The guidance cut and sharp profitability decline signal fundamental deterioration in GRE's retail energy margins. Monitor Q2 2026 for margin recovery — management expects normalization as the year progresses. The ongoing restatement (2023-2024) creates overhang; any further delays or adverse findings would be incrementally negative. The $199.8M cash position provides a floor, but the stock is likely to re-rate lower until margins stabilize.
Price Chart
Executive Summary
Genie Energy reported Q1 2026 results with record revenue of $142.3M (+4.0% YoY), but a sharp decline in profitability: gross profit fell 20.2% to $29.8M, operating income dropped 86.3% to $1.9M, and EPS fell to $0.11 from $0.40. Management lowered full-year 2026 Adjusted EBITDA guidance from $40-50M to $32.5-40M, citing compressed retail margins, increased customer acquisition costs, and solar inventory write-downs. The ongoing financial restatement for 2023-2024 adds further uncertainty.
Key Financial Metrics
Key Facts
- Revenue increased 4.0% YoY to a record $142.3M, but gross profit decreased 20.2% to $29.8M and gross margin contracted 640 bps to 20.9%
- Income from operations collapsed 86.3% to $1.9M from $13.5M; Adjusted EBITDA fell 80.4% to $2.8M from $14.4M
- Diluted EPS dropped to $0.11 from $0.40; operating cash flow swung to -$6.5M from +$13.5M
- Full-year 2026 Adjusted EBITDA guidance lowered from $40-50M to $32.5-40M
- GRE segment RCEs declined 11.7% YoY to 354,000; churn increased 30 bps to 5.8%
- Company is restating financial statements for 2023 and 2024 due to captive insurance accounting errors
- Cash and equivalents totaled $199.8M; quarterly dividend maintained at $0.075/share
Financial Impact
EPS of $0.11 vs $0.40 YoY; operating income down 86.3%; guidance cut by 18.75% at midpoint from $45M to $36.25M Adjusted EBITDA
Risk Factors
- Further margin compression from volatile energy commodity markets
- Restatement delays or adverse findings from the captive insurance accounting review
- Customer churn acceleration and rising acquisition costs eroding GRE profitability
- GREW segment losses widening as early-stage investments ramp up
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-016874 |
| Document: gne20260202_8k.htm | 0001437749-26-016874 |
| Document: 0001437749-26-016874-index-headers.html | 0001437749-26-016874 |
| Document: 0001437749-26-016874-index.html | 0001437749-26-016874 |
| Document: 0001437749-26-016874.txt | 0001437749-26-016874 |
| 8-K Data (Synthetic) | 0001437749-26-016874 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Press Release | $16.71 | awaiting T+20 | — | $16.75 (+0.24%) |
Oct 5, 2026 22d ago | 8-K | $16.42 | awaiting T+20 | — | $16.75 (+2.01%) |
Aug 6, 2026 11w ago | 8-K | $14.74 $15.31 | ▲ +3.87% | ▲ +3.27% | $16.75 (+13.64%) |
Jul 22, 2026 13w ago | Press Release | $14.50 $15.00 | ▲ +3.45% | ▲ +0.55% | $16.75 (+15.52%) |
Jun 11, 2026 19w ago | 3 | $14.06 $13.77 | ▼ −2.06% | ▼ −3.95% | $16.75 (+19.13%) |
May 14, 2026 23w ago | 8-K | $12.98 $14.09 | ▼ −8.56% | ▼ −9.41% | $16.75 (−29.05%) |
May 14, 2026 23w ago | Press Release | $12.98 $14.09 | ▼ −8.56% | ▼ −9.41% | $16.75 (−29.05%) |
May 8, 2026 24w ago | Press Release | $14.44 $13.96 | ▼ −3.32% | ▼ −3.35% | $16.75 (+16.00%) |
Apr 7, 2026 29w ago | 8-K | $14.43 $14.34 | ▲ +0.62% | ▲ +9.17% | $16.75 (−16.08%) |
Apr 7, 2026 29w ago | Press Release | $14.43 $14.34 | ▼ −0.62% | ▼ −9.17% | $16.75 (+16.08%) |
US Market Status
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