Ocean Power Technologies (OPTT) AI Stock Analysis

• Market Cap: $97.42M
• Dividend Yield: N/A
• Average Volume (3M): 7.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.81
• 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: 0.94
• Enterprise Value/Revenue: 24.46
• Enterprise Value/Gross Profit: -93.08
• Enterprise Value/Ebitda: -2.96
• 1Y Price Target: $1.50
• Price Target Upside: 212.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $0.50 ▲(3.54% Upside)

Overall score is held back primarily by weak financial performance (declining revenue, negative margins, and cash flow strain). Technicals are supportive with an uptrend and positive momentum but look overbought, increasing volatility risk. Backlog/pipeline growth and recent federal contract wins provide upside catalysts, though losses and execution remain the key constraint.

Positive Factors

Backlog and Pipeline Growth

A materially larger backlog and a substantially expanded $137.5M pipeline provide multi-month revenue visibility and demonstrate sustained demand, particularly from government customers. This reduces short-term revenue volatility and increases the likelihood of steady contract conversions over the next 2–6 months.

Government Contract Validation

Securing a multi-buoy DHS/Coast Guard contract and integration into federal C5I systems is structural validation, strengthening OPT’s market position in defense and homeland security. Federal procurement credibility and mission-aligned deployments increase chances of follow-on orders and longer-term O&M revenue streams.

Improved Liquidity Position

A larger cash balance nearly doubles liquidity year-over-year, giving the company runway to execute backlog, fund integration work, and support near-term deployments without immediate refinancing. Improved liquidity strengthens operational resilience during conversion of pipeline to revenue.

Negative Factors

Declining Revenue and Negative Margins

Sustained revenue declines and negative margins indicate the business has not yet achieved scalable commercial economics. Persistent top-line contraction limits ability to leverage fixed costs, undermines profitability prospects, and increases dependence on timely contract execution to restore margin sustainability.

Negative Operating Cash Flow

Continued negative operating cash flow and a poor OCF-to-net-income ratio point to structural cash burn from operations. Even with modest FCF growth, weak operational cash generation raises funding risk, could force dilutive financing, and constrains investment in scaling commercial deployments.

Rising Expenses and Widening Losses

Sharply higher operating expenses and substantially larger quarterly net losses show spending growth outpacing current revenue. If expense growth persists without faster revenue conversion, profitability will remain distant, pressuring margins and increasing the need for tighter cost control or external capital.

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

Weak fundamentals: revenue declined sharply (TTM -34.73%) with persistently negative profitability (net margin -8.37%, EBIT margin -5.45%). Balance sheet shows moderate stability (equity ratio 56.71%) but negative ROE (-122.91%) and rising leverage (D/E 0.46). Cash flow remains pressured with negative operating cash flow despite some improvement in free cash flow 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: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 0.48 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.42, and below the 200-day MA of 0.49, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 40.10 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%
TE	56 Neutral	$2.25B	-2.29	-55.98%	―	―	-394.37%
SDST	51 Neutral	$39.86M	-1.06	―	―	―	61.78%
OPTT	49 Neutral	$97.42M	-2.58	-141.20%	―	-47.10%	41.03%
CBAT	48 Neutral	$70.03M	-10.86	-5.16%	―	-22.02%	-156.65%
DFLI	44 Neutral	$38.65M	―	―	―	18.24%	24.49%
GWH	43 Neutral	$34.33M	-0.32	-265.36%	―	-3.53%	24.37%

Ocean Power Technologies Corporate Events

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.

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.

The most recent analyst rating on (OPTT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Ocean Power Technologies stock, see the OPTT Stock Forecast page.

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.

The most recent analyst rating on (OPTT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Ocean Power Technologies stock, see the OPTT Stock Forecast page.