GNE · Genie Energy Ltd.

Genie Energy Ltd. reported Q1 2026 results reflecting revenue resilience amid volume pressures but significant profitability erosion from cost dynamics and expense growth, as detailed in Item 2 - Management's Discussion and Analysis.

Revenue rose 4.0% to $142.3 million from $136.8 million in the prior-year quarter. This growth stemmed from an increase in the average price per kilowatt hour charged to customers, which partially offset a decrease in electricity consumption. The decline in average consumption per meter reflected changes in customer mix during the periods.

Gross profit fell sharply 20.2% to $29.8 million, yielding a gross margin of 21.0% versus a stronger prior-year performance. Management explained that gross margin on electricity sales decreased because the unit cost of electricity increased more than the average rate charged to customers. Similarly, gross margin on natural gas sales declined as the average unit cost of natural gas rose faster than customer rates. These commodity cost pressures directly squeezed margins despite the topline gain.

Net income declined 73.0% to $2.8 million, with diluted EPS at $0.11 compared to $0.40 last year. The flow-through impact of weaker operating results drove this reduction, highlighting the quarter's margin sensitivity to input costs and overhead leverage.

Cash flow from operating activities swung to a use of $6.5 million from a $15.3 million source in the prior year, signaling temporary working capital timing that investors should monitor for normalization in subsequent quarters.