Orion Reports Improved Q3'25 Gross Margin of 29.4% (+490 bps), Reduced Net Loss, Break-even Adjusted EBITDA and Improved Cash and Liquidity on Revenue of $19.6M; Reduces FY 2025 Revenue Outlook

Core Viewpoint - Orion Energy Systems, Inc. reported a decline in revenue for Q3'25 and updated its FY'25 revenue outlook to a range of $77 million to$ 83 million, reflecting project delays and market softness, but highlighted significant progress in cost reduction and margin enhancement [1][8]. Financial Performance - Q3'25 total revenue was $19.6 million, down 29% from$ 26.0 million in Q3'24, with LED lighting revenue at $13.2 million, EV charging revenue at$ 2.4 million, and maintenance revenue at $3.9 million [2][16]. - Gross profit for Q3'25 was$ 5.8 million, with a gross margin of 29.4%, an increase of 490 basis points from 24.5% in Q3'24 [2][16]. - Net loss for Q3'25 improved to $(1.5) million, or$ (0.05) per share, compared to a net loss of $(2.3) million, or$ (0.07) per share in Q3'24 [2][18]. Business Developments - The company added seven new customers/projects with an estimated revenue potential of $100 million to$ 200 million over the next five years, enhancing its project pipeline [5][6]. - Orion is reorganizing its business into two Commercial Business Units (CBUs) to improve focus and efficiency, expected to be fully implemented by April 1, 2025 [10][11]. Cost Management - Orion has reduced its annual revenue breakeven point by 25% to a range of $78 million to$ 85 million, down from approximately $105 million to$ 115 million over the past two years [6][8]. - The company achieved a reduction in operating costs by more than $4 million year-to-date, including a$ 1.5 million annualized savings through targeted staffing reductions [7][8]. Future Outlook - Orion expects Q4'25 revenue to be between $19 million and$ 25 million, with a strong year-end close anticipated for its Voltrek EV charging segment [12][9]. - The company is positioned for double-digit revenue growth and positive Adjusted EBITDA performance in FY'26, with more specifics to be provided in June [15][12].