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Ocean Power Technologies(OPTT) - 2025 Q4 - Annual Results

Executive Summary & Fiscal Year 2025 Overview OPT achieved significant FY25 milestones, including substantial backlog and pipeline growth, revenue increase, reduced operating expenses, and key certifications FY25 Results and Recent Highlights Ocean Power Technologies (OPT) reported significant operational and financial milestones for fiscal year 2025, including substantial increases in backlog and pipeline, a 6% revenue growth, and a 28% reduction in operating expenses. The company expanded its global presence through key platform deployments and strategic partnerships, while also achieving ISO 9001 certification and a U.S. Department of Defense Facility Security Clearance FY25 Key Financial & Operational Highlights | Metric | FY25 Value (in millions) | FY24 Value (in millions) | Change (%) | Source | | :----- | :----------------------- | :----------------------- | :--------- | :----- | | Backlog (as of Apr 30) | $12.5 | $4.9 | +155% | chunk 2, 11 | | Pipeline (as of release date) | $137.5 | $71.6 (Apr 30, 2024) | +88% | chunk 2 | | Operating Expenses | $23.3 | $32.2 | -28% | chunk 2, 11 | | Revenues | $5.9 | $5.5 | +6% | chunk 2, 11 | - Shipped an AI-enabled Merrows™ PowerBuoy® to a Middle Eastern customer following a competitive procurement2 - Secured a new contract with an international defense agency to demonstrate multiple WAM-V® Unmanned Surface Vehicles, expanding OPT's presence in allied naval markets2 - Achieved ISO 9001 certification for its quality management system, a globally recognized benchmark for excellence in engineering, manufacturing, and service delivery3 - Granted Facility Security Clearance by the U.S. Department of Defense, authorizing support for classified programs at the Secret level and significantly enhancing eligibility for future defense contracts4 Management Commentary Dr. Philipp Stratmann, CEO, highlighted FY25 as a pivotal year for OPT, marking a transition from technology proving to scaling impact. He emphasized the company's success in securing Facility Security Clearance and executing international deployments, positioning OPT's autonomous maritime systems as mission-critical infrastructure. The company enters FY26 with record backlog and growing demand, focusing on disciplined execution, recurring revenue expansion, and platform adoption - Fiscal 2025 was a pivotal year for Ocean Power Technologies, transitioning from proving technology to scaling impact, with key international deployments across the Middle East and Latin America5 - AI-enabled Merrows™ PowerBuoy® and WAM-V® platforms are now active in global defense markets, providing clear evidence that OPT's autonomous maritime systems are becoming mission-critical infrastructure5 - Entering fiscal 2026 with record backlog of $12.5 million, a solid balance sheet, access to additional capital, and growing demand from allied nations, with a focus on disciplined execution, expanding recurring revenue, and accelerating platform adoption5 Business and Operational Achievements OPT expanded its global presence through strategic platform deployments, key partnerships, and achieved operational excellence with ISO 9001 certification and DoD security clearance Global Platform Deployments OPT successfully deployed its AI-enabled Merrows™ PowerBuoy® and WAM-V® systems in critical international and defense applications, demonstrating their capability for persistent maritime surveillance and integration with advanced communication technologies like AT&T 5G - Shipped an AI-enabled Merrows™ PowerBuoy® to a Middle Eastern customer following a competitive procurement2 - Secured a new contract with an international defense agency to demonstrate multiple WAM-V® Unmanned Surface Vehicles, expanding OPT's presence in allied naval markets2 - Completed a U.S. Naval Postgraduate School deployment of a PowerBuoy® with Merrows™ for persistent maritime surveillance research, integrating AT&T 5G technology and advanced subsea sensors2 Strategic Partnerships & Alliances OPT expanded its market reach and solution offerings through several strategic partnerships, including a reseller agreement in Central America, exclusive distribution alliances in the Middle East and South America, and a multi-domain ISR collaboration with Red Cat Holdings - Signed a $3 million reseller agreement with a leading Mexican engineering firm to expand reach across Central America through integrated sales and support of OPT's full suite of intelligent maritime solutions2 - Formed exclusive distribution and integration alliances with Remah International Group (UAE) for defense and security, Unique Group for WAM-V® deployments across the GCC region, Elektron SAS (Colombia) for a multi-million-dollar purchase, and Ocean Wave Solutions Ltda (Brazil) for South America2 - Entered into a strategic alliance with Red Cat Holdings to integrate drone technology with WAM-V® USVs for ocean-powered air and sea-based intelligence, surveillance, and reconnaissance (ISR) missions6 - Signed an OEM agreement with Teledyne Marine to co-develop integrated payload and AI solutions6 Operational Excellence & Certifications OPT achieved ISO 9001 certification, reflecting its evolution into a scalable, process-driven provider, and secured a U.S. Department of Defense Facility Security Clearance, significantly enhancing its eligibility for classified defense contracts. The company also streamlined operations, reducing operating expenses by approximately 26% year over year - Achieved ISO 9001 certification for its quality management system, a globally recognized benchmark for excellence in engineering, manufacturing, and service delivery, supporting growth strategy3 - Operating expenses declined by approximately 26% year over year due to a streamlined team and leaner operating expense structure, increasing operating efficiency without compromising delivery or innovation4 - Granted Facility Security Clearance by the U.S. Department of Defense, authorizing support for classified programs at the Secret level and affirming compliance with industrial security standards4 Fiscal Year 2025 Financial Performance OPT reported a 6% revenue increase, a 28% reduction in operating expenses, and a narrower net loss, supported by significant growth in backlog and cash reserves Key Financial Highlights For FY25, OPT reported a 6% revenue increase to $5.9 million, alongside a significant 28% decrease in operating expenses. Despite a decline in gross profit, the reduced operating costs led to a narrower net loss of $21.5 million, an improvement of 21.7% compared to FY24 FY25 vs FY24 Income Statement Highlights (in thousands) | Metric | FY25 | FY24 | Change ($) | Change (%) | Source | | :----- | :--- | :--- | :--------- | :--------- | :----- | | Revenue | $5,861 | $5,525 | $336 | +6.1% | chunk 11, 19 | | Cost of Revenue | $4,201 | $2,699 | $1,502 | +55.6% | chunk 19 | | Gross Profit | $1,660 | $2,826 | $(1,166) | -41.2% | chunk 11, 19 | | Operating Expenses | $23,346 | $32,229 | $(8,883) | -27.6% | chunk 11, 19 | | Net Loss | $(21,511) | $(27,483) | $5,972 | -21.7% | chunk 11, 19 | | Basic and Diluted Net Loss Per Share | $(0.17) | $(0.47) | $0.30 | -63.8% | chunk 19 | FY25 vs FY24 Cash & Backlog Highlights (in thousands) | Metric | FY25 | FY24 | Change ($) | Change (%) | Source | | :----- | :--- | :--- | :--------- | :--------- | :----- | | Backlog (as of Apr 30) | $12,500 | $4,900 | $7,600 | +155% | chunk 11 | | Combined Cash, Cash Equivalents & Short-Term Investments (as of Apr 30) | $6,900 | $3,300 | $3,600 | +109.1% | chunk 11 | | Net Cash Used in Operating Activities | $(18,600) | $(29,800) | $11,200 | -37.6% | chunk 11 | Non-GAAP Measures: Backlog and Pipeline OPT reported a record backlog of $12.5 million as of April 30, 2025, a 155% increase year-over-year, and a pipeline of $137.5 million, an 88% increase from the prior year. These metrics are considered useful indicators for future revenue expectations and strategic growth, though pipeline is a non-GAAP measure subject to change Backlog and Pipeline Growth | Metric | As of Apr 30, 2025 (in millions) | As of Apr 30, 2024 (in millions) | Change (%) | Source | | :----- | :------------------------------- | :------------------------------- | :--------- | :----- | | Backlog | $12.5 | $4.9 | +155% | chunk 2, 11 | | Pipeline | $137.5 (as of release date) | $71.6 | +88% | chunk 2 | - Backlog includes unfilled firm written orders for products and services, serving as a useful metric for investors to support future revenue expectations and validate strategic growth plans11 - Pipeline is a non-GAAP measure representing the journey potential customers take, used to track sales progress and identify roadblocks, but revenue estimates can be subject to change due to various factors12 Consolidated Balance Sheets As of April 30, 2025, OPT's total assets increased to $30.8 million from $28.7 million in the prior year, primarily driven by a significant increase in cash and cash equivalents and contract assets. Total liabilities significantly decreased by 55.8% to $4.1 million, mainly due to reductions in accounts payable and earn out payable, contributing to a 37.8% increase in total shareholders' equity to $26.7 million Consolidated Balance Sheet Highlights (in thousands) | Metric | April 30, 2025 | April 30, 2024 | Change ($) | Change (%) | Source | | :----- | :------------- | :------------- | :--------- | :--------- | :----- | | Total Assets | $30,793 | $28,704 | $2,089 | +7.3% | chunk 17 | | Cash and cash equivalents | $6,715 | $3,151 | $3,564 | +113.1% | chunk 17 | | Contract assets | $1,088 | $18 | $1,070 | +5944.4% | chunk 17 | | Total Liabilities | $4,141 | $9,360 | $(5,219) | -55.8% | chunk 17 | | Accounts payable | $568 | $3,366 | $(2,798) | -83.1% | chunk 17 | | Earn out payable | $300 | $1,130 | $(830) | -73.5% | chunk 17 | | Total Shareholders' Equity | $26,652 | $19,344 | $7,308 | +37.8% | chunk 17 | Consolidated Statements of Operations For FY25, OPT's revenue increased by 6.1% to $5.86 million, while cost of revenue rose significantly by 55.6%, leading to a 41.2% decrease in gross profit. However, a substantial 27.6% reduction in operating expenses helped narrow the net loss by 21.7% to $21.51 million, resulting in a basic and diluted net loss per share of $(0.17) Consolidated Statements of Operations (in thousands, except per share data) | Metric | FY25 | FY24 | Change ($) | Change (%) | Source | | :----- | :--- | :--- | :--------- | :--------- | :----- | | Revenue | $5,861 | $5,525 | $336 | +6.1% | chunk 19 | | Cost of revenue | $4,201 | $2,699 | $1,502 | +55.6% | chunk 19 | | Gross profit | $1,660 | $2,826 | $(1,166) | -41.2% | chunk 19 | | Operating expenses | $23,346 | $32,229 | $(8,883) | -27.6% | chunk 19 | | Operating loss | $(21,686) | $(29,331) | $7,645 | -26.1% | chunk 19 | | Net loss | $(21,511) | $(27,483) | $5,972 | -21.7% | chunk 19 | | Basic and diluted net loss per share | $(0.17) | $(0.47) | $0.30 | -63.8% | chunk 19 | | Weighted average shares | 126,913,998 | 59,031,736 | 67,882,262 | +115.0% | chunk 19 | Consolidated Statements of Cash Flows In FY25, net cash used in operating activities significantly decreased to $18.63 million from $29.76 million in FY24, primarily due to a lower net loss and favorable changes in working capital. Investing activities used $0.51 million, while financing activities provided $22.70 million, mainly from proceeds from convertible notes and common stock issuances, resulting in a net increase in cash, cash equivalents, and restricted cash of $3.56 million Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | FY25 | FY24 | Change ($) | Source | | :----- | :--- | :--- | :--------- | :----- | | Net cash used in operating activities | $(18,634) | $(29,763) | $11,129 | chunk 21 | | Net cash (used in)/provided by investing activities | $(505) | $25,496 | $(26,001) | chunk 21 | | Net cash provided by/(used in) financing activities | $22,703 | $469 | $22,234 | chunk 21 | | Net decrease in cash, cash equivalents and restricted cash | $3,564 | $(3,798) | $7,362 | chunk 21 | | Cash, cash equivalents and restricted cash, end of year | $6,869 | $3,305 | $3,564 | chunk 21 | - Proceeds from issuance of common stock (At The Market offering) were $17.73 million in FY25, significantly up from $0.48 million in FY2421 - Proceeds from convertible notes were $3.17 million in FY2521 Additional Information This section provides an overview of Ocean Power Technologies' intelligent maritime solutions, details for the upcoming conference call, forward-looking statement disclaimers, and contact information About Ocean Power Technologies Ocean Power Technologies (OPT) provides intelligent maritime solutions and services for diverse markets including defense and security, oil and gas, science and research, and offshore wind. Their core offerings include PowerBuoy® platforms for clean power and real-time data communications, as well as WAM-V® autonomous surface vessels and marine robotics services - 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 markets9 - The company's PowerBuoy® platforms provide clean and reliable electric power and real-time data communications, while they also offer WAM-V® autonomous surface vessels (ASVs) and marine robotics services9 Conference Call & Webcast Details OPT will host a conference call on Friday, July 25, 2025, at 9:00 a.m. Eastern time to discuss its financial results, with CEO Philipp Stratmann and CFO Bob Powers. Details for accessing the live webcast, dial-in numbers, and replay options (both telephone and archived webcast) are provided - A conference call to discuss OPT's financial results will be held on Friday, July 25, 2025, at 9:00 a.m. Eastern time, hosted by CEO Philipp Stratmann and CFO Bob Powers811 - Live webcast and call replay options are available, with the replay accessible by telephone until August 26, 2024, and the archived webcast available on the OPT investor relations website11 Forward-Looking Statements & SEC Filings This release contains forward-looking statements, identified by specific phrases, which reflect current expectations but are subject to assumptions, estimates, risks, and uncertainties as outlined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to unduly rely on them, and the company disclaims any obligation to update these statements. Further information on risks is available in the company's 10-Q and 10-K filings with the SEC - This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, identified by certain words or phrases such as 'may', 'will', 'believe', 'expect', 'anticipate', 'estimate', 'intend', 'plan', 'future', 'should', and similar expressions13 - These forward-looking statements rely on assumptions and estimates that could be inaccurate and are subject to risks and uncertainties, with actual results potentially varying materially from those anticipated13 - Readers are advised to refer to the Company's most recent Forms 10-Q and 10-K and subsequent SEC filings for further discussion of these risks and uncertainties1314 - The Company expressly disclaims any obligation to publicly update or revise any forward-looking statements after the date of this press release, except as required by applicable law13 Contact Information Contact details for investor relations and media inquiries are provided, including dedicated phone numbers and email addresses for each - Investors can contact via 609-730-0400 x401 or InvestorRelations@oceanpowertech.com15 - Media can contact via 609-730-0400 x402 or MediaRelations@oceanpowertech.com15