A maker of retail energy and solar power, Genie Energy resells electricity and natural gas to homes and small businesses under brands like IDT Energy and Residents Energy across roughly 19 U.S. states, while its Genie Renewables arm develops community solar projects and recycled plastic pallets. It grew out of telecom giant IDT Corporation, founded by Howard Jonas, and was spun off as its own company in 2011. Fun fact: its oil-and-gas exploration arm once reported finding a 350-meter-thick rock layer in the Golan Heights, which its geologist called far larger than the average oil discovery worldwide.
Genie Retail Energy's gross margin rebounded 11.2 points to 33.5% as customer rates rose and gas costs fell, reversing a year-long margin slide.
Genie Retail Energy's snapped back after four quarters of compression. fell 4.6% to $100.4 million as meters served continued to shrink, but rose 187.7% to $6.5 million because electricity rates rose faster than supply costs and natural gas costs dropped sharply. The margin recovery is underway, but the customer base is still contracting.
Key takeaways
Consolidated expanded 11.2 percentage points to 33.5%, driven entirely by Genie Retail Energy, where electricity gross margin rose to 30.4% from 23.7% a year ago and natural gas gross margin swung to 46.3% from 0.5%.
The electricity margin improvement came from a 12.2% increase in the average rate charged to customers, which outpaced a 2.3% rise in the average unit cost of electricity.
The natural gas margin recovery reflected a 50.3% increase in average per therm alongside an 18.9% decline in the average unit cost of natural gas, reversing the 51.5% cost spike that collapsed the margin in Q2 2025.
Section summaries
Management's Discussion and Analysis
Genie Retail Energy's Q2 2026 income from operations rose 108.3% on gross margin expansion, while Genie Renewables narrowed its operating loss.
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Consolidated surged 187.7% to $6.5 million in Q2 2026, driven by a 42.2% increase in at the Genie Retail Energy (GRE) .
GRE's electricity expanded to 30.4% from 23.7% as the average rate charged rose 12.2%, outpacing a 2.3% increase in the average unit cost of electricity.
Consolidated fell 4.6% to $100.4 million, as the margin recovery was accompanied by lower volumes from a shrinking customer base — average meters served continued to decline following the expiration of municipal aggregation deals.
Genie Renewables narrowed its operating loss to $68,000 from $181,000 a year ago, with flat and cost of revenues down 28.7%, though the remains paused on new solar project development.
Cash used in operating activities was $3.4 million for the quarter, compared to $1.1 million provided a year ago, partly due to higher renewable energy credit ; cash and equivalents stood at $184.8 million at quarter-end.
What changed
The electricity of 30.4% reversed the slide flagged in Q1 2026, when it had fallen to 17.1% as customer rates failed to keep pace with supply costs; the 12.2% rate increase this quarter outpaced the 2.3% cost increase, settling the question of whether margins would recover.
The natural gas margin of 46.3% answered the question left open in Q2 2025, when the margin had collapsed to 0.5% after a 51.5% spike in unit gas costs; the 18.9% cost decline this quarter restored profitability.
The $1.6 million derivative loss in Q2 2026 was smaller than the $4.0 million loss in Q2 2025, continuing the pattern of lower losses as the company hedges at relatively lower volumes without .
Genie Renewables' near-breakeven result of a $68,000 loss continues the trajectory of narrowing losses flagged in prior quarters, though the pause on new solar project development after the OBBB Act remains in place and was flat.
What to watch
Whether GRE's average meters served stabilizes or continues to decline after the expiration of municipal aggregation deals, and whether the $3.9 million increase in marketing and customer acquisition costs translates into meter growth in Q3.
Whether the electricity of 30.4% and natural gas margin of 46.3% are sustainable, given that holding per-unit margins constant would have decreased Q2 electricity by $7.8 million and natural gas by $4.9 million.
Whether Genie Renewables reaches operating breakeven in Q3 after narrowing its loss to $68,000, and whether it can generate from sources other than liquidation once the solar panel sell-down ends.
Whether the $9.9 million cash burn from operations over the first six months of 2026 reverses, or whether the $184.8 million cash position continues to erode.
GRE's natural gas jumped to 46.3% from 0.5% due to a 50.3% increase in average per therm and an 18.9% decrease in the average unit cost of natural gas.
GRE's selling, general and administrative expenses grew 27.0%, primarily from a $3.9 million increase in marketing and customer acquisition costs tied to a shift in sales channel mix.
The Genie Renewables (GREW) narrowed its operating loss to $68,000 from a $181,000 loss, as remained flat and cost of revenues decreased 28.7%.
Cash used in operating activities was $9.9 million for the six months ended June 30, 2026, compared to $14.2 million provided in the prior-year period, partly due to higher renewable energy credit .
Legal proceedings in which we are involved are more fully described in Note 19 to the Condensed Consolidated Financial Statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
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Legal proceedings in which we are involved are more fully described in Note 19 to the Condensed Consolidated Financial Statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.