Executive Summary

Revenue beat, EPS miss: Q3 revenue rose 23.6% YoY to $138.3M, above S&P Global consensus of $130.8M*, but diluted EPS of $0.26 missed the $0.56* consensus as retail energy margins compressed on higher commodity costs and weather; management reiterated FY25 Adjusted EBITDA at the low end of $40–$50M .
Margin headwinds persisted: Gross margin fell to 21.7% (from 33.9%) and GRE gross margin to 20.8% as electricity and gas input costs outpaced hedge protection; gas margins turned negative due to mark-to-market on winter gas positions .
Strategic execution: Electricity RCEs grew 5.4% YoY to ~318k; Lansing community solar is “days away” from going live for Q4 revenue; Diversegy revenue +35% YoY with potential $5–$6M 2026 bottom-line contribution .
Shareholder returns supported by balance sheet: $206.6M in cash, restricted cash and marketable securities; 124k shares repurchased for $2.0M; $0.075 dividend declared (record date Nov 10) .

Note: S&P Global estimates marked with * (values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well
- “Another quarter of double-digit topline growth” with record Q3 revenue; GRE electricity RCEs up 5.4% YoY to ~318k; total RCEs up 4.2% YoY to 396k .
- Renewables milestones: Lansing community solar “days away” from turn-on for Q4 revenue; Perry, NY build-out progressed; Diversegy continued “impressive” growth .
- Balance sheet strength and capital returns: $206.6M in cash/restricted cash/marketable securities; 124k shares repurchased; $0.075 dividend maintained .
What Went Wrong
- Margin compression: Gross margin fell to 21.7% (from 33.9%); GRE gross margin to 20.8% (from 33.8%); Adjusted EBITDA declined 39.5% YoY to $8.2M .
- Commodity and weather headwinds: Cost per kWh up ~20%; gas cost per therm up 137% YoY with negative gas margins, and mark-to-market impacts on winter gas position .
- Municipal aggregation drag: A 12‑month, lower‑margin aggregation deal (expires Q4) and unseasonably hot weather amplified margin pressure .

Financial Results

Performance vs prior year and prior quarter (actuals)

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$111.9	$105.3	$138.3
Gross Profit ($USD Millions)	$37.9	$23.5	$30.0
Gross Margin (%)	33.9%	22.3%	21.7%
Income from Operations ($USD Millions)	$11.7	$2.0	$6.9
Operating Margin (%)	10.4%	1.9%	5.0%
Net Income Attrib. to GNE ($USD Millions)	$10.2	$2.8	$6.7
Diluted EPS ($)	$0.38	$0.11	$0.26
Adjusted EBITDA ($USD Millions, non-GAAP)	$13.6	$3.0	$8.2

Actuals vs S&P Global consensus (Q3 2025)

Metric	Consensus*	Actual	Surprise
Revenue ($USD Millions)	$130.8*	$138.3	+$7.5M, +5.7% (Beat)
Diluted EPS ($)	$0.56*	$0.26	-$0.30 (Miss)

Note: S&P Global estimates marked with * (values retrieved from S&P Global). One estimate for each metric (coverage = 1)*.

Segment detail

Segment	Q3 2024	Q3 2025
GRE Revenue ($M)	$105.8	$132.4
- Electricity ($M)	$100.7	$126.6
- Natural Gas ($M)	$5.1	$5.8
GRE Gross Margin (%)	33.8%	20.8%
GRE Income from Ops ($M)	$15.0	$10.2
GRE Adjusted EBITDA ($M, non-GAAP)	$15.5	$10.5
GREW Revenue ($M)	$6.1	$6.0
GREW Gross Margin (%)	34.9%	41.3%
GREW Income from Ops ($M)	-$0.2	-$0.3

KPIs (GRE)

KPI	Q3 2024	Q3 2025
RCEs (000s)	380	396
- Electricity (000s)	302	318
- Natural Gas (000s)	79	78
Meters (000s)	399	402
- Electricity (000s)	311	316
- Natural Gas (000s)	87	86
Gross Meter Adds (000s)	104	47
Churn (%)	5.6%	5.1%

Balance sheet and cash flow notes: Cash/restricted cash/marketable securities $206.6M; total assets $394.1M; liabilities $205.3M; working capital $113.3M; debt $8.8M; operating cash flow YTD $28.1M (continuing ops) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA (Consolidated)	FY 2025	$40–$50M (confirmed Q1 & Q2)	Expect to achieve range at the low end	Narrowed toward low end
GRE Margin Environment	Q4 2025 into 2026	Q2: “Expect margins to return closer to historical levels” (normalized commodity)	“Gradually become more favorable in Q4 and into 2026”	Maintained/improving (qualitative)
Dividend	Ongoing	$0.075 quarterly (maintained)	$0.075 declared; record Nov 10, pay ~Nov 19	Maintained
Capital Returns	2025	Ongoing buybacks/dividends	124k shares repurchased in Q3 for $2.0M	Continued

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
Retail margins & hedging	Q1: Margins in sustainable, normalized range ; Q2: Margin compression on higher wholesale prices; hedge at high %; weather impact; expect normalization	Margin pressure persisted; cost/kWh +20%; gas cost/therm +137%; gas margins negative; expect improvement in Q4 and into 2026	Stabilization expected; near-term pressured
Customer growth (meters/RCEs)	Q1: ~413k meters, 402k RCEs; churn 5.5%	Q3: 402k meters; 396k RCEs; churn 5.1%	Stable to modest down vs Q1/Q2; improved churn
Municipal aggregation	Noted lower margin impact in Q1	12‑month low-margin deal expiring Q4, weighed on Q3 margins	Headwind rolls off after Q4
Solar pipeline (policy)	Q1: Lansing on track; GREW pivot from commercial	Lansing “days away”; Perry progress; paused new project dev; removed early-stage projects amid accelerated ITC phaseout	Focus on near-term assets; cautious new dev
Diversegy (brokerage)	Q1: record quarter; positive EBITDA	Revenue +35% YoY; potential $5–$6M 2026 contribution	Strengthening contributor
Captive insurance	Q2 Q&A: conservative cash; early-stage distribution of health insurance products	Non-GAAP reconciliations reference captive insurance liability adjustments	Operational but not a major driver

Management Commentary

CEO Michael Stein: “Genie Energy achieved another quarter of double-digit topline growth to attain record third quarter revenue... However, the challenging market conditions that impacted GRE's second quarter results persisted and again weighed on our bottom-line.”
On retail mix and aggregation: “The financial impact... has been somewhat amplified by the increasing percentage of fixed-price contracts... most notably the large municipal aggregation deal that expires during Q4.”
On outlook: “We expect that GRE’s margin environment will gradually become more favorable in the fourth quarter and into 2026… we expect to achieve our annual guidance range of $40 million to $50 million in Adjusted EBITDA, albeit at the low end of the range.”
CFO Avi Goldin on costs: “Our cost of electricity per kilowatt-hour increased 20%... Our cost per therm of gas increased even more steeply, up 137% year-over-year, and gross margins on gas sales turned negative… gas costs in the quarter were negatively impacted by a mark-to-market on the gas position related to our winter supply.”

Q&A Highlights

There were no analyst questions on the Q3 call; management concluded after prepared remarks .
Management reiterated low-end FY25 Adjusted EBITDA outlook and expected Q4 margin improvement within prepared remarks .

Estimates Context

Revenue beat and EPS miss versus S&P Global: Revenue $138.3M vs $130.8M* (beat); Diluted EPS $0.26 vs $0.56* (miss). Coverage is thin with one estimate per metric* .
Implication: Consensus EPS likely to be revised lower on margin commentary and Q3 miss; revenue expectations may drift higher given RCE growth and consumption drivers, but margin normalization timing remains the key swing factor .