Overview

• U.S. retail and renewable energy provider's Q1 revenue rose 4% yr/yr to record level

• EPS for Q1 fell sharply yr/yr as gross margin declined to 20.9%

• Company lowered 2026 adjusted EBITDA guidance due to higher costs and margin compression

Outlook

• Genie Energy lowers 2026 Adjusted EBITDA guidance to $32.5 mln-$40 mln from $40 mln-$50 mln

• Company expects significant improvement in results through remainder of 2026

• Genie Solar expected to be profitable throughout remainder of 2026

Result Drivers

• MARGIN COMPRESSION - Co said challenging commodity market conditions in the first two months of the qtr compressed retail energy margins, impacting profitability

• HIGHER CUSTOMER ACQUISITION COSTS - Co increased spending on customer acquisition, reflecting both higher acquisition rates and higher cost per customer

• SOLAR INVENTORY WRITE-DOWN & NEW INITIATIVES - Genie Renewables' results were impacted by a write down of solar panel inventory and increased investment in early-stage growth initiatives

Company press release: ID:nGNX2dyjC9

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the electric utilities peer group is "hold"

• Wall Street's median 12-month price target for Genie Energy Ltd is $16.00, about 14.6% above its May 13 closing price of $13.96

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 25 three months ago

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