{"url_path":"/sec/gne/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 **","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1528356/0001437749-26-017292-index.html","accession_number":"0001437749-26-017292","cik":"0001528356","ticker":"GNE","issuer_name":"Genie Energy Ltd.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1528356/0001437749-26-017292-index.html","primary_entity_key":"0001528356","primary_entity_name":"Genie Energy Ltd."},"word_count":1071,"has_tables":true,"body_markdown":"**Item 3.**\n\n**Quantitative and Qualitative Disclosures About Market Risks.**\n\n \n\nOur primary market risk exposure is the price applicable to our natural gas and electricity purchases and sales. The sales price of our natural gas and electricity is primarily driven by the prevailing market price. Hypothetically, for our GRE segment, if our gross profit per unit in the three months ended March 31, 2026 had remained the same as in the three months ended March 31, 2025, our gross profit from electricity would have increased by $2.4 million and our gross profit from natural gas would have decreased $1.3 million. \n\n \n\nThe energy markets have historically been very volatile, and we can reasonably expect that electricity and natural gas prices will be subject to fluctuations in the future. In an effort to reduce the effects of the volatility of the price of electricity and natural gas on our operations, we have adopted a policy of hedging electricity and natural gas prices from time to time, at relatively lower volumes, primarily through the use of put and call options and swaps. While the use of these hedging arrangements limits the downside risk of adverse price movements, it also limits future gains from favorable movements. We do not apply hedge accounting to these options or swaps; therefore the mark-to-market change in fair value is recognized in cost of revenues in our condensed consolidated statements of operations. We recognized gains from derivative instruments of $3.3 million and $3.2 million in the three months ended March 31, 2026 and 2025, respectively.\n\n \n\n**Item ****4.**\n\n**Controls and Procedures**\n\n \n\n*Evaluation of Disclosure Controls and Procedures.* Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective as of March 31, 2026, due to the material weaknesses in internal control over financial reporting that were disclosed in the 2025 Form 10-K.\n\n \n\n*Remediation.* As previously described in Part II, Item 9A of the 2025 Form 10-K, we began implementing a remediation plan to address the material weaknesses mentioned above. The weaknesses will not be considered remediated, until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We expect that the remediation of these material weaknesses will be completed in 2026.\n\n \n\n*Changes in Internal Control over Financial Reporting.* In the first quarter of 2026, we substantially completed the implementation of a new enterprise resource planning (*ERP*) system, to maintain the Company's financial records, process transactions and financial reporting. We have made changes to our internal control over financial reporting to address the related processes and systems. ∙ There were no other changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.\n\n \n\n47\n\n[Table of Contents](#toc)\n\n \n\n \n\n**PART II. OTHER INFORMATION** \n\n \n\n**Item**** 1.**\n\n**Legal Proceedings**\n\n \n\nLegal proceedings in which we are involved are more fully described in Note 19 to the Condensed Consolidated Financial Statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.\n\n \n\n**Item ****1A.**\n\n**Risk Factors**\n\n \n\nThere are no material changes from the risk factors included in the 2025 Form 10-K. \n\n \n\n**Item ****2.**\n\n**Unregistered Sales of Equity Securities and Use of Proceeds**\n\n \n\nThe following table provides information with respect to purchases by us of shares of our Class B common stock during the first quarter of 2026: \n\n \n\n \n \n \n \n** **\n \n \n \n** **\n \n\n**Total Number**\n\n \n \n\n**Maximum**\n\n \n\n \n \n \n \n** **\n \n \n \n** **\n \n\n**of Shares**\n\n \n \n\n**Number of**\n\n \n\n \n \n \n \n** **\n \n \n \n** **\n \n\n**Purchased as**\n\n \n \n\n**Shares that**\n\n \n\n \n \n \n \n** **\n \n \n \n** **\n \n\n**part of**\n\n \n \n\n**May Yet Be**\n\n \n\n \n \n\n**Total**\n\n \n \n \n \n** **\n \n\n**Publicly**\n\n \n \n\n**Purchased**\n\n \n\n \n \n\n**Number of**\n\n \n \n\n**Average**\n\n \n \n\n**Announced**\n\n \n \n\n**Under the**\n\n \n\n \n \n\n**Shares**\n\n \n \n\n**Price**\n\n \n \n\n**Plans or**\n\n \n \n\n**Plans or**\n\n \n\n \n \n\n**Purchased**\n\n \n \n\n**per Share**\n\n \n \n\n**Programs**\n\n \n \n\n**Programs (1)**\n\n \n\nJanuary 1–31, 2026\n\n \n \n—\n \n \n$\n—\n \n \n \n—\n \n \n \n3,450,665\n \n\nFebruary 1–28, 2026\n\n \n \n36,659\n \n \n \n14.13\n \n \n \n—\n \n \n \n3,450,665\n \n\nMarch 1–31, 2026\n\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n3,450,665\n \n\nTotal\n\n \n \n36,659\n \n \n$\n—\n \n \n \n—\n \n \n \n \n \n\n \n\n(1)\n\nUnder our existing stock repurchase program, approved by our Board of Directors on March 11, 2013, we were authorized to repurchase up to an aggregate of 7.0 million shares of our Class B common stock.\n\n(2)\nConsists of 36,659 shares of Class B Common Stock that were tendered by officers and employees to satisfy the tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. Such shares were repurchased by us based on their current fair market value on the trading day immediately prior to the vesting date.\n\n \n\n**Item ****3.**\n\n**Defaults upon Senior Securities**\n\n \n\nNone \n\n \n\n**Item**** 4.**\n\n**Mine Safety Disclosures**\n\n \n\nNot applicable \n\n \n\n \n\n**Item**** 5.**\n\n**Other Information**\n\n \n\nNone\n\n  \n\n \n\n \n\n48\n\n[Table of Contents](#toc)\n\n \n\n**Item ****6.**\n\n**Exhibits**\n\n \n\n \n\n**Exhibit**\n**Number**\n\n \n\n**Description**\n\n \n \n \n\n31.1*\n\n \n\n[Certification of Chief Executive Officer pursuant to 17 CFR 240.13a-14(a), as adopted pursuant to §302 of the Sarbanes-Oxley Act of 200](ex_914895.htm)\n\n \n \n \n\n31.2*\n\n \n\n[Certification of Chief Financial Officer pursuant to 17 CFR 240.13a-14(a), as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002.](ex_914896.htm)\n\n \n \n \n\n32.1*\n\n \n\n[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.](ex_914897.htm)\n\n \n \n \n\n32.2*\n\n \n\n[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.](ex_914898.htm)\n\n \n \n \n\n101.INS*\n\n \n\nInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n\n \n \n \n\n101.SCH*\n\n \n\nInline XBRL Taxonomy Extension Schema Document\n\n \n \n \n\n101.CAL*\n\n \n\nInline XBRL Taxonomy Extension Calculation Linkbase Document\n\n \n \n \n\n101.DEF*\n\n \n\nInline XBRL Taxonomy Extension Definition Linkbase Document\n\n \n \n \n\n101.LAB*\n\n \n\nInline XBRL Taxonomy Extension Label Linkbase Document\n\n \n \n \n\n101.PRE*\n\n \n\nInline XBRL Taxonomy Extension Presentation Linkbase Document\n\n \n \n \n\n104\n\n \n\nCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\n\n \n\n*\n\nFiled or furnished herewith.\n\n \n\n49\n\n[Table of Contents](#toc)\n\n \n\n**SIGNATURES**\n\n \n\nPursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.\n\n \n\n \n\n**Genie Energy Ltd.**\n\n \n \n \n\nMay 15, 2026\n\nBy:\n\n/s/ Michael M. Stein\n\n \n \n\n**Michael M. Stein**\n\n \n \n \n\n \n \n**Chief Executive Officer**\n\n \n \n \n\nMay 15, 2026\n\nBy:\n\n/s/ Avi Goldin\n\n \n \n\n**Avi Goldin** \n\n \n \n \n\n \n \n**Chief Financial Officer**\n\n \n\n50"}