Ocean Power Technologies (OPTT) AI Stock Analysis

• Market Cap: $69.58M
• Dividend Yield: N/A
• Average Volume (3M): 7.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.60
• 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: 194,959,930
• 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: 13.32
• Enterprise Value/Revenue: 247.19
• Enterprise Value/Gross Profit: -940.59
• Enterprise Value/Ebitda: -29.91
• 1Y Price Target: $1.50
• Price Target Upside: 328.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.29 ▼(-16.29% Downside)

Ocean Power Technologies faces significant financial challenges, with declining revenues and negative profitability. Technical indicators suggest bearish momentum, and valuation metrics highlight unprofitability. However, growth in backlog and pipeline, along with strategic partnerships and certifications, provide some positive outlook.

Positive Factors

Strategic Partnerships

The partnership with Mythos AI enhances OPT's autonomous maritime capabilities, expanding market reach in defense and commercial sectors.

Backlog and Pipeline Growth

Significant growth in backlog and pipeline indicates strong future demand and potential revenue growth, driven by defense and commercial applications.

Financial Position

A substantial cash position provides financial stability and flexibility to invest in growth opportunities and manage operational needs.

Negative Factors

Revenue Decline

A significant decline in revenue highlights challenges in converting pipeline into sales, impacting short-term financial performance and growth.

Profitability Challenges

Ongoing gross profit losses indicate difficulties in cost management and achieving operational efficiency, affecting long-term profitability.

Increased Operating Expenses

Rising operating expenses without corresponding revenue growth strain financial resources and hinder efforts to achieve profitability.

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

Ocean Power Technologies generates revenue through the sale and leasing of its PowerBuoy systems, which provide sustainable energy solutions for various applications. The company has established multiple revenue streams, including the direct sale of PowerBuoys to customers in sectors such as offshore oil and gas, environmental monitoring, and defense. Additionally, OPTT engages in partnerships and collaborations with governmental and private entities to develop specific projects, which can lead to contract-based income. The company also benefits from research and development grants and funding aimed at promoting renewable energy technologies, further contributing to its financial resources.

Ocean Power Technologies Financial Statement Overview

Summary

Ocean Power Technologies is facing significant financial challenges, with declining revenues, negative profitability margins, and increasing leverage. While there is a slight improvement in free cash flow, the overall financial health remains weak, with substantial efforts needed to achieve stability and growth.

Income Statement

Ocean Power Technologies has been experiencing declining revenue, with a significant drop of 34.73% in the TTM period. The company has negative margins across the board, with a net profit margin of -8.37% and an EBIT margin of -5.45% in the TTM. These figures indicate ongoing challenges in achieving profitability and managing costs effectively.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.46 in the TTM, indicating rising leverage, though it remains relatively low. However, the return on equity is negative at -122.91%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 56.71%, suggesting a moderate level of financial stability.

Cash Flow

Ocean Power Technologies shows a slight improvement in free cash flow growth at 16.64% in the TTM, but the operating cash flow remains negative. The operating cash flow to net income ratio is -1.36, indicating cash flow challenges. The free cash flow to net income ratio is slightly positive at 1.10, suggesting some ability to cover net losses with free cash flow.

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

Ocean Power Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.35 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.44, and below the 200-day MA of 0.50, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.41 is Neutral, 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%
CBAT	46 Neutral	$80.89M	-12.32	-5.16%	―	-22.02%	-156.65%
OPTT	45 Neutral	$69.58M	-1.89	-141.20%	―	-47.10%	41.03%
GWH	42 Neutral	$39.23M	-0.40	-265.36%	―	-3.53%	24.37%
TE	40 Underperform	$1.79B	-1.88	-55.98%	―	―	-394.37%
DFLI	38 Underperform	$52.54M	-0.14	―	―	18.24%	24.49%
SDST	26 Underperform	$32.06M	-0.79	―	―	―	61.78%

Ocean Power Technologies Corporate Events

Ocean Power Technologies Partners with Mythos AI for Autonomy

On November 12, 2025, Ocean Power Technologies announced a partnership with Mythos AI to enhance their autonomous maritime capabilities. This collaboration aims to integrate AI-driven autonomy software into OPT’s fleet, improving operational capabilities and expanding their market reach in defense, security, and commercial sectors. The partnership is expected to strengthen OPT’s position in the autonomous and intelligent systems domain by offering a complete autonomy ecosystem. Initial demonstrations of the integrated systems are scheduled for the first quarter of 2026, with potential benefits including improved situational awareness and mission versatility.

Ocean Power Technologies Gains AUVSI Certification for Training

On November 4, 2025, Ocean Power Technologies announced its certification by the Association for Uncrewed Vehicle Systems International (AUVSI) as a Trusted Uncrewed Maritime Systems Operator Training Provider. This certification allows OPT to deliver AUVSI-aligned operator training and certification, enhancing its role in the uncrewed maritime systems industry. The training, which will be conducted using OPT’s WAM-V® platform, aims to improve workforce readiness and align with emerging regulatory standards, supporting the growth of the uncrewed maritime sector.

Ocean Power Technologies Issues $16.5M Convertible Notes

On May 15, 2025, Ocean Power Technologies entered into a securities purchase agreement with institutional investors to issue and sell convertible notes up to $25 million, which can be converted into common stock. By October 7, 2025, the company had issued $16.5 million in notes, enhancing its financial position and potentially impacting its market operations and stakeholder interests.