Orion Energy Systems (OESX) Q4 2026 earnings summary

Executive summary

• Achieved sixth consecutive quarter of positive adjusted EBITDA and returned to revenue growth and profitability in fiscal 2026, with FY'26 revenue reaching $86.3M, up 8% year-over-year, and Q4'26 revenue at $25.7M, a 23% increase from Q4'25.

• Surpassed revenue and profitability milestones, with $2.2M in positive adjusted EBITDA for the year and net loss improving to $3.2M in FY'26 from $11.8M in FY'25.

• Gross margin expanded to 32.6% for FY'26 (up 720bps year-over-year) and 37.0% in Q4'26 (up 950bps year-over-year).

• Strengthened relationships with large customers, expanded into new markets including data centers and electrical contracting, and maintained Nasdaq listing.

• Executed cost containment initiatives and improved operating expenses to $29.7M from $30.8M in FY'25.

Financial highlights

• Fiscal Q4 2026 revenue was $25.7M, up from $20.9M in Q4 2025; full-year revenue reached $86.3M, up from $79.7M.

• Q4 2026 net loss was $1.5M ($0.39/share), improved from $2.9M loss ($0.88/share) in Q4 2025; full-year net loss was $3.2M ($0.89/share), improved from $11.8M loss ($3.59/share) in fiscal 2025.

• Adjusted EBITDA was $0.8M in Q4 2026 and $2.2M for the year, compared to $0.2M and -$2.9M, respectively, in the prior year.

• Overall gross margin improved to 37% in Q4 2026 (27.5% prior year) and 32.6% for the year (25.4% prior year).

• Operating expenses for FY'26 decreased to $29.7M from $30.8M in FY'25.

Outlook and guidance

• Fiscal 2027 revenue guidance is $95M–$97M, with continued positive adjusted EBITDA expected.

• FY'27 begins with a $30M backlog, up $13M year-over-year, and management expects continued growth in revenue and profitability.

• Data center market entry expected to contribute revenue later in fiscal 2027 and beyond.

• Gross margin expected to remain strong, around 30%, subject to quarterly mix shifts.

• Improved sales funnel and cost discipline support guidance.