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Ocean Power Technologies
(NYSE MKT:OPTT)
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Rating:44Neutral
Price Target:
$0.67
▲(254.74% Upside)
Action:Reiterated
Date:10/13/26
OPTT scores low primarily due to weak financial performance—deep losses, negative gross profitability, and heavy cash burn—combined with strongly bearish technical indicators (price well below major moving averages and negative momentum). Offsetting factors include execution-focused guidance supported by record backlog and a large pipeline, plus several strategic corporate actions, but these positives are outweighed by near-term financial and funding risks.
Positive Factors
Backlog and Pipeline
Record backlog growth improves near-term revenue visibility, while the sizable qualified pipeline provides additional potential demand across defense and commercial markets. Converting these opportunities into contracts could support sustained expansion and improve operating leverage over the next several quarters.
Negative Factors
Severe Margin Deterioration
Negative gross profit and widening operating and net losses show that current projects are not covering the company’s cost base. Even with revenue growth opportunities, sustained margin weakness limits reinvestment capacity and makes future profitability highly dependent on execution and contract mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Pipeline
Record backlog growth improves near-term revenue visibility, while the sizable qualified pipeline provides additional potential demand across defense and commercial markets. Converting these opportunities into contracts could support sustained expansion and improve operating leverage over the next several quarters.
Read all positive factors
Ocean Power Technologies (OPTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.33M
Dividend YieldN/A
Average Volume (3M)635.57K
Price to Earnings (P/E)―
Beta (1Y)2.93
Revenue Growth-25.83%
EPS Growth-50.97%
CountryUS
Employees65
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-7.33
Shares Outstanding9,094,159
10 Day Avg. Volume1,072,389
30 Day Avg. Volume635,567
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)65.66
Price to Sales (P/S)172.29
P/FCF Ratio-26.28
Enterprise Value/Market Cap7.43
Enterprise Value/Revenue11.05
Enterprise Value/Gross Profit-5.39
Enterprise Value/Ebitda-1.06
Forecast
1Y Price Target
$45.00Price Target Upside23584.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-3.3
Revenue Forecast (FY)$14.46M
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:Dec 16, 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
18
Very Negative
Balance Sheet
35
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.26M | 4.08M | 5.86M | 5.53M | 2.73M | 1.76M |
| Gross Profit | -8.73M | -8.13M | 1.66M | 2.83M | 236.00K | -101.00K |
| EBITDA | -44.26M | -37.84M | -19.93M | -28.24M | -27.47M | -21.10M |
| Net Income | -52.06M | -43.68M | -21.51M | -27.48M | -26.33M | -18.87M |
Balance Sheet | ||||||
| Total Assets | 38.70M | 41.28M | 30.79M | 28.70M | 53.37M | 73.39M |
| Cash, Cash Equivalents and Short-Term Investments | 7.36M | 8.72M | 6.71M | 3.15M | 34.67M | 57.27M |
| Total Debt | 9.82M | 11.26M | 1.80M | 2.57M | 1.84M | 857.00K |
| Total Liabilities | 30.25M | 30.58M | 4.14M | 9.36M | 9.42M | 4.56M |
| Stockholders Equity | 8.45M | 10.70M | 26.65M | 19.34M | 43.95M | 68.83M |
Cash Flow | ||||||
| Free Cash Flow | -37.51M | -26.72M | -19.14M | -32.35M | -22.73M | -21.44M |
| Operating Cash Flow | -33.11M | -22.71M | -18.63M | -29.76M | -21.71M | -21.30M |
| Investing Cash Flow | -4.40M | -4.01M | -505.00K | 25.50M | 20.46M | -54.03M |
| Financing Cash Flow | 52.66M | 28.72M | 22.70M | 469.00K | -14.00K | 87.00K |
Ocean Power Technologies Technical Analysis
Negative
0.19
Price Trends
3.80
Negative
5.89
Negative
8.95
Negative
Market Momentum
-0.89
Negative
19.42
Positive
4.64
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 0.19 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 3.80, and below the 200-day MA of 8.95, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 19.42 is Positive, neither overbought nor oversold. The STOCH value of 4.64 is Positive, 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 49 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% | |
56 Neutral | $104.60M | -6.28 | -14.94% | ― | 50.51% | -4669.05% | |
48 Neutral | $961.39M | -1.49 | -144.49% | ― | 426.99% | 36.20% | |
44 Neutral | $6.33M | -0.09 | -338.44% | ― | -25.83% | -50.97% | |
43 Neutral | $6.63M | -0.02 | -1565.55% | ― | -4.85% | 53.62% | |
39 Underperform | $2.09M | -0.03 | 256.59% | ― | ― | 67.65% |
* Industrials Sector Average
OPTT
Ocean Power Technologies
0.70
-15.43
-95.69%
CBAT
CBAK Energy Technology
1.18
0.15
14.56%
TE
T1 Energy
3.21
-0.29
-8.29%
SDST
Stardust Power
0.05
-5.09
-99.01%
DFLI
Dragonfly Energy Holdings Corp
3.54
-122.06
-97.18%
Ocean Power Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ocean Power Technologies appoints interim chief financial officer
Neutral
Oct 7, 2026
On September 30, 2026, Ocean Power Technologies’ Chief Financial Officer Robert Powers departed the company by mutual agreement with the board, and his employment letter dated December 13, 2021 was terminated. Powers left after helping estab...
Business Operations and StrategyPrivate Placements and Financing
Ocean Power Technologies Revises Convertible Notes and Warrants
Positive
Sep 25, 2026
On September 25, 2026, Ocean Power Technologies, Inc. entered into exchange agreements with holders of its Series C-1 Convertible Notes, swapping them for an equivalent principal amount of new Series D Convertible Notes and cancelling the prior no...
Business Operations and StrategyExecutive/Board Changes
Ocean Power Technologies Announces Strategic Leadership Transition
Positive
Sep 17, 2026
On September 14, 2026, Ocean Power Technologies announced a leadership reshuffle intended to sharpen execution and commercial conversion as it moves from building operational foundations toward converting its pipeline into backlog and revenue. The...
Delistings and Listing ChangesShareholder MeetingsStock Split
Ocean Power Technologies Approves 1-for-30 Reverse Stock Split
Neutral
Sep 11, 2026
Ocean Power Technologies on September 10, 2026 announced that its stockholders had approved a reverse stock split authorization at a special meeting held the same day, enabling the board to implement a split within a 1-for-5 to 1-for-50 range. The...
Financial DisclosuresRegulatory Filings and Compliance
Ocean Power Technologies Faces Going Concern Audit Warning
Negative
Aug 24, 2026
Ocean Power Technologies, Inc., based in Monroe Township, N.J., operates in the maritime technology sector, providing intelligent infrastructure, autonomous ocean systems and AI-enabled maritime intelligence solutions to defense and security, oil ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Ocean Power Technologies Regains NYSE American Listing Compliance
Positive
Aug 20, 2026
On August 14, 2026, Ocean Power Technologies received notice from NYSE Regulation that it was not in compliance with NYSE American continued listing standards due to failing to file its Form 10-K for the year ended April 30, 2026 by the August 13,...
Business Operations and Strategy
Ocean Power Technologies Board Launches Strategic Alternatives Review
Positive
Aug 17, 2026
On August 17, 2026, Ocean Power Technologies, Inc. announced that its board of directors had begun a review of strategic alternatives aimed at maximizing value for shareholders. The company retained investment banking advisory firm Bowen, Inc. to ...
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...
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.