Ocean Power Technologies Reports Revenue Decline and Increased Operating Losses for Quarter Ending July 31, 2025

Ocean Power Technologies, Inc. (OPT) reported its financial results for the three months ending July 31, 2025, revealing a revenue of $1.2 million, a decrease from $1.3 million in the same period last year. The decline in revenue is attributed to the timing of project deliveries, particularly for its WAM-V products. The company's cost of revenues increased to $1.2 million from $0.9 million, primarily due to a shift in product mix that included a higher proportion of third-party equipment, which typically carries lower margins. As a result, OPT experienced a gross margin loss of $23,000 compared to a gross profit of $447,000 in the prior year.

Operating expenses surged to $7.1 million from $4.9 million year-over-year, largely driven by increased stock-based compensation costs. Consequently, the operating loss widened to $7.1 million from $4.5 million in the previous year. The net loss for the quarter was $7.4 million, compared to a net loss of $4.5 million in the same quarter of 2024. The basic and diluted net loss per share improved slightly to $(0.04) from $(0.05), reflecting an increase in the weighted average shares outstanding due to recent equity issuances.

In terms of strategic developments, OPT has made significant strides in its operational capabilities. The company reported a backlog of $15 million as of July 31, 2025, a substantial increase from $5.3 million a year earlier, indicating a growing demand for its products and services. This backlog consists of unfulfilled purchase orders and agreements with both commercial and governmental customers, which the company expects to convert into revenue within the next 12 to 36 months. Additionally, OPT has expanded its geographic reach, with 89% of its revenue coming from the EMEA region, compared to just 5% in the previous year.

The company has also taken steps to enhance its liquidity position. As of July 31, 2025, OPT had cash and cash equivalents of $10 million, up from $6.9 million at the end of April 2025. This increase was bolstered by $10.2 million in net cash provided by financing activities, primarily from the issuance of convertible notes. However, the company continues to face challenges, including ongoing operating losses and the need for additional financing to support its growth initiatives. Looking ahead, OPT remains focused on expanding its customer base, enhancing technology adoption, and improving operational efficiencies to drive future profitability.