Orion Energy Systems Reports Mixed Q2 2025 Results, Net Loss Improvement

Orion Energy Systems, Inc. reported its financial results for the second quarter of fiscal 2025, ending September 30, 2024, showing a mixed performance in revenue and profitability compared to the same period in the previous year. Total revenue for the quarter was $19.4 million, a decrease of 6.0% from $20.6 million in Q2 2023. This decline was primarily driven by a 20.7% drop in product revenue, which fell to $12.4 million from $15.6 million. However, service revenue increased significantly by 39.9%, reaching $7.0 million, up from $5.0 million.

For the six months ended September 30, 2024, total revenue increased slightly by 2.8% to $39.3 million, compared to $38.2 million in the prior year. This growth was supported by a substantial 58.1% rise in service revenue, which totaled $14.1 million, while product revenue decreased by 14.1% to $25.1 million.

Gross profit for Q2 2025 was $4.5 million, a slight decrease from $4.6 million in Q2 2023, while gross margins improved from 22.2% to 23.1%. The company reported a net loss of $3.6 million for the quarter, an improvement from a net loss of $4.4 million in the same quarter last year. For the six-month period, the net loss was $7.4 million, down from $11.0 million in the prior year, indicating a 33.0% improvement.

Orion's total assets decreased to $56.3 million as of September 30, 2024, down from $63.2 million at the end of the previous fiscal year. Current assets also fell to $40.0 million, compared to $44.8 million. The company’s total liabilities decreased to $40.5 million, leading to total shareholders’ equity of $15.8 million, down from $22.5 million.

Strategically, Orion has made significant moves, including the dissolution of Stay-Lite Lighting, Inc. effective October 11, 2024, with all assets and liabilities transferred to Orion. The company also executed an amendment to its credit agreement, extending the maturity date of its $25 million revolving credit facility to June 30, 2027. As of September 30, 2024, Orion had approximately $5.4 million in cash and cash equivalents, an increase from $5.2 million at the end of March 2024.

The company operates through three segments: Lighting, Maintenance, and Electric Vehicle Charging. The Electric Vehicle Charging segment showed notable growth, with revenues increasing by 39.8% in Q2 2025 compared to the previous year. Overall, Orion's restructuring efforts and strategic acquisitions are aimed at enhancing its market position in the LED lighting and EV charging sectors.