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GE

Genie Energy Ltd. (GNE)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $102.9M (-1.9% YoY) with gross margin of 32.5% (+40–46 bps YoY), while Adjusted EBITDA was $11.1M (-2.8% YoY); GAAP diluted EPS was $(0.58), impacted by a $30.9M non-cash captive insurance loss reserve .
  • GRE added ~23.5K net meters in Q4 and ~60.9K for 2024 (+17% meters YoY), sustaining customer growth despite lower electricity margins and higher acquisition expense .
  • GREW improved profitability via Diversegy (Adjusted EBITDA positive) and pivoted Genie Solar to utility-scale, closing a $7.4M project loan to enhance ROE and liquidity; cash, restricted cash, and marketable securities reached $201.0M at 12/31/24 .
  • 2025 outlook: management maintained consolidated Adjusted EBITDA guidance at $40–$50M and expects continued cash build, opportunistic buybacks, and dividend payments; catalysts include TX expansion and initial CA natural gas revenue .

What Went Well and What Went Wrong

  • What Went Well

    • “We achieved the high end of our Adjusted EBITDA guidance” for 2024 ($48.5M), underscoring solid execution despite normalization from 2023 outperformance .
    • Meter growth accelerated: “adding over 23,000 net meters” in Q4 and “over 60,000” in 2024, positioning GRE for 2025 profitability .
    • Renewables strategy delivered: Diversegy reached Adjusted EBITDA profitability and Genie Solar advanced its pipeline while completing structured financing to boost ROE and balance sheet cash .

  • What Went Wrong

    • Electricity margin compression and higher acquisition spend reduced GRE operating income and Adjusted EBITDA; GRE Q4 income from operations fell to $12.6M (from $15.0M) and GRE Adjusted EBITDA to $13.4M (from $15.4M) .
    • GREW Q4 revenue fell 30.1% YoY to $4.5M as Genie Solar exited commercial-scale development; losses narrowed but remain a drag on consolidated profitability .
    • GAAP results were heavily impacted by the captive insurance reserve: Q4 loss from operations was $(20.8)M including a $30.9M non-cash charge; continuing operating cash flow for the quarter declined 39.7% YoY to $11.1M .

Financial Results

Quarterly trends (Q2 → Q3 → Q4 2024)

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($USD Millions)$90.7 $111.9 $102.9
Gross Margin (%)36.8% 33.9% 32.5%
Diluted EPS ($)$0.36 $0.38 $(0.58)
Non-GAAP Diluted EPS ($)$0.37 $0.41 $0.24
Adjusted EBITDA ($USD Millions)$12.0 $13.6 $11.1

Q4 2024 vs prior year and estimates

MetricQ4 2023Q4 2024Consensus (S&P Global)
Total Revenue ($USD Millions)$104.9 $102.9 Unavailable (S&P Global request limit exceeded)
Gross Margin (%)32.1% 32.5% Unavailable (S&P Global request limit exceeded)
Diluted EPS ($)$(0.90) $(0.58) Unavailable (S&P Global request limit exceeded)
Non-GAAP Diluted EPS ($)$0.37 $0.24 Unavailable (S&P Global request limit exceeded)
Adjusted EBITDA ($USD Millions)$11.4 $11.1 Unavailable (S&P Global request limit exceeded)

Note: S&P Global consensus was unavailable due to access limits; comparisons to estimates cannot be assessed this quarter.

Segment breakdown (Q2 → Q3 → Q4 2024)

SegmentQ2 2024 Revenue ($M)Q3 2024 Revenue ($M)Q4 2024 Revenue ($M)Q2 2024 GM (%)Q3 2024 GM (%)Q4 2024 GM (%)
Genie Retail Energy (GRE)$86.7 $105.8 $98.4 37.2% 33.8% 32.4%
Genie Renewables (GREW)$4.0 $6.1 $4.5 26.8% 34.9% 33.9%

KPIs (GRE operational metrics: Q2 → Q3 → Q4 2024)

KPI (thousands unless %)Q2 2024Q3 2024Q4 2024
Total RCEs345 380 399
Electricity RCEs266 302 319
Natural Gas RCEs78 79 80
Total Meters362 399 422
Electricity Meters278 311 333
Natural Gas Meters84 87 90
Gross Adds53 104 92
Churn (%)4.6% 5.6% 5.3%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Adjusted EBITDAFY 2025$40–$50M $40–$50M Maintained
Dividend per common shareOngoing (quarterly)$0.075 declared cadence $0.075 paid on Feb 26, 2025 Maintained
Capital returnsFY 2025Opportunistic buybacks Expect to “opportunistically buy back stock” Maintained
GRE expansion2025TX growth ongoing Accelerate TX growth; begin CA natural gas revenue Raised activity level
Genie Solar (GREW)2025Pivot to utility-scale Complete 1 community solar, start 2–3 more projects Raised execution milestones

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q4 2024)Trend
Meter growth and aggregationQ2: steady base; Q3: +36K net meters incl. aggregation Q4: +23K net meters; ~60K for year Accelerating growth
Margin normalizationQ2: strong but below 2023 highs Q4: lower electricity margins, fixed-price migration Normalizing from 2023 outperformance
Geographic expansionQ2: TX momentum; new markets pending Q4: TX acceleration; initial CA gas revenue Positive expansion
Captive insurance programn/a in Q2; Q3 reserve $0.99M Q4 reserve $30.9M; loss reserve adjustment Material GAAP impact
Renewables strategyQ2: pivot to utility-scale; pipeline build Q4: Diversegy profitable; solar financing; pipeline 108MW Improved profitability and financing
Project financing & liquidityQ3: expected loan; cash build Q4: $7.4M loan closed; cash/securities $201.0M Strengthening balance sheet

Management Commentary

  • “We maintain our annual consolidated Adjusted EBITDA guidance at $40 to $50 million. We also expect to continue to build our cash reserves and opportunistically buy back our stock while paying our current dividend.” — Michael Stein, CEO .
  • “We have essentially completed our strategic migration to the utility scale project vertical… building, owning and operating utility-scale projects will enable us to capture their long-term residual value.” — Michael Stein .
  • “In the fourth quarter, we closed on our first solar financing deal for our portfolio of currently operating arrays, returning approximately $7 million in cash to our balance sheet.” — Michael Stein .
  • “Electricity margins in the fourth quarter were lower than in the year ago quarter, reflecting a multiyear migration toward fixed price meters, including a number of aggregation wins during 2024.” — Michael Stein .
  • “Consolidated adjusted EBITDA decreased 2.8% to $11.1 million, driven by a reduction in adjusted EBITDA at GRE, partially offset by the increased contribution from GREW.” — Avi Goldin, CFO .

Q&A Highlights

  • The call concluded without a Q&A session, with no analyst questions recorded .
  • Management re-affirmed Adjusted EBITDA guidance, explained captive insurance reserve impacts on GAAP (excluded from non-GAAP), and highlighted liquidity and capital return priorities .

Estimates Context

  • S&P Global Wall Street consensus estimates for Q4 2024 EPS, revenue, and EBITDA were unavailable due to access limits, so beat/miss versus consensus cannot be assessed this quarter. Estimates comparisons will resume when S&P Global data access is available.

Key Takeaways for Investors

  • Customer growth remains a core driver: ~23.5K net meters added in Q4 and ~60.9K in 2024, positioning GRE for volume-driven revenue in 2025 despite margin normalization .
  • GAAP results masked by insurance reserve; non-GAAP EPS ($0.24) and Adjusted EBITDA ($11.1M) provide clearer view of core operations, with reserve excluded .
  • Renewables strategy is de-risking: Diversegy profitability and $7.4M project financing support improved ROE and future project scale; pipeline reached 108MW across stages .
  • Liquidity and capital returns are robust: $201.0M cash/securities at year-end, ongoing dividends, and buybacks provide downside support and flexibility .
  • 2025 guidance maintained at $40–$50M Adjusted EBITDA; execution focus on TX/CA retail expansion and bringing community solar projects online as additional catalysts .
  • Near-term watch items: electricity margin trajectory amid fixed-price mix and aggregation deals; quarterly captive insurance adjustments that can swing GAAP results .
  • Medium-term thesis: normalized margins, scale-driven cost leverage, and utility-scale solar owning/financing strategy can sustain cash generation and support capital returns .