The sharp margin compression and guidance cut signal structural headwinds in GRE's retail energy business. With negative operating cash flow and declining customer counts (RCEs down 11.7% YoY), the stock faces continued pressure. Monitor Q2 2026 for margin recovery as management expects improvement later in the year, but the lowered guidance floor ($32.5M vs prior $40M) suggests downside risk to consensus.
Price Chart
Executive Summary
Genie Energy reported Q1 2026 EPS of $0.11, missing the $0.18 consensus by 38.9%, and revenue of $142.3M (above $123.8M consensus but up only 4% YoY). Gross profit fell 20.2% YoY to $29.8M, operating income plunged 86.3% to $1.9M, and management lowered full-year 2026 Adjusted EBITDA guidance from $40-50M to $32.5-40M, citing compressed retail margins and increased customer acquisition costs. The combination of a significant EPS miss, sharp margin compression, and guidance reduction makes this a clearly bearish report.
Key Financial Metrics
Key Facts
- EPS of $0.11 missed consensus of $0.18 by 38.9% and was down 72.5% from $0.40 in Q1 2025
- Revenue of $142.3M beat consensus of $123.8M but grew only 4.0% YoY from $136.8M
- Gross profit fell 20.2% YoY to $29.8M; gross margin contracted 640 bps to 20.9%
- Income from operations collapsed 86.3% to $1.9M from $13.5M; operating margin fell to 1.3% from 9.9%
- Adjusted EBITDA dropped 80.4% to $2.8M from $14.4M
- Full-year 2026 Adjusted EBITDA guidance lowered from $40-50M to $32.5-40M
- Operating cash flow was negative $6.5M vs positive $13.5M in Q1 2025
- GRE retail electricity RCEs declined 14.3% YoY; natural gas RCEs down 4.3%
- Quarterly dividend maintained at $0.075 per share
Financial Impact
EPS miss of 38.9% vs consensus, 72.5% YoY decline; guidance cut of ~18% at midpoint from $45M to $36.25M Adjusted EBITDA
Risk Factors
- Further margin compression from volatile energy commodity markets
- Continued customer attrition and rising acquisition costs at GRE
- GREW segment losses widening with solar panel inventory write-downs
- Potential dividend cut if cash flow remains negative
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3294801 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Press Release | $16.71 | awaiting T+20 | — | $16.80 (+0.54%) |
Oct 5, 2026 21d ago | 8-K | $16.42 | awaiting T+20 | — | $16.80 (+2.31%) |
Aug 6, 2026 11w ago | 8-K | $14.74 $15.31 | ▲ +3.87% | ▲ +3.27% | $16.80 (+13.98%) |
Jul 22, 2026 13w ago | Press Release | $14.50 $15.00 | ▲ +3.45% | ▲ +0.55% | $16.80 (+15.86%) |
Jun 11, 2026 19w ago | 3 | $14.06 $13.77 | ▼ −2.06% | ▼ −3.95% | $16.80 (+19.49%) |
May 14, 2026 23w ago | 8-K | $12.98 $14.09 | ▼ −8.56% | ▼ −9.41% | $16.80 (−29.44%) |
May 14, 2026 23w ago | Press Release | $12.98 $14.09 | ▼ −8.56% | ▼ −9.41% | $16.80 (−29.44%) |
May 8, 2026 24w ago | Press Release | $14.44 $13.96 | ▼ −3.32% | ▼ −3.35% | $16.80 (+16.34%) |
Apr 7, 2026 28w ago | 8-K | $14.43 $14.34 | ▲ +0.62% | ▲ +9.17% | $16.80 (−16.42%) |
Apr 7, 2026 28w ago | Press Release | $14.43 $14.34 | ▼ −0.62% | ▼ −9.17% | $16.80 (+16.42%) |
US Market Status
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