Genie Energy's third-quarter revenue surges by 23%, but profit margins plunge 40%—will 2026 bring a reversal?

On November 3, Genie Energy (NYSE: GRE) announced its third-quarter 2025 results, showing a 23.6% increase in revenue to $138.3 million, while adjusted EBITDA dropped by 40% to $8.2 million due to ongoing margin challenges. The company maintained its full-year adjusted EBITDA forecast of $40 million to $50 million, but indicated results will likely be closer to the lower end, according to a

. CEO Howard Stein stated that margins are "slowly getting better" and expects them to "continue to recover as we move into 2026," though he did not directly address analyst projections, as noted in a .

The quarter’s results were largely fueled by a 25% rise in revenue from Genie's GRE division, which supplies retail electricity and natural gas, bringing in $132.4 million. Electricity sales alone climbed 26% to $126.6 million, with kilowatt-hour volume up 21% and revenue per unit rising 4%. Natural gas revenue increased 15% to $5.8 million, but therm sales were "largely unchanged," and gross margins for gas turned negative, according to Seeking Alpha. The company’s overall gross profit fell 21% to $30 million, and gross margin narrowed to 21.7% from 33.9% a year ago, as per the company press release.

CFO Avi Goldin attributed the margin squeeze to "higher wholesale electricity and natural gas prices" and "ongoing margin pressure in our retail operations." Even with consolidated SG&A expenses dropping 10% to $22.6 million, operating profit slid 41% to $6.9 million, and net income available to

shareholders decreased to $6.7 million, or $0.26 per share, compared to $10.2 million, or $0.38 per share, in the same period last year, Seeking Alpha reported.

Genie continued to prioritize shareholder value, buying back 124,000 shares for $2 million during the quarter and declaring a quarterly dividend of $0.075 per share to be paid on November 19, according to Seeking Alpha. The company also reported strong liquidity, with $206.6 million in cash, cash equivalents, and marketable securities as of September 30, 2025, up from $201.6 million at the end of June. Total debt was $8.8 million, and working capital reached $113.3 million, the company press release stated.

Although the short-term outlook remains cautious, Genie’s leadership highlighted expansion in its Renewables segment as a key driver for future growth. Goldin mentioned "investing in growth opportunities within our Renewables segment," but did not share detailed updates on current projects or schedules, Seeking Alpha noted. Genie’s stock ended November 3 at $12.45, up 1.2% for the day, as investors balanced the earnings results with broader market swings linked to Bitcoin’s recent rally, the company press release said.