Orion Reports 9% Revenue Increase in Second Quarter FY2027;

Reiterates Revenue Expectation of $100M-$102M for Full Fiscal Year

Manitowoc, WI – November 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 2027 second quarter (Q2’27) ended September 30, 2026.

Orion’s Q2’27 revenue increased to $21.7M versus $19.9M in Q2’26, while Q2’27 gross margin was 28.7% versus 31.0% in Q2’26. The Company reported a net loss of $0.8M in Q2’27, compared to a net loss of $0.6M in Q2’26. The Company’s adjusted EBITDA was positive in Q2 FY’27 — marking its eighth consecutive quarter of positive adjusted EBITDA.

Orion reiterated its previously increased full fiscal year expectations of positive adjusted EBITDA on revenue of between $100 million and $102 million in FY’27, which began April 1, 2026.

The Company noted that it expects a strong second half, with significant projects to be delivered in the third and fourth quarters. These orders are coming from a broad array of customers and include retailers, manufacturers, logistics providers, data centers and government projects.

“Orion enters the second half of FY’27 accelerating our initiatives to achieve diversified growth, sustainable margins and market expansion,” said Orion’s Chief Executive Officer, Sally Washlow. “Whether it’s rapidly growing engagements with major retail chains and logistics leaders, more and more campuses for hyper-scale data-center operators or expanding incumbencies with global automakers, Orion continues on a trajectory to achieve our profitable growth expectations for the current fiscal 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, November 5, 2026, at 10:00 a.m. ET

Live Call Registration: https://register-conf.media-server.com/register/BId664f6fcc4d548fabdfb92d50077908e

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://register-conf.media-server.com/register/BId664f6fcc4d548fabdfb92d50077908e

Q2'27 and Prior Three Quarters Financial Performance

Q2’27 Business Highlights: Commentary from CEO Sally Washlow

Orion’s second-quarter results and full-year expectations illuminate a continually strengthening sales funnel and expanding wallet share within enterprise customers. They also highlight the power of Orion’s proprietary supply chain, cited as a unique attribute by customers ranging from data-center operators to leading retail chains and logistics providers. Combined with Orion’s diversified-growth initiative and ongoing cost containment, these factors indicate positive prospects for achieving its recently increased guidance for the full fiscal year of FY2027.

Orion’s Q2’27 included a number of additional milestones:

— Increased Guidance for FY’27: Orion announced on September 15 that it expects to achieve total revenue of $100 million to $102 million for FY 2027, representing an increase from its previous outlook of $95 million to $97 million. As previously announced, Orion reiterated that it expected FY’Q2 revenues to decrease compared to the recently announced FY’Q1 revenue of $25.7M. The Company also said that it continues to expect to achieve positive adjusted EBITDA for the fiscal year as a whole.

— Another Data Center Win: Orion announced an additional deployment of its MPHL2 LED Lighting solution for one of the world’s largest data-center operators. The multimillion-dollar order followed June’s announcement of Orion’s first multimillion-dollar deployment for the global hyperscaler.

The customizable MPHL2 LED Lighting solution, manufactured in Orion’s home state of Wisconsin, is capable of delivering higher energy efficiency, resiliency and decarbonization in LED lighting to thousands of data centers in the current hyperscaler building boom. The high efficiency linear lighting fixture is designed and built to accommodate nearly every data center’s floor plan while reducing the energy usage for lighting

— $10M-$15M New Retailer Engagement. Orion announced that a longtime customer has made a follow-on commitment to the Company for a new LED lighting project estimated to represent revenue of $10 million to $15 million.

This latest commitment involves retrofitting interior LED Lighting and IoT system installations. Orion maintains that this most recent expansion of work demonstrates the confidence that Orion has earned with this leading retailer over the course of numerous projects spanning several years.

— Additionally, Orion/Voltrek continued to navigate a U.S. EV Charging Infrastructure environment that continues to evolve. Orion/Voltrek maintains numerous multi-year customer relationships as they progress through historically reliable funding cycles. The Company also foresees increased inclusion of EV Charging infrastructure in its LED Lighting engagements, typified by Orion’s recent announcement of related LED Lighting and EV Charging deployments for a leading global automaker.

Q2’27 Financial Results

Orion’s Q2’27 revenue was $21.7M versus $19.9M in Q2’26, while Q2’27 gross margin was 28.7% versus 31.0% in Q2’26. The Company reported a net loss of $0.8M in Q2’27 versus a net loss of $0.6M in Q2’26. The Company achieved Q2’27 adjusted EBITDA of $0.0M — marking its eighth consecutive quarter of positive adjusted EBITDA — compared to adjusted EBITDA of $0.5M in Q2’26.

Orion also reported the following Q2’27 segment performance:

Primarily reflecting lower gross margin and increased commissions and equity compensation, Orion reported a net loss of $0.8M in Q2’27, or $(0.20) per share, versus a net loss of $0.6M, or $(0.17) per share, in Q2’26. Orion’s adjusted EBITDA decreased to $0.0M in Q2’27 compared to $0.5M in Q2’26, reflecting relatively strong performance in the face of temporary margin headwinds.

Balance Sheet and Cash Flow

Orion ended the quarter with current assets of $35.9M, including $3.7M of cash, $15.0M of accounts receivable, $5.7M of revenue earned but not billed, and $10.0M of inventories. Net of current liabilities, working capital was $15.4M at September 30, 2026, compared to $8.1M at September 30, 2025. Orion’s financial liquidity at September 30, 2026, was $16.2M as compared to $13.5M at September 30, 2025. As previously reported, Orion recently extended the maturity date of its revolving credit facility from June 30, 2027, to June 30, 2030.

About Orion Energy Systems

Orion provides energy efficiency and clean tech solutions, including LED lighting and controls, electric vehicle (EV) charging solutions, and maintenance services. Orion specializes in turnkey design-through-installation solutions for large national customers as well as projects through ESCO and distribution partners, with a commitment to helping customers achieve their business and environmental goals with healthy, safe, and sustainable solutions that reduce their carbon footprint and enhance business performance.

Non-GAAP Measures

In addition to the GAAP results included in this presentation, Orion has also included the non-GAAP measures, EBITDA (earnings before interest, taxes, depreciation and amortization), and adjusted EBITDA (EBITDA adjusted for stock-based compensation, restructuring and severance costs, asset impairment and, earnout expenses). The Company has provided these non-GAAP measures to help investors better understand its core operating performance, enhance comparisons of core operating performance from period to period, and allow better comparisons of operating performance to its competitors. Among other things, management uses these non-GAAP measures to evaluate the performance of the business and believes these measurements enable it to make better period-to-period evaluations of the financial performance of core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and Orion compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with generally accepted accounting principles.

Consistent with Regulation G under the U.S. federal securities laws, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measures, and this reconciliation is located under the heading “Unaudited EBITDA Reconciliation” following the Unaudited Condensed Consolidated Statements of Cash Flows included in this press release.

Safe Harbor Statement

Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words of similar import. Similarly, statements that describe our future outlook, plans, expectations, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) our ability to achieve our budgeted fiscal 2027 revenue expectations, and related public fiscal 2027 revenue guidance, will have a significant impact on our cash flow and stock price and ability to fund our operations and satisfy our debt obligations; (ii) we are currently implementing a new ERP system, which will involve substantial cost and potential disruption to our normal operations; our inability to successfully manage the implementation of our new ERP system could adversely affect our ability to operate our business and otherwise negatively affect our financial reporting and the effectiveness of our internal control over financial reporting; (iii) government tariffs and other actions have adversely affected, and may continue to adversely affect, our business, resulting in increased costs and reduced gross margins; (iv) the reduction or elimination of incentives from the United States government for investments in electric vehicle (“EV”) charging infrastructure may reduce demand for public EV charging products, in addition to reducing overall demand for EVs; (v) we do not have major sources of recurring revenue, a substantial portion of our revenues is derived from major project-based retrofit work that is awarded through a competitive bid process and we depend upon a limited number of customers in any given period to generate a substantial portion of our revenue, and it is generally difficult to predict the timing of projects that will be awarded, which can impact our ability to achieve our expected financial results; (vi) the reduction of revenue from our most significant customer over the past several fiscal years has had, and the potential future loss of other significant customers or a major customer would likely have, a materially adverse effect on our results of operations, financial condition and cash flows; (vii) the reduction or elimination of investments in, or incentives to adopt, light emitting diode (“LED”) lighting or the elimination of, or changes in, policies, incentives or rebates in certain states or countries that encourage the use of LEDs over some traditional lighting technologies, including due to federal funding restrictions in the United States, could cause the demand for our lighting products to slow; (viii) we are experiencing ongoing increasing pressures to reduce the average selling price of our products and related negative impact on our gross margins, driven largely by the ongoing increase in competition from foreign competitors; (ix) our products use components and raw materials that may be subject to price fluctuations, shortages or interruptions of supply, particularly resulting from tariffs and other trade restrictions; (x) we increasingly rely on third-party manufacturers for the manufacture and development of our

products and product components; (xi) we are subject to the risk of a cybersecurity breach; (xii) macroeconomic pressures in the markets in which we operate may adversely affect our financial results; (xiii) adverse conditions in the global economy, including due to changes in diplomatic and trade relationships, have negatively impacted, and could in the future negatively impact, our customers, suppliers and business; (xiv) the success of our LED lighting retrofit solutions depends, in part, on our ability to claim market share away from our competitors; and (xv) the other risks described in our filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://investor.oriones.com in the Investor Relations section of our website.

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