Core Viewpoint - Ocean Power Technologies, Inc. (OPTT) has experienced a significant decline in share price despite some operational improvements and strategic initiatives aimed at growth and market expansion [1][2][5]. Financial Performance - Fiscal 2025 revenue grew modestly by 6% to $5.9 million from $5.5 million in fiscal 2024, but gross profit contracted to $1.7 million from $2.8 million [1][2]. - Operating expenses decreased by 28% to $23.3 million from $32.2 million, leading to a narrowed net loss of $21.5 million compared to $27.5 million the previous year [2]. - The diluted net loss per share improved to 17 cents from 47 cents in fiscal 2024, attributed to reduced operating expenses and an increased share count [2]. Business Metrics - The company closed fiscal 2025 with a record backlog of $12.5 million, a 155% increase from $4.9 million at the end of fiscal 2024 [3]. - The sales pipeline surged by 88% year over year, rising from $71.6 million to $137.5 million, indicating strong future revenue potential [3]. Operational Efficiency - Net cash used in operations decreased by 38% to $18.6 million from $29.8 million, and the company ended the year with $6.9 million in cash and equivalents, up from $3.3 million [4]. - A $10 million post-year-end unsecured debt facility was secured to support near-term scaling efforts [4]. Management Insights - The CEO characterized fiscal 2025 as a pivotal year, highlighting the transition from a technology demonstrator to a scaling solutions provider, with successful international deployments of AI-enabled platforms [5]. - The company received Facility Security Clearance from the U.S. Department of Defense, allowing participation in classified contracts and enhancing credibility in government bidding processes [6]. Challenges and Future Outlook - Revenue remained below expectations due to procurement delays linked to U.S. election uncertainty and macroeconomic headwinds, particularly in the defense segment [7]. - Management anticipates improved margins as the project mix shifts towards recurring service revenues and full-scale system deployments [8]. - Confidence in backlog execution and pipeline conversion is strong, with plans to invest cautiously in capacity expansions to meet future demand [9]. Strategic Initiatives - In Q4 of fiscal 2025, Ocean Power signed a $3 million reseller agreement with a Mexican engineering firm to promote maritime solutions in Central America [10]. - Exclusive distribution partnerships were formed in the UAE, Colombia, and Brazil to enhance market reach and reduce customer acquisition costs [11]. - A strategic alliance with Red Cat Holdings was established to integrate military-grade aerial drones with WAM-V surface vehicles, enhancing operational capabilities [12]. - An OEM agreement with Teledyne Marine was signed to co-develop AI-powered integrated payload solutions, reinforcing the company's commitment to innovation [13].