Ocean Power Technologies Reports 44% Revenue Growth but Increases Net Loss to $10.5 Million

Ocean Power Technologies, Inc. (OPT) reported its financial results for the three months ending July 31, 2026, revealing a total revenue of $1.7 million, a 44% increase from $1.2 million in the same period last year. The revenue growth was primarily driven by ongoing buoy operations. However, the company also faced significant challenges, with a net loss of $10.5 million, compared to a loss of $7.4 million in the prior year. This increase in losses was attributed to a rise in operating expenses, which surged to $12.2 million from $7.1 million, largely due to increased product development costs and one-time losses associated with contracts in key markets.

The company's cost of revenues escalated sharply to $4.5 million from $1.2 million, reflecting the recognition of one-time losses on contracts, including a $0.3 million charge related to zero-margin change orders. Despite the revenue increase, the gross margin remained negative at $(2.8) million, indicating that the costs associated with generating revenue significantly outweighed the income. The operating loss also widened to $15.1 million from $7.1 million, highlighting the financial strain the company is under.

In terms of strategic developments, OPT completed an asset acquisition from Columbia Power Technologies, Inc. for $2.2 million, which included issuing 366,162 shares of common stock. This acquisition is expected to enhance the company's subsea power capabilities. Additionally, the company raised approximately $9.0 million through financing activities, including a registered direct offering of common stock and warrants, which provided a temporary boost to liquidity but did not eliminate the need for further capital to sustain operations.

Operationally, the company reported a backlog of $19.1 million as of July 31, 2026, up from $15.0 million a year earlier, indicating a growing pipeline of unfulfilled orders. However, the company continues to face substantial liquidity challenges, with cash and cash equivalents totaling $7.4 million at the end of the reporting period. The management expressed concerns about the company's ability to continue as a going concern, citing ongoing operating losses and negative cash flows. The company is exploring various options to secure additional funding, including public or private equity offerings and strategic partnerships.

Looking ahead, OPT's management remains focused on expanding its customer base and geographic reach while enhancing technology adoption and recurring revenue streams. However, the company acknowledges that achieving profitability will require overcoming significant operational and financial hurdles, including managing costs and securing necessary funding to support its growth initiatives.