Orion Reports First Quarter Financial Results: Revenue Increases 32% to 25.7M, Net Income at $2M
Rhea-AI Summary
Orion Energy Systems (NASDAQ: OESX) reported fiscal Q1’27 revenue of $25.7M, up 32% from $19.6M in Q1’26, with gross margin rising 450 bps to 34.6%. Net income was $2.0M versus a $1.2M loss, and adjusted EBITDA increased to $2.5M, marking a seventh consecutive positive quarter.
LED lighting revenue grew 37% to $17.7M, EV charging revenue rose 48% to $4.0M, and maintenance revenue was $4.1M, up 2%. Current assets totaled $39.2M with working capital of $13.7M and liquidity of $18.1M. Orion generated $1.4M of operating cash flow and extended its revolving credit facility maturity to June 30, 2030. The company reaffirmed FY’27 revenue guidance of $95–97M with positive adjusted EBITDA and highlighted a multimillion-dollar hyper-scale data center lighting engagement and ongoing EV charging and maintenance activities.
Positive
- Total revenue up 32% YoY to $25.7M in Q1’27
- Gross margin expansion of 450 bps YoY to 34.6%
- Net income of $2.0M vs. $1.2M loss in Q1’26
- Adjusted EBITDA improved to $2.5M from $0.2M, seventh positive quarter
- Hyper-scale data center multimillion-dollar LED lighting engagement won in Q1’27
- Liquidity increased to $18.1M and operating cash flow to $1.4M
Negative
- EV charging outlook impacted by uncertainty in near-term project scope, pace and funding
- Gross margin of 34.6% down sequentially from 37.0% in Q4’26
News Explained
As of June 30, Orion reported $5,165 thousand cash and 4,071,624 common shares outstanding, updating liquidity and ownership baselines.
Orion Energy Systems has reported its fiscal Q1’27 results for the quarter ended
The balance sheet lists
Issuing additional shares increases the total share count and reduces an existing holder’s percentage ownership absent offsetting changes; this release reports the counts but does not establish that their movement resulted from a new issuance.
Cash and equivalents were
Market Reaction – OESX
Following this news, OESX has gained 41.44%, reflecting a significant positive market reaction. Argus tracked a peak move of +27.4% during the session. Our momentum scanner has triggered 64 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $14.71. Trading volume is exceptionally heavy at 14.8x the average, suggesting very strong buying interest.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 04 | Earnings results | Positive | +0.4% | Revenue and adjusted EBITDA expectations were reiterated alongside a $30M backlog. |
| May 19 | Earnings expectations | Positive | -3.4% | Preliminary FY26 revenue and adjusted EBITDA expectations were reiterated with a $30M backlog. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The two prior earnings events produced mixed reactions, with one aligned positive move and one negative divergence.
Key Terms
adjusted ebitda financial
gross margin financial
basis points financial
working capital financial
revolving credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MANITOWOC, Wis., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, electric vehicle (EV) charging stations and maintenance services solutions, today reported results for its fiscal 2027 first quarter (Q1’27) ended June 30, 2026.
Orion’s Q1’27 revenue was
“Orion is on a path of profitable growth, increasing profitability and continued market expansion in FY’27,” said Orion’s Chief Executive Officer, Sally Washlow. “Today’s results for Q1’27 — our seventh straight quarter of positive adjusted EBITDA — demonstrate that we are advancing on that path.”
Ms. Washlow pointed to growth drivers ranging from Orion’s expanding business within large customers to a multimillion-dollar entry into the burgeoning hyper-scale data center market to an array of new Orion offerings introduced to the marketplace in recent months.
“Product and service introductions show continued traction, ranging from LED Lighting for hyper-scale data centers to Battery Storage and Electrical Contracting,” said Ms. Washlow. “We have similarly high aspirations for our newly introduced LED Roadway product designed for public roads.”
Ms. Washlow also cited Orion’s strengthening capabilities, such as a newly installed ERP system designed to scale with the Company’s expected growth. She also noted its unsurpassed proprietary supply chain reliability, quality control and domestic sourcing compliance which are critical for government contracts, federal incentives and Buy American compliance.
Orion is scheduled to discuss these results in an investor call today at 10:00 a.m. ET (details below).
Webcast and Call Details
Date / Time: Wednesday, August 5, 2026, at 10:00 a.m. ET
Live Call Registration: https://register-conf.media-server.com/register/BI9310cd50094241a1a190c4035fc8e3f6
Live call participants must pre-register using the URL above to receive the dial-in information. Anyone can re-register if they lose the dial-in or PIN #.
Webcast & Replay: https://register-conf.media-server.com/register/BI9310cd50094241a1a190c4035fc8e3f6
Q1'27 and Prior Three Quarters Financial Performance
| Q1 Financial Summary | Prior Three Quarters | ||||||
| $ in millions except per share figures | Q1’27 | Q1’26 | Change | Q4'26 | Q3’26 | Q2'26 | |
| LED Lighting Revenue | $17.7 | ||||||
| EV Charging Revenue | $4.0 | ||||||
| Maintenance Revenue | $4.1 | ||||||
| Total Revenue | $25.7 | ||||||
| Gross Profit | $8.9 | ||||||
| Gross Profit % | 34.6% | +450 bps | |||||
| Net Income (Loss) (1)(2)(3)(4)(5) | $2.0 | + | |||||
| Net Income (Loss) per share (1)(2)(3)(4)(5) | $0.47 | + | |||||
| Adjusted EBITDA (3) | $2.5 | + | |||||
| (1) Voltrek earnout accrual and (net adjustments) was (2) Q4'26 included (3) Q1'26 included (4) Q4'26 revenue included (5) The net effect of tariffs for Q1'27 decreased costs of goods by approximately (6) Adjusted EBITDA reconciliation provided below. | |||||||
Q1’27 Business Highlights: Commentary from CEO Sally Washlow
Orion’s first-quarter results and full-year expectations continue to illustrate a strong sales funnel, expansion of wallet share within large customers, continuous strengthening of a truly unrivaled proprietary supply chain and continued cost management.
Orion’s first quarter illustrated noteworthy indicators of YOY growth:
— Orion entered the hyper-scale data center market with an LED lighting solution specifically designed for this massive market in Q1’27. Quickly following the product announcement, the Company was awarded a multimillion-dollar customer engagement with one of the world's largest hyper-scale data centers. Orion designed the MPHL2 to be a tailor-made LED Lighting solution for thousands of data centers to be built over the coming years. Meanwhile, the ability to provide unrivaled reliability, flexibility and scalability enables Orion to be a trusted supplier to the current data-center building boom. These unique attributes are of particular importance to Orion’s inaugural data-center customer.
— Orion/Voltrek continued to adapt strategically to an evolving U.S. EV Charging Infrastructure environment. We continue to strengthen our incumbencies with respected innovators like the Boston Public Schools. And we bolstered our organization tremendously with our recent appointment of recognized industry leader Karen Peck to head EV Charging Infrastructure sales.
— Maintenance recorded solid performance, thanks in large part to our customer-first approach.
Automotive, retail and public-sector engagements continue to show notable strength and continued growth. Our customers are seeing that we meet them where they are — whether we deliver a product-only solution or provide complete turnkey, full-service electrical infrastructure powered by our own products that are designed, engineered and made right here in Manitowoc or sourced leveraging our proprietary supply chain.
Q1’27 Financial Results
Orion’s Q1’27 revenue was
Orion also reported the following Q1’27 segment performance:
- LED lighting revenue increased approximately
37% to$17.7M in Q1’27, compared to$12.9M in Q1’26, reflecting increased large project activity. - Maintenance services revenue increased
2% to$4.1M in Q1’27 from$4.0M in Q1’26, reflecting the benefit of new customer contracts, as well as the expansion of certain existing customer relationships. - EV charging solutions revenue was
$4.0M in Q1’27 compared to$2.7M in Q1’26, reflecting the variability in timing of larger projects. Orion/Voltrek notes current uncertainty around the near-term scope, pace and funding availability for EV charging projects, - Orion’s Q1’27 gross margin was
34.6% versus30.1% in Q1’26, primarily due to pricing and cost improvements across the lighting and maintenance segments.
Total operating expenses decreased to
Primarily reflecting stronger gross margin and lower operating expenses, Orion achieved net income of
Balance Sheet and Cash Flow
Orion ended the quarter with current assets of
Orion reiterated its previously announced expectations of positive adjusted EBITDA on revenue of between
About Orion Energy Systems
Orion provides energy efficiency and clean tech solutions, including LED lighting and controls, electrical vehicle (EV) charging solutions, and maintenance services. Orion specializes in turnkey design-through-installation solutions for large national customers as well as projects through ESCO and distribution partners, with a commitment to helping customers achieve their business and environmental goals with healthy, safe, and sustainable solutions that reduce their carbon footprint and enhance business performance.
Non-GAAP Measures
In addition to the GAAP results included in this presentation, Orion has also included the non-GAAP measures, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA (EBITDA adjusted for stock-based compensation, acquisition related costs, deferred financing costs, restructuring and severance costs, asset impairment and, earnout expenses). The Company has provided these non-GAAP measures to help investors better understand its core operating performance, enhance comparisons of core operating performance from period to period, and allow better comparisons of operating performance to its competitors. Among other things, management uses these non-GAAP measures to evaluate the performance of the business and believes these measurements enable it to make better period-to-period evaluations of the financial performance of core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and Orion compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with generally accepted accounting principles.
Consistent with Regulation G under the U.S. federal securities laws, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measures, and this reconciliation is located under the heading “Unaudited EBITDA Reconciliation” following the Unaudited Condensed Consolidated Statements of Cash Flows included in this press release.
Safe Harbor Statement
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words of similar import. Similarly, statements that describe our future outlook, plans, expectations, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) our ability to achieve our budgeted fiscal 2027 revenue expectations, and related public fiscal 2027 revenue guidance, will have a significant impact on our cash flow and stock price and ability to fund our operations and satisfy our debt obligations; (ii) we have launched a new ERP system, which will continue to involve substantial cost and potential disruption to our previously normal operations; our inability to successfully manage the implementation of our new ERP system could adversely affect our ability to operate our business and otherwise negatively affect our financial reporting and the effectiveness of our internal control over financial reporting; (iii) government tariffs and other actions have adversely affected, and may continue to adversely affect, our business, resulting in increased costs and reduced gross margins; (iv) the reduction or elimination of incentives from the United States government for investments in electric vehicle (“EV”) charging infrastructure may reduce demand for public EV charging products, in addition to reducing overall demand for EVs; (v) we do not have major sources of recurring revenue, a substantial portion of our revenues is derived from major project-based retrofit work that is awarded through a competitive bid process and we depend upon a limited number of customers in any given period to generate a substantial portion of our revenue, and it is generally difficult to predict the timing of projects that will be awarded, which can impact our ability to achieve our expected financial results; (vi) the reduction of revenue from our most significant customer over the past several fiscal years has had, and the potential future loss of other significant customers or a major customer would likely have, a materially adverse effect on our results of operations, financial condition and cash flows; (vii) the reduction or elimination of investments in, or incentives to adopt, light emitting diode (“LED”) lighting or the elimination of, or changes in, policies, incentives or rebates in certain states or countries that encourage the use of LEDs over some traditional lighting technologies, including due to federal funding restrictions in the United States, could cause the demand for our lighting products to slow; (viii) we are experiencing ongoing increasing pressures to reduce the average selling price of our products and related negative impact on our gross margins, driven largely by the ongoing increase in competition from foreign competitors; (ix) our products use components and raw materials that may be subject to price fluctuations, shortages or interruptions of supply, particularly resulting from tariffs and other trade restrictions; (x) we increasingly rely on third-party manufacturers for the manufacture and development of our products and product components; (xi) we are subject to the risk of a cybersecurity breach; (xii) macroeconomic pressures in the markets in which we operate may adversely affect our financial results; (xiii) adverse conditions in the global economy, including due to changes in diplomatic and trade relationships, have negatively impacted, and could in the future negatively impact, our customers, suppliers and business; (xiv) the success of our LED lighting retrofit solutions depends, in part, on our ability to claim market share away from our competitors; and (xv) the other risks described in our filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://investor.oriones.com in the Investor Relations section of our website.
Engage with Us
X: @OrionLighting and @OrionLightingIR
StockTwits: @OESX_IR
| Investor Relations Contacts | |
| Per Brodin, CFO | Robert Ferri |
| Orion Energy Systems, Inc. | Robert Ferri Partners |
| pbrodin@oesx.com | (415) 575-1589 or ir@oesx.com |
| ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Product revenue | $ | 14,219 | $ | 13,512 | ||||
| Service revenue | 11,524 | 6,063 | ||||||
| Total revenue | 25,743 | 19,575 | ||||||
| Cost of product revenue | 8,668 | 8,822 | ||||||
| Cost of service revenue | 8,164 | 4,852 | ||||||
| Total cost of revenue | 16,832 | 13,674 | ||||||
| Gross profit | 8,911 | 5,901 | ||||||
| Operating expenses: | ||||||||
| General and administrative | 3,694 | 4,290 | ||||||
| Sales and marketing | 2,838 | 2,416 | ||||||
| Research and development | 268 | 208 | ||||||
| Total operating expenses | 6,800 | 6,914 | ||||||
| Income (loss) from operations | 2,111 | (1,013 | ) | |||||
| Other income (expense): | ||||||||
| Interest expense | (98 | ) | (169 | ) | ||||
| Amortization of debt issue costs | (18 | ) | (51 | ) | ||||
| Royalty income | 1 | 2 | ||||||
| Other | (42 | ) | — | |||||
| Total other expense | (157 | ) | (218 | ) | ||||
| Income (loss) before income tax | 1,954 | (1,231 | ) | |||||
| Income tax (benefit) expense | (5 | ) | 13 | |||||
| Net income (loss) | $ | 1,959 | $ | (1,244 | ) | |||
| Basic net income (loss) per share | $ | 0.48 | $ | (0.37 | ) | |||
| Weighted-average common shares outstanding | 4,059,842 | 3,331,524 | ||||||
| Diluted net income (loss) per share | $ | 0.47 | $ | (0.37 | ) | |||
| Weighted-average common shares and share equivalents outstanding | 4,162,795 | 3,331,524 | ||||||
| ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) | ||||||||
| June 30, 2026 | March 31, 2026 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 5,165 | $ | 3,265 | ||||
| Accounts receivable, net | 14,386 | 16,340 | ||||||
| Revenue earned but not billed | 7,411 | 6,409 | ||||||
| Inventories, net | 10,368 | 10,304 | ||||||
| Prepaid expenses and other current assets | 1,909 | 1,364 | ||||||
| Total current assets | 39,239 | 37,682 | ||||||
| Property and equipment, net | 6,010 | 6,114 | ||||||
| Goodwill | 1,484 | 1,484 | ||||||
| Other intangible assets, net | 2,526 | 2,646 | ||||||
| Other long-term assets | 4,044 | 3,679 | ||||||
| Total assets | $ | 53,303 | $ | 51,605 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Accounts payable | $ | 15,508 | $ | 15,451 | ||||
| Accrued expenses and other | 9,692 | 10,728 | ||||||
| Deferred revenue, current | 96 | 155 | ||||||
| Current maturities of long-term debt | 264 | 353 | ||||||
| Total current liabilities | 25,560 | 26,687 | ||||||
| Revolving credit facility | 3,000 | 3,000 | ||||||
| Long-term debt, less current maturities | 3,261 | 2,619 | ||||||
| Other long-term liabilities | 2,736 | 2,671 | ||||||
| Total liabilities | 34,557 | 34,977 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, no par value: Shares authorized: 20,000,000 at June 30, 2026 and March 31, 2026; shares issued: 4,834,109 at June 30, 2026 and 4,819,013 at March 31, 2026; shares outstanding: 4,071,624 at June 30, 2026 and 4,056,528 at March 31, 2026 | — | — | ||||||
| Additional paid-in capital | 169,805 | 169,646 | ||||||
| Treasury stock, common shares: 762,472 at June 30, 2026 and 762,485 at March 31, 2026 | (34,962 | ) | (34,962 | ) | ||||
| Accumulated deficit | (116,097 | ) | (118,056 | ) | ||||
| Total shareholders’ equity | 18,746 | 16,628 | ||||||
| Total liabilities and shareholders’ equity | $ | 53,303 | $ | 51,605 | ||||
| ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Operating activities | ||||||||
| Net income (loss) | $ | 1,959 | $ | (1,244 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 115 | 244 | ||||||
| Amortization of intangible assets | 118 | 240 | ||||||
| Stock-based compensation | 159 | 166 | ||||||
| Amortization of debt issue costs | 18 | 51 | ||||||
| Deferred income tax | (56 | ) | — | |||||
| Provision for inventory reserves | 12 | 26 | ||||||
| Provision for credit losses | 15 | 10 | ||||||
| Other | 43 | (1 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,939 | (692 | ) | |||||
| Revenue earned but not billed | (1,002 | ) | (127 | ) | ||||
| Inventories | (76 | ) | 1,065 | |||||
| Prepaid expenses and other assets | (508 | ) | 271 | |||||
| Accounts payable | 53 | (682 | ) | |||||
| Accrued expenses and other | (1,378 | ) | 227 | |||||
| Deferred revenue, current and long-term | (59 | ) | (69 | ) | ||||
| Net cash provided by (used in) operating activities | 1,352 | (515 | ) | |||||
| Investing activities | ||||||||
| Purchases of property and equipment | (6 | ) | (55 | ) | ||||
| Net cash provided by (used in) investing activities | (6 | ) | (55 | ) | ||||
| Financing activities | ||||||||
| Payment of debt | (88 | ) | (88 | ) | ||||
| Proceeds from debt | 642 | — | ||||||
| Proceeds from revolving credit facility | 600 | — | ||||||
| Payments of revolving credit facility | (600 | ) | (1,750 | ) | ||||
| Net cash provided by (used in) financing activities | 554 | (1,838 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 1,900 | (2,408 | ) | |||||
| Cash and cash equivalents at beginning of period | 3,265 | 5,972 | ||||||
| Cash and cash equivalents at end of period | $ | 5,165 | $ | 3,564 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for interest | $ | 106 | $ | 226 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Operating lease assets obtained in exchange for new operating lease liabilities | $ | 420 | $ | — | ||||
| ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED EBITDA RECONCILIATION (in thousands) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||||||||
| Net income (loss) | $ | 1,959 | $ | (1,498 | ) | $ | 160 | $ | (581 | ) | $ | (1,244 | ) | |||||||
| Interest | 98 | 128 | 203 | 280 | 169 | |||||||||||||||
| Taxes | (5 | ) | 19 | 18 | 10 | 13 | ||||||||||||||
| Depreciation | 114 | 164 | 206 | 263 | 244 | |||||||||||||||
| Amortization of intangible assets | 119 | 121 | 126 | 247 | 240 | |||||||||||||||
| Amortization of debt issue costs | 18 | 18 | 51 | 50 | 51 | |||||||||||||||
| EBITDA | 2,303 | (1,048 | ) | 764 | 269 | (527 | ) | |||||||||||||
| Stock-based compensation | 159 | 163 | (3 | ) | 157 | 166 | ||||||||||||||
| Sign-on bonus | — | — | — | — | 500 | |||||||||||||||
| Loss on debt extinguishment | — | 562 | — | — | — | |||||||||||||||
| Solar contract amendment | — | (1,338 | ) | — | — | — | ||||||||||||||
| Deferred revenue - solar grants | — | (337 | ) | — | — | — | ||||||||||||||
| Solar asset disposal | — | 1,118 | — | — | — | |||||||||||||||
| Severance | — | — | — | 25 | 66 | |||||||||||||||
| Earnout expenses | — | 1,663 | — | — | — | |||||||||||||||
| Other | 42 | — | — | — | — | |||||||||||||||
| Adjusted EBITDA | 2,504 | 783 | 761 | 451 | 205 | |||||||||||||||
