Orion Energy Systems (OESX) grows FY 2026 sales and margins, targets $95M–$97M in FY 2027 revenue
Rhea-AI Filing Summary
Orion Energy Systems reported stronger Q4 2026 and full-year 2026 results, while guiding to further growth in fiscal 2027. Q4 2026 revenue rose to $25.7M from $20.9M, a 23% increase, with gross margin improving to 37.0% from 27.5%. The quarterly net loss narrowed to $1.5M, or $0.39 per share, and adjusted EBITDA increased to $0.8M from $0.2M, marking a sixth consecutive quarter of positive adjusted EBITDA.
For FY 2026, revenue grew to $86.3M from $79.7M, while gross margin expanded to 32.6% from 25.4%. The full-year net loss improved to $3.2M from $11.8M, and adjusted EBITDA turned positive at $2.2M versus a $2.9M loss. LED lighting drove most of the growth, with revenue up 17% to $55.9M, while EV charging revenue softened.
Orion entered FY 2027 with a $30M backlog and reiterated expectations for revenue between $95M and $97M and positive adjusted EBITDA. The company ended March 31, 2026 with $3.3M of cash, $3.0M drawn on its revolving credit facility, and total shareholders’ equity of $16.6M, while also extending its credit facility maturity to June 30, 2030.
Positive
- Return toward profitability with margin expansion: FY 2026 gross margin rose to 32.6% from 25.4%, net loss narrowed to $3.2M from $11.8M, and adjusted EBITDA swung to a $2.2M profit from a $2.9M loss.
- Growth outlook supported by backlog and guidance: Orion entered FY 2027 with a $30M backlog and reiterated expectations for $95M–$97M in FY 2027 revenue and positive adjusted EBITDA, signaling confidence in continued growth.
Negative
- None.
Insights
Orion shows clear progress toward profitability, with guidance implying continued growth.
Orion Energy Systems delivered meaningful operating improvement in FY 2026. Revenue increased to $86.3M from $79.7M, while gross margin expanded to 32.6% from 25.4%, reflecting pricing and cost improvements across all segments. Adjusted EBITDA turned positive at $2.2M versus a $2.9M loss.
The business mix helped: LED lighting revenue rose to $55.9M, while maintenance revenue inched up and EV charging declined modestly year over year. Management highlighted six consecutive quarters of positive adjusted EBITDA and a structural reset that kept quarterly gross margins above 30% throughout FY 2026.
Looking ahead, Orion reiterated FY 2027 expectations for revenue between $95M and $97M and positive adjusted EBITDA, supported by a $30M backlog as of the start of the year. Execution on large contracts, EV charging demand, and maintaining gross margin near current levels will be important to track in subsequent fiscal 2027 disclosures.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
backlog financial
revolving credit facility financial
Non-GAAP measures financial
forward-looking statements regulatory
Earnings Snapshot
Orion expects FY 2027 revenue between $95M and $97M with positive adjusted EBITDA, supported by a $30M backlog at the fiscal year’s start.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 . Results of Operations and Financial Condition.
On June 4, 2026, Orion Energy Systems, Inc. (the “Company”) issued a press release announcing its quarterly financial results for its fiscal 2026 quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
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Item 9.01(d) . Financial Statements and Exhibits.
Exhibit 99.1 |
Exhibit 99.1 Press Release of Orion Energy Systems, Inc. dated June 4, 2026 |
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Exhibit 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant 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 hereunto duly authorized.
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ORION ENERGY SYSTEMS, INC. |
Date: June 4, 2026 |
By: /s/ J. Per Brodin |
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J. Per Brodin |
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Chief Financial Officer |
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Orion Reports FY 2026 Revenue of $86M and Adjusted EBITDA of $2.2M After Continued Growth in Q4;
Reiterates FY 2027 Expectation of $95M-$97M in Revenue and Positive Adjusted EBITDA
Manitowoc, WI – June 4, 2026 – 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 improved results for its fiscal 2026 fourth quarter (Q4’26) and full fiscal year 2026 (FY’26) ended March 31, 2026.
Orion’s Q4’26 revenue was $25.7M versus $20.9M in Q4’25 — a 23% increase — while Q4’26 gross margin was up by 950 basis points year-over-year, at 37.0% versus 27.5% in Q4’25. The Company improved its net loss in Q4’26 to $1.5M, compared to a net loss of $2.9M in Q4’25. The Company achieved Q4’26 adjusted EBITDA of $0.8M — marking its sixth consecutive quarter of positive adjusted EBITDA – compared to adjusted EBITDA of $0.2M in Q4’25.
For the full fiscal year of FY’26, Orion’s revenue was $86.3M versus $79.7M in FY’25, while FY’26 gross margin was 32.5% vs. 25.4% in FY’25. The Company improved its net loss in FY’26 to $3.2M, compared to a net loss of $11.8M in FY’25. The Company achieved FY’26 adjusted EBITDA of $2.2M, compared to an adjusted EBITDA loss of $(2.9M) in FY’25.
Each quarter of FY’26 delivered gross margins above 30%, a level of performance not previously seen. This is a result of Orion’s structural reset, which it expects to be continually beneficial moving forward. Similarly, revenue — which came in at the high end of our FY’26 public guidance range — continues to grow as we enter FY’27.
The Company continues to execute on its plan and build momentum in the current fiscal year. Starting FY’27 with a backlog of $30M — a year-over-year increase of $13M, Orion reiterated its expectations of positive adjusted EBITDA on revenue of between $95 million and $97 million in FY’27, which began April 1, 2026, up 12% over FY’26.
The Company said that its increasing expectations for the current fiscal year were validated by a number of factors. The ongoing improvement in the quality and size of its backlog is a result of continued project demand and growing opportunities within many of the Company’s revenue segments.
“The results we are reporting today — highlighted by our sixth straight quarter of positive adjusted EBITDA — validate an observation I have made previously: Orion is demonstrably on a profitable growth path,” said Orion’s Chief Executive Officer, Sally Washlow, who recently completed her first year as CEO. “Our FY’26 results and FY’27 expectations speak clearly to the success of a continuously improving sales funnel, organic growth from large customers, a resilient and adaptable proprietary supply chain and highly disciplined cost containment. We expect FY’27 to demonstrate that Orion is emerging robustly from a turnaround to a sustainable growth company.”
Orion is providing adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking adjusted EBITDA non-GAAP guidance to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, the amounts of which, based on historical experience, could be significant. For additional information regarding Orion’s non-GAAP measures, see the related explanation presented under “Non-GAAP Measures.”
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: Thursday, June 4, at 10:00 a.m. ET
Live Call Registration: https://register-conf.media-server.com/register/BI83b6ae45a1654d28babfa53b6617f6cc
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://edge.media-server.com/mmc/p/zmyzetzn
Q4'26 and FY'26 Financial Performance
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Q4'26 Summary |
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FY'26 Summary |
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Prior Three Quarters |
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$ in millions except per share figures |
Q4'26 |
Q4'25 |
Change |
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FY'26 |
FY'25 |
Change |
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Q3’26 |
Q2'26 |
Q1'26 |
LED Lighting Revenue |
$20.3 |
$10.9 |
+86% |
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$55.9 |
$47.7 |
+17% |
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$12.1 |
$10.7 |
$12.9 |
EV Charging Revenue |
$2.3 |
$5.8 |
-61% |
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$14.4 |
$16.8 |
-15% |
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$4.7 |
$4.8 |
$2.7 |
Maintenance Revenue |
$3.2 |
$4.1 |
-23% |
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$16.0 |
$15.2 |
+6% |
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$4.4 |
$4.5 |
$4.0 |
Total Revenue |
$25.7 |
$20.9 |
+23% |
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$86.3 |
$79.7 |
+8% |
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$21.1 |
$19.9 |
$19.6 |
Gross Profit |
$9.5 |
$5.7 |
+$3.8 |
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$28.1 |
$20.2 |
+$7.9 |
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$6.5 |
$6.2 |
$5.9 |
Gross Margin |
37.0% |
27.5% |
+950bps |
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32.6% |
25.4% |
+720bps |
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30.9% |
31.0% |
30.1% |
Net Income (Loss) (1)(2)(3)(4) |
$(1.5) |
$(2.9) |
+$1.4 |
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$(3.2) |
$(11.8) |
+$8.6 |
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$0.2 |
$(0.6) |
$(1.2) |
Net Income (Loss) Per Share (1)(2)(3)(4) |
$(0.39) |
$(0.88) |
+$0.49 |
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$(0.89) |
$(3.59) |
+$2.70 |
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$0.04 |
$(0.17) |
$(0.37) |
Adjusted EBITDA (5) |
$0.8 |
$0.2 |
+$0.6 |
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$2.2 |
$(2.9) |
+$5.1 |
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$0.8 |
$0.5 |
$0.2 |
(1) Voltrek earnout expenses were $0.3M in Q1'25, $0.6M in Q2'25, $0.5M in Q3'25, $0.5M in Q4'25, $0.0M in Q1'26, Q2'26, Q3'26, and $1.7M in Q4'26. (2) Q4'26 included $1.1M of expenses for the non-cash write-off of solar assets. (3) Q1'25 and Q2'25 also included $0.4M and $0.3M, respectively, of maintenance division restructuring costs. Q1'26 had $0.6M of executive sign-on bonus and severance expenses. (4) Q4'26 revenue included $1.3M associated with amending a solar energy contract that had no associated cost of goods. (5) Adjusted EBITDA reconciliation provided below. |
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Commentary from CEO Sally Washlow
“It is extremely gratifying to complete my first year as CEO of Orion. In the space of a year, we have gone from a turnaround to a growth company. We have maintained our Nasdaq listing, strengthened our balance sheet, completed our Voltrek earnout payments, extended our credit agreement and embarked on a demonstrable trajectory of profitable growth and margin expansion.
“We have seen both growth and resilience in new and existing large customers in the automotive, retail and public sectors. Deployments of LED lighting have become bigger and more numerous, illustrating customer relationships that have broadened and deepened.
“We expect continued growth in revenue and profitability in FY’27.
“Growth, increasing profitability and continued market expansion are our expected themes for FY’27. As I’ve said before: I expect it, our team expects it and our shareholders expect it.
“And as I mark the completion of my inaugural year as Orion’s Chief Executive Officer, I’d like to express my sincere appreciation to our shareholders, partners and employees for your continued support of our company.” said Ms. Washlow.
Q4’26 Business Highlights
— A $21M array of electrical contracting engagements distributed among seven customers.
— A previously announced $42M-$45M three-year renewal of our preventative maintenance contract for 2,050 big-box retail outlets, as well as another $14M-$15M contract for exterior lighting work for this customer.
— A $10M array of 80 EV charging station installations dispersed from the Northeast, to the Carolinas to California.
— A $4M project to install 105 EV charging stations for the Boston Public Schools, one of the largest school districts in the nation.
— A $3.6M electrical infrastructure and LED lighting engagement for a leading international lab-based testing company.
— A $3.1M electrical contracting engagement, representing a follow-on project in an ongoing scope of work for a longtime customer.
— A $3M lighting and electrical infrastructure engagement with one of the leading food-service enterprises in the United States.
— The roll-out of Orion’s new On-Site Battery Storage System for industrial, commercial and public sector enterprises. The product is being deployed in 10 locations in California.
— A public offering with net proceeds of $6.4M that served to bolster the Company’s balance sheet.
In operations, we continued to maintain gross margin of about 31% as we recorded positive adjusted EBITDA for the sixth quarter in a row.
Q4’26 and FY’26 Financial Results
Orion’s Q4’26 revenue was $25.7M versus $20.9M in Q4’25, while Q4’26 gross margin was 37.0% versus 27.5% in Q4’25. The Company’s net loss in Q4’26 improved to $1.5M versus a net loss of $2.9M in Q4’25. The Company achieved Q4’26 adjusted EBITDA of $0.8M — marking its sixth consecutive quarter of positive adjusted EBITDA — compared to adjusted EBITDA of $0.2M in Q4’25. Orion’s Q4’26 revenue included $1.3M associated with amending a solar energy contract that had no associated cost of goods.
Orion’s FY’26 revenue was $86.3M versus $79.7M in FY’25, while FY’26 gross margin was 32.6% versus 25.4% in FY’25. The Company’s net loss in FY’26 improved to $3.2M, compared to a net loss of $11.8M in FY’25. The Company achieved FY’26 adjusted EBITDA of $2.2M, compared to adjusted EBITDA of $(2.9M) in FY’25.
Orion also reported the following segment performance:
Orion’s Q4’26 gross margin was 37.0% versus 27.5% in Q4’25, as well as 32.6% in FY’26 versus 25.4% in FY’25, primarily due to pricing and cost improvements across all three segments.
Total operating expenses increased to $10.3M in Q4’26 from $8.4M in Q4’25, and decreased to $29.7M in FY’26 from $30.8M in FY’25, reflecting ongoing efforts to reduce infrastructure and personnel expenses. Q4’26 operating expenses included $1.7M to reflect the final Voltrek earnout liability, $1.1M for the non-cash write-off of solar assets and a $0.6M loss on extinguishment of subordinated debt.
Primarily reflecting stronger gross margin and lower operating expenses, Orion’s Q4’26 net loss improved to $1.5M, or $0.39 per share, versus a net loss of $2.9M, or $0.88 per share, in Q4’25. Orion’s adjusted EBITDA improved to $0.8M in Q4’26 compared to $0.2M in Q4’25, reflecting the benefit of the Company’s financial discipline. For the full fiscal year, Orion’s FY’26 net loss improved to $3.2M, or $0.89 per share, versus a net loss of $11.8M, or $3.59 per share, in FY’25. Orion’s adjusted EBITDA improved significantly to $2.2M in FY’26, compared to $(2.9M) in FY’25, reflecting the benefit of the Company’s financial discipline
Balance Sheet and Cash Flow
Orion used $1.1M of cash in operating activities in FY'26 versus operating activities providing $0.6M in cash in FY’25, principally due to significantly improved bottom line results in the current period. Orion also paid down $4.0M on its revolving credit facility in FY’26, bringing outstanding borrowings to $3.0M as of the end of FY’26.
Orion ended the quarter and the full fiscal year with current assets of $37.7M, including $3.3M of cash, $16.3M of accounts receivable, $6.4M of revenue earned but not billed, and $10.3M of inventories. Net of current liabilities, working capital was $11.0M at March 31, 2026, compared to $8.7M at March 31, 2025. Orion’s financial liquidity at March 31, 2026 was $15.4M as compared to $13.0M at year-end FY’25. In addition, Orion recently extended the maturity date of its revolving credit facility from June 30, 2027, to June 30, 2030.
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.
Orion is committed to operating responsibly throughout all areas of our organization. Learn more about our sustainability and governance priorities, goals and progress here, or visit our website at www.orionlighting.com.
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 are currently implementing a new ERP system, which will involve substantial cost and potential disruption to our 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; (xiii) 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; (vii) 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; (viii) 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; (ix) we increasingly rely on third-party manufacturers for the manufacture and development of our products and product components; (x) we are subject to the risk of a cybersecurity breach; (xi) macroeconomic pressures in the markets in which we operate may adversely affect our financial results; (xii) 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; (xiii) the success of our LED lighting retrofit solutions depends, in part, on our ability to claim market share away from our competitors; and (xiv) 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 |
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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
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Three Months Ended March 31, |
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Twelve Months Ended March 31, |
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(in thousands, except share and per share amounts) |
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2026 |
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2025 |
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2026 |
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2025 |
Product revenue |
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$16,065 |
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$14,926 |
|
$57,029 |
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$54,368 |
Service revenue |
|
9,658 |
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5,943 |
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29,277 |
|
25,352 |
Total revenue |
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25,723 |
|
20,869 |
|
86,306 |
|
79,720 |
Cost of product revenue |
|
9,514 |
|
10,510 |
|
36,893 |
|
37,319 |
Cost of service revenue |
|
6,701 |
|
4,624 |
|
21,320 |
|
22,165 |
Total cost of revenue |
|
16,215 |
|
15,134 |
|
58,213 |
|
59,484 |
Gross profit |
|
9,508 |
|
5,735 |
|
28,093 |
|
20,236 |
Operating expenses: |
|
|
|
|
|
|
|
|
General and administrative |
|
7,204 |
|
5,038 |
|
18,691 |
|
18,008 |
Sales and marketing |
|
2,808 |
|
2,951 |
|
10,099 |
|
11,595 |
Research and development |
|
269 |
|
389 |
|
945 |
|
1,229 |
Total operating expenses |
|
10,281 |
|
8,378 |
|
29,735 |
|
30,832 |
Income (loss) from operations |
|
(773) |
|
(2,643) |
|
(1,642) |
|
(10,596) |
Other income (expense): |
|
|
|
|
|
|
|
|
Other income |
|
2 |
|
1 |
|
51 |
|
62 |
Interest expense |
|
(131) |
|
(226) |
|
(783) |
|
(1,026) |
Amortization of debt issue costs |
|
(18) |
|
(51) |
|
(170) |
|
(206) |
Loss on debt extinguishment |
|
(562) |
|
— |
|
(562) |
|
— |
Interest income |
|
3 |
|
6 |
|
3 |
|
7 |
Total other expense |
|
(706) |
|
(270) |
|
(1,461) |
|
(1,163) |
Income (loss) before income tax |
|
(1,479) |
|
(2,913) |
|
(3,103) |
|
(11,759) |
Income tax (benefit) expense |
|
19 |
|
(1) |
|
60 |
|
42 |
Net income (loss) |
|
$(1,498) |
|
$(2,912) |
|
$(3,163) |
|
$(11,801) |
Basic net loss per share attributable to common shareholders |
|
$(0.39) |
|
$(0.88) |
|
$(0.89) |
|
$(3.59) |
Weighted-average common shares outstanding |
|
3,875,972 |
|
3,296,019 |
|
3,560,671 |
|
3,282,947 |
Diluted net loss per share |
|
$(0.39) |
|
$(0.88) |
|
$(0.89) |
|
$(3.59) |
Weighted-average common shares and share equivalents |
|
3,875,972 |
|
3,296,019 |
|
3,560,671 |
|
3,282,947 |
ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
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March 31, |
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(in thousands, except share amounts) |
|
2026 |
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2025 |
Assets |
|
|
|
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Cash and cash equivalents |
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$3,265 |
|
$5,972 |
Accounts receivable, net |
|
16,340 |
|
12,845 |
Revenue earned but not billed |
|
6,409 |
|
3,350 |
Inventories, net |
|
10,304 |
|
11,392 |
Prepaid expenses and other current assets |
|
1,364 |
|
1,939 |
Total current assets |
|
37,682 |
|
35,498 |
Property and equipment, net |
|
6,114 |
|
8,026 |
Goodwill |
|
1,484 |
|
1,484 |
Other intangible assets, net |
|
2,646 |
|
3,379 |
Other long-term assets, net |
|
3,679 |
|
4,076 |
Total assets |
|
$51,605 |
|
$52,463 |
Liabilities and Shareholders’ Equity |
|
|
|
|
Accounts payable |
|
$15,451 |
|
$13,272 |
Accrued expenses and other |
|
10,728 |
|
12,728 |
Deferred revenue, current |
|
155 |
|
491 |
Current maturities of long-term debt |
|
353 |
|
353 |
Total current liabilities |
|
26,687 |
|
26,844 |
Revolving credit facility |
|
3,000 |
|
7,000 |
Long-term debt, less current maturities |
|
2,619 |
|
2,971 |
Deferred revenue, long-term |
|
- |
|
337 |
Other long-term liabilities |
|
2,671 |
|
3,427 |
Total liabilities |
|
34,977 |
|
40,579 |
Commitments and contingencies |
|
|
|
|
Shareholders’ equity: |
|
|
|
|
Preferred stock, $0.01 par value: Shares authorized: 30,000,000 shares |
|
— |
|
— |
Common stock, no par value: Shares authorized: 20,000,000 at |
|
— |
|
— |
Additional paid-in capital |
|
169,646 |
|
163,025 |
Treasury stock: 762,485 and 948,634 common shares at |
|
(34,962) |
|
(36,248) |
Accumulated deficit |
|
(118,056) |
|
(114,893) |
Total shareholders’ equity |
|
16,628 |
|
11,884 |
Total liabilities and shareholders’ equity |
|
$51,605 |
|
$52,463 |
ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
Fiscal Year Ended March 31, |
||
(in thousands) |
|
2026 |
|
2025 |
Operating activities |
|
|
|
|
Net loss |
|
$(3,163) |
|
$(11,801) |
Adjustments to reconcile net loss to net cash (used in) provided by |
|
|
|
|
operating activities: |
|
|
|
|
Depreciation and amortization |
|
1,784 |
|
2,619 |
Stock-based compensation |
|
483 |
|
1,157 |
Loss on debt extinguishment |
|
562 |
|
— |
Deferred taxes and impairment of property and equipment |
|
5 |
|
27 |
Loss on asset disposals |
|
1,118 |
|
91 |
Provision for inventory reserves |
|
461 |
|
552 |
Provision for credit losses |
|
12 |
|
378 |
Other |
|
(6) |
|
197 |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(3,507) |
|
800 |
Revenue earned but not billed |
|
(3,059) |
|
1,189 |
Inventories |
|
627 |
|
6,106 |
Prepaid expenses and other assets |
|
802 |
|
2,324 |
Accounts payable |
|
2,179 |
|
(5,078) |
Accrued expenses and other liabilities |
|
1,296 |
|
1,883 |
Deferred revenue, current and long-term |
|
(673) |
|
155 |
Net cash provided by (used in) operating activities |
|
(1,079) |
|
599 |
Investing activities |
|
|
|
|
Purchase of property and equipment |
|
(83) |
|
(99) |
Additions to patents and licenses |
|
(3) |
|
(6) |
Proceeds from sales of property and equipment |
|
— |
|
233 |
Net cash provided by (used in) investing activities |
|
(86) |
|
128 |
Financing activities |
|
|
|
|
Payment of long-term debt |
|
(3,403) |
|
(206) |
Proceeds from revolving credit facility |
|
4,250 |
|
500 |
Payment of revolving credit facility |
|
(8,250) |
|
(3,500) |
Proceeds from long-term debt |
|
— |
|
3,525 |
Unamortized debt issuance cost write-off |
|
(180) |
|
— |
Issuance of treasury stock |
|
300 |
|
— |
Proceeds from public stock offering, net of issuance costs |
|
6,138 |
|
— |
Payments to settle employee tax withholdings on stock-based |
|
(11) |
|
— |
Debt issue costs |
|
(383) |
|
(216) |
Proceeds from employee equity exercises |
|
(3) |
|
(13) |
Net cash provided by (used in) financing activities |
|
(1,542) |
|
90 |
Net increase (decrease) in cash and cash equivalents |
|
(2,707) |
|
817 |
Cash and cash equivalents at beginning of period |
|
5,972 |
|
5,155 |
Cash and cash equivalents at end of period |
|
$3,265 |
|
$5,972 |
Supplemental cash flow information: |
|
|
|
|
Cash paid for interest |
|
$(775) |
|
$(962) |
Cash paid for income taxes |
|
$(36) |
|
$(26) |
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
Operating lease assets obtained in exchange for new operating lease liabilities |
|
$— |
|
$2,661 |
Issuance of common stock to Final Frontier, LLC as partial payment of earnout obligation |
|
$1,000 |
|
$— |
Issuance of subordinated debt for earnout obligation |
|
$3,051 |
|
$— |
ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED NON-GAAP MEASURES RECONCILIATION
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||||||
(in thousands) |
|
March 31, 2026 |
|
|
Dec. 31, 2025 |
|
|
March 31, 2025 |
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
|||||
Net income (loss) |
|
$ |
(1,498 |
) |
|
$ |
160 |
|
|
$ |
(2,912 |
) |
|
$ |
(3,163 |
) |
|
$ |
(11,801 |
) |
Interest |
|
|
128 |
|
|
|
203 |
|
|
|
220 |
|
|
|
780 |
|
|
|
1,019 |
|
Taxes |
|
|
19 |
|
|
|
18 |
|
|
|
(1 |
) |
|
|
60 |
|
|
|
42 |
|
Depreciation |
|
|
164 |
|
|
|
206 |
|
|
|
385 |
|
|
|
877 |
|
|
|
1,344 |
|
Amortization of intangible assets |
|
|
121 |
|
|
|
126 |
|
|
|
315 |
|
|
|
733 |
|
|
|
1,069 |
|
Amortization of debt issue costs |
|
|
18 |
|
|
|
51 |
|
|
|
51 |
|
|
|
170 |
|
|
|
206 |
|
EBITDA |
|
$ |
(1,048 |
) |
|
$ |
764 |
|
|
$ |
(1,942 |
) |
|
$ |
(543 |
) |
|
$ |
(8,121 |
) |
Stock-based compensation |
|
|
163 |
|
|
|
(3 |
) |
|
|
335 |
|
|
|
484 |
|
|
|
1,157 |
|
Deferred cost write-off for ATM |
|
|
— |
|
|
|
— |
|
|
|
385 |
|
|
|
— |
|
|
|
385 |
|
Sign-on bonus |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500 |
|
|
|
— |
|
Loss on debt extinguishment |
|
|
562 |
|
|
|
— |
|
|
|
— |
|
|
|
562 |
|
|
|
— |
|
Solar contract amendment |
|
|
(1,338 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,338 |
) |
|
|
— |
|
Deferred revenue - solar grants |
|
|
(337 |
) |
|
|
— |
|
|
|
— |
|
|
|
(337 |
) |
|
|
— |
|
Solar asset disposal |
|
|
1,118 |
|
|
|
— |
|
|
|
— |
|
|
|
1,118 |
|
|
|
— |
|
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
453 |
|
Severance |
|
|
— |
|
|
|
— |
|
|
|
948 |
|
|
|
91 |
|
|
|
1,248 |
|
Impairment on assets |
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
|
|
20 |
|
Earnout expenses |
|
|
1,663 |
|
|
|
— |
|
|
|
480 |
|
|
|
1,663 |
|
|
|
1,916 |
|
Adjusted EBITDA |
|
$ |
783 |
|
|
$ |
761 |
|
|
$ |
226 |
|
|
$ |
2,200 |
|
|
$ |
(2,942 |
) |