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Orion Energy Systems
(NASDAQ:OESX)
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Rating:51Neutral
Price Target:
$11.50
▲(20.42% Upside)
Action:Reiterated
Date:06/17/26
The score is held back primarily by weak financial performance (recent losses and inconsistent/negative TTM cash flow) and a soft technical setup (trading below key moving averages with negative MACD). These are partially offset by a notably more constructive earnings-call outlook, including improving margins, sustained positive adjusted EBITDA, and FY27 guidance calling for revenue growth and positive adjusted EBITDA.
Positive Factors
Sustained gross margin improvement
Material gross margin gains reflect improved pricing, product mix and/or cost control in core LED business. Higher sustainable gross margins support durable operating leverage, better convert incremental revenue to profit and provide margin cushion for reinvestment or absorbing near-term cost volatility.
Negative Factors
Inconsistent cash generation
Recurring swings to negative operating and free cash flow indicate weak cash conversion and working-capital sensitivity. If cash burn resumes, the company may need external financing or equity dilution, limiting strategic optionality and increasing funding risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained gross margin improvement
Material gross margin gains reflect improved pricing, product mix and/or cost control in core LED business. Higher sustainable gross margins support durable operating leverage, better convert incremental revenue to profit and provide margin cushion for reinvestment or absorbing near-term cost volatility.
Read all positive factors
Orion Energy Systems (OESX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.92M
Dividend YieldN/A
Average Volume (3M)61.77K
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth8.26%
EPS Growth75.52%
CountryUS
Employees260
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.88
Shares Outstanding4,056,568
10 Day Avg. Volume82,826
30 Day Avg. Volume61,775
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.87
Price to Sales (P/S)0.36
P/FCF Ratio-0.03
Enterprise Value/Market Cap-70.19
Enterprise Value/Revenue-37.34
Enterprise Value/Gross Profit-114.73
Enterprise Value/Ebitda7.41K
Forecast
1Y Price Target
$20.00Price Target Upside109.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.48
Revenue Forecast (FY)$96.23M
Orion Energy Systems Business Overview & Revenue Model
Company Description
Orion Energy Systems, Inc. specializes in the comprehensive development, manufacturing, and implementation of energy management solutions, catering to commercial offices, retail spaces, industrial facilities, and exterior lighting needs throughout...
How the Company Makes Money
Orion Energy Systems generates revenue primarily by selling lighting and related energy-efficiency solutions to commercial and industrial customers. Key revenue streams include: (1) Product revenue from the sale of LED lighting fixtures, retrofit ...
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.
Read all updates
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 | 86.31M | 79.72M | 90.58M | 77.38M | 124.38M |
| Gross Profit | 28.09M | 20.24M | 20.91M | 17.51M | 33.91M |
| EBITDA | -366.00K | -8.32M | -8.38M | -14.00M | 9.88M |
| Net Income | -3.16M | -11.80M | -11.67M | -34.34M | 6.09M |
Balance Sheet | |||||
| Total Assets | 51.60M | 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 | 8.80M | 10.32M | 12.11M | 11.85M | 3.07M |
| Total Liabilities | 34.98M | 40.58M | 40.63M | 38.33M | 21.72M |
| Stockholders Equity | 16.63M | 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
9.46
Positive
10.18
Positive
11.61
Negative
Market Momentum
0.18
Negative
68.07
Neutral
84.86
Negative
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 below the 20-day moving average (MA) of 9.57, above the 50-day MA of 9.46, and below the 200-day MA of 11.61, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.07 is Neutral, neither overbought nor oversold. The STOCH value of 84.86 is Negative, 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 36 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% | |
52 Neutral | $82.12M | -4.31 | -94.91% | ― | 33.32% | 1.39% | |
51 Neutral | $45.92M | -12.79 | -24.98% | ― | 8.26% | 75.52% | |
48 Neutral | $6.08M | -0.53 | -119.92% | ― | -54.67% | -107.48% | |
46 Neutral | $43.16M | -6.17 | -23.29% | ― | ― | ― | |
41 Neutral | $17.99M | -0.84 | 209.00% | ― | ― | 72.29% |
* Industrials Sector Average
OESX
Orion Energy Systems
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88.64%
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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.