Release Date: March 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Genie Energy Ltd (NYSE:GNE) achieved the high-end of its adjusted EBITDA guidance for 2024.
• The company added 23,000 net new meters in the fourth quarter and over 60,000 during the full year, marking a 17% increase.
• GREW, the renewables business, saw gross profit increase by over 120% compared to 2023, surpassing $6 million.
• Diversegy, the energy procurement business, increased revenue by 70% and gross profit by 130%, generating over $750,000 in income from operations.
• Genie Solar completed its strategic migration to utility scale project vertical, closing its first solar financing deal, which returned approximately $7 million in cash to the balance sheet.

Negative Points

• Consolidated revenue in the fourth quarter decreased by 1.9% to $102.9 million.
• Electricity margins in the fourth quarter were lower than in the year-ago quarter due to a migration toward fixed price meters.
• Fourth quarter revenue at GREW decreased by 30.1% to $4.5 million.
• Consolidated adjusted EBITDA decreased by 2.8% to $11.1 million, driven by a reduction at GRE.
• The consolidated net loss attributable to Genie common shareholders decreased to $0.0058 per share from $0.009 per share a year earlier.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Signs with GNE.

Q: Can you provide an overview of Genie Energy's performance in 2024 and expectations for 2025? A: Michael Stein, CEO, highlighted that Genie Energy finished 2024 with a solid fourth quarter across both retail and renewables businesses. The company achieved the high-end of its adjusted EBITDA guidance, adding 23,000 net new meters in Q4 and over 60,000 for the year. Looking ahead, Genie Energy expects to continue building its meter book in 2025, with growth opportunities in Texas and California, among other markets.

Q: How did the renewables business, GREW, perform in 2024? A: Michael Stein, CEO, stated that GREW made tremendous progress in 2024, with gross profit increasing by over 120% compared to 2023, surpassing $6 million. The company held SG&A increases to single digits, significantly improving GREW's bottom line performance. The renewables business also includes Roded, an environmental tech recycling business, which began generating its first revenues.

Q: What strategic shifts occurred at Genie Solar in 2024? A: Michael Stein, CEO, explained that Genie Solar completed its strategic migration to utility-scale project verticals, allowing the company to capture long-term residual value from power generation. In Q4, Genie Solar closed its first solar financing deal, returning approximately $7 million in cash to the balance sheet. The company plans to use similar asset-backed finance deals to boost returns on equity.

Q: Can you discuss the financial results for the fourth quarter of 2024? A: Avraham Goldin, CFO, reported that consolidated revenue decreased by 1.9% to $102.9 million. GRE's revenue remained unchanged at $98.4 million, while GREW's revenue decreased by 30.1% to $4.5 million. Consolidated gross profit was $33.5 million, with a gross margin of 32.5%. The consolidated loss from operations decreased by 39.2% year-over-year to $20.8 million.

Q: What are the expectations for Genie Energy's financial performance in 2025? A: Michael Stein, CEO, stated that for 2025, Genie Energy maintains its annual consolidated adjusted EBITDA guidance at $40 million to $50 million. The company expects to continue building cash reserves, opportunistically buy back stock, and pay dividends while investing in growth across both new and established businesses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.