Ocean Power Technologies Announces First Quarter Fiscal 2027 Results
OPT grew revenue and backlog but posted a larger quarterly loss and used significant cash while initiating a strategic alternatives review.
Rhea-AI Summary
Ocean Power Technologies (OPTT) reported fiscal Q1 2027 results for the quarter ended July 31, 2026, highlighting growth in revenue and backlog alongside substantially higher losses and cash burn.
Revenue rose 44% year over year to $1.7 million, driven by a jump in lease revenue to $657,000 from $67,000. Backlog increased to $19.1 million, up from $15.0 million a year earlier, and the sales pipeline reached $150.8 million, up 13% year over year. However, cost of revenues surged to $4.5 million, resulting in a gross loss of $2.8 million, and operating expenses increased to $12.2 million, producing an operating loss of $15.1 million and a net loss of $10.5 million.
Cash, cash equivalents and short-term investments totaled $7.4 million, with net cash used in operations of $10.2 million. The company advanced multiple defense and research deployments, acquired subsea technology assets from C-Power, achieved CMMC Level 2 compliance, and began a Board-led review of strategic alternatives.
Positive
- Revenue increased 44% year over year to $1.7 million in Q1 2027
- Lease revenue rose to $657,000 from $67,000 in the prior-year quarter
- Backlog expanded to $19.1 million from $15.0 million a year earlier
- Sales pipeline grew to $150.8 million, up 13% year over year
- Change in fair value of derivative contributed a $4.9 million non-cash gain in Q1 2027
- Financing inflows of $9.0 million, including $9.95 million from a capital raise and $1.41 million from ATM issuance
Negative
- Gross loss widened to $2.8 million versus near breakeven gross margin of $(23,000) a year earlier
- Operating expenses rose to $12.2 million from $7.1 million, nearly 74% higher year over year
- Net loss increased to $10.5 million from $7.4 million in the prior-year quarter
- Net cash used in operating activities was $10.2 million, up from $5.6 million a year earlier
- Cash, cash equivalents and restricted cash declined to $7.5 million from $10.0 million at the prior-year quarter-end
- Shareholders’ equity decreased to $8.5 million from $12.5 million at April 30, 2026, while total liabilities rose to $30.3 million
Key Figures
- Backlog
- $19.1 million
- July 31, 2026; increased 27% from $15.0 million
- Sales pipeline
- $150.8 million
- July 31, 2026; compared with $133.5 million a year earlier
- Revenue
- $1.7 million
- Q1 fiscal 2027; up 44% from $1.2 million
- Gross loss
- $2.831 million
- Three months ended July 31, 2026
- Net loss
- $10.537 million
- Q1 fiscal 2027; compared with $7.388 million a year earlier
- Cash and investments
- $7.4 million
- At July 31, 2026
- IDIQ contract ceiling
- $40 million
- Aggregate ceiling across six potential awardees; not revenue awarded to OPT
- DHS PowerBuoy systems
- 3 systems
- Operated concurrently in maritime domain awareness operations
Historical Context
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Auditor emphasized substantial doubt about ability to continue as a going concern
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Revised annual results increased net loss and retained going-concern qualification
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
cmmc level 2 regulatory
indefinite-delivery/indefinite-quantity regulatory
convertible notes financial
at the market offering financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Quarter highlighted by operational execution, expanding defense-market access and continued development of persistent autonomous maritime infrastructure
MONROE TOWNSHIP, N.J., Sept. 14, 2026 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or the “Company") (NYSE American: OPTT) today announced financial results for its fiscal 2027 first quarter ended July 31, 2026 (Q1 2027).
Q1 2027 and Recent Highlights
Operational execution and customer delivery
- Operated three PowerBuoy® systems concurrently in support of U.S. Department of Homeland Security (“DHS”) maritime domain awareness operations off the coast of Southern California. The systems transmitted real-time offshore data as a distributed network and were integrated with Anduril Industries’ Lattice command-and-control platform. One system was deployed in water depths exceeding 1,000 meters.
- Demonstrated sustained field performance from the DHS deployment. The program represents the largest deployment and recurring revenue contract in the Company’s history and provides operational validation of OPT’s ability to deploy and support persistent offshore infrastructure for defense and security customers.
- Successfully deployed and commissioned a PowerBuoy® system off the coast of New Jersey for Rutgers University, supporting ocean research, environmental monitoring and the integration of surface and subsea sensors.
- Delivered a WAM-V® unmanned surface vehicle to Stevens Institute of Technology within five weeks of receiving the order, demonstrating OPT’s ability to convert customer orders into completed deliveries on accelerated timelines.
Technology and portfolio expansion
- Demonstrated autonomous docking, charging and redeployment of a WAM-V®, addressing a key operational constraint for unmanned maritime systems. OPT continues to advance the integration of this capability with its PowerBuoy® platform to support longer-duration autonomous missions and persistent offshore operations.
- Acquired strategic subsea developmental technology assets from Columbia Power Technologies, Inc. “”C-Power”). The acquired intellectual property and engineering portfolio extends OPT’s operational infrastructure capabilities from the ocean surface to the seabed and complements the Company’s existing offshore power, autonomous vehicle, sensing, communications and AI-enabled software capabilities.
Defense-market positioning
- Achieved Cybersecurity Maturity Model Certification (“CMMC”) Level 2 compliance, strengthening the Company’s readiness to pursue and support U.S. defense programs requiring the protection of Controlled Unclassified Information.
- Subsequent to quarter end, was selected as one of six potential awardees under a
$40 million multiple-award, indefinite-delivery/indefinite-quantity contract supporting the Naval Oceanographic Office. The contract creates an opportunity for OPT to compete for task orders involving high-resolution ocean-floor mapping services using long-endurance unmanned surface vehicles. The$40 million amount represents the aggregate ceiling across all awardees and does not constitute revenue awarded to OPT.
Operating scalability and strategic review
- Subsequent to quarter end, began implementing Palantir Foundry through the Palantir for Builders program, with Foxtrot Professional Services leading the implementation. The platform is intended to connect data and workflows across manufacturing, supply chain, deployment, fleet operations, maintenance and customer support as OPT develops a more scalable operating model.
- The Company’s Board of Directors initiated a review of strategic alternatives intended to identify opportunities to accelerate growth, expand market access, strengthen the Company’s financial position and maximize stockholder value. Bowen, Inc. is serving as financial advisor. No timetable has been established, and there can be no assurance that the review will result in a transaction or other strategic outcome.
MANAGEMENT COMMENTARY
“During the first quarter, we continued advancing our technology development to repeatable operational execution,” said Philipp Stratmann, President and Chief Executive Officer of Ocean Power Technologies. “Our PowerBuoy systems operated as an integrated offshore network supporting a U.S. Coast Guard maritime domain awareness mission, while our teams completed additional customer deployments and demonstrated autonomous docking and charging capabilities that we believe are essential to persistent maritime autonomy. We also expanded our technology portfolio into subsea power and strengthened our eligibility for sensitive defense programs through CMMC Level 2 compliance. Since quarter end, our selection under the Naval Oceanographic Office’s multiple-award IDIQ contract has created a new pathway to compete for autonomous ocean-mapping work, and our implementation of Palantir Foundry is designed to provide the operating backbone needed to execute at greater scale. Our team remains focused on serving customers, converting backlog into revenue, expanding recurring services and strengthening the Company’s financial position. We believe our integrated portfolio of PowerBuoy platforms, WAM-V vehicles, Merrows™ software and subsea technologies positions OPT to address a growing need for persistent, intelligent maritime infrastructure.”
Q1 2027 FINANCIAL HIGHLIGHTS
Financial highlights include:
- Backlog increased
58% to a$19.1 million , a27% increase compared to$15.0 million at July 31, 2025. - Sales pipeline increased to
$150.8 million at July 31, 2026, a13% increase compared to the$133.5 pipeline balance at July 31, 2025, reflecting continued demand across defense, security and commercial markets. - Revenue for Q1 2027 was
$1.7 million , a$0.5 million and44% increase over same period prior year revenue of$1.2 million . - Gross loss reflected investments in strategic customer programs, including certain contracts accepted to establish long-term customer relationships and larger future opportunities.
- Operating expenses included continued investment in personnel, technology development and operational infrastructure, as well as non-cash expenses of approximately
$1.8 million related to stock-based compensation,$2.2 million of product development expenses related to the C-Power acquisition and$0.8 million related to asset write downs. - Combined unrestricted cash, cash equivalents and short-term investments totaled
$7.4 million at July 31, 2026.
About Ocean Power Technologies
OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets including Merrows®, which provides AI capable seamless integration of Maritime Domain Awareness Systems across platforms. Our PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. We also provide WAM-V® autonomous surface vessels (ASVs) and marine robotics services. The Company’s headquarters is located in Monroe Township, New Jersey and has an additional office in Richmond, California. To learn more, visit www.OceanPowerTechnologies.com.
Non-GAAP Measures: Pipeline
Pipeline is not a term recognized under United States generally accepted accounting principles; however, it is a common measurement used in our industry. Our methodology for determining pipeline may not be comparable to the methodologies used by other companies. Pipeline is a representation of the journey potential customers take from the moment they become aware of our products and service to the moment they become a paying customer. The sales pipeline is divided into a series of phases, each representing a different milestone in the customer journey. It is a tool we use to track sales progress, identify potential roadblocks, and make data-driven decisions to improve our sales performance. Revenue estimates derived from our pipeline can be subject to change due to project accelerations, cancellations or delays due to various factors. These factors can also cause revenue amounts to be realized in periods and at levels different than originally projected.
Forward-Looking Statements
This release may contain forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases such as "may", "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions. These forward-looking statements reflect the Company's current expectations about its future plans and performance. These forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Forms 10-Q and 10-K and subsequent filings with the U.S. Securities and Exchange Commission for further discussion of these risks and uncertainties.. Except as may be required by applicable law, the Company undertakes no, and expressly disclaims any, obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, circumstances or otherwise after the date of this press release, and you are cautioned not to rely upon them unduly,
Financial Tables Follow
Additional information may be found in the Company's Annual Report on Form 10-K that will be filed with the U.S. Securities and Exchange Commission. The Form 10-K is accessible at www.sec.gov or the Investor Relations section of the Company's website (www.OceanPowerTechnologies.com/investor-relations).
Contact Information
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
| Ocean Power Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands, except share data) | ||||||||
| July 31, 2026 | April 30, 2026 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,356 | $ | 8,719 | ||||
| Restricted cash, short-term | 154 | 154 | ||||||
| Accounts receivable, net | 1,249 | 587 | ||||||
| Contract assets | 269 | 590 | ||||||
| Inventory | 4,552 | 3,190 | ||||||
| Other current assets | 1,852 | 2,648 | ||||||
| Total current assets | 15,432 | 15,888 | ||||||
| Property and equipment, net | 9,798 | 10,255 | ||||||
| Intangibles, net | 3,324 | 3,357 | ||||||
| Right-of-use assets, net | 1,614 | 1,886 | ||||||
| Goodwill | 8,537 | 8,537 | ||||||
| Total assets | $ | 38,705 | $ | 39,923 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,726 | $ | 4,366 | ||||
| Earn out payable | 50 | 150 | ||||||
| Convertible notes payable (Note 13) | 8,068 | 10,428 | ||||||
| Warrant liability | 3,756 | — | ||||||
| Accrued expenses | 4,608 | 4,232 | ||||||
| Contract liabilities, current | 5,091 | 6,029 | ||||||
| Right-of-use liabilities, current portion | 1,228 | 1,202 | ||||||
| Total current liabilities | 29,527 | 26,407 | ||||||
| Deferred tax liability | 203 | 203 | ||||||
| Right-of-use liabilities, less current portion | 522 | 837 | ||||||
| Total liabilities | 30,252 | 27,447 | ||||||
| Commitments and contingencies (Note 14) | ||||||||
| Shareholders’ Equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 273 | 231 | ||||||
| Treasury stock, at cost; 89,531 and 89,531 shares, respectively | (1,825 | ) | (1,825 | ) | ||||
| Additional paid-in capital | 401,503 | 395,031 | ||||||
| Accumulated deficit | (391,498 | ) | (380,961 | ) | ||||
| Accumulated other comprehensive loss | — | — | ||||||
| Total shareholders’ equity | 8,453 | 12,476 | ||||||
| Total liabilities and shareholders’ equity | $ | 38,705 | $ | 39,923 | ||||
| Ocean Power Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except per share data) | ||||||||
| Three months ended July 31, | ||||||||
| 2026 | 2025 | |||||||
| Product & service revenue | $ | 1,046 | $ | 1,115 | ||||
| Lease revenue | 657 | 67 | ||||||
| Total revenue | 1,703 | 1,182 | ||||||
| Cost of revenues | 4,534 | 1,205 | ||||||
| Gross margin | (2,831 | ) | (23 | ) | ||||
| Operating expenses | 12,246 | 7,055 | ||||||
| Operating loss | (15,077 | ) | (7,078 | ) | ||||
| Interest income/(expense), net | (373 | ) | (310 | ) | ||||
| Change in fair value of derivative | 4,912 | — | ||||||
| Foreign exchange loss | 1 | — | ||||||
| Loss before income taxes | (10,537 | ) | (7,388 | ) | ||||
| Income tax benefit | — | — | ||||||
| Net loss | (10,537 | ) | (7,388 | ) | ||||
| Basic and diluted net loss per share | $ | (1.28 | ) | $ | (1.28 | ) | ||
| Weighted average shares used to compute basic and diluted net loss per common share | 8,236,617 | 5,765,639 | ||||||
| OCEAN POWER TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) | ||||||||
| Three months ended July 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (10,537 | ) | $ | (7,388 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation of fixed assets | 286 | 194 | ||||||
| Foreign exchange loss | — | — | ||||||
| Non-cash payment for asset acquisition | 1,991 | — | ||||||
| Amortization of intangible assets | 33 | 34 | ||||||
| Amortization of right of use asset | 273 | 231 | ||||||
| Share-based compensation | 1,829 | 2,399 | ||||||
| Change in fair value of derivative | (4,912 | ) | — | |||||
| Loss on disposition of assets | 769 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (662 | ) | (1,016 | ) | ||||
| Contract assets | 321 | 533 | ||||||
| Inventory | (1,837 | ) | (643 | ) | ||||
| Right-of-use asset | — | (66 | ) | |||||
| Other assets | 797 | (493 | ) | |||||
| Accounts payable | 2,360 | 715 | ||||||
| Earnout payable | (100 | ) | (50 | ) | ||||
| Accrued expenses | 376 | 22 | ||||||
| Right-of-use liabilities | (289 | ) | (212 | ) | ||||
| Contract liabilities | (938 | ) | 135 | |||||
| Net cash used in operating activities | $ | (10,240 | ) | $ | (5,605 | ) | ||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (124 | ) | (1,453 | ) | ||||
| Net cash used in investing activities | $ | (124 | ) | $ | (1,453 | ) | ||
| Cash flows from financing activities: | ||||||||
| Proceeds from convertible notes | — | 9,866 | ||||||
| Repayment of convertible notes | (2,356 | ) | ||||||
| Proceeds from issuance of common stock – Capital Raise - Warrants, net of issuance costs | 9,952 | — | ||||||
| Proceeds from issuance of common stock - At The Market offering, net of issuance costs | 1,405 | $ | 337 | |||||
| Net cash provided by financing activities | $ | 9,001 | $ | 10,203 | ||||
| Net increase in cash, cash equivalents and restricted cash | $ | (1,363 | ) | $ | 3,145 | |||
| Cash, cash equivalents and restricted cash, beginning of period | $ | 8,873 | $ | 6,869 | ||||
| Cash, cash equivalents and restricted cash, end of period | $ | 7,510 | $ | 10,014 | ||||
| Supplemental disclosure of noncash investing and financing activities: | ||||||||
| Common stock issued related to conversion of convertible debt | $ | — | $ | 2,060 | ||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What major operational deployments did Ocean Power Technologies complete in Q1 2027?
During the quarter, Ocean Power Technologies operated three PowerBuoy systems concurrently for the U.S. Department of Homeland Security off Southern California, with one system in water depths exceeding 1,000 meters. The systems provided real-time offshore data as a distributed network and were integrated with Anduril Industries’ Lattice platform. The company also deployed and commissioned a PowerBuoy off New Jersey for Rutgers University and delivered a WAM-V unmanned surface vehicle to Stevens Institute of Technology within five weeks of order receipt.
How is Ocean Power Technologies expanding its technology portfolio?
The company acquired strategic subsea developmental technology assets from Columbia Power Technologies (C-Power), adding intellectual property and engineering capabilities that extend its infrastructure from the ocean surface to the seabed. It also demonstrated autonomous docking, charging and redeployment of a WAM-V and is working to integrate this capability with its PowerBuoy platform to support longer-duration autonomous missions.
What recent developments relate to defense and government customers?
Ocean Power Technologies achieved CMMC Level 2 compliance, which the company said strengthens its readiness for U.S. defense programs handling Controlled Unclassified Information. After quarter end, it was selected as one of six potential awardees on a $40 million multiple-award, indefinite-delivery/indefinite-quantity contract with the Naval Oceanographic Office, giving it the opportunity to compete for task orders for high-resolution ocean-floor mapping using long-endurance unmanned surface vehicles. The $40 million ceiling applies across all awardees and does not represent revenue already awarded to OPT.
What is the strategic alternatives review Ocean Power Technologies announced?
The Board of Directors has initiated a review of strategic alternatives to identify options to accelerate growth, expand market access, strengthen the company’s financial position and maximize stockholder value. Bowen is serving as financial advisor. No timetable has been set, and there is no assurance that the review will result in a transaction or other strategic outcome.
How is Ocean Power Technologies addressing operating scalability and data management?
Subsequent to the quarter, the company began implementing Palantir Foundry through the Palantir for Builders program, with Foxtrot Professional Services leading the implementation. The platform is intended to connect data and workflows across manufacturing, supply chain, deployment, fleet operations, maintenance and customer support as the company develops a more scalable operating model.
What notable non-cash or one-time items affected Q1 2027 results?
Operating expenses included approximately $1.8 million of stock-based compensation, $2.2 million of product development expenses related to the C-Power acquisition, and $0.8 million of asset write downs. The company also recorded a $4.9 million non-cash gain from the change in fair value of a derivative and a $1.99 million non-cash payment for an asset acquisition in the cash flow statement.