Ocean Power Technologies Reports Revenue Growth to $5.9 Million, Net Loss Narrows to $21.5 Million

Ocean Power Technologies, Inc. (OPT) reported its financial results for the fiscal year ending April 30, 2025, revealing a revenue increase to approximately $5.9 million, up from $5.5 million in the previous fiscal year. This growth was primarily driven by higher sales and leases of the company's WAM-V® autonomous surface vehicles. Despite the revenue increase, the company experienced a net loss of $21.5 million, a slight improvement from the $27.5 million loss reported in fiscal 2024. The accumulated deficit as of April 30, 2025, stood at $329.1 million, reflecting ongoing challenges in achieving profitability.

The company's cost of revenue rose significantly to $4.2 million from $2.7 million, attributed to increased sales and a shift in product mix, which included lower-margin offerings aimed at gaining market share. Operating expenses decreased to $23.3 million from $32.2 million, largely due to cost reduction initiatives implemented in the previous fiscal year, including headcount optimization and tighter control over third-party spending. The reduction in operating expenses contributed to a narrower operating loss compared to the prior year.

Strategically, OPT has focused on expanding its customer base and geographic reach, particularly in the defense, energy, and environmental monitoring sectors. The company reported a notable increase in revenue from the Europe, Middle East, and Africa (EMEA) region, which accounted for 32% of total revenue in fiscal 2025, up from just 4% in the previous year. This shift reflects the success of OPT's international channel development initiatives and its commitment to diversifying its market presence.

In terms of operational developments, OPT's backlog increased to approximately $12.5 million as of April 30, 2025, compared to $4.9 million a year earlier, indicating a growing pipeline of unfulfilled orders. The company has also made significant strides in enhancing its product offerings, including the integration of AI capabilities into its Merrows™ platform and the successful demonstration of extended-duration operations for its WAM-V® systems. These advancements are expected to bolster OPT's competitive positioning in the autonomous maritime solutions market.

Looking ahead, OPT remains optimistic about its growth prospects, despite the macroeconomic challenges posed by geopolitical instability and inflationary pressures. The company plans to continue investing in product development and expanding its sales and marketing efforts to capitalize on the increasing demand for autonomous maritime systems. However, management acknowledges that achieving sustained profitability will depend on successful commercialization of its products and effective management of operational costs.