Orion Energy Systems Reports 24.6% Revenue Decline and Net Loss Improvement for December 2024 Quarter

Orion Energy Systems, Inc. reported a total revenue of $19.6 million for the three months ended December 31, 2024, a decrease of 24.6% compared to $26.0 million for the same period in 2023. The decline was attributed to reduced sales across all segments, particularly in product and service revenues, which fell by 15.9% and 41.1%, respectively. The company recorded a net loss of $1.5 million, or $(0.05) per share, an improvement from a net loss of $2.3 million, or $(0.07) per share, in the prior year. For the nine months ended December 31, 2024, total revenue was $58.9 million, down 8.3% from $64.2 million in the same period last year, with a net loss of $8.9 million compared to a loss of $13.3 million in the previous year.

In terms of operational changes, Orion's total assets decreased to $52.7 million as of December 31, 2024, down from $63.2 million at the end of the previous fiscal period. Current assets also saw a decline, primarily due to a reduction in accounts receivable and inventories. The company’s cash and cash equivalents increased to $7.5 million, up from $5.2 million, reflecting improved cash management and operational cash flow. The decrease in total liabilities to $38.2 million from $40.6 million was driven by a reduction in accounts payable and accrued expenses.

Strategically, Orion has focused on enhancing its service offerings and operational efficiency. The company completed the acquisition of Voltrek, an electric vehicle charging solutions provider, in October 2022, which is expected to bolster its position in the growing EV market. However, the company also dissolved its maintenance services subsidiary, Stay-Lite, in October 2024, merging its assets into Orion to streamline operations. The restructuring efforts are anticipated to yield annualized savings of approximately $1.5 million.

Operationally, Orion's lighting segment generated $13.2 million in revenue for the quarter, a decrease of 28.7% year-over-year, largely due to the completion of a significant project for the U.S. Department of Defense. The maintenance segment reported $3.9 million in revenue, down 14.8%, while the electric vehicle charging segment generated $2.4 million, a decline of 13.2%. The company’s backlog decreased to $14.4 million from $22.0 million, indicating a reduction in future revenue expectations.

Looking ahead, Orion anticipates continued challenges in revenue generation due to market conditions and the impact of its restructuring efforts. The company is focused on improving its operational efficiency and expanding its market presence, particularly in the EV sector. Orion has expressed confidence in its ability to meet its capital requirements and maintain liquidity, supported by its existing cash reserves and credit facilities. The company is actively monitoring its financial performance and market conditions to adapt its strategies accordingly.