Fri, May 9, 3:39 PM (2 days ago)
**Genie Energy Ltd. (GNE) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $136.8M (up 17.8% YoY), driven by electricity ($104.1M, up 16.4%) and natural gas ($28.4M, up 26.8%). - **Profit Margins:** Gross profit margin at 27.1% (down 1.5% YoY). - **Cash Flow:** Operating cash flow of $13.5M (up from $8.7M in Q1 2024). - **Earnings:** Net income of $10.3M (up 26.1% YoY), EPS of $0.40 (up 33.3% YoY). **Key Metrics & Trends:** - **Customer Base:** 413K meters served (down 10K QoQ), churn rate flat at 5.5%. - **Seasonality:** Q1 typically sees higher natural gas revenues due to heating demand. - **Hedging:** Gains from derivative instruments at $3.2M (vs. loss of $5.5M in Q1 2024). **Uncertainties & Future Operations:** - **Weather & Climate:** Extreme weather events can impact margins and operations. - **Legal & Regulatory:** Ongoing legal proceedings and regulatory inquiries. - **Discontinued Operations:** Lumo Finland and Lumo Sweden liquidation ongoing. - **Capital Expenditures:** $10-20M anticipated for 2025, primarily for solar projects. **Segment Performance:** - **Genie Retail Energy (GRE):** 96.8% of revenues, strong customer acquisition. - **Genie Renewables (GREW):** Revenue down 40% YoY due to strategic shift to utility-scale solar projects. **Liquidity & Capital Resources:** - **Cash Position:** $112.5M in unrestricted cash and cash equivalents. - **Debt:** $7.4M term loan outstanding, in compliance with covenants. - **Dividends:** $0.075 per share declared for Q1 2025. **Market Risks:** - **Commodity Prices:** Volatile energy markets, hedging strategy in place. - **Credit Risk:** Concentration in utility companies for receivables. **Outlook:** - Positive cash flow and liquidity position expected to meet requirements through May 2026. - Continued focus on customer acquisition, strategic shifts in GREW, and managing operational risks.