Orion Energy Systems 2026 Q1 Earnings Significant Net Loss Reduction

Orion Energy Systems reported its 2026 Q1 earnings on August 6, 2025, with a notable 66.9% reduction in net losses. The company met its guidance and maintained its FY 2026 revenue growth forecast.

Revenue
Orion Energy Systems reported total revenue of $19.57 million in Q1 2026, a 1.7% decline from $19.91 million in the same period of the prior year. The company's Lighting segment remained the largest contributor, generating $12.88 million, while the Maintenance segment brought in $4 million. The EV segment accounted for $2.70 million in revenue. Additionally, the Corporate & Other category reported $0 in revenue for the quarter.

Earnings/Net Income
Orion Energy Systems significantly narrowed its losses, with a net loss of $-1.24 million in Q1 2026, representing a 66.9% improvement compared to a loss of $-3.76 million in Q1 2025. On a per-share basis, the company reduced losses to $0.04 from $0.12 year-over-year. The improvement in net income reflects positive operational adjustments made during FY 2025.

Price Action
The stock of Orion Energy Systems saw strong short-term price action, with gains of 11.29% during the latest trading day, 13.11% for the week, and 13.04% for the month.

Post Earnings Price Action Review
Despite the positive revenue and earnings results, the strategy of buying OESX following a revenue miss and holding for 30 days underperformed significantly. The strategy returned -81.39%, lagging behind the benchmark by -166.81%, with a Sharpe ratio of -0.48, indicating a high-risk, low-reward scenario with no drawdown during the period.

CEO Commentary
CEO Sally Washlow highlighted improved business performance, driven by pricing and cost measures implemented in FY 2025. The company achieved its highest gross margin in six years at 30.1% and recorded $0.2 million in positive adjusted EBITDA for the quarter. Washlow also noted the commencement of a $3M EV charging project in June and ongoing growth in LED lighting distribution via new products like TritonPro. Despite EV segment headwinds due to timing and prior-year comparisons, leadership remains optimistic, emphasizing a strong solution platform, cost reductions, and a diversified revenue pipeline to support FY 2026 goals.

Guidance
Orion Energy Systems reiterated its FY 2026 revenue guidance of approximately $84 million, a 5% increase, with the potential to achieve positive full-year adjusted EBITDA. The company expects continued margin improvements and operating cost reductions to support both top-line and bottom-line growth.

Additional News
A recent earnings call transcript published on August 6, 2025, discussed the stock's surge following the Q1 2025 earnings report, although it required JavaScript and cookie activation for full access. While no new M&A activity, C-level executive changes, or dividend/buyback announcements were disclosed, the transcript highlighted management's strategic focus on leveraging its solution platform to drive long-term growth. The company's forward-looking statements emphasized confidence in its FY 2026 outlook and the potential for improved profitability.