Note 4 - Revenue Recognition

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 4—Revenue Recognition

Revenues from the single performance obligation to deliver a unit of electricity and/or natural gas are recognized as the customer simultaneously receives and consumes the benefit. Variable quantities in requirements contracts are considered to be options for additional goods and services because the customer has a current contractual right to choose the amount of additional distinct goods to purchase. GRE records unbilled revenues for the estimated amount customers will be billed for services rendered from the time meters were last read to the end of the respective accounting period. The unbilled revenues are estimated each month based on available per day usage data, the number of unbilled days in the period and historical trends.

Incumbent utility companies offer purchase of receivables, or POR programs in most of the service territories in which GRE's REPs operate and GRE’s REPs participate in POR programs for a majority of their receivables.

The Company offers various rebate programs to certain customers and estimates variable consideration related to these programs using the expected value method and a portfolio approach. The Company’s estimates related to rebate programs are based on the terms of the rebate program, the customer’s historical electricity and natural gas consumption, the customer’s rate plan, and a churn factor.

Taxes that are imposed on the Company’s sales and collected from customers are excluded from the transaction price.

Revenues from sales of solar panels are recognized at a point in time following the transfer of control of the solar panels to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. For sales contracts that contain multiple performance obligations, such as the shipment or delivery of solar modules, the Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices, or estimates of such prices, and recognize the related revenues as control of each individual product is transferred to the customer, in satisfaction of the corresponding performance obligations. 

Genie Solar enters into contracts to identify, develop, and operate solar generation sites to provide solar electricity to its customers. Obligations under solar project contracts consist of a series of tasks and components and accordingly are accounted for as multiple performance obligations. Because the Company’s performance creates and enhances assets that are controlled by and specific to customers, the Company recognizes construction services revenues over time. Revenues for these performance obligations are recognized using the input method based on the cost incurred as a percentage of total estimated contract costs. Due to the significance of the costs associated with solar panels to the total project, our judgment on when such costs should be included in the measure of progress has a material impact on revenue recognition. Contract costs include all direct material and labor costs related to contract performance. 

Energy generation revenues are earned from both the sale of electricity generated from operating solar projects and the sale of Solar Energy Credits ("SRECs").

Revenues from energy generation are recognized when the Company satisfies the performance obligation, which occurs at the time of the delivery of electricity at the contractual rates.

The Company applies for and receives SRECs in certain jurisdictions for power generated by solar energy systems it owns. There are no direct costs allocated to SRECs upon generation. The Company typically sells SRECs to different customers from those purchasing the energy. The sale of each SREC is a distinct performance obligation satisfied at a point in time and that the performance obligation related to each SREC is satisfied when each SREC is delivered to the customer.

Revenues from sales of solar panels, solar project development and energy generation are included under the Other Revenues in the condensed consolidated statements of operations.

Revenues from commissions from selling third-party products to customers, entry and other fees from energy procurement advisory services (which are provided by Diversegy) are recognized at the time the performance obligation is met. The Company's contacts with customers for commission revenue contain a single performance obligation and are satisfied at a point in time. Revenues from commissions are included under the Other Revenues in the condensed consolidated statements of operations.

The Company recognizes the incremental costs of obtaining a contract with a customer as an asset if it expects the benefit of those costs to be longer than one year. The Company determined that certain sales commissions to acquire customers meet the requirements to be capitalized. For GRE, the Company applies a practical expedient to expense costs as incurred for sales commissions to acquire customers as the period would have been one year or less.

Disaggregated Revenues

The following table shows the Company’s revenues disaggregated by pricing plans offered to customers:

	Electricity		Natural Gas		Other		Total
	(in thousands)
Three Months Ended June 30, 2025
Fixed rate	$	55,400	$	2,653	$	—	$	58,053
Variable rate		34,485		6,454		—		40,939
Other		—		—		6,259		6,259
Total	$	89,885	$	9,107	$	6,259	$	105,251
Three Months Ended June 30, 2024
Fixed rate	$	47,207	$	3,295	$	—	$	50,502
Variable rate		31,094		5,119		—		36,213
Other		—		—		3,981		3,981
Total	$	78,301	$	8,414	$	3,981	$	90,696
Six Months Ended June 30, 2025
Fixed rate	$	114,304	$	9,583	$	—	$	123,887
Variable rate		79,644		27,933		—		107,577
Other		—		—		10,594		10,594
Total	$	193,948	$	37,516	$	10,594	$	242,058
Six Months Ended June 30, 2024
Fixed rate	$	99,303	$	10,724	$	—	$	110,027
Variable rate		68,394		20,088		—		88,482
Other		—		—		11,875		11,875
Total	$	167,697	$	30,812	$	11,875	$	210,384

Fixed and variable rate revenues are from GRE. Other revenues are from GREW and include revenues from sales of solar panels, solar projects and energy generation by Genie Solar, and commissions from marketing energy solutions by CityCom Solar and Diversegy.

The following table shows the Company’s revenues disaggregated by non-commercial and commercial channels:

	Electricity		Natural Gas		Other		Total
	(in thousands)
Three Months Ended June 30, 2025
Non-Commercial Channel	$	74,251	$	6,488	$	—	$	80,739
Commercial Channel		15,634		2,619		—		18,253
Other		—		—		6,259		6,259
Total	$	89,885	$	9,107	$	6,259	$	105,251
Three Months Ended June 30, 2024
Non-Commercial Channel	$	72,759	$	5,630	$	—	$	78,389
Commercial Channel		5,542		2,784		—		8,326
Other		—		—		3,981		3,981
Total	$	78,301	$	8,414	$	3,981	$	90,696
Six Months Ended June 30, 2025
Non-Commercial Channel	$	161,134	$	29,862	$	—	$	190,996
Commercial Channel		32,814		7,654		—		40,468
Other		—		—		10,594		10,594
Total	$	193,948	$	37,516	$	10,594	$	242,058
Six Months Ended June 30, 2024
Non-Commercial Channel	$	155,701	$	22,551	$	—	$	178,252
Commercial Channel		11,996		8,261		—		20,257
Other		—		—		11,875		11,875
Total	$	167,697	$	30,812	$	11,875	$	210,384

Contract liabilities

Certain revenue generating contracts at GREW include provisions that require advance payment from customers. These advance payments are recognized as revenues as the Company satisfies the performance obligations to the other party. A portion of the transaction price allocated to the performance obligations to be satisfied in future periods is recognized as a contract liability, which is expected to be satisfied in the next twelve months. Contract liabilities are included in other current liabilities account in the condensed consolidated balance sheets.

The table below reconciles the change in the carrying amount of contract liabilities: 

	Six Months Ended June 30,
	2025			2024
	(in thousands)
Contract liability, beginning	$	3,973		$	5,582
Recognition of revenue included in the beginning of the year contract liability		(2,975	)		(3,691	)
Additions during the period, net of revenue recognized during the period		4,456			2,117
Contract liability, end	$	5,454		$	4,008

Allowance for credit losses

The change in the allowance for credit losses was as follows:

	Six Months Ended June 30,
	2025			2024
	(in thousands)
Allowance for credit losses, beginning	$	8,086		$	6,574
Additions charged to expense		856			1,210
Other deductions		(269	)		(435	)
Allowance for credit losses, end	$	8,673		$	7,349

The Company evaluates the collectability of its trade receivables in accordance with Accounting Standards Codification ("ASC") 326—Credit Losses. The Company measures expected credit losses on a collective pool basis, based on the type of customers, commodity sold, region or state, and payment history. The allowance for credit losses is based on a combination of historical collection experience, aging of receivables, customer credit risk characteristics and reasonable forecasts of future macroeconomic conditions. The Company regularly monitors delinquency trends, collection experience, and other credit quality indicators relevant to each receivable pool. Management adjusts the historical loss experience with current conditions and reasonable forecasts to estimate the expected credit losses. Credit losses are recognized in the condensed consolidated statement of operations.