Core Viewpoint - Ocean Power Technologies, Inc. (OPTT) has experienced a significant decline in share price following its fiscal Q1 2026 results, indicating challenges in revenue generation despite a strong backlog and pipeline growth [1][4]. Earnings & Revenue Performance - The company reported revenues of $1.2 million for fiscal Q1 2026, a decrease of 9% from $1.3 million in the same period last year [2]. - Gross profit turned into a small loss of $23,000 compared to a profit of $0.4 million in the prior year [2]. - Operating expenses increased by 44% year over year to $7.1 million, primarily due to a rise in non-cash stock-based compensation [2]. Net Loss and Share Performance - The net loss widened to $7.4 million from $4.5 million in the first quarter of fiscal 2025, with a loss per share of 4 cents, slightly better than the 5 cents from the previous year [3]. Key Business Metrics - The backlog at the end of July 2025 reached $15 million, a 184% increase from $5.3 million a year ago [4]. - The company's pipeline grew by 45% to $133.5 million from $92 million in July 2024, indicating strong demand potential [4]. Balance Sheet and Cash Flow - As of July 31, 2025, the company reported $10 million in cash, cash equivalents, and short-term investments, up from $3.3 million at the beginning of the fiscal year [5]. - Net cash used in operating activities improved to $5.6 million from $6.1 million in the prior-year quarter [5]. Management Commentary - The CEO emphasized the accelerating momentum across markets and the growing recognition of OPT's technologies globally, positioning the company well for future opportunities [6]. Factors Influencing Financial Results - Revenue decline was attributed to lower project activity and increased operating expenses, particularly from stock-based compensation [7]. - The company is investing in technology and scaling operations, including a major upgrade to its Merrows Maritime Domain Awareness Solution [8]. Strategic Developments - Ocean Power Technologies expanded its partnership with Unique Group for non-defense unmanned surface vehicle projects in the UAE, which includes leasing a WAM-V 22 [12]. - The company plans to establish a maintenance, repair, and overhaul hub in the UAE to enhance recurring revenue streams [13]. - The CEO's engagement in policy discussions aims to influence regulations and expand market opportunities in renewable marine power [14].

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