August 20, 2025
Orion Completes Reverse Split to Maintain Nasdaq Listing
As September deadline nears, a 1-for-10 stock split will lift Orion’s share price above compliance threshold
On August 19, Orion Energy Systems announced a 1-for-10 reverse stock split, effective August 22, a move intended to help the Wisconsin-based lighting and energy solutions company regain compliance with Nasdaq’s $1.00 minimum bid requirement.
The reverse split, approved by both the Board and shareholders, reduces the number of outstanding shares from approximately 35 million to 3.5 million. It follows a year of volatile stock performance, during which Orion received three separate delisting notices and failed to close above $1.00 for any sustained stretch since late 2024.
The company’s shares will begin trading on a split-adjusted basis under the same symbol, OESX, on August 22.
A Tactical Step Toward Compliance
Reverse splits are not uncommon among companies navigating bid-price compliance, and in Orion’s case, the move was expected. As Inside Lighting has reported over the past year, the company missed its original March 2025 deadline to regain compliance and was granted a six-month extension, which now expires in mid-September.
The share consolidation does not affect shareholders’ proportional ownership, though those holding fractional shares will receive cash in lieu. The split also adjusts outstanding stock options and equity-linked instruments accordingly.
On the day of the announcement, shares closed at $0.63, roughly in line with their average over the past three months.
Early Signs of Recovery Under New Leadership
The reverse split comes at a time when Orion has begun to stabilize operationally, even as financial pressures persist. Under the leadership of CEO Sally Washlow — who stepped into the role earlier this year—the company has posted three consecutive quarters of positive adjusted EBITDA. Gross margin in the most recent quarter rose to 30.1%, the company’s highest in six years, and quarterly net loss narrowed significantly year over year.
Still, top-line growth remains limited. Revenue for the quarter ending June 30 was $19.6 million, essentially flat. The company continues to navigate sector-specific headwinds and ongoing obligations tied to its 2022 acquisition of EV charging firm Voltrek.
Orion maintains guidance for 5% revenue growth in fiscal 2026 and is aiming for full-year adjusted EBITDA profitability.
A Measured Move in a Narrow Window
The stock split, while procedural, is not without consequence. It positions Orion for a potential compliance win but does not change the underlying fundamentals. With liquidity tight and the September 15 Nasdaq deadline approaching, the coming weeks will test whether recent operational gains are enough to rebuild investor confidence—and secure Orion’s standing on the public markets
