Executive Summary

Revenue grew 16.0% year over year to $105.3M, but gross margin contracted 1,445 bps to 22.3% as GRE’s wholesale power costs spiked, driving adjusted EBITDA down to $3.0M and diluted EPS to $0.11 .
GRE’s customer base expanded to ~419k meters (+14.8% YoY) and 414k RCEs (+20.5% YoY), while churn improved to 4.8% from 5.5% in Q1; GREW revenue rose 57.3% YoY to $6.3M and the segment neared breakeven .
Management reaffirmed FY2025 consolidated adjusted EBITDA guidance of $40–$50M, contingent on “normalized” retail margin conditions and continued GREW momentum; Lansing community solar expected to commission in Q3 .
Capital returns continued: 159k shares repurchased ($2.7M) and a $0.075 quarterly dividend declared for Q2 (paid Aug 19; record Aug 11) .
Estimates context: S&P Global consensus for Q2 2025 EPS/revenue was unavailable; coverage appears thin—consensus exists for forward quarters but only one estimate per metric, limiting robustness* [GetEstimates Q2 2025].

What Went Well and What Went Wrong

What Went Well

Customer growth and retention: Meters rose to ~419k (+14.8% YoY) and RCEs to 414k (+20.5% YoY); churn improved to 4.8% vs 5.5% in Q1, supporting volume growth .
Renewables execution: GREW revenue increased 57.3% YoY to $6.3M, led by Diversegy (+59.5% YoY) and Genie Solar; segment approached breakeven as losses narrowed to ~$0.2M .
Strategic and shareholder returns: Reaffirmed FY2025 adjusted EBITDA $40–$50M; repurchased ~159k shares and paid $0.075 dividend; commissioning of Lansing community solar in Q3 on track .
Quote: “We continue to expect that Genie will generate $40 to $50 million of consolidated Adjusted EBITDA in 2025.” .

What Went Wrong

Margin compression: Gross margin fell to 22.3% (from 36.8%); GRE operating income dropped 73% to $4.0M and GRE adjusted EBITDA fell to $4.4M (from $14.9M), driven by elevated wholesale prices and early-summer heat .
Cost spikes by region and commodity: Cost of electricity per kWh sold increased ~20% YoY, particularly in PJM and MISO; cost per therm of gas +52% YoY, overwhelming revenue growth .
Profitability deterioration: Consolidated income from operations declined to $2.0M (vs $10.6M), adjusted EBITDA to $3.0M (vs $12.0M), and diluted EPS to $0.11 (vs $0.36) .

Financial Results

Consolidated Performance vs Prior Periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$102.9	$136.8	$105.3
Gross Margin (%)	32.5%	27.3%	22.3%
Income from Operations ($USD Millions)	$(20.8)	$12.8	$2.0
Operating Margin (%)	(20.2)%	9.4%	1.9%
Net Income Attributable to Common ($USD Millions)	$(15.3)	$10.6	$2.8
Diluted EPS ($)	$(0.58)	$0.40	$0.11
Adjusted EBITDA ($USD Millions)	$11.1	$14.4	$3.0

Notes: CFO commentary referenced comparative figures that modestly differ from the 8‑K (e.g., prior adjusted EBITDA); table reflects official 8‑K values .

Segment Breakdown

Segment	Metric	Q2 2024	Q1 2025	Q2 2025
GRE	Revenue ($USD Millions)	$86.7	$132.5	$99.0
GRE	Gross Margin (%)	37.2%	27.1%	21.5%
GRE	Income from Operations ($USD Millions)	$14.6	$16.8	$4.0
GRE	Adjusted EBITDA ($USD Millions)	$14.9	$17.1	$4.4
GREW	Revenue ($USD Millions)	$4.0	$4.3	$6.3
GREW	Gross Margin (%)	26.8%	33.7%	34.5%
GREW	Income from Operations ($USD Millions)	$(1.4)	$(0.9)	$(0.2)

KPIs (GRE Operations)

KPI	Q2 2024	Q1 2025	Q2 2025
RCEs (000s)	343	402	414
RCEs – Electricity (000s)	265	318	332
RCEs – Natural Gas (000s)	79	84	82
Meters (000s)	365	413	419
Meters – Electricity (000s)	278	325	332
Meters – Natural Gas (000s)	85	88	87
Gross Meter Additions (000s)	53	61	70
Churn (%)	4.6%	5.5%	4.8%

Balance sheet snapshot: Cash, restricted cash, and marketable equity securities totaled $201.6M; total assets $383.1M; liabilities $195.9M; working capital $115.0M at June 30, 2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA (Consolidated)	FY2025	$40–$50M	$40–$50M	Maintained
Dividend per Share	Q2 2025	$0.075 (ongoing quarterly)	$0.075; paid Aug 19; record Aug 11	Maintained
Lansing Community Solar Commissioning	Q3 2025	“as early as Q3” (Q1 commentary)	“expect to commission in Q3”	Timing reaffirmed

Management also indicated a pause in early-stage solar development following accelerated phase-out of federal ITCs under the “One Big Beautiful Bill,” reassessing pipeline viability; not quantitative guidance but strategically material .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Retail margins & commodity environment	Q4: Reduced electricity margins; strong acquisition spend . Q1: Stable pricing supported GRE margin/earnings .	Significant margin compression from wholesale spikes; costs up in PJM/MISO; expecting normalization .	Deteriorated in Q2; management expects improvement
Customer base growth	Q4: +23k net meters; +60k FY adds . Q1: ~413k meters; +48k YoY .	~419k meters; gross adds 70k; churn improved to 4.8% .	Positive momentum sustained
GREW strategy & profitability	Q4: Diversegy turned adj. EBITDA positive; refocus to utility-scale . Q1: GREW revenue down YoY due to solar exit; progress on pipeline .	GREW revenue +57%; loss narrowed; Lansing commissioning in Q3; pause on early-stage projects per legislation .	Improving top line/margins; selective pipeline pruning
Legislative/regulatory (solar ITC)	N/A	“One Big Beautiful Bill” accelerates ITC phase-out; re-evaluating early-stage projects; pausing new development .	New headwind; strategy adapted
Hedging & weather risk	Q4/Q1: Not emphasized publicly	High heat early summer increased costs; hedging high percent but residual exposure can be material; confidence in normalization .	Risk highlighted; mitigation described
Capital returns	Q4: Buybacks and dividend continued . Q1: $0.075 dividend; repurchases .	159k shares repurchased; $0.075 dividend declared .	Ongoing

Management Commentary

CEO on quarter mix: “Our second quarter yielded mixed results with solid operational progress and double-digit topline growth, while significant margin compression at GRE weighed on our bottom-line.” .
On GREW and Lansing: “We expect to commission [Lansing] in the third quarter… following the enactment of the ‘One Big Beautiful Bill’, we… paused new development projects.” .
CFO on cost drivers: “Cost of electricity per kilowatt hour sold increased 20% YoY... particularly within the PJM and MISO interconnection zones. Our cost per therm of gas also increased, up 52% YoY.” .
On guidance: “We confirm Genie’s 2025 consolidated adjusted EBITDA guidance at $40 million to $50 million.” .

Q&A Highlights

Margin normalization confidence: Management attributed margin compression mainly to early-season heat and indicated wholesale price trends are easing; reiterated high-hedge strategy but noted residual weather variance can materially impact margins .
Hedging approach: GRE hedges expected load at a “very high percentage,” but significant deviations vs historical weather can affect the unhedged portion (~20%) and margins .
Solar development economics: Early-stage pipeline exposures minimal; most capital outlays occur at construction; paused new adds pending clarity on ITC sunsets under federal legislation .
Captive insurance/brokerage: Conservative treasury management “mostly sits in cash”; began health insurance brokerage leveraging marketing channels, with potential expansion over time .

Estimates Context

Q2 2025 comparison: S&P Global consensus for Q2 2025 EPS and revenue was unavailable; Genie reported revenue of $105.251M and consolidated adjusted EBITDA of $3.0M for Q2 2025 .
Forward coverage: For Q3/Q4 2025, S&P Global shows single-estimate coverage per metric, limiting robustness; use caution interpreting implied expectations*.

Metric	Q3 2025 Consensus	Q4 2025 Consensus
Primary EPS Consensus Mean	$0.56*	$0.07*
Revenue Consensus Mean ($USD)	$130.788M*	$114.230M*
EBITDA Consensus Mean ($USD)	$19.034M*	$7.450M*
Revenue – # of Estimates	1*	1*
Primary EPS – # of Estimates	1*	1*

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

The quarter’s narrative is margin compression despite strong volume growth; wholesale price spikes (PJM/MISO) and early-season heat drove gross margin down to 22.3%, pressuring EPS and adjusted EBITDA .
GREW is becoming a more meaningful contributor: revenue +57% YoY, loss narrowed, with Lansing commissioning as near-term catalyst; Diversegy momentum continues .
Customer metrics remain a strength (RCEs +20.5% YoY; churn 4.8%), setting up operating leverage if retail margins normalize as management expects .
FY2025 adjusted EBITDA guidance $40–$50M was reaffirmed; if margins revert and GREW executes, upward estimate revisions are plausible, but coverage is thin (single-estimate forward consensus)* .
Capital returns persist (buybacks, dividends), underpinned by ~$201.6M in cash/restricted/securities and $115.0M working capital—providing flexibility to weather commodity volatility and invest in renewables .
Near-term trading implications: Watch wholesale power trends and weather into late summer/early fall; margin normalization would be a positive surprise vs Q2’s compression .
Medium-term thesis: Scale in retail and disciplined renewables development (utility-scale focus, selective pipeline pruning post-ITC changes) can support stable cash generation and capital returns if margin volatility is managed .

Genie Energy Ltd. (GNE)·Q2 2025 Earnings Summary