Orion Energy Systems Reports $79.7 Million Revenue for Fiscal Year 2025, Faces Net Loss and Leadership Changes

Orion Energy Systems, Inc. reported a total revenue of $79.7 million for the fiscal year ending March 31, 2025, a decrease of 12% from $90.6 million in the previous fiscal year. The decline was primarily driven by a 14.1% drop in product revenue, which fell to $54.4 million, and a 7% decrease in service revenue, which totaled $25.4 million. The company's gross profit for the year was $20.2 million, resulting in a gross margin of 25.4%, an improvement from 23.1% in fiscal 2024. Despite this increase in gross margin, Orion reported a net loss of $11.8 million, consistent with the previous year's loss of $11.7 million.

The company experienced significant operational changes during the fiscal year, including the termination of CEO Michael Jenkins and the appointment of Sally A. Washlow as his successor. This leadership transition is part of a broader strategy to enhance operational efficiency and drive growth. Additionally, Orion is navigating the financial implications of its acquisition of Voltrek, a provider of electric vehicle charging solutions, which has resulted in ongoing earn-out obligations. As of March 31, 2025, Orion accrued approximately $3.3 million for these earn-out payments, which are contingent on Voltrek's financial performance.

Orion's customer concentration remains a critical factor in its revenue generation, with one customer accounting for 24.3% of total revenue in fiscal 2025, a slight decrease from 25.2% in fiscal 2024. The company is actively working to diversify its customer base, particularly in the electric vehicle charging and maintenance service sectors. As of the end of the fiscal year, Orion employed approximately 182 full-time employees, a reduction from previous years due to restructuring efforts aimed at improving operational efficiency.

Looking ahead, Orion has expressed cautious optimism regarding its fiscal 2026 revenue expectations, although it acknowledges the challenges posed by market conditions and competitive pressures. The company is focused on enhancing its product offerings and expanding its market share, particularly in the LED lighting and EV charging segments. However, it also faces risks related to liquidity, as it may need to raise additional capital to meet its operational and financial obligations, including the potential dilution of existing shareholders due to the issuance of common stock to satisfy earn-out obligations.