Orion Energy (OESX)
NASDAQ:OESX
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Orion Energy Systems
(NASDAQ:OESX)
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Rating:51Neutral
Price Target:
$9.00
▼(-5.76% Downside)
Action:Reiterated
Date:06/04/26
Overall score reflects weak underlying financial performance (recent losses and inconsistent cash flow) and a technically bearish trend (trading below key moving averages), partially offset by a notably improved earnings-call outlook highlighting margin expansion, sustained positive adjusted EBITDA, and constructive FY27 guidance.
Positive Factors
Sustained positive adjusted EBITDA
Six consecutive quarters of positive adjusted EBITDA and a $2.2M full-year result indicate the company has stabilized core operating economics. Durable EBITDA improvement suggests better cost controls and unit economics that can underpin cash generation and fund execution of strategic initiatives over the next several quarters.
Negative Factors
Uneven and recently negative operating cash flow
Inconsistent operating cash flow—positive in a single year then negative on a TTM basis—signals working-capital volatility and fragile cash generation. That pattern heightens financing risk and could force dilutive capital raises or credit draws if losses persist while the company invests in new markets.
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Positive Factors
Negative Factors
Sustained positive adjusted EBITDA
Six consecutive quarters of positive adjusted EBITDA and a $2.2M full-year result indicate the company has stabilized core operating economics. Durable EBITDA improvement suggests better cost controls and unit economics that can underpin cash generation and fund execution of strategic initiatives over the next several quarters.
Read all positive factors
Orion Energy Systems (OESX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.12M
Dividend YieldN/A
Average Volume (3M)43.06K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth8.26%
EPS Growth75.52%
CountryUS
Employees260
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.89
Shares Outstanding4,052,863
10 Day Avg. Volume61,986
30 Day Avg. Volume43,057
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00036
P/FCF Ratio-0.03
Enterprise Value/Market Cap-126.03
Enterprise Value/Revenue-0.05
Enterprise Value/Gross Profit-0.17
Enterprise Value/Ebitda6.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.5
Revenue Forecast (FY)$95.93M
Orion Energy Systems Business Overview & Revenue Model
Company Description
Orion Energy Systems, Inc. researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, exterior area lighting, and industrial applications in North America. The ...
How the Company Makes Money
Orion Energy Systems primarily makes money by selling LED lighting products and delivering turnkey lighting retrofit projects to commercial and industrial customers. Revenue is generally generated through (1) product sales of lighting fixtures and...
Orion Energy Systems Earnings Call Summary
Earnings Call Date:Jun 04, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call reflects a clear operational turnaround: revenue growth, materially higher gross margins, a shift to positive adjusted EBITDA (six consecutive quarters), and a much smaller net loss for FY26. Management highlighted strategic product and market expansions (data centers, electrical contracting, BESS) and improved liquidity and credit terms. Offsetting risks include a sharp Q4 decline in EV revenue, negative year-to-date operating cash flow, Q4 one-time charges and timing/seasonality in maintenance and some lighting channels, and the early-stage nature of the data center opportunity. On balance, the improvements in profitability, margins, liquidity and strategic direction outweigh the near-term challenges.Positive Updates
Quarterly and Annual Revenue Growth
Q4 FY26 revenue of $25.7M increased from $20.9M in Q4 FY25 (+22.9%). Full-year FY26 revenue was $86.3M versus $79.7M in FY25 (+8.3%), exceeding the company goal of $84M for FY26.
Negative Updates
Sharp Q4 EV Revenue Decline
EV charging revenue fell to $2.3M in Q4 FY26 from $5.8M in Q4 FY25 (-60.3%). FY26 EV revenue also declined to $14.4M from $16.8M in FY25 (-14.3%), attributed to sector-wide uncertainty in the U.S. market.
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Q4-2026 Updates
Positive
Negative
Quarterly and Annual Revenue Growth
Q4 FY26 revenue of $25.7M increased from $20.9M in Q4 FY25 (+22.9%). Full-year FY26 revenue was $86.3M versus $79.7M in FY25 (+8.3%), exceeding the company goal of $84M for FY26.
Read all positive updates
Company Guidance
Orion guided to fiscal 2027 revenue of $95 million to $97 million with the company expecting to achieve positive adjusted EBITDA for the full year and noting revenue should play out relatively evenly across quarters; management suggested using a roughly 30% gross margin as a “round number” planning assumption for FY27 (FY26 gross margin was 32.6%, Q4 ’26 gross margin was 37%). For context, FY26 results included $86.3 million in revenue, positive adjusted EBITDA of $2.2 million (six consecutive quarters of positive adjusted EBITDA), Q4 ’26 revenue of $25.7 million and Q4 adjusted EBITDA of $0.8 million, FY26 net loss of $3.2 million ($0.89/sh) and Q4 net loss of $1.5 million ($0.39/sh). Segment and balance-sheet metrics discussed that frame the outlook include LED revenue of $55.9M in FY26 (Q4 LED $20.3M), EV revenue of $14.4M in FY26 (Q4 EV $2.3M), Maintenance revenue of $16.0M in FY26 (Q4 Maintenance $3.2M), net working capital of $11.0M, available liquidity of $15.4M, a $4.0M paydown on the revolver, $6.4M net proceeds from 500,000 shares issued in FY26, and an extended credit facility maturity to June 30, 2030; management also highlighted upside opportunities from electrical contracting, battery storage and a new data-center lighting market that is not yet included in the backlog.Orion Energy Systems Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
48
Neutral
Cash Flow
32
Negative
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 86.31B | 79.72M | 90.58M | 77.38M | 124.38M |
| Gross Profit | 28.09B | 20.24M | 20.91M | 17.51M | 33.91M |
| EBITDA | -1.64B | -8.32M | -8.38M | -14.00M | 9.88M |
| Net Income | -3.16B | -11.80M | -11.67M | -34.34M | 6.09M |
Balance Sheet | |||||
| Total Assets | 51.60B | 52.46M | 63.17M | 71.58M | 86.82M |
| Cash, Cash Equivalents and Short-Term Investments | 3.27B | 5.97M | 5.16M | 15.99M | 14.47M |
| Total Debt | 0.00 | 10.32M | 12.11M | 11.85M | 3.07M |
| Total Liabilities | 34.98B | 40.58M | 40.63M | 38.33M | 21.72M |
| Stockholders Equity | 16.63B | 11.88M | 22.54M | 33.25M | 65.10M |
Cash Flow | |||||
| Free Cash Flow | -1.16B | 494.00K | -10.93M | -2.89M | -641.00K |
| Operating Cash Flow | -1.08B | 599.00K | -10.09M | -2.29M | -113.00K |
| Investing Cash Flow | -86.00M | 128.00K | -731.00K | -6.20M | -4.92M |
| Financing Cash Flow | -1.54B | 90.00K | -14.00K | 10.01M | 104.00K |
Orion Energy Systems Technical Analysis
Positive
9.55
Price Trends
9.41
Positive
11.21
Negative
11.43
Negative
Market Momentum
>-0.01
Positive
50.23
Neutral
15.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OESX, the sentiment is Positive. The current price of 9.55 is above the 20-day moving average (MA) of 9.51, above the 50-day MA of 9.41, and below the 200-day MA of 11.43, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 15.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OESX.
Orion Energy Systems Risk Analysis
Orion Energy Systems disclosed 40 risk factors in its most recent earnings report. Orion Energy Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orion Energy Systems Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $54.37M | -6.68 | -23.29% | ― | ― | ― | |
52 Neutral | $118.62M | -5.85 | -94.91% | ― | 33.32% | 1.39% | |
51 Neutral | $37.12M | -0.01 | -39.87% | ― | 8.26% | 75.52% | |
48 Neutral | $7.86M | -0.81 | -119.92% | ― | -54.67% | -107.48% | |
43 Neutral | $22.96M | -1.18 | 209.00% | ― | ― | 72.29% |
* Industrials Sector Average
OESX
Orion Energy Systems
9.52
3.68
63.13%
IPWR
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6.03
1.22
25.36%
PPSI
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4.20
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51.08%
POLA
Polar Power
1.88
0.15
8.67%
SDST
Stardust Power
2.04
-4.22
-67.41%
RAYA
Erayak Power Solution Group Incorporation Class A
3.73
-4,110.27
-99.91%
Orion Energy Systems Corporate Events
Business Operations and StrategyLegal Proceedings
Orion Energy Resolves Voltrek Earn-Out Dispute, Restructures Assets
Neutral
Mar 20, 2026
On March 17, 2026, Orion Energy Systems entered into a settlement agreement with Final Frontier, LLC and related Connors parties to fully resolve a dispute over remaining earn-out obligations from its October 5, 2022 acquisition of Voltrek, follow...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.