Genie Energy revenue hits record, but profit slides on margin compression

Genie Energy (NYSE:GNE) reported record revenue for the first quarter of 2026, though the top-line milestone was overshadowed by a sharp contraction in profitability margins that prompted management to reduce its full-year financial guidance.

Revenue for the three months ended March 31, 2026, rose 4% year-over-year to $142.3 million, up from $136.8 million in the first quarter of 2025.

However, the company's gross profit fell to $29.8 million, down from $37.3 million in the prior-year period.

The decline was primarily driven by compressed margins within the Genie Retail Energy segment, where volatile weather conditions in the early part of the quarter impacted commodity pricing dynamics, alongside an increase in customer acquisition costs.

The compression flowed directly to the bottom line.

Net income fell significantly, with earnings per share declining to $0.11 compared to $0.40 per share in the first quarter of 2025.

Adjusted EBITDA dropped to $2.8 million from $14.4 million a year earlier, reflecting both the retail margin squeeze and operational headwinds in the Genie Renewables division, which faced a carrying-value write-down on older solar panel inventory.

Reflecting the slow start to the year, Genie Energy lowered its full-year 2026 adjusted EBITDA guidance to a range of $32.5 million to $40 million, down from its previously issued forecast of $40 million to $50 million.