Genie Energy Ltd.

Previous wording

The follo wing information should be read in conjunction with the accompanying consolidated financial statements and the associated notes thereto of this Quarterly Report, and the audited consolidated financial statements and the notes thereto and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the U.S. Securities and Exchange Commission (or SEC).

Current wording

The follo wing information should be read in conjunction with the accompanying consolidated financial statements and the associated notes thereto of this Quarterly Report, and the audited consolidated financial statements and the notes thereto and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K"), as filed with the U.S. Securities and Exchange Commission (or SEC).

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934, including statements that contain the words “believes,” “anticipates,” “expects,” “plans,” “intends,” and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, those discussed below under Part II, Item IA and under Item 1 A to Part I “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. The forward-looking statements are made as of the date of this report and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth in this report and the other information set forth from time to time in our reports filed with the SEC pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934, including statements that contain the words “believes,” “anticipates,” “expects,” “plans,” “intends,” and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, those discussed below under Part II, Item IA and under Item 1 A to Part I “Risk Factors” in the 2024 Form 10-K. The forward-looking statements are made as of the date of this report and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth in this report and the other information set forth from time to time in our reports filed with the SEC pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including the 2024 Form 10-K.

Previous wording

We are comprised of Genie Retail Energy("GRE") and Genie Renewables.

Current wording

We are comprised of Genie Retail Energy("GRE") and Genie Renewables ("GREW").

Previous wording

GRE owns and operates retail energy providers ("REPs"), including IDT Energy, Residents Energy, Town Square Energy ("TSE"), Southern Federal and Mirabito Natural Gas. GRE's REPs' businesses resell electricity and natural gas primarily to residential and small business customers, with the majority of the customers in the Eastern and Midwestern United States and Texas.

Current wording

GRE owns and operates retail energy providers ("REPs"), including IDT Energy, Residents Energy, Town Square Energy ("TSE"), Southern Federal and Mirabito Natural Gas and Evergreen Gas & Electric. GRE's REPs' businesses resell electricity and natural gas primarily to residential and small business customers, with the majority of the customers in the Eastern and Midwestern United States and Texas.

Previous wording

Genie Renewables holds our 95.5% interest in Genie Solar, an integrated solar energy company, our 92.8% interest in CityCom Solar, a marketer of community solar and alternative products and services complimentary to our energy offerings, and our 96.0% interest in Diversegy, our energy procurement advisor.

Current wording

GREW primarily consists ofa 95.5% interest in Genie Solar, an integrated solar energy company that develops, constructs and operates utility-scale solar energy projects, a 92.8% interest in CityCom Solar, a marketer of community solar and alternative products and services complimentary to our energy offerings, and a 96.0% interest in Diversegy, our energy procurement advisorfor industrial, commercial and municipal customers.

Previous wording

As a result of volatility in the energy market in Europe, in the third quarter of 2022, we decided to discontinue the operations of Lumo Energia Oyj ("Lumo Finland") and Lumo Energi AB ("Lumo Sweden"). In July 2022, the Company entered into a series of transactions to sell most of theelectricity swap instruments held by Lumo Sweden. The sale price is to be settled monthly based on the monthly commodity volume specified in the instruments from September 2022 to March 2025. The Company also entered into a series of transactions to transfer the customers of Lumo Finland and Lumo Sweden to other suppliers.

Current wording

As a result of volatility in the energy market in Europe, in the third quarter of 2022, we decided to discontinue the operations of Lumo Energia Oyj ("Lumo Finland") and Lumo Energi AB ("Lumo Sweden"). In July 2022, the Company entered into a series of transactions to sell most of theelectricity swap instruments held by Lumo Sweden. The sale price is to be settled monthly based on the monthly commodity volume specified in the instruments from September 2022 to March 2025.

Previous wording

We determined that the discontinuance of operations of Lumo Finland and Lumo Sweden represented a strategic shift that would have a major effect on our operations and financial statements. We account for these businesses as discontinued operationsand accordingly, present the results of operations and related cash flows as discontinued operations for all periods presented. Any remaining assets and liabilities of the discontinued operations are presented separately and are reflected within assets and liabilities from discontinued operations in the accompanying consolidated balance sheets as of September 30, 2024 and December 31, 2023. Lumo Sweden are continuing to liquidate its remaining receivables and to settle any remaining liabilities.

Current wording

We account for these businesses as discontinued operationsand accordingly, present the results of operations and related cash flows as discontinued operations for all periods presented. Any remaining assets and liabilities of the discontinued operations are presented separately and are reflected within assets and liabilities from discontinued operations in the accompanying consolidated balance sheets as of March 31, 2025 and December 31, 2024. Lumo Sweden are continuing to liquidate its remaining receivables and to settle any remaining liabilities.

Previous wording

Net loss from discontinued operations of Lumo Finland and Lumo Sweden, net of taxes was minimal and $0.3 million for the three months ended September 30, 2024 and 2023, respectively. Net loss from discontinued operations of Lumo Finland and Lumo Sweden, net of taxes was $0.4 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively.

Current wording

Net loss from discontinued operations of Lumo Finland and Lumo Sweden, net of taxes was $0.1 million and $0.3 million for the three months ended March 31, 2025 and 2024, respectively.

Previous wording

On November 8, 2023, the Lumo Administrators, acting on behalf of the Bankruptcy Estate, filed a claim in the District Court of Helsinki against Genie Nordic, its directors, officers and affiliates, in which it alleges that the gain from the sale of swap instruments owned by Lumo Sweden amounting to €35.2 million (equivalent to $39.2 million as of September 30, 2024) belongs to the Bankruptcy Estate. The Bankruptcy Estate filed an additional claim with the District Court on May 27, 2024 against Lumo Sweden for €4.8 million (equivalent to $5.3 million as of September 30, 2024), also alleging that the gain from the sale of the swap instruments belongs to the Bankruptcy Estate, bringing the aggregate sum of claims related to the gain from sale of swap instruments to €40.0 million (equivalent to $44.5 million as of September 30, 2024). The Company believes that the Lumo Administrators' position is without merit, and it intends to vigorously defend its position.

Current wording

On November 8, 2023, the Lumo Administrators, acting on behalf of the Bankruptcy Estate, filed a claim in the District Court of Helsinki against Genie Nordic, its directors, officers and affiliates, in which it alleges that the gain from the sale of swap instruments owned by Lumo Sweden amounting to €35.2 million (equivalent to $38.1 million as of March 31, 2025) belongs to the Bankruptcy Estate. The Bankruptcy Estate filed an additional claim with the District Court on May 27, 2024 against Lumo Sweden for €4.8 million (equivalent to $5.2 million as of March 31, 2025), also alleging that the gain from the sale of the swap instruments belongs to the Bankruptcy Estate, bringing the aggregate sum of claims related to the gain from sale of swap instruments to €40.0 million (equivalent to $43.3 million as of March 31, 2025). The Company believes that the Lumo Administrators' position is without merit, and it intends to vigorously defend its position.

Previous wording

We have also been notified that the Lumo Administrators filed a claim againstone of Lumo Finland’s suppliers, seeking to recover payments made by Lumo Finland amounting to €4.2 million (equivalent to $4.7 million as of September 30, 2024) prior to the bankruptcy. Related to such payment, the Lumo Administrators have filed a recovery claim jointly against us and the supplier for €1.6 million (equivalent to $1.8 million as of September 30, 2024) alleging that a portion of the payment by Lumo Finland effectively reduced our liability under the terms of a previously supplied parental guarantee(this €1.6 is included within and not additive to the €4.2 million). The Lumo Administrators allege that the payments represented preferential payments and therefore belong to the bankruptcy estate which are recoverable under the laws of Finland. We intend to challenge the Lumo Administrators' claims. Nevertheless, should the Lumo Administrators succeed in clawing back the funds from the supplier, it is possible that the supplier will seek to recover its losses against us, under terms of the parental guarantee. At this time there is insufficient basis to assess an amount of any probable loss.

Current wording

We have also been notified that the Lumo Administrators filed a claim againstone of Lumo Finland’s suppliers, seeking to recover payments made by Lumo Finland amounting to €4.2 million (equivalent to $4.5 million as of March 31, 2025) prior to the bankruptcy. Related to such payment, the Lumo Administrators have filed a recovery claim jointly against us and the supplier for €1.6 million (equivalent to $1.7 million as of March 31, 2025) alleging that a portion of the payment by Lumo Finland effectively reduced our liability under the terms of a previously supplied parental guarantee(this €1.6 is included within and not additive to the €4.2 million). The Lumo Administrators allege that the payments represented preferential payments and therefore belong to the bankruptcy estate which are recoverable under the laws of Finland. We intend to challenge the Lumo Administrators' claims. Nevertheless, should the Lumo Administrators succeed in clawing back the funds from the supplier, it is possible that the supplier will seek to recover its losses against us, under terms of the parental guarantee. At this time there is insufficient basis to assess an amount of any probable loss.

Previous wording

GRE operates REPs that resell electricity and/or natural gas to residential and small business customers in Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Texas, Rhode Island, and Washington, D.C. GRE’s revenues represented approximately 94.5% and 94.6% of our consolidated revenues in thethree and nine months ended September 30, 2024, respectivelyand 96.2% and 96.2% of our consolidated revenues in thethree and nine months ended September 30, 2023, respectively.

Current wording

GRE operates REPs that resell electricity and/or natural gas to residential and small business customers in California. Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Texas, Rhode Island, and Washington, D.C. GRE’s revenues represented approximately 96.8% and 94.0% of our consolidated revenues in thethree months ended March 31, 2025 and March 31, 2024, respectively.

Previous wording

The weather and the seasons, among other things, affect GRE’s REPs' revenues. Weather conditions have a significant impact on the demand for natural gas used for heating and electricity used for heating and cooling. Typically, colder winters increase demand for natural gas and electricity, and hotter summers increase demand for electricity. Milder winters and/or summers have the opposite effects. Unseasonable temperatures in other periods may also impact demand levels. Potential changes in global climate may produce, among other possible conditions, unusual variations in temperature and weather patterns, resulting in unusual weather conditions, more intense, frequent and extreme weather events and other natural disasters. Some climatologists believe that these extreme weather events will become more common and more extreme, which will have a greater impact on our operations. Natural gas revenues typically increase in the first quarter due to increased heating demands and electricity revenues typically increase in the third quarter due to increased air conditioning use. Approximately 48.1% and 39.7% of GRE’s natural gas revenues for the relevant years were generated in the first quarter of 2023 and 2022 respectively, when demand for heating was highest. Although the demand for electricity is not as seasonal as natural gas (due, in part, to usage of electricity for both heating and cooling), approximately 32.5% and 30.5% of GRE’s electricity revenues for 2023 and 2022 respectively, were generated in the third quarters of those years. GRE's REP's revenues and operating income are subject to material seasonal variations, and the interim financial results are not necessarily indicative of the estimated financial results for the full year. In addition, extraordinary weather has and can lead to extreme spikes in the prices of wholesale electricity and natural gas in markets where GRE and other retail providers purchase their supply, or in challenges to the grid or supply markets in affected areas. Such events could have material impacts on our margins and operations.

Current wording

The weather and the seasons, among other things, affect GRE’s REPs' revenues. Weather conditions have a significant impact on the demand for natural gas used for heating and electricity used for heating and cooling. Typically, colder winters increase demand for natural gas and electricity, and hotter summers increase demand for electricity. Milder winters and/or summers have the opposite effects. Unseasonable temperatures in other periods may also impact demand levels. Potential changes in global climate may produce, among other possible conditions, unusual variations in temperature and weather patterns, resulting in unusual weather conditions, more intense, frequent and extreme weather events and other natural disasters. Some climatologists believe that these extreme weather events will become more common and more extreme, which will have a greater impact on our operations. Natural gas revenues typically increase in the first quarter due to increased heating demands and electricity revenues typically increase in the third quarter due to increased air conditioning use. Approximately 43.0% and 48.1% of GRE’s natural gas revenues for the relevant years were generated in the first quarter of 2023 and 2022 respectively, when demand for heating was highest. Although the demand for electricity is not as seasonal as natural gas (due, in part, to usage of electricity for both heating and cooling), approximately 28.7% and 32.5% of GRE’s electricity revenues for 2023 and 2022 respectively, were generated in the third quarters of those years. GRE's REP's revenues and operating income are subject to material seasonal variations, and the interim financial results are not necessarily indicative of the estimated financial results for the full year. In addition, extraordinary weather has and can lead to extreme spikes in the prices of wholesale electricity and natural gas in markets where GRE and other retail providers purchase their supply, or in challenges to the grid or supply markets in affected areas. Such events could have material impacts on our margins and operations.

Previous wording

Utility companies offer purchase of receivable, or POR, programs in most of the service territories in which GRE operates. GRE’s REPs reduce their customer credit risk by participating in POR programs for a majority of their receivables. In addition to providing billing and collection services, utility companies purchase those REPs’ receivables and assume all credit risk without recourse to those REPs. GRE’s REPs’ primary credit risk is therefore nonpayment by the utility companies. In thethree and nine months ended September 30, 2024 the associated cost was approximately 1.3% of GRE's revenueand approximately 3.5% of GRE's revenue for thethree and nine months ended September 30, 2023. At September 30, 2024 and December 31, 2023,80.2% and 84.4% , respectively, of GRE’s net accounts receivable were under POR programs. Certain of the utility companies represent significant portions of our consolidated revenues and consolidated gross trade accounts receivable balance during certain periods, and such concentrations increase our risk associated with nonpayment by those utility companies.

Current wording

Utility companies offer purchase of receivable, or POR, programs in most of the service territories in which GRE operates. GRE’s REPs reduce their customer credit risk by participating in POR programs for a majority of their receivables. In addition to providing billing and collection services, utility companies purchase those REPs’ receivables and assume all credit risk without recourse to those REPs. GRE’s REPs’ primary credit risk in these jurisdictions is therefore nonpayment by the utility companies. In thethree months ended March 31, 2025 the associated cost was approximately 1.2% of GRE's revenueand approximately 1.0% of GRE's revenue for thethree months ended March 31, 2024. At March 31, 2025 and December 31, 2024,83.0% and 83.6% , respectively, of GRE’s net accounts receivable were under POR programs.

Previous wording

See Note 19, Commitments and Contingencies*,* in this Quarterly Report on Form 10-Q, which is incorporated by reference.

Current wording

See Note 19, Commitments and Contingencies*,* in the Notes to Consolidated Firnancial Statements in this Quarterly Report on Form 10-Q, which is incorporated by reference.

Previous wording

Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our significant accounting policies are described in Note 1 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as the disclosure of contingent assets and liabilities. Critical accounting policies are those that require the application of management’s most subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. Our critical accounting policies include those related to revenue recognition, allowance for doubtful accounts, acquisitions, goodwill, and income taxes. Management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. For additional discussion of our critical accounting policies, see our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our significant accounting policies are described in Note 1 to our consolidated financial statements included in the 2024 Form 10-K. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as the disclosure of contingent assets and liabilities. Critical accounting policies are those that require the application of management’s most subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. Our critical accounting policies include those related to revenue recognition, allowance for doubtful accounts, acquisitions, goodwill, and income taxes. Management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. For additional discussion of our critical accounting policies, see our Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Form 10-K.

Previous wording

Information regarding new accounting pronouncements is included in Note 21—Recently Issued Accounting Standards, to the current period’s consolidated financial statements.

Current wording

Information regarding new accounting pronouncements is included in Note 21—Recently Issued Accounting Standards, in the Notes to Consolidated Financial Statement in this Quarterly Report on Form 10-Q, which is incorporated by reference.

Previous wording

Three and Nine Months Ended September 30, 2024 Compared to Three and Nine Months Ended September 30, 2023

Current wording

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Previous wording

Electricity revenues slightly decreased by 0.1% in thenine months ended September 30, 2024 compared to the same period in 2023. The decrease was due to a decrease inin the average price per kilowatt hour charged to customers partially offset by an increase in electricity consumption in thenine months ended September 30, 2024 compared to the same period in 2023. The average rate per kilowatt hour sold decreased by 2.6% in thenine months ended September 30, 2024 compared to the same period in 2023 due to general market conditions. Electricity consumption by GRE’s REPs' customers increased by 2.6% in thenine months ended September 30, 2024, compared to the same period in 2023 reflecting a 3.6% increase in the average number of meters served partially offset by a 0.4% decrease in average consumption per meter. The increase in meters served was driven by strong customer acquisitions during the third quarter of 2024. Electricity consumption per meter decreased in thenine months ended September 30, 2024 compared to the same period in 2023 due to cooler than usual weather during the 2024 summer cooling season and standard fluctuations in customer consumption patterns.

Current wording

Revenues. Electricity revenues increased by 16.4% in the three months ended March 31, 2025 compared to the same period in 2024. The increase was due to an increase in electricity consumption partially offset by an decrease in the average price per kilowatt hour charged to customers in the three months ended March 31, 2025 compared to the same period in 2024. Electricity consumption by GRE’s REPs' customers increased by 23.5% in thethree months ended March 31, 2025, compared to the same period in 2024, reflecting 16.9% and 5.6% increases in the average number of meters served and average consumption per meter, respectively. The increase in meters served was driven by strong customer acquisitions during 2024 and first quarter of 2025. The increased in per meter consumption in thethree months ended March 31, 2025 compared to the same period in 2024 was due to ashift in customer mix into higher consumption territories. The average rate per kilowatt hour sold decreased by 5.7% in the three months ended March 31, 2025 compared to the same period in 2024 due to general market conditions and the addition of meters on lower margin aggregation products.

Previous wording

Natural gas revenues increased by 1.3% in the three months ended September 30, 2024 compared to the same period in 2023. The increase was a result of an increasein natural gas consumption partially offset by a decreasein average revenue per therm soldin thethree months ended September 30, 2024 compared to the same period in 2023. Natural gas consumption by GRE’s REPs’ customers increased by 4.3% in the three months ended September 30, 2024 compared to the same period in 2023, reflecting a 6.9% increase in average meters served, partially offset by a 2.4% decrease in average consumption per meter. The increase in meters served was due to high levels of customer acquisitions in thethree months ended September 30, 2024. The average revenue per therm sold decreased by 2.9% in the three months ended September 30, 2024, compared to the same period in 2023 due to general market conditions.

Current wording

Natural gas revenues increased by 26.8% in the three months ended March 31, 2025 compared to the same period in 2024. The increase was a result of increasesin natural gas consumptionandin average revenue per therm soldin thethree months ended March 31, 2025 compared to the same period in 2024. Natural gas consumption by GRE’s REPs’ customers increased by 21.4% in the three months ended March 31, 2025 compared to the same period in 2024, reflecting 7.7% and 12.7% increases in average meters served and average consumption per meter, respectively. The increase in meters served was due to high levels of customer acquisitions in in 2024 and first quarter of 2025. The increase in per meter consumption is due, in part, to colder weather in our service areas in thethree months ended March 31, 2025 compared to the same period in 2024. The average revenue per therm sold increased by 4.5% in the three months ended March 31, 2025, compared to the same period in 2024 due to general market conditions.

Previous wording

Other revenues in thethree and nine months ended September 30, 2024 and 2023 included revenues from the sale of petroleum products in Israel and customer termination fees from commercial customers.

Current wording

Other revenues in thethree months ended March 31, 2025 included revenues from customer termination fees from commercial customers. Other revenues in the three months ended March 31, 2024 included revenues from the sale of petroleum products in Israel.

Previous wording

Gross meter acquisitions in thethree months ended September 30, 2024, were 104,000 compared to 60,000 for the same period in 2023. Gross meter acquisitions in thenine months ended September 30, 2024, were 234,000 compared to 264,000 for the same period in 2023. In the first quarter of 2023, we resumed customer acquisition activities using a variety of new and existing channels after a "strategic pause" implemented from the fourth quarter of 2021 through 2022. The gross meter acquisition for thethree months ended September 30, 2024 increased compared to the same period in 2023 due to a significant customer aggregation deal that started in September 2024. The gross meter acquisitions for thenine months ended September 30, 2024 decreased compared to the same periods in 2023 as customer acquisition efforts returned to historically normalized level.

Current wording

Gross meter acquisitions in thethree months ended March 31, 2025, were 61,000 compared to 70,000 for the same period in 2024.

Previous wording

Cost of revenues for electricity decreased in thethree months ended September 30, 2024 compared to the same period in 2023 primarily because of a decrease inthe electricity consumption by GRE’s REPs’ customers partially offset by an increase in theaverage unit cost of electricity. The average unit cost of electricity increased 2.0% in thethree months ended September 30, 2024 compared to the same period in 2023 due to an increase in the average wholesale price of electricity. The gross margin on electricity sales decreased in thethree months ended September 30, 2024 compared to the same period in 2023 because the average unit cost of electricity increased more than theaverage rate charged to customers. The decrease in gross margin is due to the change in the mix type of customers in thethree months ended September 30, 2024 compared to the same periods in 2023.

Current wording

Cost of revenues for electricity increased in thethree months ended March 31, 2025 compared to the same period in 2024 primarily because of an increase inelectricity consumption by GRE’s REPs’ customers combined with an increase in theaverage unit cost of electricity. The average unit cost of electricity decreased 1.5% in thethree months ended March 31, 2025 compared to the same period in 2024 due to general market conditions. The gross margin on electricity sales decreased in thethree months ended March 31, 2025 compared to the same period in 2024 because the average rate charged to customers decreased more than theunit cost of electricity.

Previous wording

Cost of revenues for natural gas decreased in the three months ended September 30, 2024 compared to the same period in 2023 primarily because of a decrease in the average unit cost of natural gas partially offset by an increase in thenatural gas consumption by GRE's REPs' customers. The average unit cost of natural gas decreased by 13.7% per therm in thethree months ended September 30, 2024 compared to the same period in 2023 due to a decrease in the wholesale price of natural gas. Gross margin on natural gas sales increased in the three months ended September 30, 2024 compared to the same period in 2023 because theaverage unit cost of natural gas increased more than the increase in theaverage rate charged to customers.

Current wording

Cost of revenues for natural gasincreased in thethree months ended March 31, 2025 compared to the same period in 2024 primarily because of an increase in thenatural gas consumption by GRE's REPs' customers partially offset by a decrease in the average unit cost of natural gas. The average unit cost of natural gas decreased 1.5% in thethree months ended March 31, 2025 compared to the same period in 2024 due to a decrease in the wholesale price of natural gas. Gross margin on natural gas sales increased in thethree months ended March 31, 2025 compared to the same period in 2024 because of an increase inthe average rate charged to customers and a decrease in theaverage unit cost of natural gas.

Previous wording

Selling, General and Administrative. Selling, general and administrative expenses increased by 10.1% in thethree months ended September 30, 2024 compared to the same period in 2023 primarily due to increases in marketing and customer acquisition costs, management fees, POR program fees and processing fees partially offset by a decrease in employee-related expenses. Marketing and customer acquisition expenses increased by $0.9 million in thethree months ended September 30, 2024 compared to the same period in 2023 as a result of an increase in the number of meters acquired during the 2024 period. Management fees increased by $0.5 million in thethree months ended September 30, 2024 compared to the same period in 2023 as a result of a favorable results in Mirabito. POR program fees increased by$0.1 million in thethree months ended September 30, 2024 compared to the same period in 2023 as a result of changes in rates implemented by several utilities. Processing fees increased by $0.5 million in thethree months ended September 30, 2024 compared to the same period in 2023 as a result of an increase in meters served with billing fees incurred by GRE. Employee-related expenses decreased by $0.5 million in thethree months ended September 30, 2024 compared to the same period in 2023 primarily due to a decrease in bonus accrual. As a percentage of GRE’s total revenues, selling, general and administrative expense increased from 15.7% in thethree months ended September 30, 2023 to 19.6% in thethree months ended September 30, 2024.

Current wording

Selling, General and Administrative. Selling, general and administrative expenses increased by 6.2% in thethree months ended March 31, 2025 compared to the same period in 2024 primarily due to increases inemployee-related expenses, regulatory-related expenses, POR program fees and processing fees andmarketing and customer acquisition costs. Employee-related expenses increased by $0.5 million in thethree months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in bonus accrual. Regulatory-related expenses increased by $0.4 million in thethree months ended March 31, 2025 compared to the same period in 2024 primarily due to increased operational activity levels. Marketing and customer acquisition expenses increased by $0.2 million in thethree months ended March 31, 2025 compared to the same period in 2024 as a result of continued effort to acquire meters during the 2025 period. POR program fees increased by$0.3 million in thethree months ended March 31, 2025 compared to the same period in 2024 as a result of increase in level of operational activity and changes in rates implemented by several utilities. Bad debt expense decreased by $0.4 million in thethree months ended March 31, 2025 compared to the same period in 2024 as a result of an improvement of collection of non-POR customers. As a percentage of GRE’s total revenues, selling, general and administrative expense decreased from 16.0% in thethree months ended March 31, 2024 to 14.4% in thethree months ended March 31, 2025.

Previous wording

The Genie Renewables (formerly GES) segment is composed of Genie Solar, CityCom Solar and Diversegy. Genie Solar is an integrated solar energy company that develops, constructs and operates solar energy projects. CityCom Solar is a marketer of community solar and alternative products and services complementary to our energy offerings. Diversegy provides energy procurement advisory services to commercial and industrial customers.

Current wording

The Genie Renewables (formerly GES) segment is primarily composed of Genie Solar, CityCom Solar and Diversegy. Genie Solar is an integrated solar energy company that develops, constructs and operates solar energy projects. CityCom Solar is a marketer of community solar and alternative products and services complementary to our energy offerings. Diversegy provides energy procurement advisory services to commercial and industrial customers.

Previous wording

*Revenue.*Genie Renewables' revenues increased in thethree and nine months ended September 30, 2024 compared to the same periods in 2023. The increase in revenues were the result of increases from Diversegy that includes commissions, entry fees and other fees revenue contributions from the portfolio of operating solar projects at Genie Solar and revenues from the development of solar projects for customers from Genie Solar partially offset by a decrease in revenues from commissions from selling alternative products and services to customers by CityCom Solar.

Current wording

*Revenue.*GREW's revenues decreased in thethree months ended March 31, 2025 compared to the same periods in 2024 due to decreases in revenues generated by Genie Solar from the development of solar projects for customers and from commissions from selling alternative products and services to customers by CityCom Solar, partially offset by an increase in revenue from Diversegy that includes commissions, entry fees and other fees revenue. Revenues from Genie Solar decreased by $3.5 million in thethree months ended March 31, 2025 compared to the same period of 2024 as we shifted our strategic focus from lower margin commercial projects to the development and operation of utility-scale projects. Revenues from CityCom Solar decreased by $0.8 million in thethree months ended March 31, 2025 compared to the same period in 2024 as a result of reduced level of activity for the past few quarters. Revenues from Diversegy increased by $1.3 million in thethree months ended March 31, 2025 compared to the same period in 2024 as strong growth in the number of customers and transactions in the past several quarters.

Previous wording

As discussed above, the remaining accounts of GRE International were transferred to corporate starting in the third quarter of 2022. (when GRE International ceased being treated as a separate segment). Entities under corporate do not generate any revenues, nor does it incur any cost of revenues. Corporate costs include unallocated compensation, consulting fees, legal fees, business development expense and other corporate-related general and administrative expenses.

Current wording

As discussed above, the remaining accounts of GRE International were transferred to corporate starting in the third quarter of 2022. (when GRE International ceased being treated as a separate segment). Entities under corporate do not generate any revenues, nor do they incur any cost of revenues. Corporate general and administrative expenses include unallocated compensation, consulting fees, legal fees, business development expense and other corporate-related general and administrative expenses.

Previous wording

Corporate general and administrative expenses slightly increased in thethree months ended September 30, 2024 compared to the same period in 2023. Corporate general and administrative expenses decreased in thenine months ended September 30, 2024 compared to the same period in 2023 primarily because of decreases in employee-related cost and professional and consulting fees. As a percentage of our consolidated revenues, Corporate general and administrative increased to 1.9% in thethree months ended September 30, 2024 from 1.6% in thethree months ended September 30, 2023 and decreased to 2.1% in thenine months ended September 30, 2024 from 2.5% in thenine months ended September 30, 2023.

Current wording

Corporate general and administrative expenses decreased in thethree months ended March 31, 2025 compared to the same period in 2024 primarily because of decrease in consultation and professional fees. As a percentage of our consolidated revenues, Corporate general and administrative expenses decreased to 1.8% in thethree months ended March 31, 2025 from 2.3% in thethree months ended March 31, 2024.

Previous wording

In December 2023, we established a wholly-owned captive insurance subsidiary (the "Captive") with the primary purpose of enhancing our risk financing strategies. In December 2023, we paid $51.2 million premiums to Captive, which amount is included in restricted cash in our consolidated balance sheet as of December 31, 2023. The Captive must maintain a sufficient level of cash to fund future reserve payment and secure the insurer's liabilities, particularly those related to the insured risks. We also recognized $1.0 and $ $2.7 million provision for captive insurance liability for the three andnine months ended September 30, 2024 related to Captive's exposure for the insured risks.

Current wording

In 2024, we paid $39.6 million premiums to Captive, which amount is included in restricted cash in our consolidated balance sheet as of March 31, 2025 and December 31, 2024. The Captive must maintain a sufficient level of cash to fund future reserve payment and secure the insurer's liabilities, particularly those related to the insured risks. We also recognized $0.6 million and $1.0 million provision for captive insurance liability for thethree months ended March 31, 2025 and 2024, respectively, related to Captive's exposure for the insured risks.

Previous wording

Selling, general and administrative expenses. Stock-based compensation expense included in consolidated selling, general and administrative expenses was $0.6 million for each of thethree months ended September 30, 2024 and 2023 respectively, and$1.8 million and$2.3 million for thenine months ended September 30, 2024 and 2023. At September 30, 2024, the aggregate unrecognized compensation cost related to non-vested stock-based compensation was $6.5 million. The unrecognized compensation cost is recognized over the expected vesting period.

Current wording

Selling, general and administrative expenses. Stock-based compensation expense included in consolidated selling, general and administrative expenses was $0.7 million for each of thethree months ended March 31, 2025 and$0.9 million for thethree months ended March 31, 2024. At March 31, 2025, the aggregate unrecognized compensation cost related to non-vested stock-based compensation was $5.9 million. The unrecognized compensation cost is recognized over the expected vesting period.

Previous wording

Interest income. Interest income increased in thethree and nine months ended September 30, 2024, compared to the same periods in 2023 primarily due to increase in average balances of cash and cash equivalents and restricted cash during the period.

Current wording

Interest income. Interest income increased in thethree months ended March 31, 2025, compared to the same periods in 2024 primarily due to increase in average balances of cash and cash equivalents and restricted cash during the period.

Previous wording

Other Income, net. Other income, netin the three months ended September 30, 2024 and 2023 and in thenine months ended September 30, 2024 and 2023 consisted primarily offoreign currency transactions and equity in net loss in equity method investees. Other income (loss) income, net, in thethree months ended September 30, 2023 consisted primarily of a one-time tax credit related to payroll taxes incurred in prior years.

Current wording

Other Income, net. Other income, netin the three months ended March 31, 2025 and 2024 consisted primarily offoreign currency transactions.

Previous wording

Provision for Income Taxes. The change in the reported tax rate for thethree and nine months ended September 30, 2024 compared to the same periods in 2023 is the result of changes in the mix of jurisdictions in which taxable income was earned.

Current wording

Provision for Income Taxes. The change in the reported tax rate for thethree months ended March 31, 2025 compared to the same periods in 2024 is the result of changes in the mix of jurisdictions in which taxable income was earned and the nature of certain deductions.

Previous wording

Net Loss Attributable to Noncontrolling Interests. The decreases in net loss attributable to noncontrolling interests in thethree and nine months ended September 30, 2024 compared to the same periods in 2023 was primarily due to the share of noncontrolling interest in the operations of Citizens Choice Energy.

Current wording

Net (Loss) Income Attributable to Noncontrolling Interests. The decreases in net loss attributable to noncontrolling interests in thethree months ended March 31, 2025 compared to the same periods in 2024 was primarily due to the share of noncontrolling interest in the operations of Citizens Choice Energy.

Previous wording

Gain on Marketable Equity Securities and Investments. The gain on marketable equity securities and investment for thethree and nine months ended September 30, 2024 pertains to the change in fair value of the Company's investments in common stock of Rafael which the Company acquired in December 2020 and various investments in equity of several entities.

Current wording

Gain on Marketable Equity Securities and Investments. The gain on marketable equity securities and investment for thethree months ended March 31, 2025 pertains to the change in fair value of the Company's investments in various investments in equity of several entities.

Previous wording

Net (loss) income from Discontinued Operations, net of tax. Loss from discontinued operations, net of tax in thethree and nine months ended September 30, 2024 is mainly related to foreign exchange differences in Lumo Sweden during the period. Gain from discontinued operations, net of tax in thethree and nine months ended September 30, 2024 is mainly from an increase in the estimated value of our investments in Orbit and foreign exchange differences in Lumo Sweden.

Current wording

Net loss from Discontinued Operations, net of tax. Loss from discontinued operations, net of tax in thethree months ended March 31, 2025 and 2024 is mainly related to foreign exchange differences in Lumo Sweden during the periods.

Previous wording

We currently expect that our cash flow from operations and the $136.3 million balance of unrestricted cash and cash equivalents that we held at September 30, 2024 will be sufficient to meet our anticipated cash requirements for at least the period to November 7, 2025.

Current wording

We currently expect that our cash flow from operations and the $112.5 million balance of unrestricted cash and cash equivalents that we held at March 31, 2025 will be sufficient to meet our anticipated cash requirements for at least the period to May 9, 2026.

Previous wording

At September 30, 2024, we had working capital (current assets less current liabilities) of $138.8 million.

Current wording

At March 31, 2025, we had working capital (current assets less current liabilities) of $121.2 million.

Previous wording

Cash, cash equivalents and restricted cash provided by operating activities of continuing operations was $6.3 million in the nine months ended September 30, 2024 compared tonet cash used in operating activities of continuing operations of $32.6 million in thenine months ended September 30, 2023. The decrease is due primarily to the fluctuation in the results of operations in the nine months ended September 30, 2024 compared to the same period in 2023.

Current wording

Cash, cash equivalents and restricted cash provided by operating activities of continuing operations was $13.5 million in the three months ended March 31, 2025 compared tonet cash used in operating activities of continuing operations of $8.7 million in thethree months ended March 31, 2024. The improvement in cash flows is due primarily to the fluctuation in the results of operations in the three months ended March 31, 2025 compared to the same period in 2024.

Previous wording

Our cash flow from operations varies significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash receipts and payments, specifically trade accounts receivable and trade accounts payable. Changes in assets and liabilities decreased cash flows by $24.5 million for the three months ended September 30, 2024, compared to the same period in 2023.

Current wording

Our cash flow from operations varies significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash receipts and payments, specifically trade accounts receivable and trade accounts payable. Changes in assets and liabilities increased cash flows by $4.2 million for the three months ended March 31, 2025, compared to the same period in 2024.