Orion Energy Systems Reports $19.9 Million Revenue with Improved Gross Profit and Reduced Net Loss

Orion Energy Systems, Inc. reported a total revenue of $19.9 million for the three months ended September 30, 2025, reflecting a 2.9% increase from $19.4 million in the same period last year. The company's product revenue rose by 3.6% to $12.8 million, while service revenue saw a smaller increase of 1.6% to $7.1 million. For the first half of fiscal 2026, total revenue reached $39.5 million, a slight increase from $39.3 million in the prior year. The company reported a net loss of $581,000 for the quarter, significantly improved from a loss of $3.6 million in the same quarter of the previous year, and a net loss of $1.8 million for the first half, down from $7.4 million.

In terms of operational efficiency, Orion's gross profit for the quarter increased by 38.1% to $6.2 million, resulting in a gross margin of 31.0%, up from 23.1% a year earlier. This improvement was attributed to a decrease in the cost of service revenue, which fell by 17.3% due to restructuring efforts. General and administrative expenses also decreased by 16.5%, reflecting cost-saving measures implemented in the previous fiscal year. The company’s loss from operations narrowed to $242,000, a significant improvement compared to the loss of $3.3 million in the prior year.

Strategically, Orion enacted a 1-for-10 reverse stock split on August 22, 2025, to comply with Nasdaq's Minimum Bid Price Rule, which has allowed the company to maintain its listing on the exchange. The company also made significant progress in its acquisition strategy, particularly with the Voltrek acquisition, which has expanded its electric vehicle charging segment. As of September 30, 2025, Orion had accrued approximately $1.4 million for potential earnout payments related to this acquisition, with ongoing negotiations to finalize these obligations.

Operationally, Orion reported a backlog of $18.2 million as of September 30, 2025, an increase from $17.3 million at the end of the previous fiscal year, indicating a solid pipeline of future revenue. The company continues to focus on diversifying its customer base, as one customer accounted for 24.3% of total revenue in fiscal 2025. Orion's employee headcount has also seen changes, reflecting adjustments in response to restructuring efforts aimed at improving operational efficiency.

Looking ahead, Orion anticipates continued growth in its LED lighting and electric vehicle charging segments, supported by its strategic initiatives and operational improvements. The company expects to leverage its existing customer relationships while expanding its market reach, particularly in the maintenance services sector. Orion's management remains optimistic about achieving profitability as it continues to enhance its product offerings and operational capabilities.