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1. Company Snapshot

1.a. Company Description

Ocean Power Technologies, Inc.develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Europe, and Asia.It offers PB3 PowerBuoy system that generates power for use independent of the power grid in offshore locations.


The company also provides hybrid PowerBuoy products; subsea battery systems; and software, controls, sensors, integration services, and marine installation services.In addition, it offers distributed offshore power and communications for remote surface and subsea applications in markets, such as defense and security, offshore oil and gas, science and research, and offshore wind.Further, the company provides Wave Adaptive Modular Vessel (WAM-V) technology, which enables roaming capabilities for uncrewed maritime systems in waters; leases WAM-V robotics and access information; maritime domain awareness solutions; and strategic consulting services.


Additionally, it offers offshore data collection, integration, analytics, and real time communication for various applications.The company serves public and private entities, and agencies that require remote offshore power.Ocean Power Technologies, Inc.


was incorporated in 1984 and is headquartered in Monroe Township, New Jersey.

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1.b. Last Insights on OPTT

The recent 3-month performance of Ocean Power Technologies, Inc. was negatively impacted by a wider year-over-year loss in Q3, despite a record backlog and reduced cash burn. The company's shares fell 22.7% post-earnings, indicating investor skepticism. Zacks' initiation of coverage with a neutral recommendation further underscores the company's execution and financial risks. Additionally, the recent expansion of year-round testing to both US coasts, while a positive development, may not have been enough to offset the negative sentiment surrounding the company's financial performance.

1.c. Company Highlights

2. Ocean Power Technologies' Q2 FY2026 Earnings: A Mixed Bag

Ocean Power Technologies reported revenue of $400,000 for the three months ended October 31, 2025, a significant decline from $2.4 million in the prior period, primarily due to the timing of the shutdown delaying several deliverables into subsequent periods. The net loss for the quarter was $10.8 million, and $18.2 million year to date, compared to net losses of $3.9 million and $8.4 million in the respective prior year periods. The actual EPS came out at -$0.06, missing estimates of -$0.02.

Publication Date: Dec -20

📋 Highlights
  • Backlog and Pipeline Growth:: Backlog at $15M, pipeline expanded to $137M, driven by defense, government, and offshore energy engagement.
  • Revenue Decline:: Q3 2025 revenue fell to $400K vs. $2.4M prior year, due to delayed deliverables from government shutdown.
  • Net Loss Widening:: Q3 net loss at $10.8M, YTD $18.2M, compared to $3.9M and $8.4M in prior-year periods.
  • Cash Position:: Cash/short-term investments rose to $11.7M as of 10/31/2025, up from $6.7M at fiscal year start.
  • International Market Expansion:: Demonstrations in UAE and Sub-Saharan Africa validated systems, signaling growth beyond U.S. markets.

Operational Highlights

The company's backlog stands at approximately $15 million, and its pipeline has expanded to more than $137 million, reflecting broad engagement across defense, government security, offshore energy, and commercial applications. Dr. Philipp Stratmann mentioned that they've seen increased traction across their markets, with the US government fully reopened, and activity has accelerated across several programs, including the US Coast Guard's Raptor effort.

Cash Position and Funding

Ocean Power Technologies' cash, cash equivalents, and short-term investments were $11.7 million as of October 31, compared to $6.7 million at the beginning of the fiscal year. Net cash used in operating activities for the six-month period was approximately $13 million, compared to $10.9 million in the prior year. The company's cash position is expected to be a concern given the significant net losses.

Valuation Metrics

With a P/S Ratio of 18.31 and an EV/EBITDA of -2.17, the market is pricing in significant growth expectations. However, analysts estimate next year's revenue growth at -74.9%, indicating a potential decline in revenue. The ROE and ROIC are also negative, at -122.91% and -86.31%, respectively, indicating poor profitability.

Outlook

3. NewsRoom

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Ocean Power Technologies flags rising demand for autonomous maritime systems amid Middle East tensions

Mar -02

Source: proactiveinvestors.com

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Ocean Power Technologies Highlights Strategic Relevance of Autonomous Maritime Systems Amid Heightened Regional Tensions

Mar -02

Source: globenewswire.com

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Ocean Power Technologies flags rising demand for autonomous maritime systems amid Middle East tensions

Mar -02

Source: proactiveinvestors.com

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Ocean Power Technologies CEO discusses US Coast Guard deal - ICYMI

Feb -28

Source: proactiveinvestors.com

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Ocean Power Technologies CEO discusses US Coast Guard deal - ICYMI

Feb -28

Source: proactiveinvestors.com

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FTSE 100 Live: Stocks surge higher at open as HSBC and miners rally

Feb -25

Source: proactiveinvestors.com

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Ocean Power Technologies receives $1.5M US Coast Guard purchase order

Feb -24

Source: proactiveinvestors.com

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Ocean Power Technologies Receives Approximately $1.5 Million U.S. Coast Guard Order for Installation and Deployment of Operational Buoy Systems

Feb -24

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Wave Adaptive Modular Vessels

Expected Growth: 10.3%

Growing demand for renewable energy, increasing investment in offshore wind farms, and government incentives for ocean energy technologies drive the adoption of Wave Adaptive Modular Vessels, enabling Ocean Power Technologies, Inc. to capitalize on the emerging blue economy.

Services

Expected Growth: 12.4%

Growing demand for renewable energy, increasing adoption of ocean-based surveillance systems, and rising investments in offshore oil and gas exploration are expected to drive the growth of Ocean Power Technologies, Inc.'s services.

Buoy

Expected Growth: 10.3%

Growing demand for renewable energy, increasing investment in offshore wind farms, and government incentives for sustainable power sources drive the adoption of Ocean Power Technologies' buoy system, which harnesses ocean wave energy to generate electricity.

7. Detailed Products

PB3 PowerBuoy

A floating buoy that converts ocean wave energy into electricity, used for offshore oil and gas, ocean observing, and coastal security applications.

Mark 4 PowerBuoy

A next-generation PowerBuoy that provides higher power output and improved efficiency, used for offshore oil and gas, ocean observing, and coastal security applications.

Subsea Battery

A rechargeable battery system designed for underwater applications, used for offshore oil and gas, ocean observing, and coastal security applications.

Ocean Observing Systems

A suite of sensors and systems that provide real-time ocean data, used for ocean research, climate monitoring, and coastal protection applications.

Coastal Security Systems

A suite of sensors and systems that provide real-time coastal surveillance, used for coastal protection, border security, and search and rescue applications.

8. Ocean Power Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ocean Power Technologies, Inc. faces moderate threat from substitutes as there are limited alternative sources of renewable energy that can replace its wave energy converters.

Bargaining Power Of Customers

The bargaining power of customers is low as Ocean Power Technologies, Inc. is one of the leading providers of wave energy converters, and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate as Ocean Power Technologies, Inc. relies on a few key suppliers for its components, but it also has some flexibility to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants is high as the renewable energy industry is growing rapidly, and new companies are entering the market with innovative technologies.

Intensity Of Rivalry

The intensity of rivalry is moderate as Ocean Power Technologies, Inc. faces competition from established players in the renewable energy industry, but it has a unique technology that differentiates it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.02%
Debt Cost 3.95%
Equity Weight 95.98%
Equity Cost 14.63%
WACC 14.21%
Leverage 4.19%

11. Quality Control: Ocean Power Technologies, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Pioneer Power Solutions

A-Score: 4.6/10

Value: 8.3

Growth: 4.2

Quality: 7.1

Yield: 5.0

Momentum: 1.5

Volatility: 1.3

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Flux Power

A-Score: 4.3/10

Value: 8.9

Growth: 6.8

Quality: 5.5

Yield: 0.0

Momentum: 4.5

Volatility: 0.0

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Orion Energy Systems

A-Score: 4.2/10

Value: 8.0

Growth: 2.9

Quality: 2.6

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

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Solid Power

A-Score: 4.1/10

Value: 6.9

Growth: 3.2

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

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Ocean Power Technologies

A-Score: 3.0/10

Value: 6.0

Growth: 5.2

Quality: 3.2

Yield: 0.0

Momentum: 3.0

Volatility: 0.3

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FuelCell Energy

A-Score: 2.7/10

Value: 9.4

Growth: 1.1

Quality: 3.8

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.41$

Current Price

0.41$

Potential

-0.00%

Expected Cash-Flows