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Ocean Power Technologies
(NYSE MKT:OPTT)
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Rating:44Neutral
Price Target:
$0.18
▲(18.00% Upside)
Action:Reiterated
Date:08/06/26
The score is held down primarily by very weak financial performance (sharp gross margin collapse, large ongoing losses, higher leverage, and persistent cash burn). Technicals also reflect a sustained downtrend with negative momentum and high volatility. Offsetting factors are limited but include earnings-call positives around a record backlog and large pipeline, which improve visibility but remain contingent on near-term execution; valuation provides little support due to negative earnings and no stated dividend yield.
Positive Factors
Record backlog & pipeline
A materially larger backlog and a $142M qualified pipeline give durable revenue visibility versus typical early-stage project firms. With roughly half defense and half commercial opportunities, the mix can reduce single-market cyclicality and supports multi-quarter revenue conversion if execution converts awards into active deployments.
Negative Factors
Severe margin collapse
A swing to a large gross loss indicates structural project-margin and cost-recognition issues. Persistent negative gross margins undermine scalable profitability even if revenues grow, making margin recovery essential for any durable path to positive operating cash flow and long-term viability.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog & pipeline
A materially larger backlog and a $142M qualified pipeline give durable revenue visibility versus typical early-stage project firms. With roughly half defense and half commercial opportunities, the mix can reduce single-market cyclicality and supports multi-quarter revenue conversion if execution converts awards into active deployments.
Read all positive factors
Ocean Power Technologies (OPTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.91M
Dividend YieldN/A
Average Volume (3M)4.06M
Price to Earnings (P/E)―
Beta (1Y)2.72
Revenue Growth-30.44%
EPS Growth-9.68%
CountryUS
Employees53
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.19
Shares Outstanding259,153,960
10 Day Avg. Volume5,449,159
30 Day Avg. Volume4,060,655
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)65.65
Price to Sales (P/S)172.27
P/FCF Ratio-26.28
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$1.50Price Target Upside900.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.11
Revenue Forecast (FY)$22.07M
Ocean Power Technologies Business Overview & Revenue Model
Company Description
Ocean Power Technologies, Inc. (OPTT) is a company dedicated to creating and deploying exclusive technologies that convert the sustainable power of ocean waves into electricity. The firm operates globally, with a presence in North America, South A...
How the Company Makes Money
OPTT primarily makes money by selling and delivering maritime systems and related services centered on its buoy-based platforms. Revenue is generated from (1) product and system sales, including PowerBuoy units and integrated solutions that may bu...
Ocean Power Technologies Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 14, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful operational and strategic progress (record backlog up 58%, a strong $142.3M pipeline, the company’s largest deployment and recurring-revenue contract, a strategic subsea acquisition, and leadership additions) provide optimism about future revenue conversion and market positioning. However, FY2026 financials revealed significant near-term challenges — revenue declined ~30.5%, a gross loss of $8.1M versus prior-year gross profit, operating expenses rose ~36% (including $9.5M in stock-based compensation), net loss more than doubled to $43.7M, and operating cash burn increased. Management linked poor year-over-year revenue to timing of deployments and intentional lower-margin contracts to build customer relationships. Given the substantial strategic wins balanced against sizable losses and cash burn, the overall tone is balanced with cautious optimism contingent on execution in fiscal 2027.Positive Updates
Record Backlog Growth
Backlog reached approximately $19.8 million at fiscal year-end, an increase of 58% compared with $12.5 million a year ago, providing increased visibility into future revenue.
Negative Updates
Revenue Decline
Revenue for fiscal 2026 was $4.1 million, down from $5.9 million in fiscal 2025, a decline of approximately 30.5%, primarily reflecting timing of customer deployments and revenue recognition.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Backlog Growth
Backlog reached approximately $19.8 million at fiscal year-end, an increase of 58% compared with $12.5 million a year ago, providing increased visibility into future revenue.
Read all positive updates
Company Guidance
Guidance for FY2027 is squarely execution‑focused: management will prioritize converting record backlog (~$19.8M, +58% y/y) into revenue, growing recurring services (including ~$6.5M tied to the U.S. Coast Guard 15‑month program), and converting a $142.3M qualified pipeline (vs. $137.5M a year ago; ~50% defense/50% commercial) into awards while expanding internationally and broadening defense and commercial customers. FY2026 context for that plan: revenue $4.1M (vs. $5.9M), gross loss $8.1M (vs. gross profit $1.7M), operating expenses $31.7M (including ~$9.5M stock‑based comp) vs. $23.3M, net loss $43.7M (vs. $21.5M), cash and short‑term investments $8.7M (from $6.7M), and net cash used in operations ~$22.7M (vs. $18.6M). Operational targets tied to execution include scaling recurring deployments (five buoys currently in service), leveraging manufacturing flexibility (~1 buoy/month baseline), targeting contribution/gross margins in the ~35%–55% range, and building a long‑life fleet (buoy service life up to ~15 years) to create a recurring revenue and free‑cash‑flow engine.Ocean Power Technologies Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
38
Negative
Cash Flow
18
Very Negative
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.08M | 5.86M | 5.53M | 2.73M | 1.76M |
| Gross Profit | -8.13M | 1.66M | 2.83M | 236.00K | -101.00K |
| EBITDA | -37.84M | -19.93M | -28.24M | -27.47M | -21.10M |
| Net Income | -43.68M | -21.51M | -27.48M | -26.33M | -18.87M |
Balance Sheet | |||||
| Total Assets | 41.28M | 30.79M | 28.70M | 53.37M | 73.39M |
| Cash, Cash Equivalents and Short-Term Investments | 8.72M | 6.71M | 3.15M | 34.67M | 57.27M |
| Total Debt | 11.26M | 1.80M | 2.57M | 1.84M | 857.00K |
| Total Liabilities | 30.58M | 4.14M | 9.36M | 9.42M | 4.56M |
| Stockholders Equity | 10.70M | 26.65M | 19.34M | 43.95M | 68.83M |
Cash Flow | |||||
| Free Cash Flow | -26.72M | -19.14M | -32.35M | -22.73M | -21.44M |
| Operating Cash Flow | -22.71M | -18.63M | -29.76M | -21.71M | -21.30M |
| Investing Cash Flow | -4.01M | -505.00K | 25.50M | 20.46M | -54.03M |
| Financing Cash Flow | 28.72M | 22.70M | 469.00K | -14.00K | 87.00K |
Ocean Power Technologies Risk Analysis
Ocean Power Technologies disclosed 47 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% | |
47 Neutral | $1.16B | -1.90 | -145.77% | ― | 1459.55% | 34.17% | |
46 Neutral | $44.25M | -2.66 | -14.94% | ― | 50.51% | -4669.05% | |
44 Neutral | $46.91M | -0.96 | -232.03% | ― | -30.44% | -9.68% | |
43 Neutral | $21.95M | -0.22 | -1251.69% | ― | -73.24% | 53.32% | |
43 Neutral | $5.71M | -0.27 | 302.33% | ― | ― | 72.29% | |
43 Neutral | $14.99M | -0.05 | 1227.16% | ― | 6.76% | 56.18% |
* Industrials Sector Average
OPTT
Ocean Power Technologies
0.18
-0.33
-65.29%
CBAT
CBAK Energy Technology
0.60
-0.32
-35.00%
TE
T1 Energy
5.55
4.28
337.01%
GWH
ESS Tech
0.68
-1.17
-63.32%
SDST
Stardust Power
0.63
-3.38
-84.26%
DFLI
Dragonfly Energy Holdings Corp
1.17
-1.39
-54.30%
Ocean Power Technologies Corporate Events
Business Operations and Strategy
Ocean Power wins role in Navy ocean-mapping contract
Positive
Aug 5, 2026
Ocean Power Technologies, Inc., a leader in maritime operational infrastructure and autonomous ocean systems, focuses on intelligent maritime solutions for defense and security, oil and gas, science and research, and offshore wind markets. Its key...
Private Placements and FinancingRegulatory Filings and Compliance
Ocean Power Technologies Launches $20 Million ATM Program
Neutral
Jul 27, 2026
On July 27, 2026, Ocean Power Technologies, Inc. entered into an at-the-market offering agreement with H.C. Wainwright Co. LLC to sell up to $20 million of its common stock through Wainwright as sales agent. The arrangement allows shares to be pl...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Ocean Power Technologies Expands Subsea Infrastructure Through Acquisition
Positive
Jul 23, 2026
On July 22, 2026, Ocean Power Technologies acquired subsea developmental technology intellectual property assets from Columbia Power Technologies in an all-stock transaction valued at about $2.9 million, extending its operational infrastructure ca...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Ocean Power Extends Tax Benefits Preservation Plan
Positive
Jun 29, 2026
On June 29, 2026, Ocean Power Technologies extended and amended its Section 382 Tax Benefits Preservation Plan, originally adopted in 2023, pushing the plan’s expiration from June 29, 2026 to June 29, 2029 and updating its terms. The plan is...
Business Operations and StrategyExecutive/Board ChangesProduct-Related Announcements
Ocean Power Technologies Advances Defense Maritime Power Deployment
Positive
Jun 9, 2026
On June 8, 2026, Ocean Power Technologies announced that its MERROWS™-equipped PowerBuoy® system, deployed for the U.S. Coast Guard off San Diego under a Department of Homeland Security program, has delivered close to 0.5 MWh of renewab...
Business Operations and StrategyPrivate Placements and Financing
Ocean Power Technologies Announces $10 Million Stock Offering
Neutral
Jun 8, 2026
On June 4, 2026, Ocean Power Technologies entered into securities purchase agreements with institutional investors to sell 25,000,000 shares of common stock and issue common warrants for an additional 25,000,000 shares in a registered direct offer...
Business Operations and Strategy
Ocean Power Technologies Expands Global Autonomous Maritime Deployments
Positive
May 21, 2026
On May 19, 2026, Ocean Power Technologies announced a major expansion of its global deployment footprint, marking a shift from research-centric pilots to broader, operational use across multiple agencies and regions. In the United States, the comp...
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.