Ocean Power Technologies (OPTT) AI Stock Analysis

• Market Cap: $82.09M
• Dividend Yield: N/A
• Average Volume (3M): 7.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.91
• Revenue Growth: -47.10%
• EPS Growth: 41.03%
• Country: US
• Employees: 43
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.06
• Shares Outstanding: 228,023,440
• 10 Day Avg. Volume: 10,365,964
• 30 Day Avg. Volume: 7,507,691
• PEG Ratio: 0.04
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 8.83
• P/FCF Ratio: -2.70
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 20.19
• Enterprise Value/Gross Profit: -35.81
• Enterprise Value/Ebitda: -2.04
• 1Y Price Target: $1.50
• Price Target Upside: 265.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): $8.02M

• Rating: 46 Neutral
• Price Target: $0.38 ▼(-6.83% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held down primarily by weak financial performance (persistent losses, negative TTM gross profit, and ongoing cash burn). Technicals also reflect a downtrend and negative momentum. Offsetting these risks, the latest earnings call and recent updates point to improving commercial traction via record backlog/pipeline and major government awards, but execution and margin recovery remain key.

Positive Factors

Backlog & Pipeline Expansion

Material backlog and a much larger pipeline give multi-quarter visibility into contracted work and qualified opportunities. This improves revenue conversion prospects, supports scaling production plans, and reduces reliance on spot sales, strengthening predictable future cash generation if execution holds.

Government Awards & Defense Integration

Winning federal contracts and integration with defense platforms validates product-market fit in high-barrier public sector markets. Defense customers typically provide longer, stickier contracts with higher switching costs, supporting recurring service and operations revenue over multiple years.

Productization of Autonomy & Partnerships

Advancing autonomous docking and software integrations moves the company from prototype to deployable systems, enabling persistent unmanned operations. Productized autonomy and partner integrations expand addressable use cases and improve potential for recurring service contracts and scaled deployments.

Negative Factors

Negative Gross Profit & Deep Losses

Persistent negative gross margins and large operating losses indicate the core business is not yet profitable at scale. Continued margin deficits consume cash, weaken competitive positioning, and require sustained contract wins plus margin recovery to reach self-sustaining economics over the medium term.

High Cash Burn / Limited Liquidity

Operating cash use vastly exceeds current liquidity, creating a short runway absent timely revenue conversion or financing. This forces potential capital raises that may dilute shareholders or constrain investment in production and scale, raising execution risk on converting backlog.

Margin Pressure from One-Time Losses & Rising OpEx

One-time contract charges and rising operating costs, including stock-based comp, erode near-term margins and extend the timeline to profitability. Higher fixed costs increase break-even needs and make the business sensitive to delivery timing and contract execution over the coming quarters.

Ocean Power Technologies Business Overview & Revenue Model

Company Description

Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Europe, and Asia. It offers PB3 PowerBuoy system that generates power for use independent of the power grid in offshore locations. The company also provides hybrid PowerBuoy products; subsea battery systems; and software, controls, sensors, integration services, and marine installation services. In addition, it offers distributed offshore power and communications for remote surface and subsea applications in markets, such as defense and security, offshore oil and gas, science and research, and offshore wind. Further, the company provides Wave Adaptive Modular Vessel (WAM-V) technology, which enables roaming capabilities for uncrewed maritime systems in waters; leases WAM-V robotics and access information; maritime domain awareness solutions; and strategic consulting services. Additionally, it offers offshore data collection, integration, analytics, and real time communication for various applications. The company serves public and private entities, and agencies that require remote offshore power. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Monroe Township, New Jersey.

How the Company Makes Money

OPTT makes money primarily by selling and delivering marine power and data/communications solutions centered on its PowerBuoy platform and associated integration work. Revenue is generally generated through (1) product and system sales for PowerBuoy units and configured solution packages; (2) contracted project work that may include engineering, integration, deployment, and commissioning services tied to customer requirements; and (3) ongoing services and support associated with operating and maintaining deployed systems (where contracted). The company’s earnings are influenced by the timing and size of customer contracts, deployment schedules, and acceptance/milestone structures typical of project-based offshore technology programs. Specific details on material partnerships, exact pricing structures, and the split among these revenue streams are null.

Ocean Power Technologies Financial Statement Overview

Summary

Overall financials are weak: very small revenue scale, TTM gross profit turned negative, and operating/net margins remain deeply negative. Cash flow is consistently negative with ongoing operating cash burn, while the balance sheet is a relative bright spot (positive equity and modest absolute debt) but leverage has risen as equity declined.

Income Statement

OPTT shows a small revenue base with mixed momentum: annual revenue grew strongly in FY2023–FY2024, but slowed in FY2025 and declined in TTM (Trailing-Twelve-Months). Profitability is the key weakness—TTM (Trailing-Twelve-Months) gross profit turned negative and operating losses remain very large versus revenue, with deeply negative operating and net margins across all periods. While losses improved in FY2025 versus FY2024, the TTM (Trailing-Twelve-Months) step-down in gross profitability signals ongoing execution and scale challenges.

Balance Sheet

The balance sheet is a relative bright spot: debt remains modest in absolute terms and equity is still positive. However, leverage has increased materially in the TTM (Trailing-Twelve-Months) period as debt rose and equity declined (debt-to-equity moving from low levels historically to ~0.58 TTM). Returns to shareholders are consistently negative due to persistent losses, and the multi-year drop in assets and equity suggests ongoing cash burn and/or dilution/valuation pressure.

Cash Flow

Cash generation remains weak, with operating cash flow and free cash flow negative in every period shown. While free cash flow improved in TTM (Trailing-Twelve-Months) versus FY2025, the business is still consuming substantial cash relative to its revenue base. Free cash flow tracks net losses closely (free cash flow to net income ~1x), indicating losses are not merely accounting-driven and that profitability improvements are necessary to reduce burn sustainably.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	3.44M	5.86M	5.53M	2.73M	1.76M	1.21M
Gross Profit	-1.94M	1.66M	2.83M	236.00K	-101.00K	-1.07M
EBITDA	-33.99M	-20.79M	-28.24M	-27.47M	-21.10M	-13.22M
Net Income	-36.00M	-21.51M	-27.48M	-26.33M	-18.87M	-15.85M
Balance Sheet
Total Assets	41.14M	30.79M	28.70M	53.37M	73.39M	86.38M
Cash, Cash Equivalents and Short-Term Investments	7.06M	6.71M	3.15M	34.67M	57.27M	83.03M
Total Debt	8.55M	1.80M	2.57M	1.84M	857.00K	2.06M
Total Liabilities	21.05M	4.14M	9.36M	9.42M	4.56M	5.91M
Stockholders Equity	20.09M	26.65M	19.34M	43.95M	68.83M	80.47M
Cash Flow
Free Cash Flow	-25.84M	-19.14M	-32.35M	-22.73M	-21.44M	-11.70M
Operating Cash Flow	-23.93M	-18.63M	-29.76M	-21.71M	-21.30M	-11.67M
Investing Cash Flow	-1.91M	-505.00K	25.50M	20.46M	-54.03M	74.00K
Financing Cash Flow	22.87M	22.70M	469.00K	-14.00K	87.00K	84.17M

Ocean Power Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPTT, the sentiment is Negative. The current price of 0.41 is above the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.45, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 8.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPTT.

Ocean Power Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TE	56 Neutral	$2.09B	-0.66	-249.07%	―	―	-394.37%
SDST	51 Neutral	$23.79M	-1.45	209.00%	―	―	61.78%
CBAT	48 Neutral	$75.35M	7.57	-5.40%	―	-22.02%	-156.65%
OPTT	46 Neutral	$82.09M	-21.49	-141.20%	―	-47.10%	41.03%
GWH	45 Neutral	$34.24M	-0.43	-265.36%	―	-3.53%	24.37%
DFLI	42 Neutral	$24.76M	-209.02	9999.00%	―	18.24%	24.49%

Ocean Power Technologies Corporate Events

Ocean Power Highlights Autonomous Platforms Amid Middle East Tensions

On March 2, 2026, Ocean Power Technologies, Inc., a provider of autonomous maritime systems and offshore power solutions, highlighted the strategic relevance of its unmanned offshore platforms as regional tensions in the Middle East put global shipping lanes and energy assets under greater scrutiny. The company reported that its regional partners and team members in the Middle East were safe, that operations and customer support were continuing without disruption, and that demand was steady for scalable, persistent offshore monitoring solutions capable of enhancing resilience and reducing deployment risk in constrained or high-threat maritime environments.

Ocean Power Technologies emphasized that its autonomous platforms, designed for long-duration maritime presence with sensing, communications relay, and infrastructure monitoring capabilities, are well suited to support national security and commercial needs where traditional manned operations may be difficult or costly. The company also noted its ongoing engagement with U.S. and allied defense, security, and energy stakeholders to advance autonomous offshore capabilities that strengthen maritime domain awareness, infrastructure protection, and mission endurance amid heightened geopolitical uncertainty.

The most recent analyst rating on (OPTT) stock is a Hold with a $0.40 price target. To see the full list of analyst forecasts on Ocean Power Technologies stock, see the OPTT Stock Forecast page.

Ocean Power Technologies Expands Maritime Autonomy with Greece Deployment

On February 23, 2026, Ocean Power Technologies reported that it had shipped a WAM-V autonomous surface vehicle to Greece, extending its international operational footprint and supporting ongoing customer activity in regional defense and commercial maritime markets. The company also said it had progressed its offshore autonomy infrastructure roadmap by moving its integrated docking and charging program from prototype to a full-scale build, placing component orders to support system integration and open-water validation, and further advancing autonomous navigation and control capabilities through its collaboration with Mythos AI.

These developments signal a shift from development to implementation for OPT’s maritime autonomy infrastructure, with the docking and charging system intended to support persistent offshore operations by enabling autonomous systems to dock, recharge, and redeploy as part of a future recharging network. For stakeholders, the combination of new international deployment, infrastructure scaling, and strengthened autonomy software capabilities underscores OPT’s push to deepen its role in defense and commercial maritime markets and potentially enhance recurring revenue opportunities tied to long-duration, unmanned offshore missions.

The most recent analyst rating on (OPTT) stock is a Hold with a $0.45 price target. To see the full list of analyst forecasts on Ocean Power Technologies stock, see the OPTT Stock Forecast page.

Shareholders Approve Key Governance and Capital Structure Changes

At the January 27, 2026 virtual annual meeting, shareholders re-elected all five director nominees, expanded the 2015 Omnibus Incentive Plan share pool with added flexibility on grant limits and tax withholding, and approved increasing authorized common shares to 400 million, reinforcing governance continuity and capital-raising capacity; they also ratified Baker Tilly US as auditor for fiscal 2026 and backed executive pay, signaling investor alignment with management’s strategic roadmap.

The most recent analyst rating on (OPTT) stock is a Hold with a $0.71 price target. To see the full list of analyst forecasts on Ocean Power Technologies stock, see the OPTT Stock Forecast page.

Ocean Power Technologies Wins DHS Multi-Buoy Surveillance Contract

In a January 8, 2026 podcast with Water Tower Research, Ocean Power Technologies CEO Philipp Stratmann highlighted the company’s differentiated ocean-monitoring platform, which combines self-recharging fixed buoys and roaming unmanned surface vehicles capable of hosting diverse sensor payloads and transmitting pre-processed data back to shore. Stratmann discussed a recently announced $5 million contract with the U.S. Department of Homeland Security for a multi-buoy deployment off the Pacific side of the southern U.S. border—OPT’s first large multi-buoy order—which will be executed on a contractor-owned, contractor-operated basis, converting into revenue over the contract term with additional engineering and installation work recognized as performed. He emphasized that the project, which is already in progress and expected to move from backlog to revenue in weeks or months rather than quarters, represents only a small fraction of the broader U.S. maritime border surveillance opportunity across the Pacific, Atlantic, Gulf Coast, and island territories, and that it exemplifies the company’s growing defense-focused backlog and qualified pipeline that are multiples of current revenue.

The most recent analyst rating on (OPTT) stock is a Hold with a $0.53 price target. To see the full list of analyst forecasts on Ocean Power Technologies stock, see the OPTT Stock Forecast page.

Ocean Power wins major multi-buoy Coast Guard contract

On January 6, 2026, Ocean Power Technologies announced it had secured a multi-buoy contract worth more than $5 million to deploy and operate four MERROWS-equipped PowerBuoy systems in support of a U.S. Coast Guard mission under the Department of Homeland Security off the coast of San Diego. The buoys will integrate into the DHS C5I environment and operate alongside Anduril surveillance towers, with all sensor data fused into Anduril’s Lattice command-and-control system to deliver persistent maritime domain awareness, enhanced detection capabilities and real-time decision support for national security operations at sea. Company executives framed the project as a significant step in cementing OPT’s role as a trusted provider of long-endurance, renewable-powered, resident maritime monitoring solutions for U.S. federal agencies, highlighting the operational benefits of continuous, low-maintenance offshore surveillance infrastructure for stakeholders tasked with safeguarding U.S. waters.

The most recent analyst rating on (OPTT) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Ocean Power Technologies stock, see the OPTT Stock Forecast page.