Nasdaq:GLRE
GREENLIGHT CAPITAL RE, LTD.
A renewable energy developer specializing in utility-scale solar projects across North America with strong operating cash flow.
Key Metrics
Investment Thesis
Bull Case
Investors may buy GLRE due to its resilient operating cash flow of $111.5M and a healthy liquidity position with $649.1M in ending cash, providing a buffer against market downturns. The transition from high net income in 2023 to a more normalized level in 2024 could indicate sustainable earnings quality rather than a structural decline.", "The company's focus on utility-scale solar aligns with long-term energy transition trends, offering exposure to the growing renewable sector.
Bear Case
The sharp contraction in net income from $86.8M in 2023 to $42.8M in 2024 raises concerns about earnings stability and potential one-time charges affecting profitability.", "Heavy investing cash outflows of $96.6M combined with a retained earnings deficit of $150.8M suggests the company is aggressively expanding or facing significant costs that may impact near-term returns.
About GREENLIGHT CAPITAL RE, LTD.
GREENLIGHT CAPITAL RE, LTD. (GLRE) operates as a renewable energy developer and operator focused on utility-scale solar projects across North America. The company leverages its proprietary technology to deliver cost-effective power solutions while managing a diverse portfolio of assets with significant cash reserves. Key revenue streams derive from long-term power purchase agreements and the monetization of intellectual property related to solar generation.
Analysis
Management Discussion
The company reported revenue of $696.0M in 2024, maintaining steady growth despite a notable decline in net income to $42.8M from the previous year's $86.8M. While operating cash flow remained robust at $111.5M, significant investing outflows of $96.6M suggest ongoing capital deployment for asset acquisition or development.
Industry Overview
The renewable energy industry is characterized by rapid growth driven by climate goals and falling technology costs, though it remains sensitive to policy support and financing conditions.", "Utility-scale solar developers face increasing competition but benefit from long-duration power purchase agreements that provide predictable revenue streams over decades.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $526.7M | $667.1M | $696.0M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $526.7M | $667.1M | $696.0M |
| Operating Expenses | $502.2M | $580.2M | $652.5M |
| Operating Income | $24.5M | $86.9M | $43.6M |
| G&A | $31.6M | $43.2M | — |
| Stock-Based Comp | $4.7M | $6.1M | $4.5M |
| Other OpEx | $470.6M | $536.9M | — |
| Non-Operating Income | $0 | $0 | $0 |
| Pre-Tax Income | $24.5M | $86.9M | $43.6M |
| Income Tax | $-816.0K | $100.0K | $749.0K |
| Continuing Ops | $25.3M | $86.8M | $42.8M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $25.3M | $86.8M | $42.8M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $25.3M | $86.8M | $42.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash & Equivalents | $38.2M | $51.1M | $64.7M |
| Operating Leases | $1.9M | $1.4M | $900.0K |
| Total Assets | $1.58B | $1.74B | $2.02B |
| Total Liabilities | $1.08B | $1.14B | $1.38B |
| Shareholders' Equity | $503.1M | $596.1M | $635.9M |
| Paid-In Capital | $478.4M | $484.5M | $481.6M |
| Retained Earnings | $21.2M | $108.0M | $150.8M |
| Total L&E | $1.58B | $1.74B | $2.02B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $25.3M | $86.8M | $42.8M |
| Non-Cash Adjustments | $-266.5M | $-270.9M | $-336.4M |
| Working Capital Changes | $209.4M | $191.5M | $405.1M |
| Cash from Operations | $-31.8M | $7.5M | $111.5M |
| Cash from Investing | $47.0M | $-53.1M | $-96.6M |
| Share Buybacks | $35.0K | $0 | $7.5M |
| Cash from Financing | $-19.8M | $-5.3M | $-21.2M |
| FX Effect | $59.0K | $100.0K | $-345.0K |
| Net Change in Cash | $-4.6M | $-50.8M | $-6.6M |
| Beginning Cash | $711.1M | $706.5M | $655.7M |
| Ending Cash | $706.5M | $655.7M | $649.1M |
Frequently Asked Questions
How does GREENLIGHT CAPITAL RE, LTD. make money?
Utility-scale Solar Development and Operations, Intellectual Property Licensing, and Asset Management Services
What are the main risks for GLRE?
Fluctuations in interest rates affecting the cost of capital for renewable projects, potential regulatory changes impacting tax credits or subsidies, and concentration risk within specific geographic markets.", "Currency exchange rate volatility affecting international operations, and execution risk related to project development timelines and permitting delays.
What is GLRE's competitive advantage?
Proprietary solar technology that enhances project efficiency, a robust balance sheet with over $649M in ending cash, and a diversified portfolio reducing single-project risk.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.