Orion Energy Systems, Inc. (NASDAQ: OESX) reported positive operating income and continued revenue and profitability growth for its third quarter of fiscal 2026 ended December 31, 2025, the company said on Thursday.
The Manitowoc, Wisconsin-based energy-efficient lighting and electric vehicle charging solutions provider reported total revenue of $21.1 million in Q3 2026, up from $19.6 million in the same period a year earlier. Gross profit increased to $6.5 million, compared with $5.8 million in Q3 2025, while gross margin expanded to 30.9% from 29.4%.
Operating Performance Improves
Orion achieved positive operating income in the third quarter of 2026, a notable improvement from an operating loss in the year-ago period. The company also recorded adjusted EBITDA of 3.6%, marking its fifth consecutive quarter of positive adjusted EBITDA. In contrast, Q3 2025 posted an adjusted EBITDA of 0.2% and an operating loss.
Net income for the quarter was $0.2 million, or $0.04 per diluted share, compared with a net loss of $1.5 million or $(0.46) per diluted share in Q3 2025. The improvement reflected stronger gross profit and lower operating expenses. Total operating expenses declined to $6.1 million from $7.0 million a year earlier.
Segment Revenue Breakdown
Revenue from LED lighting decreased about 8% to $12.1 million in Q3 2026, compared with $13.2 million in Q3 2025. The company attributed the decline partly to softer activity in the ESCO and turnkey channels, though distribution sales showed promise. Maintenance services revenue rose 13% to $4.4 million, reflecting new contract wins and expansions of existing relationships. EV charging solutions revenue nearly doubled to $4.7 million from $2.4 million in the prior year period, driven by larger fleet installations and project timing.
Orion said the growth across maintenance and EV charging segments, combined with gross margin improvements, contributed to its positive operating result and stronger bottom-line performance.
Outlook and Guidance
The company reiterated its previously updated full-year 2026 revenue outlook, expecting total revenue between $84 million and $86 million, an increase from earlier guidance near $84 million. Orion also reiterated its newly established 2027 outlook of $95 million to $97 million in revenue and positive adjusted EBITDA for the full year.
Orion is scheduled to host an investor call on February 5, 2026, to discuss the quarter’s results and future expectations.
Balance Sheet and Cash Flow
Through the first nine months of fiscal 2026, Orion generated $0.4 million in operating cash flow, compared with $1.3 million for the full prior fiscal year, reflecting improved profitability offset by working capital changes. The company also reduced its outstanding borrowings on the revolving credit facility by $1.3 million, leaving a balance of $5.75 million.
Summary
Orion’s third quarter financial performance highlights ongoing improvements across revenue, profitability and operational discipline. The company’s positive operating income for the quarter, alongside continuing adjusted EBITDA growth and stronger segment contributions, underscores its progress toward broader financial goals for full-year 2026 and beyond.
