Financial Performance - Q2'26 total revenue increased to $19.9 million, up from $19.4 million in Q2'25, reflecting a growth of approximately 2.6% year-over-year[4] - Net loss narrowed to $(0.6) million in Q2'26 from $(3.6) million in Q2'25, representing an improvement of $3.0 million[4] - Adjusted EBITDA for Q2'26 was $0.5 million, marking the fourth consecutive quarter of positive adjusted EBITDA, compared to a loss of $(1.4) million in Q2'25[5] - Net loss for the six months ended September 30, 2025, was $1,825,000, a decrease from a net loss of $7,383,000 in the same period of 2024, indicating improved financial performance[33] - The company reported a basic net loss per share of $0.17 for the three months ended September 30, 2025, compared to $1.10 for the same period in 2024[29] - Net income for the three months ended September 30, 2025, was a loss of $581 million, compared to a loss of $3,625 million for the same period in 2024[35] Revenue Breakdown - Maintenance revenue grew by 18% to $4.5 million in Q2'26, up from $3.8 million in Q2'25, due to new customer contracts and expanded relationships[2] - EV charging revenue was $4.8 million in Q2'26, relatively flat compared to Q2'25, with expectations for slight declines in FY'26 due to market uncertainties[20] - Orion reiterated its FY 2026 revenue growth outlook of approximately 5%, targeting $84 million, which is expected to lead to positive adjusted EBITDA for the full fiscal year[5] - Significant new business wins included $11 million in public sector lighting and $7 million in LED lighting for major automotive industry facilities[7] Cost Management - Gross profit margin improved by 790 basis points to 31.0% in Q2'26 compared to 23.1% in Q2'25, driven by product mix and cost improvements[4] - Orion's operating expenses decreased to $6.4 million in Q2'26 from $7.7 million in Q2'25, reflecting ongoing cost containment efforts[18] - Operating expenses for the six months ended September 30, 2025, were $13,333,000, down from $15,475,000 in the same period of 2024, reflecting cost management efforts[29] - The company continues to face pressures to reduce selling prices of its lighting products due to increased competition, which may negatively impact gross margins[29] Assets and Liabilities - Cash and cash equivalents decreased to $5,155,000 as of September 30, 2025, down from $5,972,000 at the end of March 2025[32] - Total assets decreased to $47,902,000 as of September 30, 2025, compared to $52,463,000 as of March 31, 2025[32] - Total liabilities decreased to $36,520,000 as of September 30, 2025, from $40,579,000 as of March 31, 2025, indicating improved financial stability[32] Operational Changes - The company is currently implementing a new ERP system, which may involve substantial costs and potential operational disruptions[29] - The company is expanding its Voltrek EV Charging field sales and service presence to the Southeastern United States, establishing a new office in Jacksonville, FL[15] Other Financial Metrics - EBITDA for the latest quarter was $269 million, a significant improvement from a negative EBITDA of $2,691 million in the same quarter last year[35] - Adjusted EBITDA increased to $451 million, up from $32 million in the previous year, indicating a strong operational performance[35] - Stock-based compensation expenses were $157 million, slightly down from $180 million in the same quarter of 2024[35] - The company incurred restructuring costs of $0 in the latest quarter, compared to $163 million in the same quarter last year[35] - Severance costs decreased to $25 million from $158 million year-over-year, reflecting improved workforce management[35] - Interest expenses for the quarter were $280 million, compared to $283 million in the same quarter of the previous year[35] - Depreciation expenses were $263 million, an increase from $278 million in the same quarter of 2024[35] - The company reported no deferred cost write-offs for ATM in the latest quarter, while it had $0 in the same quarter last year[35] - Earnout expenses were $0 in the latest quarter, down from $630 million in the same quarter of the previous year, indicating a reduction in contingent liabilities[35]

Core Insights - Orion Energy Systems reported a total revenue of $19.9 million for Q2'26, reflecting a slight increase of 2.6% compared to $19.4 million in Q2'25 [4][18]. - The company achieved a gross profit margin of 31.0%, up 790 basis points from 23.1% in the same quarter last year, driven by improved product and project mix [4][19]. - Orion's net loss improved significantly to $(0.6) million in Q2'26 from $(3.6) million in Q2'25, with net loss per share improving to $(0.17) from $(1.10) [4][20]. - Adjusted EBITDA for Q2'26 was $0.5 million, marking the fourth consecutive quarter of positive adjusted EBITDA, compared to a loss of $(1.4) million in Q2'25 [5][20]. Financial Performance - LED Lighting Revenue decreased by 2% to $10.7 million in Q2'26 from $10.8 million in Q2'25 [2][25]. - EV Charging Revenue increased by 1% to $4.8 million compared to $4.7 million in Q2'25 [2][25]. - Maintenance Revenue saw a significant increase of 18%, reaching $4.5 million in Q2'26 from $3.8 million in Q2'25 [2][25]. - Total operating expenses decreased to $6.4 million in Q2'26 from $7.7 million in Q2'25, reflecting ongoing cost containment efforts [19]. Business Highlights - The company secured $11 million in public sector lighting contracts and $7 million in LED lighting contracts with major automotive industry clients [7][14]. - In the EV Charging segment, Orion booked $8.5 million in contracts, including installations for the Boston Public School system and the Massachusetts Department of Transportation [13][9]. - Orion expanded its Voltrek EV Charging field sales and service presence to the Southeastern United States, establishing a new office in Jacksonville, FL [15]. - The company anticipates continued growth and profitability in the second half of the fiscal year, reiterating its FY 2026 revenue growth outlook of approximately 5% to $84 million [10][11]. Balance Sheet and Cash Flow - Orion generated $1.3 million in cash from operating activities in the first six months of FY'26, compared to a $2.5 million use in FY'25 [21]. - The company paid down $1.25 million on its revolving credit facility, reducing outstanding borrowings to $5.75 million as of September 30, 2025 [21]. - Cash and cash equivalents at the end of Q2'26 were $5.155 million, down from $5.972 million at the beginning of the period [33][35]. CEO Commentary - CEO Sally Washlow expressed satisfaction with the company's performance in Q2, highlighting solid accomplishments across all business lines and positive indicators for the remainder of the fiscal year [6][10]. - The CEO noted that the company is experiencing macro tailwinds in the lighting business, with construction planning significantly ahead of last year [7].

Core Insights - Orion Energy Systems, Inc. announced LED lighting and Electrical Infrastructure engagements worth over $4.7 million for two major enterprise customers [1] - The larger engagement is valued at $3.6 million, involving installations and upgrades for a large enterprise with 18,000 employees [2] - The second engagement, worth $1 million, is part of a multi-year initiative and includes work at five facilities across four U.S. states [3] Engagement Details - The $3.6 million engagement focuses on installations and upgrades of Electrical Infrastructure and LED lighting at a large enterprise's facilities [2] - The $1 million engagement is expected to be completed in FY 2026 and marks the beginning of a multi-year upgrade initiative [3] - Orion anticipates being assigned more work by the customer on a frequent basis due to the scale of the enterprise's needs [3] Company Positioning - Orion's CEO highlighted the increasing frequency and scope of assignments from large enterprises, indicating a growing reliance on Orion's services [4] - The COO emphasized Orion's capability to scale operations in line with the needs of extended enterprises [4] - Orion specializes in energy efficiency and clean tech solutions, including LED lighting and EV charging solutions, aimed at helping customers achieve business and environmental goals [5]

Summary of Orion Energy Systems Conference Call Company Overview - **Company Name**: Orion Energy Systems (NasdaqCM: OESX) - **Market Cap**: Approximately $32 to $34 million [2] - **Trailing 12-Month Sales**: $79 million [3] - **Price-to-Sales Ratio**: 0.34, indicating potential for growth compared to industry peers [3] Business Segments - **Segments**: - LED Lighting Systems - Commercial and Industrial EV Charging Systems - Lighting and Electrical Maintenance [2] - **Revenue Streams**: - Diversified across three segments with recurring revenues in maintenance [3] - Project-based revenues in other segments [3] Financial Performance and Strategy - **Cost Optimization**: - Reduced costs by $6.5 million to lower break-even point to approximately $80 million [3] - **Customer Base**: - Long-term relationships with blue-chip industrial customers [3] - Recent renewal of a three-year contract with the largest customer in maintenance [6][9] Product and Service Offerings - **Lighting Solutions**: - Over 25,000 projects completed since inception in 1996 [4] - Customizable solutions for various customer needs [4] - Advanced control options for energy efficiency [5] - **EV Charging Solutions**: - Acquisition of Voltrek, which grew from $7.5 million to $17 million in revenue over three years [10] - Turnkey project management capabilities for EV installations [11] Market Insights - **LED Market Penetration**: - Current penetration in industrial and commercial sectors is approximately 40% [14] - Ongoing demand for upgrading from Gen 1 LEDs to newer models, with expected energy savings of 30-40% [15] - **Growth Opportunities**: - Each segment is expected to grow, with maintenance projected to grow slower than others [16] - Infrastructure needs for EV charging remain significant despite slower initial growth [16] M&A and Growth Strategy - **M&A Outlook**: - No active M&A plans currently, but open to opportunities in adjacent lighting or EV markets [17][18] - **Organic Growth**: - Focus on organic growth strategies that require less significant investment [18] Conclusion - Orion Energy Systems presents a compelling investment opportunity with a diversified revenue model, strong customer relationships, and a focus on sustainability through innovative technology in lighting and EV charging solutions. The company is well-positioned to capitalize on market trends and infrastructure needs in the energy sector.

Core Insights - Orion Energy Systems, Inc. has announced a three-year renewal of a major LED lighting preventative maintenance contract with a leading retailer, valued between $42 million and $45 million [1][2] - The renewal is a result of Orion's successful management of large-scale projects across all 50 states, leading to significant reductions in the retailer's overhead costs for lighting maintenance [2][4] - The contract will commence in March 2026, following the expiration of the current engagement [3] Company Overview - Orion specializes in energy-efficient solutions, including LED lighting, EV charging stations, and maintenance services, focusing on large national customers [5] - The company emphasizes its commitment to helping clients achieve business and environmental goals through sustainable solutions that reduce carbon footprints [5] Leadership Statements - Orion's CEO highlighted the significance of the renewal as a testament to the company's ability to meet the extensive needs of large enterprises [4] - The Vice President of Services expressed appreciation for the continued partnership with a respected retailer, underscoring Orion's capability to address complex lighting requirements [4]

Core Insights - Orion Energy Systems, Inc. will host a conference call and webcast to discuss its fiscal 2026 second quarter results on November 5, 2025, at 10:00 a.m. ET [1] - The company will release its financial results prior to the market opening on the same day [1] Company Overview - Orion Energy Systems specializes in energy-efficient LED lighting, electric vehicle charging solutions, and electrical maintenance services [2] - The company focuses on providing turnkey design-through-installation solutions for large national customers and projects through ESCO and distribution partners [2] - Orion aims to help customers achieve their business, financial, and environmental goals with high-quality, innovative, and safe solutions [2] Engagement and Contact Information - Investors can engage with Orion Energy Systems through social media platforms such as Twitter and StockTwits [4] - Investor relations contacts include Per Brodin, CFO, and Robert Ferri, with provided email addresses and phone numbers for inquiries [4]

Core Insights - Orion Energy Systems, Inc. will present at the LD Micro Main Event XIX on October 21st at 9:30 a.m. PT, focusing on its energy-efficient LED lighting and EV charging solutions [1][2][3] - The LD Micro Main Event will take place from October 19th to 21st in San Diego, featuring around 120 companies presenting to investors [4] 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 [6] - The company offers turnkey design-through-installation solutions for large national customers and collaborates with ESCO and distribution partners [6][7] Event Details - The presentation will be accessible online for registered investors, highlighting the company's commitment to small company investing [2][3] - Chris Lahiji, the founder of LD Micro, emphasized the event's dedication to supporting small companies [3]

Summary of Orion Energy Systems Conference Call Company Overview - **Company Name**: Orion Energy Systems - **Ticker Symbol**: OESX (NASDAQ) - **Market Capitalization**: $31 million - **Recent Share Price**: $8.77 - **Trailing 12-Month Sales**: Just under $80 million [3][15] Core Business Segments - **LED Lighting Systems**: Focus on energy-efficient commercial and industrial retrofit LED lighting systems, with over 25,000 completed projects [4][12] - **EV Charging Infrastructure**: Provides end-to-end commercial EV charging solutions, including installation and maintenance [5][9] - **Maintenance and Technical Services**: Offers recurring services across lighting and EV systems, with many contracts lasting three years [4][8] Investment Merits - **Diversified Revenue Streams**: Revenue from EV, lighting, and maintenance services, with recurring revenue capabilities [3][4] - **Cost Structure Optimization**: Anticipated annualized overhead reductions of $6.5 million [3] - **Strong Customer Base**: Long-term relationships with blue-chip clients, including Coca-Cola, Amazon, and the US Navy [10][11] - **Proprietary Supply Chain**: Manufacturing flexibility and compliance with the Build America, Buy America Act (BAA and BABA) [6][8] Competitive Advantages - **Turnkey Capabilities**: Unique ability to manage projects from concept to completion, providing high ROI for customers [5][10] - **Accelerated Product Development**: Ability to bring products to market in 4 to 6 months, compared to 12 months for competitors [6] - **High Energy Efficiency**: Industry-leading technology and design for energy-efficient solutions [5][13] Recent Projects and Case Studies - **Clareos Project**: Installation of 800 fixtures resulted in nearly $55,000 in annual energy cost reduction and 218 tons of CO2 reduction [12] - **Haverhill High School**: Installation of six DC ChargePoint fast charging stations for EV transit vans [12] Financial Performance - **Gross Margin**: Improved steadily, reaching 30% in the recent quarter [15] - **Revenue and EBITDA**: Detailed quarterly revenue, margin, and liquidity data presented, with a focus on growth and profitability [15] Management Team - **CEO**: Sally Washlow, appointed in April 2025, with a background in leadership roles [14][15] - **CFO**: Per Brodin, with over 30 years of experience in financial roles [15] - **COO**: Scott Green, previously with Harris Lighting, bringing extensive industry knowledge [15] Conclusion - Orion Energy Systems positions itself as a one-source solution for LED lighting and EV charging projects, emphasizing sustainability, energy savings, and customer service [13]

Core Viewpoint - Orion Energy Systems, Inc. will participate in the Lytham Partners Fall 2025 Investor Conference, presenting its energy-efficient solutions and engaging in one-on-one meetings with investors [1][3]. Company Overview - Orion Energy Systems specializes in energy efficiency and clean technology solutions, including LED lighting, electric vehicle (EV) charging stations, and maintenance services [4]. - The company focuses on providing turnkey design-through-installation solutions for large national customers and works with ESCO and distribution partners to help clients achieve their business and environmental goals [4]. Event Details - The webcast presentation is scheduled for September 30, 2025, at 3:30 p.m. ET, and will be accessible via the conference homepage or directly through a provided link [2]. - Management will be available for virtual one-on-one meetings during the event, with arrangements facilitated through Lytham Partners [3].

Summary of Orion Energy Systems Conference Call Company Overview - **Company Name**: Orion Energy Systems (NasdaqCM: OESX) - **Market Capitalization**: Slightly higher than $26 million [2] - **Recent Share Price**: Approximately $7.40 [2] - **Trailing 12 Months Sales**: Around $80 million [3] Core Business Segments - **LED Lighting Systems**: Focus on energy-efficient solutions for commercial and industrial applications [2][3] - **EV Charging Infrastructure**: End-to-end solutions including site design, installation, and maintenance [4][5] - **Maintenance and Managed Services**: Recurring services for lighting and EV systems, including preventative and reactive maintenance [4][7] Key Highlights - **Project Completion**: Over 25,000 projects completed, primarily in the commercial and industrial retrofit sector [4] - **Recurring Revenue Opportunities**: Maintenance contracts and EV charging operations provide stable revenue streams [15][23] - **Customer Base**: Strong long-term relationships with blue-chip clients across various sectors, including government and healthcare [9][10] Competitive Advantages - **Manufacturing Flexibility**: U.S.-based manufacturing facility in Wisconsin with 266,000 square feet, compliant with Buy American Act [6][12] - **Quick Product Development**: Ability to bring products to market within four to six months [6] - **Technological Leadership**: Industry-leading energy efficiency and smart design capabilities [5][17] Recent Developments - **New Projects**: Awarded an $11 million electrical infrastructure project for exterior LED lighting and EV charging [11][16] - **Maintenance Revenue Growth**: Grew over 20% last quarter, with a focus on profitable recurring contracts [23] Market Dynamics - **EV Segment Outlook**: Conservative approach due to initial funding pullbacks but optimistic about future growth as funding stabilizes [16][18] - **Competitive Landscape**: Increased competition in the EV segment, with potential for market consolidation [17] Financial Performance - **Gross Margin Improvement**: Approaching 30%, with fluctuations due to revenue volumes and restructuring of maintenance contracts [13][21] - **Cost Management**: Ongoing efforts to reduce product costs to improve margins [22] Strategic Focus - **Expansion of Services**: Plans to grow lighting maintenance services and explore electrification opportunities with municipalities [12][18] - **Partnerships**: Collaborations with leading EV charging station manufacturers like ChargePoint and ABB [5][8] Conclusion Orion Energy Systems is positioned as a competitive player in the energy efficiency and EV charging markets, with a strong focus on recurring revenue and customer satisfaction. The company is leveraging its U.S.-based manufacturing and technological capabilities to drive growth and maintain compliance with government regulations.