Orion Energy Systems (OESX) AI Stock Analysis

• Market Cap: $21.66M
• Dividend Yield: N/A
• Average Volume (3M): 170.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -14.52%
• EPS Growth: -4.41%
• Country: US
• Employees: 260
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.04
• Shares Outstanding: 35,202,710
• 10 Day Avg. Volume: 320,604
• 30 Day Avg. Volume: 170,479
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: -4.75
• 1Y Price Target: $1.25
• Price Target Upside: 101.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $0.50 ▼(-19.35% Downside)

Orion Energy Systems' overall stock score reflects significant financial challenges, with declining revenues and profitability issues being the most impactful factors. The technical analysis suggests a neutral trend, while valuation metrics indicate limited attractiveness. The earnings call provided some optimism with improvements in certain segments, and recent corporate events show strong shareholder support, which could positively influence future performance.

Positive Factors

Financial Performance

The company was able to deliver a third consecutive quarter of positive adjusted EBITDA.

Gross Margins

Gross margins for F1Q26 improved to 30.1%, compared to 21.6% in F1Q25, as a result of improvements in pricing, revenue mix, and costs across all three segments.

Policy and Regulation

Orion stands to benefit from the focus on the current administration on American manufacturing; the company’s products are Build America Act (BAA) compliant.

Negative Factors

Market Conditions

Orion Energy's F3Q25 revenues were impacted by delayed LED lighting projects and general market softness reflecting customer uncertainty concerning the economy.

Revenue Impact

Revenues were impacted by a weak EV charging solutions revenue of $2.7M, down from $5.8M in F4Q25.

Supply Chain and Tariffs

Orion Energy now has less exposure to China-related supply chain issues, though tariffs on Mexico-related supply chain and metals could still impact results.

Orion Energy Systems Business Overview & Revenue Model

Company Description

Orion Energy Systems, Inc. (OESX) is a leading provider of advanced energy management solutions, specializing in the design, manufacturing, and installation of high-performance LED lighting systems and energy-efficient products. The company operates primarily in the commercial and industrial sectors, offering a range of products that enhance energy efficiency and reduce operational costs for businesses. Orion's core services include energy audits, lighting retrofits, and the integration of solar energy solutions, aimed at helping clients achieve sustainability and significant energy savings.

How the Company Makes Money

Orion Energy Systems generates revenue through several key streams: the sale of LED lighting products, energy efficiency services, and solar energy solutions. The company earns money by selling its proprietary lighting systems directly to customers and through partnerships with distributors and contractors. Additionally, Orion offers energy consulting services, conducting audits and evaluations to recommend optimal energy solutions. The company also benefits from various government and utility incentives aimed at promoting energy efficiency, which can enhance customer adoption of its products. Significant partnerships with energy companies and participation in renewable energy programs further contribute to its earnings, allowing it to expand its market reach and drive sales.

Orion Energy Systems Financial Statement Overview

Summary

Orion Energy Systems is facing financial challenges characterized by declining revenues, persistent losses, and pressure on margins. The balance sheet has weakened due to cumulative losses, and while there is some positive trend in cash flow generation, it remains insufficient to signal a strong recovery. The company faces risks in maintaining liquidity and operational stability unless performance improves.

Income Statement

Orion Energy Systems has experienced declining revenue and profitability over recent years. The gross profit margin has decreased from previous years, indicating pressure on cost management or pricing. Consistent net losses and negative EBIT margins highlight ongoing operational challenges. The revenue growth rate is negative, reflecting a contraction in business scale.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, reflecting some reliance on debt financing, although it remains manageable. Equity has been eroding over the past periods due to accumulated losses, impacting the equity ratio negatively. This indicates potential risks related to financial stability and liquidity.

Cash Flow

Cash flow analysis shows improvement in free cash flow, although it remains limited. The operating cash flow to net income ratio is volatile, highlighting fluctuations in operational cash generation. While free cash flow has turned positive, it remains insufficient to cover historical losses fully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.39M	79.72M	90.58M	77.38M	124.38M	116.84M
Gross Profit	21.86M	20.24M	20.91M	17.51M	33.91M	30.12M
EBITDA	-5.97M	-8.32M	-8.29M	-14.03M	9.93M	8.18M
Net Income	-9.29M	-11.80M	-11.67M	-34.34M	6.09M	26.13M
Balance Sheet
Total Assets	49.02M	52.46M	63.17M	71.58M	86.82M	92.82M
Cash, Cash Equivalents and Short-Term Investments	3.56M	5.97M	5.16M	15.99M	14.47M	19.39M
Total Debt	11.92M	10.32M	12.11M	10.02M	35.00K	49.00K
Total Liabilities	38.21M	40.58M	40.63M	38.33M	21.72M	34.75M
Stockholders Equity	10.81M	11.88M	22.54M	33.25M	65.10M	58.07M
Cash Flow
Free Cash Flow	2.91M	494.00K	-10.93M	-2.89M	-641.00K	776.00K
Operating Cash Flow	3.05M	599.00K	-10.09M	-2.29M	-113.00K	1.73M
Investing Cash Flow	97.00K	128.00K	-731.00K	-6.20M	-4.92M	-946.00K
Financing Cash Flow	-5.27M	90.00K	-14.00K	10.01M	104.00K	-10.14M

Orion Energy Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OESX, the sentiment is Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.61, and below the 200-day MA of 0.75, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 20.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OESX.

Orion Energy Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%
PPSI	56 Neutral	$48.26M	―	-43.18%	―	-19.60%	-483.35%
OESX	54 Neutral	$21.66M	―	-62.16%	―	-14.52%	-4.41%
GWH	45 Neutral	$24.69M	―	-207.48%	―	-16.98%	2.43%
SDST	26 Underperform	$34.38M	―	-860.70%	―	―	25.87%

Orion Energy Systems Corporate Events

Orion Energy Systems Holds Annual Shareholder Meeting

On August 7, 2025, Orion Energy Systems held its Annual Meeting of Shareholders, where key proposals were voted on. Shareholders elected two directors, approved executive compensation, ratified BDO USA, P.C. as the independent public accountant, and approved a reverse stock split and a special stock option grant for the new CEO. These decisions reflect strong shareholder support and are expected to impact the company’s strategic direction and financial structure positively.