Orion Energy Systems Reports $21.1 Million Revenue, 7.7% Increase in Latest Quarter

Orion Energy Systems, Inc. reported a total revenue of $21.1 million for the three months ended December 31, 2025, marking a 7.7% increase from $19.6 million in the same period last year. The growth was driven by a 22.3% rise in service revenue, which reached $6.5 million, while product revenue saw a modest increase of 2.3% to $14.6 million. For the nine months ending December 31, 2025, total revenue was $60.6 million, up 2.9% from $58.9 million in the prior year. The company reported a net income of $160,000 for the quarter, a significant turnaround from a net loss of $1.5 million in the previous year, and a net loss of $1.7 million for the nine-month period, an improvement from a loss of $8.9 million in the same timeframe last year.

In terms of operational changes, Orion implemented a 1-for-10 reverse stock split on August 22, 2025, to comply with Nasdaq's Minimum Bid Price Rule. This strategic move was successful, as the company regained compliance shortly thereafter. Additionally, Orion has been focusing on cost-cutting initiatives, successfully reducing annual operating expenses by approximately $6.5 million over the past two fiscal years, which has contributed to improved gross margins and profitability.

The company has also made significant strides in its electric vehicle (EV) segment, with revenue increasing by 90.6% to $4.7 million in the third quarter, driven by higher project volumes from a major customer. The maintenance segment also performed well, with an 11% increase in revenue to $4.4 million, attributed to increased work orders. However, the lighting segment experienced a decline in revenue, down 8.6% to $12.1 million, primarily due to lower turnkey projects.

As of December 31, 2025, Orion's total assets were reported at $48.3 million, a decrease from $52.5 million at the end of the previous fiscal year. The company’s cash and cash equivalents stood at $4.7 million, down from $6.0 million, largely due to debt repayments. Orion's working capital was $8.6 million, slightly lower than the $8.7 million reported at the end of March 2025. The company continues to maintain a strong focus on its operational efficiency and is exploring opportunities for geographic expansion and product adoption in the growing LED and EV markets.

Looking ahead, Orion anticipates continued growth in its service and EV segments, supported by a new large-scale LED exterior lighting project with a leading international retail chain, expected to generate approximately $14 million to $15 million in revenue. The company remains optimistic about its ability to leverage its existing customer relationships and expand its service capabilities, while also managing its costs effectively to enhance profitability.