Earnings release
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Orion Achieves Positive Operating Income and Continued Growth in Revenue and Profitability in Q3 2026; Reiterates Increase in FY 2026 Expectation and Establishment of FY 2027 Outlook Manitowoc, WI – February 5, 2026 – Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, electric vehicle (EV) charging stations and maintenance services solutions, today reported results for its fiscal 2026 third quarter (Q3’26) ended December 31, 2025. Orion’s Q3’26 revenue was $21.1M vs. $19.6M in Q3’25, while Q3’26 Gross Profit Percentage was 30.9% vs. 29.4% in Q3’25. The Company achieved positive operating income in Q3’26 and adjusted EBITDA of 3.6% — marking its fifth consecutive quarter of positive adjusted EBITDA — compared to an operating loss of $1.2 million and positive adjusted EBITDA of 0.2% in Q3’25. Additionally, Orion reiterated its January 20 announcement of its increase in the Company’s FY 2026 revenue outlook to a range of between $84 million and $86 million — up from its previous outlook of approximately $84 million. The Company also reiterated its establishment of FY 2027 outlook of $95 million - $97 million of revenue and positive adjusted EBITDA for the full year. Orion is scheduled to discuss these results in an investor call today at 10:00 a.m. ET (details below). Webcast and Call Details Date / Time:Thursday, February 5th at 10:00 a.m. ET Live Call Registration:https://register-conf.media-server.com/register/BI63bbb3933201416d81cb80366383d9a3 Live call participants must pre-register using the URL above to receive the dial-in information. Anyone can re-register if they lose the dial-in or PIN #. Webcast & Replay: https://edge.media-server.com/mmc/p/aufdmr86
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Q3 Financial Performance Q3 Financial Summary Prior Three Quarters $ in millions except per share figuresQ3’26 Q3’25 Change Q2'26 Q1’26 Q4'25 LED Lighting Revenue $12.1 $13.2 -8% $10.7 $12.9 $10.9 EV Charging Revenue $4.7 $2.4 96% $4.8 $2.7 $5.8 Maintenance Revenue $4.4 $3.9 13% $4.5 $4.0 $4.1 Total Revenue $21.1 $19.6 +$1.5 $19.9 $19.6 $20.9 Gross Profit $6.5 $5.8 +$0.7 $6.2 $5.9 $5.7 Gross Profit % 30.9% 29.4% +150 bps 31.0% 30.1% 27.5% Net Income (Loss) (1)(2) $0.2 $(1.5) +$1.7 $(0.6) $(1.2) $(2.9) Net Income (Loss) per share (1)(2) $0.04 $(0.46) +$0.50 $(0.17) $(0.37) $(0.88) Adjusted EBITDA (3) $0.8 $0.0 +$0.8 $0.5 $0.2 $0.2 (1)Voltrek earnout expenses were $0.3M in Q1'25, $0.6M in Q2’25, $0.5M in Q3’25 and $0.5M in Q4’25 and $0.0M in Q1’26, Q2'26, and Q3'26. (2)Q1’25 and Q2’25 also included $0.4M and $0.3M, respectively, of maintenance division restructuring costs. Q1’26 had $0.6M of executive sign-on bonus and severance expenses. (3) Adjusted EBITDA reconciliation provided below. Commentary from CEO Sally Washlow “I am delighted to report my second full quarter as CEO of Orion, and it’s especially gratifying to report this particular quarter. “Our announcement a couple of weeks ago — increasing our growth and profitability outlook for FY 2026 and setting up-and-to-the-right expectations for FY 2027 — was a significant milestone for this company. It was a quantitative illustration that the disciplined right-sizing and intensified focus on profitable growth in our current fiscal year is already showing results in this same fiscal year. “The hallmarks of Q3 were continued improvements in growth, profitability and market expansion. We expect this trend to continue in Q4 — and in the forthcoming fiscal year. “Q3 featured numerous customer wins, engagement extensions and project expansions, including: “We were awarded a $14M-$15M contract for exterior lighting by our largest customer. This award was on the heels of the three-year renewal earlier in the quarter of Orion as the maintenance provider by this Fortune 100 enterprise customer. The value of the contract is estimated to be between $42 million and $45 million. The partnership involves the maintenance of LED lighting systems at approximately 2,050 locations nationwide. The additional work was earned by Orion’s multi-year success in organizing, managing and communicating large-scale projects involving multiple vendors across the United States. . Orion’s proactive maintenance program and prompt response to maintenance requests has ensured minimal disruptions to store operations and provides a seamless lighting experience for this major retailer’s customers. The three-year renewal takes effect in March of 2026, upon expiration of Orion’s existing three-year engagement with this retail giant. Orion expects to be assigned more work by the customer on a frequent basis.