Ocean Power Technologies Inc (NYSE-A:OPTT) CEO Philipp Stratmann talked with Proactive about the company’s decision to extend its agreement with the Unique Group in the United Arab Emirates, underlining strong growth in both the defense and commercial sectors across the region. Stratmann highlighted that demand for autonomous maritime systems, such as unmanned surface vehicles (USVs) and monitoring buoys, is continuing to rise, particularly in the Middle East. Proactive: Welcome back inside our Proactive ne ...

Core Viewpoint - Ocean Power Technologies (OPTT) reported fiscal 2025 earnings showing a modest revenue increase but significant challenges in profitability and gross margin [1][5]. Financial Performance - GAAP revenue for FY2025 was $5.9 million, a 6% increase from $5.5 million in FY2024 [2][5]. - Gross profit declined sharply to $1.7 million, down 39.3% from $2.8 million in FY2024 [2][5]. - Operating expenses were reduced by 27.6%, from $32.2 million in FY2024 to $23.3 million in FY2025 [2][6]. - The net loss decreased to $21.5 million from $27.5 million in FY2024 [2][6]. - Net cash used in operating activities was $18.6 million, down 37.6% from $29.8 million in FY2024 [2][6]. Company Overview and Key Drivers - Ocean Power Technologies designs renewable energy systems and autonomous marine robots for various markets, including offshore monitoring and defense [3]. - The core products include the PowerBuoy®, WAM-V® autonomous surface vehicles, and the Merrows™ command and control system [3]. Growth Strategy - The company focuses on expanding market reach and building recurring revenue through product innovation, new geographies, and strategic partnerships [4]. - The order backlog reached a record $12.5 million, up from $4.9 million, indicating increased visibility for future revenue [10]. Operational Highlights - The company shipped its first AI-enabled Merrows™ PowerBuoy® and deployed a PowerBuoy® integrated with 5G technology [7]. - Strategic partnerships expanded, including a $3 million reseller deal in Mexico and collaborations with Teledyne Marine and Red Cat Holdings [8][9]. Regulatory and Certification Milestones - The company received Department of Defense Facility Security Clearance and attained ISO 9001 certification, enhancing eligibility for government contracts [10]. Future Outlook - Management did not provide explicit financial guidance for fiscal 2026 but highlighted a record backlog and increased international interest as positive indicators [12]. - The company finished FY2025 with $6.9 million in cash, up from $3.3 million [13].