Ocean Power Technologies (OPTT) AI Stock Analysis

• Market Cap: $76.97M
• Dividend Yield: N/A
• Average Volume (3M): 7.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.92
• 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: 1.03
• Enterprise Value/Revenue: 21.24
• Enterprise Value/Gross Profit: -80.82
• Enterprise Value/Ebitda: -2.61
• 1Y Price Target: $1.50
• Price Target Upside: 284.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): $8.45M

• Rating: 46 Neutral
• Price Target: $0.41 ▲(4.62% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held down primarily by weak financial performance (declining revenue, persistent losses, and negative cash flow dynamics) and a below-trend technical picture. Partially offsetting this are moderately positive business momentum signals from the earnings call and recent events, including a growing backlog/pipeline and international operational progress, though execution and profitability remain key risks.

Positive Factors

Backlog and pipeline expansion

A materially larger backlog and a substantially expanded $137.5M pipeline provide multi-quarter visibility into demand, especially from defense and government channels. This structural pipeline supports potential revenue scaling and contract conversion that can underpin longer-term growth if execution holds.

Validation via U.S. government contracts

Winning and integrating into DHS programs demonstrates product validation and strategic alignment with national security customers. Government contracts and systems integration create durable credibility, potential repeat/order expansion, and opportunities for contractor-operated revenue and follow-on services.

International deployments & infrastructure scaling

Progressing prototypes to full-scale docking/charging and shipping autonomous surface vehicles abroad diversifies markets and moves the business from development to operational deployment. Scaling infrastructure and autonomy capabilities supports recurring service opportunities and broader addressable markets.

Negative Factors

Sharp revenue decline and negative margins

A steep year-over-year revenue drop and persistent gross profit losses signal structural difficulty in converting backlog into profitable sales. Continued negative margins impair reinvestment capacity, hinder economies of scale, and increase reliance on external funding to sustain operations.

Negative operating cash flow and elevated cash burn

Quarterly and year-to-date net losses and sizable operating expenses exceed current cash inflows, creating structural cash burn. Even with recent cash increases, sustained negative operating cash flow pressures runway, forces financing dependence, and limits the company's ability to fund scaling without dilution.

Capital structure / dilution risk

Board-authorized expansion of share capacity improves financing flexibility but creates a durable dilution pathway. Given ongoing losses and cash needs, the enlarged share authorization increases the likelihood of equity raises, which can dilute existing shareholders and impact long-term shareholder returns.

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 down 34.73%), profitability remains deeply negative (net margin -8.37%, EBIT margin -5.45%), and ROE is very negative (-122.91%). While free cash flow growth improved (16.64%), operating cash flow is still negative and leverage is rising (D/E 0.46).

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	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	3.75M	5.86M	5.53M	2.73M	1.76M	1.21M
Gross Profit	-985.00K	1.66M	2.83M	236.00K	-101.00K	-1.07M
EBITDA	-30.56M	-20.79M	-28.24M	-27.47M	-21.10M	-13.22M
Net Income	-31.36M	-21.51M	-27.48M	-26.33M	-18.87M	-15.85M
Balance Sheet
Total Assets	39.32M	30.79M	28.70M	53.37M	73.39M	86.38M
Cash, Cash Equivalents and Short-Term Investments	11.66M	6.71M	3.15M	34.67M	57.27M	83.03M
Total Debt	14.30M	1.80M	2.57M	1.84M	857.00K	2.06M
Total Liabilities	17.02M	4.14M	9.36M	9.42M	4.56M	5.91M
Stockholders Equity	22.30M	26.65M	19.34M	43.95M	68.83M	80.47M
Cash Flow
Free Cash Flow	-22.98M	-19.14M	-32.35M	-22.73M	-21.44M	-11.70M
Operating Cash Flow	-20.88M	-18.63M	-29.76M	-21.71M	-21.30M	-11.67M
Investing Cash Flow	-2.10M	-505.00K	25.50M	20.46M	-54.03M	74.00K
Financing Cash Flow	32.54M	22.70M	469.00K	-14.00K	87.00K	84.17M

Ocean Power Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 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 0.39 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.43, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 3.33 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	$1.67B	-1.63	-55.98%	―	―	-394.37%
SDST	51 Neutral	$33.85M	-0.89	―	―	―	61.78%
CBAT	48 Neutral	$90.42M	-14.09	-5.16%	―	-22.02%	-156.65%
OPTT	46 Neutral	$76.97M	-2.13	-141.20%	―	-47.10%	41.03%
DFLI	44 Neutral	$30.80M	-0.08	―	―	18.24%	24.49%
GWH	43 Neutral	$42.69M	-0.31	-265.36%	―	-3.53%	24.37%

Ocean Power Technologies Corporate Events

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.