Core Insights - Orion Energy Systems, Inc. will participate in Singular Research's 19th Annual Best of the Uncovereds Conference on December 11, 2025, highlighting its focus on energy-efficient solutions [1] - CEO Sally Washlow will present virtually and engage in one-on-one investor meetings during the event, indicating the company's commitment to investor relations [2] Company Overview - Orion specializes in energy efficiency and clean tech solutions, including LED lighting, EV charging solutions, and maintenance services, aiming to help customers achieve business and environmental goals [3] - The company offers turnkey design-through-installation solutions for large national customers and collaborates with ESCO and distribution partners [3] - Orion is dedicated to sustainability and responsible operations across its organization, with a focus on reducing carbon footprints and enhancing business performance [4]

MANITOWOC, Wis., Dec. 08, 2025 (GLOBE NEWSWIRE) -- 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 announced that it will participate in Singular Research’s 19th Annual Best of the Uncovereds Conference. The conference takes place December 11, 2025. Orion Chief Executive Officer Sally Washlow will present virtually at 11:45 a.m. ET / 8:45 a.m. PT and be available for one ...

Core Viewpoint - Orion Energy Systems, Inc. (OESX) has shown a significant price increase of 41.2% over the past four weeks, with a mean price target of $17.83 indicating a potential upside of 26.4% from the current price of $14.11 [1] Price Targets and Analyst Consensus - The average price target for OESX ranges from a low of $15.00 to a high of $20.00, with a standard deviation of $2.57, suggesting a variability in analyst estimates [2] - The lowest estimate indicates a 6.3% increase, while the highest suggests a 41.7% upside [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Analyst Optimism - Analysts have shown increasing optimism about OESX's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 57.1%, with two estimates moving higher and no negative revisions [12] - OESX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are a common metric for investors, relying solely on them for investment decisions may not be prudent due to potential biases in analyst estimates [3][10] - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated expectations [8]

Core Viewpoint - Orion Energy Systems, Inc. (OESX) has shown a significant price increase of 26.6% over the past four weeks, with a mean price target of $17.83 indicating a potential upside of 75.2% from the current price of $10.18 [1] Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $2.57, where the lowest estimate of $15.00 suggests a 47.4% increase, and the highest estimate of $20.00 indicates a potential surge of 96.5% [2] - A low standard deviation among price targets suggests a strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - There is increasing optimism among analysts about OESX's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 42.3% over the past month, with no negative revisions, indicating positive sentiment [12] - OESX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for upside [13] Caution on Price Targets - While the consensus price target is a commonly referenced metric, relying solely on it for investment decisions may not be prudent due to historical inaccuracies in price predictions by analysts [3][7] - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated expectations [8] - Investors should approach price targets with skepticism and consider them as one of many factors in their decision-making process [10]

Core Insights - Orion Energy Systems, Inc. will participate in the Craig-Hallum Alpha Select Conference on November 18, 2025, in New York City [1] - The CEO and CFO of Orion will be available for one-on-one investor meetings during the event [2] Company Overview - Orion specializes in energy efficiency and clean tech solutions, including LED lighting, EV charging solutions, and maintenance services [3] - The company focuses on turnkey design-through-installation solutions for large national customers and projects through ESCO and distribution partners [3] - Orion is committed to helping customers achieve business and environmental goals while reducing carbon footprints and enhancing business performance [3] Sustainability Commitment - Orion emphasizes responsible operations across all areas of the organization, highlighting its sustainability and governance priorities [4]

Revenue Performance - Product revenue increased by 3.6% to $12.813 million, while service revenue rose by 1.6% to $7.106 million for the three months ended September 30, 2025[129]. - Total revenue for the same period reached $19.919 million, reflecting a 2.9% increase compared to $19.361 million in the prior year[129]. - Total revenue for the first six months of FY2026 was $39.494 million, a 0.6% increase from $39.267 million in FY2025, driven by a 4.7% increase in product revenue[138]. - Service revenue decreased by 6.8%, or $1.0 million, to $13.169 million in the first six months of FY2026 compared to FY2025[138]. Profitability and Margins - Gross profit increased by 38.1% to $6.177 million, with gross margin improving from 23.1% to 31.0% due to higher revenue in the EV and maintenance segments[129]. - Gross profit increased by 37.7% to $12.078 million in the first six months of FY2026, with gross margin improving from 22.3% to 30.6%[138]. Expenses - Cost of service revenue decreased by 17.3% to $4.965 million, primarily due to restructuring efforts made in fiscal 2025[129]. - General and administrative expenses decreased by 16.5% to $3.812 million, attributed to the absence of Voltrek earnout expenses and reduced wages[130]. - Sales and marketing expenses fell by 16.6% to $2.376 million, mainly due to decreased wages and benefits from restructuring[131]. - Research and development expenses decreased by 29.6% to $231,000 compared to the previous year[132]. Segment Performance - Lighting segment revenue decreased by 1.6%, or $0.2 million, to $10.664 million in Q2 FY2026 compared to Q2 FY2025, with an operating loss reduced by 33.4% to $853 thousand[134]. - Maintenance segment revenue increased by 18.3%, or $0.7 million, to $4.491 million in Q2 FY2026, with operating income rising by 257.4% to $554 thousand[135]. - EV segment revenue increased by 0.8%, or $39 thousand, to $4.764 million in Q2 FY2026, with operating income improving by 275.3% to $1.059 million[136]. - Maintenance segment revenue for the first six months of FY2026 increased by 19.2%, or $1.4 million, to $8.488 million, with operating income rising to $683 thousand[144]. - EV segment revenue decreased by 12.8%, or $1.1 million, to $7.460 million in the first six months of FY2026, but operating income improved by 188.3% to $737 thousand[147]. Cash Flow and Liquidity - Cash and cash equivalents decreased to approximately $5.2 million as of September 30, 2025, from $6.0 million at March 31, 2025, due to a $1.3 million debt repayment[149]. - Cash provided by operating activities was $1.304 million in the first six months of FY2026, compared to a cash outflow of $2.464 million in the same period of FY2025[151]. - Cash used in financing activities was $1.8 million in the first six months of fiscal 2026, primarily due to payments on the revolving credit facility and long-term debt[154]. - Cash provided by financing activities was $2.5 million in the first six months of fiscal 2025, mainly from a term loan, partially offset by payments on the revolving credit facility and long-term debt[155]. - Net working capital as of September 30, 2025, was $8.1 million, with current assets of $32.0 million and current liabilities of $24.0 million[156]. - The borrowing base under the revolving credit facility supported approximately $14.1 million of availability as of September 30, 2025, with $5.8 million drawn against it[158]. Other Financial Information - The company expects customer concentration to remain around 24.3% for fiscal 2025, with efforts to diversify its customer base ongoing[127]. - The company completed a 1-for-10 reverse stock split on August 22, 2025, to comply with Nasdaq's Minimum Bid Price Rule[120]. - An estimated liability of approximately $1.4 million has been accrued for the remaining earnout amount related to the acquisition of Voltrek[121]. - Backlog totaled $18.2 million as of September 30, 2025, expected to be recognized as revenue within one year[166]. - Monthly principal payments of $25,000 on the Senior Subordinated Note will begin on January 15, 2026, increasing to $50,000 on July 15, 2026[163]. - The final Remaining Earnout Amount could exceed the current accrued liability and materially affect future liquidity[165]. - The credit agreement includes a springing minimum fixed cost coverage ratio of 1.0 to 1.0 when excess availability falls below $4.0 million, which is currently not required[160]. - The company has no off-balance sheet arrangements[167].

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Financial Data and Key Metrics Changes - Orion reported Q2 2026 revenue of $19.9 million, a slight increase from $19.4 million in Q2 2025, with a gross profit margin rising to 31% from 23.1% year-over-year, reflecting an 800 basis point improvement [8][17] - The net loss improved to $0.6 million or $0.17 per share from a net loss of $3.6 million or $1.10 per share in Q2 2025, indicating better financial performance [17] - Adjusted EBITDA turned positive at $0.5 million in Q2 2026 compared to a negative $1.4 million in Q2 2025, marking the fourth consecutive quarter of positive adjusted EBITDA [17] Business Line Data and Key Metrics Changes - The LED lighting segment revenue decreased by 2% to $10.7 million in Q2 2026 from $10.8 million in Q2 2025, impacted by lower ESCO channel sales despite increased project activity [13] - Maintenance segment revenue increased by 18% to $4.5 million in Q2 2026 from $3.8 million in Q2 2025, benefiting from new customer contracts and expanded existing relationships [15] - EV charging solutions revenue was $4.8 million in Q2 2026, slightly up from $4.7 million in Q2 2025, reflecting the completion of a significant project [15] Market Data and Key Metrics Changes - The Dodge Momentum Index report indicated that commercial, industrial, and public sector construction planning is 33% ahead of year-ago levels, suggesting a positive outlook for the lighting market [6] - The EV charging market outlook improved with the federal declaration of $5 billion in government EV charging funds, boosting confidence in the sector [7] Company Strategy and Development Direction - Orion aims to achieve three milestones in fiscal 2026, including maintaining its NASDAQ listing, implementing a growth profitability and cost containment initiative, and reaching $84 million in revenue with positive adjusted EBITDA for the full fiscal year [4][5] - The company is focusing on expanding its LED lighting distribution business and enhancing its electrical infrastructure offerings, integrating various services to meet customer demands [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustainable and profitable growth beginning in the second half of the fiscal year, driven by ongoing improvements in cost control and operational efficiency [4][11] - The company anticipates modest growth in LED lighting and electrical maintenance revenues, with flat to slightly lower EV charging revenues for the fiscal year [18] Other Important Information - Orion's total operating expenses declined to $6.4 million in Q2 2026 from $7.7 million in Q2 2025, reflecting ongoing cost control measures [16] - The company issued $1 million of common stock and made $875,000 in cash payments to partially satisfy an earn-out obligation during the quarter [18] Q&A Session Summary Question: What is the outlook for the EV business given recent government clarity? - Management noted an increase in enterprise customers integrating EV charging into their projects, with ongoing expansion in utility programs and infrastructure work [19] Question: Are there plans for geographic expansion in the EV segment? - The company is looking at geographic expansion and has hired personnel to lead efforts in new areas, particularly where EV infrastructure work is prominent [22] Question: Can you clarify the $42 million-$45 million recurring revenue potential? - This figure represents the total over the life of a three-year contract renewal with a major customer [22] Question: What are the expectations for gross margins moving forward? - Management indicated that while improvements are expected, gross margins are likely to remain in the high 20s to low 30s range, depending on revenue mix and sales volumes [24] Question: How much revenue headwind was faced due to the unprofitable maintenance contract? - The headwind from the unprofitable contract was estimated to be less than $500,000, as the company is growing in other areas [29] Question: Is the maintenance business a lead generator for product sales? - Yes, the maintenance business is seen as a lead generator, providing insights and opportunities for additional sales in lighting and EV segments [32]

Core Insights - Orion Energy Systems, Inc. (OESX) reported a quarterly loss of $0.17 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.72, marking an earnings surprise of +76.39% [1] - The company posted revenues of $19.92 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.74%, but showing a year-over-year increase from $19.36 million [2] - The stock has gained approximately 12.7% since the beginning of the year, underperforming compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.42 on revenues of $20.74 million, and for the current fiscal year, it is -$1.86 on revenues of $83.26 million [7] - The estimate revisions trend for Orion Energy Systems was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Building Products - Lighting industry, to which Orion Energy Systems belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting a challenging environment for the stock [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

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