Ocean Power Technologies(OPTT) - 2026 Q1 - Quarterly Results

Executive Summary & Business Highlights First Quarter Fiscal 2026 Overview Ocean Power Technologies reported a significant surge in backlog and pipeline for Q1 Fiscal 2026, indicating accelerating growth. Despite a slight decrease in revenue, the company expanded key partnerships, upgraded its AI-enabled maritime solution, and strengthened its market presence Key Financial Metrics | Metric | 1Q26 (July 31, 2025) | 1Q25 (July 31, 2024) | Change (%) | | :----------------------- | :------------------- | :------------------- | :--------- | | Backlog | $15.0 million | $5.3 million | +184% | | Pipeline | $133.5 million | $92.0 million | +45% | | Revenues | $1.2 million | $1.3 million | -9% | - Cash operating expenses remained consistent with the prior year, with the year-over-year increase primarily due to non-cash stock compensation expense[3] Key Business Developments OPT made significant strides in Q1 FY26 by expanding its strategic partnership with Unique Group in the UAE, enhancing its AI-enabled Merrows™ Maritime Domain Awareness Solution, and establishing a new U.S. office to bolster its presence in the uncrewed systems market Strategic Partnerships & Market Expansion OPT expanded its partnership with UAE-based Unique Group through a Master Services Agreement, positioning Unique Group as its execution partner for non-defense WAM-V® USV projects in the UAE. This includes immediate leasing of a WAM-V 22 and plans for fleet expansion and revenue sharing. Additionally, OPT opened a new U.S. office in Washington, D.C., at the AUVSI headquarters to enhance access to government and industry stakeholders - Expanded partnership with UAE-based Unique Group via a Master Services Agreement, designating them as OPT's execution partner for non-defense WAM-V® USV projects in the UAE, with plans for fleet expansion and revenue sharing[3] - Established a new U.S. office at the AUVSI headquarters in Washington, D.C., to strengthen strategic position in the uncrewed systems market and enhance access to key government and industry stakeholders[3] Product & Technology Enhancements The company unveiled a major upgrade to its AI-enabled Merrows™ Maritime Domain Awareness Solution (MDAS), significantly improving its performance, stability, security, and interoperability across various platforms, enhancing its role as an ISR node - Unveiled a major upgrade to the AI-enabled Merrows™ Maritime Domain Awareness Solution (MDAS), enhancing performance, stability, security, and interoperability across surface, subsurface, and aerial platforms[3] Industry Leadership & Policy Engagement OPT reinforced its role as a policy and industry thought leader by testifying before the New Jersey Legislature, highlighting the state's opportunity to lead the U.S. marine energy sector and how OPT's technologies can shape favorable policy - Testified before the New Jersey Legislature on the state's opportunity to lead the emerging U.S. marine energy sector, emphasizing OPT's role in shaping policy and unlocking market opportunities[3] Management Outlook Dr. Philipp Stratmann, President and CEO, highlighted accelerating market momentum, evidenced by record backlog and pipeline expansion. He noted increasing customer demand for OPT's integrated solutions combining maritime autonomy, renewable power, and advanced analytics, positioning the company for leadership in autonomous maritime systems - Management observes accelerating market momentum, reflected in record backlog and pipeline expansion[4] - Customers are increasingly seeking OPT's solutions that integrate maritime autonomy, renewable power, and advanced analytics for critical ocean data as a service[4] - OPT is positioned to capture new opportunities and expand its leadership in autonomous, persistent, and resident maritime systems[4] Financial Performance Key Financial Highlights For the first quarter of fiscal 2026, OPT experienced a 9% decrease in revenues and a shift from gross profit to gross loss. Operating expenses significantly increased due to higher non-cash stock compensation, leading to a larger net loss. However, backlog saw a substantial 184% increase, and cash reserves improved Summary of Financial Performance | Metric | 1Q26 (July 31, 2025) | 1Q25 (July 31, 2024) | Change ($) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | :--------- | | Revenues | $1.2 million | $1.3 million | -$0.1M | -9% | | Gross Margin | -$23 thousand | $0.4 million | -$0.423M | -105% | | Operating Expenses | $7.1 million | $4.9 million | +$2.1M | +44% | | Net Loss | $7.4 million | $4.5 million | +$2.9M | +64% | | Backlog | $15.0 million | $5.3 million | +$9.7M | +184% | | Cash, cash equivalents & short-term investments | $10.0 million | $3.3 million (start of FY) | +$6.7M | +203% | | Net cash used in operating activities | $5.6 million | $6.1 million | -$0.5M | -8% | - The increase in operating expenses and net loss was primarily driven by a $2.1 million increase in non-cash stock compensation expenses[8] Consolidated Statements of Operations The Consolidated Statements of Operations show a decline in revenue and a significant increase in operating expenses, primarily due to higher share-based compensation, resulting in a larger net loss for the three months ended July 31, 2025, compared to the same period in 2024 Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Revenues | $1,182 | $1,301 | | Cost of revenues | $1,205 | $854 | | Gross margin | ($23) | $447 | | Operating expenses | $7,055 | $4,920 | | Operating loss | ($7,078) | ($4,473) | | Interest (expense)/income, net | ($310) | $3 | | Other income, net | — | $17 | | Loss before income taxes | ($7,388) | ($4,453) | | Income tax benefit | — | — | | Net loss | ($7,388) | ($4,453) | | Basic and diluted net loss per common share | ($0.04) | ($0.05) | | Weighted average shares used | 172,969,163 | 81,951,002 | Consolidated Balance Sheets As of July 31, 2025, OPT's total assets increased to $36.6 million from $30.8 million at April 30, 2025, primarily driven by an increase in cash and cash equivalents, accounts receivable, and property and equipment. Total liabilities also significantly increased, mainly due to new convertible notes payable and derivative liability Consolidated Balance Sheets (in thousands) | Metric (in thousands) | July 31, 2025 | April 30, 2025 | | :-------------------- | :------------ | :------------- | | ASSETS | | | | Cash and cash equivalents | $9,860 | $6,715 | | Accounts receivable, net | $2,207 | $1,191 | | Contract assets | $555 | $1,088 | | Inventory | $4,865 | $4,222 | | Total current assets | $18,380 | $13,616 | | Property and equipment, net | $4,703 | $3,444 | | Total assets | $36,618 | $30,793 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Accounts payable | $1,283 | $568 | | Convertible notes payable | $7,107 | — | | Derivative liability | $570 | — | | Total current liabilities | $11,619 | $3,289 | | Total liabilities | $12,428 | $4,141 | | Total shareholders' equity | $24,190 | $26,652 | | Total liabilities and shareholders' equity | $36,618 | $30,793 | Consolidated Statements of Cash Flows For the three months ended July 31, 2025, net cash used in operating activities decreased slightly. Investing activities saw an increase in property and equipment purchases. Financing activities provided a significant cash inflow, primarily from proceeds from convertible notes and common stock issuance, leading to a substantial net increase in cash, cash equivalents, and restricted cash Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | ($5,605) | ($6,124) | | Net cash used in investing activities | ($1,453) | ($374) | | Net cash provided by financing activities | $10,203 | $6,529 | | Net increase in cash, cash equivalents and restricted cash | $3,145 | $31 | | Cash, cash equivalents and restricted cash, end of period | $10,014 | $3,336 | - Share-based compensation significantly increased to $2,399 thousand in 1Q26 from $259 thousand in 1Q25, impacting operating activities[17] - Financing activities in 1Q26 included $9,866 thousand from convertible notes and $337 thousand from common stock issuance[17] Additional Information About Ocean Power Technologies Ocean Power Technologies (OPT) specializes in intelligent maritime solutions and services for defense, security, oil and gas, science, research, and offshore wind markets. Their offerings include PowerBuoy® platforms for clean power and real-time data, and WAM-V® autonomous surface vessels (ASVs) and marine robotics services - OPT provides intelligent maritime solutions and services for defense and security, oil and gas, science and research, and offshore wind markets[6] - Key products include PowerBuoy® platforms for clean power and real-time data, and WAM-V® autonomous surface vessels (ASVs) and marine robotics services[6] Non-GAAP Measures: Pipeline The 'Pipeline' metric, while not a GAAP measure, is used by OPT to track potential customer journeys and sales progress. It represents estimated future revenue, but is subject to changes due to project accelerations, cancellations, or delays - Pipeline is a non-GAAP measure used to track potential customer journeys and sales progress, divided into phases representing milestones[7] - Revenue estimates from the pipeline are subject to change due to project accelerations, cancellations, or delays, which can affect realization periods and levels[7] Forward-Looking Statements This release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company disclaims any obligation to publicly update or revise these statements - The release contains forward-looking statements, identified by terms like 'may', 'will', 'believe', 'expect', 'anticipate', 'estimate', 'intend', 'plan', 'project', and 'should'[9] - These statements rely on assumptions and estimates that could be inaccurate and are subject to risks and uncertainties, as detailed in the Company's Forms 10-Q and 10-K[9] - The Company expressly disclaims any obligation to publicly update or revise any forward-looking statements after the date of the press release[9] Investor Relations & Media Contacts Additional financial information can be found in the Company's Annual Report on Form 10-K filed with the SEC. Contact details for investor and media inquiries are provided - Additional information is available in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission[10] - Contact information for investors is 609-730-0400 x401 or InvestorRelations@oceanpowertech.com[11] - Contact information for media is 609-730-0400 x402 or MediaRelations@oceanpowertech.com[11]