Genie Energy — Second Quarter 2026 Earnings Summary

Financial Performance

• Consolidated revenue decreased to $100.4 million in 2Q26 from $105.3 million in 2Q25.
• Gross profit increased to $33.7 million from $23.5 million; gross margin expanded to 33.5% from 22.3%.
• Income from operations increased to $6.5 million from $2.3 million.
• Net income attributable to Genie common stockholders increased to $11.4 million from $2.3 million.
• Diluted earnings per share (EPS) increased to $0.43 from $0.09.
• Adjusted EBITDA increased to $7.5 million from $3.0 million.
• Cash and cash equivalents, restricted cash, and marketable equity securities totaled $204.3 million as of June 30, 2026.
• Total assets were $369.7 million; total liabilities were $114.5 million; working capital was $199.6 million.
• Operating cash flow for the six months ended June 30, 2026, was a net use of $9.9 million, compared to a net use of $16.5 million in 2025.

Guidance and Future Outlook

• Genie is maintaining its full-year 2026 Adjusted EBITDA guidance of $32.5 million to $40 million.
• Management expects customer acquisitions skewed toward high-value customers to favorably impact results in coming quarters.
• Diversegy and Genie Solar are on track to expand their bottom lines in the coming quarters.
• Genie Solar will benefit from a second community solar project that came online late in the second quarter.
• The company plans to boost cash generation across Genie Retail Energy (GRE), Diversegy, and Genie Solar for the balance of the year.

Business Segments and Product Lines

• Genie Retail Energy (GRE): Revenue decreased to $94.1 million from $99.0 million; gross margin expanded to 32.2% from 21.5%. Income from operations increased to $8.3 million from $4.0 million. Adjusted EBITDA increased to $8.7 million from $4.4 million. RCEs decreased to 345,000 from 413,000; meters decreased to 363,000 from 419,000. Churn was 5.9% compared to 4.8% in the prior year.
• Genie Renewables (GREW): Revenue remained flat at $6.3 million. Gross profit increased to $3.3 million from $2.2 million. Income from operations improved to $0.1 million from a loss of $0.2 million. Adjusted EBITDA improved to $0.3 million from a loss of $0.1 million.
• Diversegy: Generated strong cash flow and continues to build its book of business.
• Genie Solar: Benefited from the opening of its first community solar project in New York in 4Q25 and a second project in 2Q26.
• Roded: Results reflect ongoing investment in this plastic recycling and manufacturing business.
• Customer Acquisition: Acquisitions skewed toward high-value customers with notable growth in Texas power and California gas markets.

Market and Competitive Landscape

• Relatively normalized wholesale energy market conditions enabled GRE to achieve a gross margin comparable to its long-term historical average.
• Customer acquisitions continue to diversify the customer base.
• GRE's year-over-year decreases in RCEs and meters largely reflect the expiration of low-margin aggregation deals.

Risks and Challenges

• Forward-looking statements are subject to risks described in the company's SEC Form 10-K, including factors that may cause actual results to differ materially.
• Churn increased to 5.9% in 2Q26 from 4.8% in 2Q25.
• SG&A expenses increased 27.0% year-over-year due to higher customer acquisition spending for high-value segments.
• The company reported a net cash used in operating activities of $9.9 million for the six months ended June 30, 2026.

Management Commentary and Tone

• CEO Michael Stein described the quarter as delivering "strong bottom line results."
• Management noted that the shift in sales mix to high-value customer segments drove significant year-over-year improvement in bottom-line results despite increased acquisition spend.
• GREW generated positive EBITDA powered by contributions from Diversegy and Genie Solar.
• Management expressed confidence in returning value to shareholders through opportunistic stock repurchases and quarterly dividends.

Other Key Points

• Genie declared a quarterly dividend of $0.075 per share for Class A and Class B common stockholders, payable on or about August 24, 2026, with a record date of August 14, 2026.
• Genie repurchased approximately 48,000 shares of Class B Common stock for $659,000 during 2Q26.
• Genie Retail Energy International (GREI) operations have been classified as a discontinued operation and excluded from current and historical results.
• A conference call with CEO Michael Stein and CFO Avi Goldin was held on August 6, 2026, to discuss results and strategy.