Ocean Power Technologies (OPTT)
:OPTT
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Ocean Power Technologies
(OPTT)
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Rating:44Neutral
Price Target:
$0.34
▼(-5.56% Downside)
Action:ReiteratedDate:04/02/26
The score is weighed down mainly by weak financial performance—persistent losses, negative TTM gross profit, and ongoing cash burn. Technicals also reflect a bearish trend with the stock below key moving averages and a negative MACD. These are partially offset by improving business momentum from the earnings call and recent milestones (record backlog/pipeline, DHS shipment) plus new financing that extends operating runway.
Positive Factors
Growing Backlog & Pipeline
A record $19.9M backlog and a $163.9M pipeline (up 84% YoY) give multi-quarter contracted demand visibility across defense, government and commercial markets. That contracted workload supports predictable revenue conversion, enables production planning, and can drive margin improvement as fixed costs spread with larger deployments.
Negative Factors
Negative Gross Profit & Large Losses
A negative TTM gross profit signals structural issues in cost of delivery, pricing or scale economics. With operating losses large relative to a small revenue base, the company must materially improve gross margins or achieve significant scale to reach sustainable profitability. This is a lasting constraint until solved.
Read all positive and negative factors
Positive Factors
Negative Factors
Growing Backlog & Pipeline
A record $19.9M backlog and a $163.9M pipeline (up 84% YoY) give multi-quarter contracted demand visibility across defense, government and commercial markets. That contracted workload supports predictable revenue conversion, enables production planning, and can drive margin improvement as fixed costs spread with larger deployments.
Read all positive factors
Ocean Power Technologies (OPTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$82.32M
Dividend YieldN/A
Average Volume (3M)7.51M
Price to Earnings (P/E)―
Beta (1Y)2.91
Revenue Growth-47.10%
EPS Growth41.03%
CountryUS
Employees43
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.06
Shares Outstanding228,023,440
10 Day Avg. Volume10,365,964
30 Day Avg. Volume7,507,691
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.94
Price to Sales (P/S)8.83
P/FCF Ratio-2.70
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue20.44
Enterprise Value/Gross Profit-36.25
Enterprise Value/Ebitda-2.10
Forecast
1Y Price Target
$1.50Price Target Upside316.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$8.02M
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 gener...
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 PowerBu...
Ocean Power Technologies Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 15, 2026
Earnings Call Sentiment Neutral
The call conveys strong commercial and programmatic momentum—large, rapidly growing backlog and pipeline, strategic government awards (including a $6.5M DHS contract), international deployments, and progress on autonomous docking and integrations that validate product-market fit in defense and maritime autonomy. Offsetting these positives are material near-term financial headwinds: revenue declined year-over-year due largely to timing from a government shutdown, gross profit turned negative because of one-time contract losses, operating expenses and stock-based compensation rose, net losses widened significantly, and operating cash burn increased while cash on hand remains modest. Management expects many timing-related items to convert later in the year and positions current investments as necessary to capture pipeline opportunities.Positive Updates
Record Backlog Growth
Backlog reached $19.9 million, an increase of $12.4 million and 165% year-over-year, signaling stronger contracted future revenue and conversion of opportunities across defense, government security, offshore energy and commercial applications.
Negative Updates
Revenue Decline Year-over-Year
Revenue for the quarter was $0.5 million versus $0.8 million a year earlier (down ~37.5%) and $2.1 million for the 9 months versus $4.5 million prior year (down ~53.3%), with management attributing much of the decline to timing impacts from the U.S. federal government shutdown in Oct–Nov 2025.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Backlog Growth
Backlog reached $19.9 million, an increase of $12.4 million and 165% year-over-year, signaling stronger contracted future revenue and conversion of opportunities across defense, government security, offshore energy and commercial applications.
Read all positive updates
Company Guidance
Management guided that shipments will begin imminently for the first DHS PowerBuoy systems (the $6.5M DHS award) with several more expected in the coming weeks and that the DHS work will be recognized as a contractor-owned/operator lease over a 15‑month period; they reported backlog at a record $19.9M (up $12.4M, +165% YoY) and a pipeline of $163.9M (up $74.7M, +84% YoY) (roughly half North America, remainder Latin America/Middle East), said production throughput is stable and they are prebuilding buoy inventory to accelerate deliveries, target an early‑access commercial launch of their integrated autonomous docking/charging solution in calendar 2026, expect delayed federal-work revenue (impacted by the Oct–Nov 2025 government shutdown) to convert later in the fiscal year, and forecast improving gross margins as one‑time contract losses run off and larger‑scale deployments ramp; financial context provided included Q3/QYTD revenues of $0.5M/$2.1M (vs $0.8M/$4.5M prior), gross loss of $0.8M/$2.2M (vs gross profit $0.2M/$1.4M prior), operating expenses of $8.4M/$24.2M (incl. higher stock‑based comp up $1.8M/$6.5M), operating‑expense growth excluding stock comp of ~9% (Q3) and 14% (YTD), net losses of $11.4M/$29.6M (vs $6.7M/$15.1M prior), combined cash and short‑term investments of $7.2M (vs $6.9M at fiscal year start), and $19.9M net cash used in operations YTD (vs $14.6M prior YTD).Ocean Power Technologies Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
46
Neutral
Cash Flow
18
Very Negative
| 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 | -33.46M | -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
Negative
0.36
Price Trends
0.41
Negative
0.41
Negative
0.47
Negative
Market Momentum
-0.01
Negative
46.18
Neutral
67.63
Neutral
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 0.36 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.41, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 67.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPTT.
Ocean Power Technologies Risk Analysis
Ocean Power Technologies disclosed 44 risk factors in its most recent earnings report. Ocean Power Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ocean Power Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | $72.25M | -7.95 | -0.03% | ― | -22.02% | -156.65% | |
48 Neutral | $1.31B | -1.53 | -153.56% | ― | ― | -394.37% | |
45 Neutral | $31.25M | -0.43 | -265.36% | ― | -3.53% | 24.37% | |
44 Neutral | $82.32M | -21.49 | -154.48% | ― | -47.10% | 41.03% | |
44 Neutral | $26.21M | -1.44 | 209.00% | ― | ― | 61.78% | |
42 Neutral | $24.18M | -209.02 | 664.41% | ― | 18.24% | 24.49% |
* Industrials Sector Average
OPTT
Ocean Power Technologies
0.36
-0.08
-18.51%
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SDST
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2.63
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1.99
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Ocean Power Technologies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Ocean Power Technologies Issues Senior Convertible Notes Financing
Positive
Apr 1, 2026
On April 1, 2026, Ocean Power Technologies, Inc. entered into a securities purchase agreement with institutional investors to issue $10 million of senior convertible notes, bearing 4.5% annual interest and maturing 18 months after issuance at a 13...
Business Operations and StrategyProduct-Related Announcements
Ocean Power Ships First PowerBuoy for Homeland Security
Positive
Mar 26, 2026
On March 24, 2026, Ocean Power Technologies announced it has shipped the first PowerBuoy® system under its previously disclosed $6.5 million contract with the U.S. Department of Homeland Security. The unit will support U.S. Coast Guard mariti...
Business Operations and Strategy
Ocean Power Highlights Autonomous Platforms Amid Middle East Tensions
Positive
Mar 2, 2026
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 shi...
Business Operations and StrategyProduct-Related Announcements
Ocean Power Technologies Expands Maritime Autonomy with Greece Deployment
Positive
Feb 24, 2026
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...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Shareholders Approve Key Governance and Capital Structure Changes
Positive
Jan 28, 2026
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 ...
Business Operations and StrategyFinancial Disclosures
Ocean Power Technologies Wins DHS Multi-Buoy Surveillance Contract
Positive
Jan 9, 2026
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 surfac...
Business Operations and Strategy
Ocean Power wins major multi-buoy Coast Guard contract
Positive
Jan 6, 2026
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 H...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.