k net meters; +60k net meters in 2024	~413k meters; 402k RCEs; churn stable at 5.5%; retention program cited	Continuing expansion
Geographic expansion	Q3: began process for CA gas	Marketing in CA; gas in KY expected in Q2	Broadening footprint
Solar pipeline and Lansing project	Q3: pipeline site control gains; 106 MW pipeline	Lansing community solar on track for Q3 completion; 123 MW pipeline (10 MW operational)	Advancing to commissioning
Diversegy performance	Q3: Adjusted EBITDA positive; revenue nearly doubled YoY	Record quarter; major contributor to GREW revenue	Structural improvement
Capital allocation/cash	Q4: cash/reserves built to $201M; buybacks	$210.2M cash/restricted cash/securities; $3.9M returned via dividend/buybacks; intent to continue repurchases	Ongoing returns and balance sheet strength

Management Commentary

CEO: “GRE is back at a reasonable year‑over‑year comparative baseline with margins in what we believe to be a sustainable range… we ended the quarter with approximately 413,000 meters served comprising 402,000 RCEs” .
CEO: “The [Lansing, NY] community solar project… is on track for completion as early as the third quarter… We expect it will become EBITDA accretive immediately once online” .
CFO: “Consolidated revenue… increased 14.3% to $136.8 million… Electricity revenue climbed 16.4%… Kilowatt‑hours sold increased 23.5%… offset by a 5.7% decrease in average revenue per kilowatt‑hour sold” .
CFO: “We are confirming our full‑year adjusted EBITDA guidance of $40 million to $50 million” .
CEO: “With our strong balance sheet… we expect to continue to repurchase our shares in the coming quarters” .

Q&A Highlights

The Q&A portion had no analyst questions; the call ended after prepared remarks .
No incremental guidance beyond confirming the adjusted EBITDA range; no clarifications requested or provided .

Estimates Context

S&P Global consensus for Q1 2025 EPS and revenue was unavailable; coverage around subsequent quarters shows limited estimates (e.g., only one estimate for certain Q3/Q4 2025 metrics).* Actual Q1 results: revenue $136.8M, adjusted EBITDA $14.4M, diluted EPS $0.40 .
Implication: With sparse coverage, near‑term estimate revisions likely hinge on management’s “normalized” margin narrative and consumption dynamics; later‑quarter estimates may recalibrate as Lansing commissions and GREW mix evolves .
*Values retrieved from S&P Global.

Key Takeaways for Investors

Q1 establishes a “normalized” margin baseline in GRE with strong meter/RCE growth, supporting EPS and EBITDA durability into the year .
Electricity volume tailwinds (+23.5% kWh) combined with lower unit pricing (-5.7%) and aggregation mix compress gross margin; watch margin trajectory as mix shifts and municipal aggregation scales .
Renewables pivot is progressing: Lansing commissioning in Q3 should add immediate EBITDA; Diversegy’s recurring, high‑margin contribution reduces GREW volatility .
Balance sheet remains a strategic asset: $210.2M cash/restricted/securities and low net debt (~$9M) enable sustained buybacks and dividend continuity .
Guidance is intact at $40–$50M adjusted EBITDA; absent Q1 consensus, the confirmation serves as a key narrative anchor—monitor Q2 weather/wholesale price impacts and Q3 Lansing ramp for guidance credibility .
Short‑term trading: potential positive bias from normalized margins, EPS/EBITDA growth, and capital returns; sensitivity to wholesale commodity prices and aggregation mix remains the principal risk driver .
Medium‑term thesis: meter/RCE expansion plus renewables commissioning can lift consolidated EBITDA while Diversegy stabilizes GREW; regulatory/program changes (e.g., tax credits) are a watch‑item for pipeline economics .

Appendix: Additional Context

Q4 2024 featured a large non‑cash captive insurance reserve ($30.9M) impacting reported operating income and EPS; full‑year 2024 adjusted EBITDA achieved the high end of guidance ($48.5M) .
Q2 2025 (subsequent period) showed margin compression from wholesale price increases and unseasonably hot weather; management still expects $40–$50M consolidated adjusted EBITDA for FY 2025 .

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