Q2 2026 Genie Energy Ltd Earnings Call

August 6, 2026

Speaker #1: Good morning, and welcome to the Genie Energy Ltd's second quarter 2026 earnings call. In today's presentation, Genie Energy Management will discuss Genie's financial and operational results, for the three months ended June 30, 2026.

Operator: Good morning, and welcome to the Genie Energy Limited's Q2 2026 Earnings Call. In today's presentation, Genie Energy management will discuss Genie's financial and operational results for the three months ended 30 June 2026. During prepared remarks by Genie Energy's Chief Executive Officer, Michael Stein, and Chief Financial Officer, Avi Goldin, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After Avi Goldin's remarks, Michael and Avi will take questions from investors. Any forward-looking statements made during this conference call, either in the prepared remarks or in Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates.

Speaker #1: During prepared remarks by Genie Energy's Chief Executive Officer, Michael Stein, and Chief Financial Officer, Avi Goldin, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero.

Speaker #1: After Avi Goldin's remarks, Michael and Avi will take questions from investors. Any forward-looking statement made during this conference call, either in the prepared remarks or in Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates.

Speaker #1: These risks and uncertainties include but are not limited to the specific risks and uncertainties discussed in the report that Genie Energy files periodically with the SEC.

Operator: These risks and uncertainties include, but are not limited to, the specific risks and uncertainties discussed in the reports that Genie Energy files periodically with the SEC. Genie Energy assumes no obligation either to update any forward-looking statements that they may have made or may make, or to update the factors that may cause actual results to differ materially from those that they forecast. In their presentation or in the Q&A session, Genie Energy's management may refer to adjusted EBITDA and other non-GAAP measures. A schedule provided in the Genie Energy earnings release reconciles adjusted EBITDA to the nearest corresponding GAAP measures. Please note that the Genie Energy earnings release is available on the investor relations page of the Genie website. The earnings release has also been filed on Form 8-K with the SEC. I will now turn the conference over to Michael Stein.

Speaker #1: Genie Energy assumes no obligation either to update any forward-looking statements that they may have made, or may make, or to update the factors that may cause actual results to differ materially from those that they forecast.

Speaker #1: In their presentation or in the Q&A session, Genie Energy's management may refer to adjusted EBITDA and other non-GAAP measures. A schedule provided in the Genie Energy earnings release reconciles adjusted EBITDA to the nearest corresponding GAAP measures.

Speaker #1: Please note that the Genie Energy earnings release is available on the investor relations page of the Genie website. The earnings release has also been filed on Form 8K with the SEC.

Speaker #1: I will now turn the conference over to Michael Stein.

Speaker #2: Thank you, operator. In the second quarter, Genie delivered strong bottom-line results in both operating segments while continuing to invest in growth opportunities across our businesses and returned value to shareholders.

Michael Stein: Thank you, operator. In the Q2, Genie delivered strong bottom-line results in both operating segments while continuing to invest in growth opportunities across our businesses and return value to shareholders. At Genie Retail Energy, relatively normalized wholesale energy market conditions enabled us to achieve gross margin on a level comparable to our long-term historical average, and that drove a significant year-over-year improvement in our bottom-line results. GRE's top line declined 5%, primarily reflecting the expiration of aggregation deals over the past year. The deals typically generate low-margin revenue, so the impact of their expiration on our bottom line was minimal. At quarter end, we served 345,000 RCEs and 363,000 meters compared to 413,000 RCEs and 419,000 meters a year earlier.

Michael Stein: Thank you, operator. In the Q2, Genie delivered strong bottom-line results in both operating segments while continuing to invest in growth opportunities across our businesses and return value to shareholders. At Genie Retail Energy, relatively normalized wholesale energy market conditions enabled us to achieve gross margin on a level comparable to our long-term historical average, and that drove a significant year-over-year improvement in our bottom-line results. GRE's top line declined 5%, primarily reflecting the expiration of aggregation deals over the past year. The deals typically generate low-margin revenue, so the impact of their expiration on our bottom line was minimal. At quarter end, we served 345,000 RCEs and 363,000m compared to 413,000 RCEs and 419,000m a year earlier.

Speaker #2: At Genie Retail Energy, relatively normalized wholesale energy market conditions, enabled us to achieve gross margin on a level comparable to our long-term historical average, and that drove a significant year-over-year improvement in our bottom-line GRE's top-line decline 5% primarily reflecting the expiration of aggregation deals over the past year.

Speaker #2: The deals typically generate low margin revenue, so the impact of their expiration on our bottom line was minimal. At quarter-end, we served 345,000 RCEs and 363,000 meters, compared to 413,000 RCEs and 419,000 meters a year earlier.

Speaker #2: During the second quarter, we added 65,000 gross new customers, compared to 70,000 a year earlier. Total customer acquisition expense increased materially as we acquired a higher percentage of customers through higher cost of acquisition channels, and fewer through lower cost channels, we approached these low-cost channels opportunistically as they generate lower margin customers compared to higher cost channels.

Michael Stein: During Q2, we added 65,000 gross new customers compared to 70,000 a year earlier. Total customer acquisition expense increased materially as we acquired a higher percentage of customers through higher cost of acquisition channels and fewer through lower cost channels. We approach these low-cost channels opportunistically as they generate lower margin customers compared to higher cost channels. We allowed low-cost channel acquisition volumes to fluctuate depending on how competitive market rates compare to the incumbent utilities offerings. In Q2, with these low-cost channels underperforming, we increased our investment in acquisitions through higher cost channels, increasing our base of higher lifetime value customers and building a tailwind that we expect to positively impact the coming quarters.

Speaker #2: We allowed low-cost channel acquisition volumes to fluctuate depending on how competitive market rates compared to the incumbent utilities offerings. In the second quarter, with these low-cost channels underperforming, we increased our investment in acquisitions through higher cost channels, increasing our base of higher lifetime value customers, and building a tailwind that we expect to positively impact the coming quarters.

Speaker #2: Acquisitions through high-cost channels also enabled us to prioritize further diversification of our customer base through strong growth in some of our newer markets, including Texas Power Market and California's gas market.

Michael Stein: Acquisitions through high-cost channels also enabled us to prioritize further diversification of our customer base through strong growth in some of our newer markets, including Texas power market and California's gas market. At GRU, the top line was flat year-over-year. Contributions from our Diversegy energy brokerage and Genie Solar businesses enabled the segment to achieve positive EBITDA. Diversegy had a particularly strong quarter as it continues to execute its growth strategy. Both Diversegy and Genie Solar are on track to further expand their bottom lines in the coming quarters. Diversegy continues to build its book of business at a double-digit annualized growth rate. New business frequently entails upfront customer payments, growth from a cash perspective has been stronger than what is reflected in EBITDA.

Speaker #2: At Group, the top-line was flat year over year. However, contributions from our diversity energy brokerage and Genie Solar businesses enabled the segment to achieve positive EBITDA.

Speaker #2: Diversity had a particularly strong quarter as it continues to execute its growth strategy. Both diversity and Genie Solar are on track to further expand their bottom lines in the coming quarters.

Speaker #2: Diversity continues to build its book of business at a double-digit annualized growth rate. Even better, because new business frequently entails upfront customer payments, growth from a cash perspective has been stronger than what is reflected in EBITDA.

Speaker #2: Moreover, this new business will drive revenue growth for several years to come, as we earn revenue over the lifetime of the contracts. One of the key drivers for diversity's expansion has been our ability to leverage AI to optimize our customer acquisition efforts across channels.

Michael Stein: This new business will drive revenue growth for several years to come as we earn revenue over the lifetime of the contracts. One of the key drivers for Diversegy's expansion has been our ability to leverage AI to optimize our customer acquisition efforts across channels, analyzing the energy requirements of our customers and their industries so that we can tailor our offerings to meet their needs with greater precision. At Genie Solar, we turned on our second community solar project in New York State late in Q2, and that will positively impact results starting in Q3. GRU's Q2's results also reflected our continued investment in several early-stage growth initiatives, most notably at Roded. As we've discussed previously, Roded utilizes a patented recycling technology to manufacture useful plastic products from agricultural and other plastic waste. At Roded, we made terrific progress during the quarter.

Speaker #2: Analyzing the energy requirements of our customers and their industries so that we can tailor our offerings to meet their needs with greater precision. At Genie Solar, we turned on our second community solar project in New York State, late in the second quarter, and that will positively impact results starting in the third quarter.

Speaker #2: Group's second quarter's results also reflected our continued investment in several early-stage growth initiatives, most notably at Roded. As we've discussed previously, Roded utilizes a patented recycling technology to manufacture useful plastic products from agricultural and other plastic waste.

Speaker #2: At Roded, we made terrific progress during the quarter. The company continued to expand production in Israel to meet strong local demand for its pallet products.

Michael Stein: The company continued to expand production in Israel to meet strong local demand for its pallet products. In fact, we already are approaching the production capacity of our current facility and received a commitment from the Israeli Minister of Environmental Protection to underwrite a material portion of the cost of constructing a larger manufacturing plant. To diversify Roded's revenue, we are preparing to begin manufacturing of a second product utilizing the same recycled plastic feedstock. The company was certified as a producer of plastic credits through Verra's Plastic Waste Reduction Standard Program, a global platform to incentivize businesses to utilize the vast quantities of waste plastic that otherwise would end up in our oceans or our landfills. This certification will enable Roded to enhance profitability through the monetization of credits it receives for the plastic it collects and converts to finished product.

Speaker #2: In fact, we already are approaching the production capacity of our current facility, and we received a commitment from the Israeli Minister of Environment to underwrite a material portion of the cost of constructing a larger manufacturing plant.

Speaker #2: To diversify Roded's revenue, we are preparing to begin manufacturing a second product utilizing the same recycled plastic feedstock. Also, the company was certified as a producer of plastic credits through Verra's Plastic Waste Reduced Standard program.

Speaker #2: A global platform to incentivize businesses to utilize the vast quantities of waste plastic that otherwise would end up in our oceans or our landfills.

Speaker #2: This certification will enable Roded to enhance profitability through the monetization of credits it receives for the plastic it collects and converts to finished product.

Speaker #2: Looking a little further ahead, Roded is moving forward on an international expansion. The company has identified several potential manufacturing sites in the southeastern US and is now working to select the final site higher key managers and design the initial pallets it will offer for the North American market.

Michael Stein: Looking a little further ahead, Roded is moving forward on an international expansion. The company has identified several potential manufacturing sites in the southeastern US and is now working to select the final site, hire key managers, and design the initial pallets it will offer for the North American market. To wrap up at Genie Energy, for the balance of the year, we're looking to boost cash generation across GRE, Diversegy, and Genie Solar, make good on operational progress in our growth initiatives, and return value to shareholders through opportunistic stock purchases and our quarterly dividends. Now, I will turn the call over to Avi for his discussion of our financial results.

Speaker #2: To wrap up, at Genie boost cash generation across GRE, diversity and Genie Solar, make good on operational progress in our growth initiatives, and return value to shareholders through opportunistic stock purchases and our quarterly dividends.

Speaker #2: Now, I will turn the call over to Avi for his discussion of our financial results.

Speaker #3: Thank you, Michael, and thanks to everyone on the call for joining us this morning. My remarks today cover our financial results for the three-month ended June 30th, 2026.

Avi Goldin: Thank you, Michael, and thanks to everyone on the call for joining us this morning. My remarks today cover our financial results for the 3 months ended 30 June 2026. In my commentary, I'll compare the results for Q2 2026 to Q2 2025 to remove from consideration the seasonal factors that impact our results, particularly our retail energy business. Q2, which includes spring and the early stages of the summer cooling season, is typically characterized by moderate levels of electricity consumption and low levels of natural gas consumption. The quarter's financial results were highlighted by strong margin and adjusted EBITDA expansion at GRE and profitability at GRU, both of which helped to drive an increase in our consolidated bottom-line performance. Consolidated revenue in Q2 decreased 4.6% to $100.4 million.

Speaker #3: In my commentary, I'll compare the results for the second quarter of 2026 to the second quarter of 2025 to remove from consideration the seasonal factors that impact our results, particularly our retail energy business.

Speaker #3: The second quarter, which includes spring and the early stages of the summer cooling season, is typically characterized by moderate levels of electricity consumption and low levels of natural gas consumption.

Speaker #3: The quarter's financial results were highlighted by strong margin and adjusted EBITDA expansion in GRE and profitability at Group, both of which helped to drive an increase in our consolidated bottom line performance.

Speaker #3: Consolidated revenue in the second quarter decreased 4.6% to 100.4 million. GRE revenue decreased 4.9% to 94.1 million, as our customer base contracted through the expiration of low-margin aggregation deals.

Avi Goldin: GRE revenue decreased 4.9% to $94.1 million as our customer base contracted to the expiration of low margin aggregation deals. The resulting decrease in consumption was partially offset by increased revenue per unit sold for both electricity and natural gas. Sales of electricity, which contributed 89% of GRE's revenues, decreased 7% to $83.6 million. Kilowatt-hours sold decreased by 17%, while revenue per kilowatt-hour sold increased to 12%. Natural gas revenue decreased 16.2% to $10.6 million. Therms sold decreased 23%, while revenue per therms sold increased to 50%. At GRU, Q2 revenue was relatively unchanged at $6.3 million. Consolidated gross profit increased 43.4% to $33.7 million, while gross margin increased to 33.5%. At GRE, gross profit increased 42.2% to $30.3 million, and gross margin increased to 32.2%. GRE achieved a gross margin within historical range given normalized commodity market conditions.

Speaker #3: The resulting decrease in consumption was partially offset by increased revenue per unit sold for both electricity and natural gas. Sales of electricity, which contributed 89% of GRE's revenues, decreased 7% to 83.6 million.

Speaker #3: Kilowatt-hours sold decreased by 17%, while revenue per kilowatt-hour sold increased to 12%. Natural gas revenue decreased 16.2% to 10.6 million. Therms sold decreased 23%, while revenue per therms sold increased 50%.

Speaker #3: At Group, second quarter revenue was relatively unchanged at 6.3 million. Consolidated gross profit increased 43.4% to 33.7 million, while gross margin increased to 33.5%.

Speaker #3: At GRE, gross profit increased 42.2% to 30.3 million, and gross margin increased to 32.2%. GRE achieved a gross margin within historical range given normalized commodity market conditions.

Speaker #3: Note that the year-ago second quarter was impacted by unusually low natural gas profitability. At Group, gross profit increased 55% to 3.3 million, driven by each increased contributions from both diversity and Genie Solar to two more mature businesses within the segment, both of which are already generating cash.

Avi Goldin: Note that the year-ago Q2 was impacted by unusually low natural gas profitability. At GRU, gross profit increased 55% to $3.3 million, driven by increased contributions from both Diversegy and Genie Solar, the two more mature businesses within the segment, both of which are already generating cash. Consolidated SG&A increased 28% to $27.2 million, largely reflecting a mix shift of Genie Retail's customer acquisition channels towards higher per acquisition cost methods. Despite their higher costs up front, these channels typically generate customer cohorts with higher customer lifetime values. The gross profit increase at GRE drove a $4.3 million year-over-year increase in consolidated income from operations to $6.5 million and a $4.5 million increase in adjusted EBITDA to $7.5 million. At GRE, income from operations increased 108.3% to $8.3 million and adjusted EBITDA increased 96.7% to $8.7 million. Strong contributions from Diversegy and Genie Solar enabled GRE to achieve profitability.

Speaker #3: Consolidated SG&A increased 28% to 27.2 million, largely reflecting a mixed shift of Genie Retail's customer acquisition channels towards higher per-acquisition cost methods. Despite their higher costs upfront, these channels typically generate customer cohorts with higher customer lifetime values.

Speaker #3: The gross profit increase at GRE drove a $4.3 million year-over-year increase in consolidated income from operations to $6.5 million, and a $4.5 million increase in adjusted EBITDA to $7.5 million.

Speaker #3: At GRE, income from operations increased 108.3% to $8.3 million, and adjusted EBITDA increased 96.7% to $8.7 million. Strong contributions from Diversegy and Genie Solar enabled the group to achieve profitability.

Speaker #3: Income from operations increased to 100,000 dollars from a loss from operations of 200,000 a year earlier, and adjusted EBITDA increased to 300,000 from an adjusted EBITDA loss of 97,000 in the second quarter of 2025.

Avi Goldin: Income from operations increased to $100,000 from a loss from operations of $200,000 a year earlier, and adjusted EBITDA increased to $300,000 from an adjusted EBITDA loss of $97,000 in Q2 2025. Consolidated net income attributable to Genie common stockholders was $11.4 million or $0.42 per diluted share compared to $2.3 million or $0.09 per share a year earlier. Turning now to the balance sheet. At 30 June 2026, cash equivalents, long and short-term restricted cash and marketable equity securities totaled $204.3 million. Working capital was $199.6 million. Our net debt totaled $6.8 million, the largest component of which is the financing for our portfolio of operational solar arrays. We repurchased approximately 47,000 shares of our Class B common stock in Q2 for $659,000, and we paid our regular quarterly dividends, returning an additional $2 million directly to our stockholders.

Speaker #3: Consolidated net income attributable to Genie Common Stockholders was 11.4 million, or 43 cents per diluted share, compared to 2.3 million, or 9 cents per share a year earlier.

Speaker #3: Turning out of the balance sheet, at June 30th, 2026, cash, cash equivalents long and short-term restricted cash and marketable equity securities totaled 204.3 million.

Speaker #3: Working capital was 199.6 million. Our net debt totaled 6.8 million, the largest component of which is the financing for our portfolio of operational solar arrays.

Speaker #3: We repurchased approximately 47,000 shares of our Class B Common Stock in the second quarter for 659,000, and we paid our regular quarterly dividends, returning an additional 2 million dollars directly to our stockholders.

Speaker #3: Wrapping up, normalized energy market conditions helped us to restore margins at GRE to their long-term range. While Group generated positive EBITDA, even as we continued to invest in early-stage growth initiatives.

Avi Goldin: Wrapping up, normalized energy market conditions helped us to restore margins at GRE to their long-term range. While GRE generated positive EBITDA, even as we continue to invest in early-stage growth initiatives. The improved performances helped us significantly enhance our profitability, while our balance sheet remains strong with robust levels of cash and minimal debt. Operator, back to you for Q&A.

Speaker #3: The improved performances helped us significantly enhance our profitability, while our balance sheet remained strong with robust levels of cash and minimal debt. Operator, back to you for Q&A.

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchstone phone.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the star keys. To withdraw your question, please press star then two. We will now pause momentarily to assemble our roster. The first question today is coming from Matvei Tytz from Freedom Broker. Your line is live.

Speaker #1: If you were using a speakerphone, please pick up your handset before pressing the star keys. To withdraw your question, please press star, then 2.

Speaker #1: We will now pause momentarily to assemble our roster. And the first question today is coming from Matt Vaytites from Freedom Broker. Your line is live.

Speaker #4: Yes. Hi. Thank you so much. Congratulations with strong results. So my question is about the other income. Which is quite significantly impact the bottom line.

Matvei Tytz: Yes. Hi. Thank you so much. Congratulations with strong results. My question is about the other income, which has quite significantly impacted the bottom line. Can you elaborate a little bit the breakdown of this other income and how do you see it going forward towards the end of the year? Thank you.

Matvey Tayts: Yes. Hi. Thank you so much. Congratulations with strong results. My question is about the other income, which has quite significantly impacted the bottom line. Can you elaborate a little bit the breakdown of this other income and how do you see it going forward towards the end of the year? Thank you.

Speaker #4: So can you elaborate a little bit the breakdown of this other income and how do you see it going forward towards the end of the year?

Speaker #4: Thank you.

Speaker #3: Sure. This is Adian. Thank you for the question. So the other income line reflects the change in value of other investments that we have, primarily when we invest balance sheet cash.

Avi Goldin: Sure. This is Avi, thank you for the question. The other income line reflects the change in value of other investments that we have, primarily when we invest balance sheet cash. As you're aware, we have a very strong cash position. When we make investments that are to use that cash position to get value, those flow through the other investment line. It's difficult to predict what those are going to be, but we expect that to hopefully continue to be positive for the company.

Speaker #3: So as you're aware, we have a very strong cash position. So when we make investments that are to use that cash position to get value, those flow through the other investment line.

Speaker #3: So it's difficult to predict what those are going to be, but we expect that to hopefully continue to be positive for the company.

Speaker #4: Okay. Great. Yeah. Thank you. And one more question is so we see that there is some sort of sensitivity of your profitability and the gas prices, basically, which drives also electricity prices.

Matvei Tytz: Okay, great. Yeah. Thank you. One more question is, we see that there is some sort of sensitivity of your profitability and the gas prices, basically, which drives also electricity prices. Now with the lower gas prices in the Q2, we see positive impact also on your profitability operating results. How do you see it going forward towards the year-end? Do you expect also this trend to continue or is it something to be revised from this point of view? Thank you.

Matvey Tayts: Okay, great. Yeah. Thank you. One more question is, we see that there is some sort of sensitivity of your profitability and the gas prices, basically, which drives also electricity prices. Now with the lower gas prices in the Q2, we see positive impact also on your profitability operating results. How do you see it going forward towards the year-end? Do you expect also this trend to continue or is it something to be revised from this point of view? Thank you.

Speaker #4: So and now with the lower gas prices in second quarter, so we see positive impact also on your profitability operating results. So how do you see it going forward towards the year end?

Speaker #4: So do you expect also this trend to continue or is it something to be revised from this point of view? Thank you.

Michael Stein: Hi. Thanks for the question. It's hard to predict, obviously, what markets are going to do, but we feel like we're in a good position right now through the rest of the year to capitalize on where the market is, and again, still achieve the guidance that we set out.

Speaker #3: Hi. Thanks for the question. It's hard to predict, obviously, what markets are going to do. But we feel like we're in a good position right now through the rest of the year.

Speaker #3: To capitalize on where the market is, and again, still achieve the guidance that we set out.

Matvei Tytz: Mm-hmm. Yeah. Okay. Great. Again, this higher general expenses is, as you mentioned, it's a more expensive acquisition of new clients. You also see it kind of to be paid back in the future as it's more profitable sort of clients you're onboarding through this higher general expense. Is it correct, what I understood? Thank you.

Matvey Tayts: Mm-hmm. Yeah. Okay. Great. Again, this higher general expenses is, as you mentioned, it's a more expensive acquisition of new clients. You also see it kind of to be paid back in the future as it's more profitable sort of clients you're onboarding through this higher general expense. Is it correct, what I understood? Thank you.

Speaker #4: Yeah. Okay. Okay. Great. So and again, this higher general expenses is, as you said, as you mentioned, it's more expensive acquisition of new clients.

Speaker #4: So you also see it kind of to be paid back in the future as it's more profitable sort of clients you onboarding, yeah, through this higher general expense.

Speaker #4: Is it correct, what I understood? Thank you.

Speaker #3: Yeah. So our sales channels or our customer acquisition channels in general are a combination of our door-to-door, telemarketing, and digital marketing direct mail, and other kinds of marketing efforts that we do.

Michael Stein: Our sales channels or our customer acquisition channels in general are a combination of our door-to-door telemarketing and digital marketing, direct mail, and other kinds of marketing efforts that we do. Some of those channels generally yield higher margin customers, and some of those channels generally are lower cost and yield lower margin customers. What we were saying is that this quarter, let's say, versus last quarter, when we acquired a similar number of meters this quarter versus last year, the same quarter, the acquisition expense was significantly higher, and that's because most of the customer acquisition that was done this quarter was dominated by

Speaker #3: And some of those channels generally yield higher margin customers, and some of those generally are lower cost, but yield and yield lower margin customers.

Speaker #3: So yeah, what we were saying is that this quarter, let's say versus last quarter, when we acquired a similar number of meters this quarter versus last year the same quarter, the acquisition expense was significantly higher and that's because the because most of the customer acquisition that was done this quarter was dominated by acquiring those higher margin customers, whereas last year in the same quarter, there was a much higher percentage of that customer acquisition that was coming from the lower cost, but lower margin, acquisition channels.

Michael Stein: acquiring those higher margin customers, whereas last year in the same quarter, there was a much higher percentage of that customer acquisition that was coming from the lower cost, but lower margin acquisition channels.

Speaker #4: Oh. Yeah. Interesting. Thank you so much. And the last one if you afford, about this year new plastic business, this maybe you can share with us estimates what's the overall market value in Israel, in Europe, where you potentially could expand?

Matvei Tytz: Interesting. Thank you so much. The last one, if you afford, about this your new plastic business. Maybe you can share with us estimates, what's the overall market value in Israel, in Europe, where you potentially could expand. Just a little bit more on this particular market for the product you now develop. Thank you.

Matvey Tayts: Interesting. Thank you so much. The last one, if you afford, about this your new plastic business. Maybe you can share with us estimates, what's the overall market value in Israel, in Europe, where you potentially could expand. Just a little bit more on this particular market for the product you now develop. Thank you.

Speaker #4: So, just a little bit more on this particular market for the product you're now developing. Thank you.

Speaker #3: Yeah. For sure. So without getting into specific or numbers, what I can tell you is that we are currently, like you said, operating and like we mentioned on the call, we intend to expand to the US, the US being obviously a significantly larger market than Israel.

Michael Stein: For sure. Without getting into specific numbers, what I can tell you is that we are currently, like you said, operating, and like we mentioned on the call, we intend to expand to the US. The US being obviously a significantly larger market than Israel. Our plan all along has been to start with selling pallets. Pallets is a huge market. Everything that gets shipped essentially goes out on pallets, and is our hope and intention to take market share in that space. Because our cost of raw materials is significantly lower than that of our competitors who are also doing plastic pallets, even for the same level of performance, we think we can take a good deal of market share. Obviously, it takes time with manufacturing, but that's our plan.

Speaker #3: And our plan is all along has been to start with selling pallets and pallets is a huge, huge market. I mean, everything that gets shipped essentially goes out on pallets.

Speaker #3: And as our hope and intention to take market share in that space. And because our cost of raw materials is significantly lower than that of our competitors who are also doing plastic pallets, even for the same level of performance, we think we can take a good deal of market share.

Speaker #3: Obviously, it takes time with manufacturing. But that's our plan. But what's great about the technology and the patents that we have is that the patent is not on creating pallets.

Michael Stein: What's great about the technology and the patents that we have is that the patent is not on creating pallets. The patent is on creating any finished product. As we mentioned on this call, we're already starting to make our second product custom for a customer. We've already started designing it and working out the details with that customer. Very interested. We know another whole bunch of customers who are also interested in that product. Our intention is to continue to diversify our portfolio of products using the same waste material and the same technology, so that the market potential is as large as possible. Obviously, as this thing gets more mature, we intend to share more numbers, Gavril.

Speaker #3: The patent is on creating any finished product. And as we mentioned on this call, we're already starting to make our second product, custom for our customer.

Speaker #3: We've already started designing it and working out the details with that customer. Very interested. And we know another a whole bunch of customers who are also interested in that product.

Speaker #3: And our intention is to continue to diversify our portfolio of products using the same waste material and the same technology so that the market potential is as large as possible.

Speaker #3: But obviously, as this thing gets more mature, we intend to share more numbers that way.

Speaker #4: Sure. Yeah. Yeah. Thank you so much. Yeah. Yeah. Have a nice day. Thank you.

Matvei Tytz: Sure. Yeah. Thank you so much. Yeah. Have a nice day. Thank you.

Matvey Tayts: Sure. Yeah. Thank you so much. Yeah. Have a nice day. Thank you.

Speaker #2: Thank you. And there are no more questions. This concludes our question and answer session and conference call. Thank you for attending today's presentation. You may now disconnect.

Operator: Thank you.

Matvei Tytz: Thank you.

Matvey Tayts: Thank you.

Operator: As there are no more questions, this concludes our question and answer session and conference call. Thank you for attending today's presentation. You may now disconnect.

Q2 2026 Genie Energy Ltd Earnings Call

Request DemoDemo

Genie Energy

Earnings