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Orion Energy Systems
(NASDAQ:OESX)
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Rating:52Neutral
Price Target:
$10.50
▲(3.65% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weak and inconsistent underlying financial performance (ongoing annual-period losses and volatile/negative recent cash flow), partly offset by a strong earnings-call update with improved Q1 profitability, higher gross margins, reiterated FY2027 guidance, and backlog support. Technicals are roughly neutral with modest momentum, while valuation is constrained by a negative P/E and no dividend yield.
Positive Factors
Strong Q1 revenue growth and backlog
Sustained top-line momentum (+32% YoY Q1) combined with a ~$24M backlog increases visibility into multi-month revenue and supports management's FY2027 revenue guidance. This durable demand for large retrofit projects indicates repeatable sales execution with multi-site customers.
Negative Factors
Volatile and negative recent cash flow
Irregular cash generation and FY2026 negative operating/free cash flow weaken financial flexibility and raise reliance on external financing for growth or working capital. This persistent volatility constrains the company's ability to consistently fund installs, new programs, or absorb project timing swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Q1 revenue growth and backlog
Sustained top-line momentum (+32% YoY Q1) combined with a ~$24M backlog increases visibility into multi-month revenue and supports management's FY2027 revenue guidance. This durable demand for large retrofit projects indicates repeatable sales execution with multi-site customers.
Read all positive factors
Orion Energy Systems (OESX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.97M
Dividend YieldN/A
Average Volume (3M)45.92K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth8.26%
EPS Growth75.52%
CountryUS
Employees174
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.03
Shares Outstanding4,056,568
10 Day Avg. Volume42,037
30 Day Avg. Volume45,918
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.87
Price to Sales (P/S)0.36
P/FCF Ratio-26.71
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.00Price Target Upside196.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.42
Revenue Forecast (FY)$96.15M
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:Aug 05, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial tone: strong Q1 revenue growth (+32% YoY), improved consolidated gross margin (34.6%) and a return to GAAP profitability (net income $2.0M) alongside a sizable adjusted EBITDA improvement and a $24M backlog. Management reiterated FY2027 guidance of $95M–$97M with positive adjusted EBITDA and highlighted strategic progress entering the hyperscale data center market, expansion of EV charging sales leadership, and a strengthened Made-in-America supply chain. Offset risks include EV gross margin compression, delayed material revenue contribution from data centers (ramp expected in later years), some one-time tariff-related margin benefits, flat maintenance revenue, channel/mix variability and modest commission-driven operating expense increases. On balance, the positive financial and strategic developments materially outweigh the near-term challenges and timing risks.Positive Updates
Strong Revenue Growth
Q1 FY2027 revenue of $25.7M, up 32% year-over-year from $19.6M, reflecting continued top-line momentum.
Negative Updates
EV Charging Gross Margin Compression
EV gross margin declined to 26.9% in Q1 FY2027 from 33.8% in Q1 FY2026 (down 6.9 percentage points, ~-20% relative), indicating margin pressure in the EV segment despite revenue growth.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Revenue Growth
Q1 FY2027 revenue of $25.7M, up 32% year-over-year from $19.6M, reflecting continued top-line momentum.
Read all positive updates
Company Guidance
Orion guided to full‑year fiscal 2027 revenue of $95–$97 million with positive adjusted EBITDA, supported by Q1 results of $25.7 million revenue (up ~32% YoY), overall gross margin of 34.6% (vs 30.1% a year ago, including ≈130 bps benefit from tariff changes), Q1 net income of $2.0 million ($0.47 diluted, $0.48 basic), adjusted EBITDA of $2.5 million (seventh consecutive quarter of positive adjusted EBITDA), and operating expenses of $6.8 million (down from $6.9M). Segment metrics in Q1 included LED revenue $17.7M with 37.8% gross margin, Maintenance $4.1M with 28.3% margin, and EV charging $4.0M with 26.9% margin; backlog exiting Q1 was about $24M. Management expects consolidated gross margins to remain strong (roughly in the low‑30% range, e.g., ~30–32%) and minimal incremental CapEx to support new programs as they scale.Orion Energy Systems Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 92.47M | 86.31M | 79.72M | 90.58M | 77.38M | 124.38M |
| Gross Profit | 31.10M | 28.09M | 20.24M | 20.91M | 17.51M | 33.91M |
| EBITDA | 2.43M | -536.00K | -8.32M | -8.38M | -14.00M | 9.88M |
| Net Income | 40.00K | -3.16M | -11.80M | -11.67M | -34.34M | 6.09M |
Balance Sheet | ||||||
| Total Assets | 53.30M | 51.60M | 52.46M | 63.17M | 71.58M | 86.82M |
| Cash, Cash Equivalents and Short-Term Investments | 5.17M | 3.27B | 5.97M | 5.16M | 15.99M | 14.47M |
| Total Debt | 6.55M | 8.80M | 10.32M | 12.11M | 11.85M | 3.07M |
| Total Liabilities | 34.56M | 34.98M | 40.58M | 40.63M | 38.33M | 21.72M |
| Stockholders Equity | 18.75M | 16.63M | 11.88M | 22.54M | 33.25M | 65.10M |
Cash Flow | ||||||
| Free Cash Flow | 753.00K | -1.17M | 494.00K | -10.93M | -2.89M | -641.00K |
| Operating Cash Flow | 788.00K | -1.08M | 599.00K | -10.09M | -2.29M | -113.00K |
| Investing Cash Flow | -37.00K | -86.00K | 128.00K | -731.00K | -6.20M | -4.92M |
| Financing Cash Flow | 850.00K | -1.54M | 90.00K | -14.00K | 10.01M | 104.00K |
Orion Energy Systems Technical Analysis
Positive
10.13
Price Trends
10.29
Positive
9.85
Positive
11.89
Positive
Market Momentum
0.42
Negative
79.97
Negative
64.81
Neutral
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 10.13 is below the 20-day moving average (MA) of 10.60, below the 50-day MA of 10.29, and below the 200-day MA of 11.89, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 79.97 is Negative, neither overbought nor oversold. The STOCH value of 64.81 is Neutral, 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 | $40.97M | -11.42 | -24.98% | ― | 8.26% | 75.52% | |
46 Neutral | $60.76M | -3.11 | -94.91% | ― | 33.32% | 1.39% | |
46 Neutral | $32.29M | -4.62 | -23.29% | ― | ― | ― | |
43 Neutral | $5.71M | -0.27 | 302.33% | ― | ― | 72.29% | |
42 Neutral | $6.28M | -0.52 | -260.79% | ― | -54.67% | -107.48% |
* Industrials Sector Average
OESX
Orion Energy Systems
17.58
11.04
168.89%
IPWR
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4.27
0.19
4.66%
PPSI
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3.02
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POLA
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1.87
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-0.53%
SDST
Stardust Power
0.63
-3.38
-84.26%
RAYA
Erayak Power Solution Group Incorporation Class A
2.45
-131.20
-98.17%
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.