Orion Energy Systems, Inc. (OESX) · Nov 5, 2026 · Earnings
Miss — Revenue $21.7M vs ~$23.32M consensus; EPS $(0.20) vs ~$0.04 consensus
Orion Energy earnings missed on revenue and EPS, while lower margins and weak EV charging offset LED growth. Full-year guidance was reaffirmed.
Orion is trying to shift its growth engine toward large LED retrofit projects, data-center deployments and enterprise customers, while EV charging remains project-timing dependent. Against that backdrop, this quarter was weaker than the market expected: published estimates called for roughly $23.32 million of revenue and $0.04 of EPS, versus $21.7 million and $(0.20) reported.
| Q2'27 | Q2'26 | Consensus | |
|---|---|---|---|
| Total revenue (Financial Summary) | $21.7M (-) | $19.9M | ~$23.32M |
| Gross margin (Financial Summary) | 28.7% (-230 bps) | 31.0% | |
| Net income (loss) (Income Statement) | $(0.8)M | $(0.6)M | |
| EPS (Income Statement) | $(0.20) | $(0.17) | ~$0.04 |
| Adjusted EBITDA (EBITDA Reconciliation) | $0.01M | $0.45M |
LED growth is real, but it did not translate into a better quarter. LED lighting revenue rose 40% to $14.9 million, but total revenue still fell well short of consensus because EV charging revenue dropped 41% to $2.8 million and maintenance declined 12% to $4.0 million. The company says the EV shortfall reflects uncertain project timing and funding, not a stated loss of customer demand.
The bigger problem was profitability, not just sales timing. Gross margin compressed to 28.7% from 31.0%, which Orion attributed primarily to the lighting mix, while operating expenses rose to $7.0 million from $6.4 million. That pushed adjusted EBITDA down to roughly breakeven from $0.5 million and widened the GAAP loss. 〔0〕
The full-year story now depends heavily on a second-half acceleration. Orion reiterated $100 million-$102 million of FY2027 revenue and positive adjusted EBITDA, but first-half revenue was only $47.4 million, leaving $52.6 million-$54.6 million for the final two quarters. That requires average quarterly revenue of about $26.3 million-$27.3 million—well above Q2's $21.7 million—so the forecast is still achievable only if the promised retail, data-center and other large projects convert on schedule.
Liquidity is better than last year, but cash conversion remains a watchpoint. Cash ended at $3.7 million and operating cash flow was negative $2.0 million for the first six months, while borrowings under the revolving facility increased to $5.0 million from $3.0 million at fiscal year-end. Working capital improved year over year, but the earnings miss and margin pressure make execution of the second-half project pipeline more important.
Bottom line: Orion is building the right LED-led growth pipeline, but Q2 showed weaker demand mix and profitability than expected. Reaffirming the annual guide keeps the story intact, yet it now rests on a demanding second-half revenue ramp rather than current-quarter execution.
Q3 project deliveries and revenue in fiscal Q3
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