Genie Energy Stock Rises on Y/Y Earnings & Customer Growth in Q1

Shares of Genie Energy Ltd. GNE have gained 4.6% since reporting first-quarter 2025 results, outperforming the broader market. During the same period, the S&P 500 index has declined 0.8%. Over the past month, Genie Energy’s stock has risen 6.3%, exceeding the S&P 500’s 2.8% growth.Revenues & Earnings Reflect Robust GrowthGenie Energy delivered strong financial results for the quarter ended March 31, 2025. Total revenues rose 14.3% year over year to $136.8 million from $119.7 million. The increase was driven by a 17.8% jump in revenues from the Genie Retail Energy (GRE) segment, which contributed $132.5 million. Electricity revenues climbed 16.4% to $104.1 million, and natural gas revenues grew 26.8% to $28.4 million, thanks to increased consumption and per-unit pricing.Net income attributable to GNE common stockholders was $10.6 million, up 30.9% from $8.1 million in the year-ago period. This translated to diluted earnings per share (EPS) of 40 cents, up from 30 cents in the first quarter of 2024. On a non-GAAP basis, net income increased 24.7% to $11.1 million, and non-GAAP EPS rose to 42 cents from 33 cents.Genie Energy Ltd. Price, Consensus and EPS Surprise  Genie Energy Ltd. price-consensus-eps-surprise-chart | Genie Energy Ltd. QuoteOperational Strength & Customer GrowthGRE’s operational performance reflected strategic investments made in 2024 to expand its customer base. The company reported net year-over-year additions of more than 48,000 meters, ending the quarter with 413,000 meters and 402,000 residential customer equivalents, marking 13.3% and 15.6% increases, respectively.This growth stemmed from deeper market penetration and geographic expansion, including entry into California and plans to offer gas services in Kentucky. The company maintained a steady customer churn rate of 5.5%, unchanged from the prior year and only marginally higher than the previous quarter.GRE’s income from operations rose 18.2% year over year to $16.8 million, whereas adjusted EBITDA increased 17.1% to $17.1 million. Despite strong top-line growth, GRE’s gross margin declined by 150 basis points to 27.1% due to the acquisition of lower-margin meters through municipal aggregation programs.Renewables Segment Sees TransitionGenie Renewables (GREW) experienced a 40% year-over-year drop in revenues to $4.3 million, largely attributed to its strategic exit from the commercial-scale solar project business. However, Diversegy, Genie Energy’s energy brokerage arm housed within GREW, posted a 55% increase in revenues and contributed to the majority of the segment’s revenues this quarter.Despite the brokerage’s gains, GREW posted a loss from operations of $0.9 million, wider than the $0.6-million loss in the first quarter of 2024. The loss reflects continued investments in utility-scale project development. The most notable development in this pipeline is the community solar project in Lansing, NY, which is expected to go live as early as the third quarter. Management anticipates it to be immediately EBITDA accretive upon completion.Management Commentary & Strategic DirectionCEO Michael Stein emphasized the normalization of margins in the retail energy business compared with the unusually high margins seen in 2022 and parts of 2023. He credited the company’s customer retention programs for sustaining churn rates, noting that strong growth would have typically pressured churn upward.CFO Avi Goldin highlighted the company’s strong cash flow generation and disciplined cost management. SG&A expenses rose just 4.3% year over year to $23.9 million, while consolidated income from operations increased 30.3% to $12.8 million. Adjusted EBITDA for the quarter totaled $14.4 million, a 22.7% year-over-year increase.Guidance ReaffirmedManagement reaffirmed its full-year adjusted EBITDA guidance of $40-$50 million. This outlook reflects continued strength in GRE, momentum in the brokerage unit and anticipated contributions from the solar development pipeline in the latter half of the year.Other DevelopmentsIn the quarter, Genie Energy repurchased approximately 127,000 shares of its Class B common stock for $1.9 million and paid out a quarterly dividend of 7.5 cents per share, returning a total of $3.9 million to shareholders. As of March 31, 2025, the company held $210.2 million in cash, restricted cash and marketable securities, up from $201 million at the end of 2024. Working capital stood at $121.2 million and net debt totaled $9 million.The quarter also saw an expansion in Genie Solar’s development pipeline, which grew to 123 MW across 18 projects. The company added 15 MW and two new projects in the quarter, continuing its pivot to utility-scale solar.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genie Energy Ltd. 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