Exchange: AMEX | Sector: Industrials | Industry: Electrical Equipment Parts
Q1 2026
Published: Sep 15, 2025
Earnings Highlights
Revenue of $1.18M down 24.8% year-over-year
EPS of $-0.04 increased by 63.6% from previous year
Gross margin of -1.9%
Net income of -7.39M
"N/A" - N/A
Ocean Power Technologies Inc (OPTT) QQ1 2026 Earnings Analysis – Early-Stage Wave Energy Leader: Revenue Decline, Cash Burn, and Path to Growth
Executive Summary
Ocean Power Technologies Inc (OPTT) reported QQ1 2026 results characterized by a modest revenue base and a meaningful cash burn as it advances its PowerBuoy and related offshore energy technologies. Revenue of 1.182 million was insufficient to cover even current period operating costs, yielding a gross loss of 23 thousand and an EBITDA of -7.078 million. The net loss for the quarter was -7.389 million, translating to an EPS of -0.04. The company’s operating structure remains highly R&D and development-focused, with substantial fixed-cost headwinds that drive negative margins at the current scale of activity.
From a liquidity perspective, OPTT generated negative operating cash flow of -5.605 million, invested -1.453 million in capital expenditures, and posted free cash flow of -7.058 million. Financing activities contributed +10.203 million, lifting cash and cash equivalents to about 9.86 million at quarter-end and producing a modest net cash increase of 3.145 million for the period. The company appears to maintain a net cash position (net debt of -2.753 million) aided by financing activity, but remains structurally reliant on ongoing external funding to sustain operations until revenue growth and cost normalization materialize.
Key questions for investors center on OPTT’s ability to scale deployments, achieve meaningful product revenue, and reduce long-run unit costs to reach a sustainable gross margin. Absent explicit quarterly guidance in the provided materials, the near-term thesis hinges on execution milestones (pilot deployments, customer agreements, and partnerships) and further fundraising capabilities to bridge the gap to profitability. Monitoring early pilot wins, contract velocity, and any cadence of cost-reduction initiatives will be critical to assessing the trajectory of OPTT’s capital-efficient growth potential.
EBITDA: -7.078 million; EBITDA Margin: approximately -5.99%
Operating Income: -7.078 million; Operating Margin: approximately -5.99%
Net Income: -7.389 million; Net Income Margin: approximately -6.25x revenue (reported net income ratio -6.2504)
Earnings per Share (EPS): -0.04; Diluted EPS: -0.04; weighted average shares: 1,729,691,630
Financial Highlights
Revenue: 1.182 million in QQ1 2026; YoY change: -24.81%; QoQ change: +43.27%
- Gross Profit: -0.023 million; Gross Margin: -1.95% (grossProfitRatio: -0.01946)
- EBITDA: -7.078 million; EBITDA Margin: approximately -5.99%
- Operating Income: -7.078 million; Operating Margin: approximately -5.99%
- Net Income: -7.389 million; Net Income Margin: approximately -6.25x revenue (reported net income ratio -6.2504)
- Earnings per Share (EPS): -0.04; Diluted EPS: -0.04; weighted average shares: 1,729,691,630
Liquidity and balance sheet highlights:
- Cash and cash equivalents: 9.86 million; Total cash and short-term investments: 9.86 million
- Short-term debt: 7.107 million; Total liabilities: 12.428 million; Total assets: 36.618 million
- Total stockholders’ equity: 24.19 million; Retained earnings: -336.478 million (accumulated deficit)
- Current assets: 18.38 million; Current liabilities: 11.619 million; Current ratio: ~1.58
- Net debt: -2.753 million (net cash position after considering cash and short-term borrowings)
Cash flow snapshot:
- Net cash provided by operating activities: -5.605 million
- Capital expenditures: -1.453 million
- Free cash flow: -7.058 million
- Net cash provided by (used in) financing activities: +10.203 million
- Net change in cash: +3.145 million
- Cash at end of period: 10.014 million
Balance sheet composition:
- Total assets: 36.618 million (cash 9.86m; PP&E net 6.091m; goodwill 8.537m; intangible assets 3.456m; other assets make the balance)
- Total current liabilities: 11.619 million
- Current ratio: 18.38m / 11.619m ≈ 1.58
- No long-term debt reported; short-term debt 7.107 million; deferred tax liabilities non-current 0.203 million
- Retained earnings strongly negative, signaling substantial prior deficits despite positive stockholders’ equity, implying dilution risk going forward.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.18M
-24.81%
43.27%
Gross Profit
-23.00K
-102.67%
-111.68%
Operating Income
-7.08M
-5.34%
-20.48%
Net Income
-7.39M
-9.91%
-9.94%
EPS
-0.04
63.64%
12.09%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data for the QQ1 2026 period were not provided in the supplied materials. As a result, thematic highlights and management quotes from an earnings call could not be extracted. Investors should review the official earnings call transcript and 10-Q form for verbatim management commentary on milestones, partnerships, and guidance once available.
N/A
— N/A
N/A
— N/A
Forward Guidance
Management guidance is not included in the provided data set. Qualitatively, OPTT’s near-term guidance would depend on progression of commercialization, contract wins, and deployment milestones for its PowerBuoy and related offshore energy solutions. Given the current scale, the company faces a significant path to profitability unless revenue ramps meaningfully or fixed costs are materially reduced. Key factors to monitor include:
- Pilot deployments and customer contracts in offshore wind, defense, or remote power applications.
- Progress against cost-reduction initiatives and manufacturing scale-up to improve gross margins.
- Cash runway and the ability to secure additional financing or strategic partnerships without excessive equity dilution.
- regulatory and policy developments that could accelerate offshore renewables adoption.
Assessment: If OPTT can translate pilot activity into recurring revenue and achieve a meaningful reduction in unit cost through scale, the likelihood of margin expansion increases. Given the absence of quantified targets in the data, investors should treat any forward-looking statements with caution and track concrete milestones in subsequent filings or investor presentations.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
OPTT Focus
-1.95%
N/A
N/A
N/A
POLA
18.60%
-63.90%
-17.40%
-1.20%
CBAT
31.90%
17.40%
8.14%
2.38%
PPSI
2.20%
-34.80%
-2.69%
-8.95%
LTBR
0.00%
0.00%
-8.32%
-7.64%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
OPTT presents a high-risk, high-reward investment case typical of early-stage deep-tech energy plays. The QQ1 2026 results confirm significant burn and negative profitability at current scale, with a modest revenue base. The key to upside lies in converting pilots into paid deployments and achieving cost structure improvements that move gross margins toward breakeven. The company’s liquidity position is bolstered by financing activity, but sustained access to capital is essential to fund continued development and commercialization efforts. Investors should monitor: (1) progress and revenue traction from pilot deployments; (2) milestones indicating cost reductions or manufacturing scale; (3) any further equity or debt financings and the resulting dilution; and (4) alternative monetization options such as licensing or strategic partnerships. Given the current quarterly dynamics, OPTT remains a speculative pick with potential if execution milestones materialize and the company can transition from a development focus to a scalable, revenue-generating operation.
Key Investment Factors
Growth Potential
Long-term upside hinges on successful commercialization of PowerBuoy and related systems, expansion into offshore power and communications markets, and potential licensing of technology or services. The company’s multi-market approach (defense, offshore oil & gas, science, offshore wind, and remote sensors) provides optionality for future revenue streams if deployment milestones are met.
Profitability Risk
High execution risk given current quarterly metrics: revenue of 1.182m with gross losses and a quarterly net loss of -7.389m. The accumulated deficit (-336.478m retained earnings) and reliance on external financing heighten dilution risk and funding risk. Limited visible gross margin and negative EBITDA indicate substantial path to profitability. Short-term liquidity relies on financing activity (+10.203m in this period). No long-term debt is reported, but debt financing or equity raises remain potential near-term scenarios.
Financial Position
Liquidity is adequate for QQ1 2026 with cash of 9.86m and net debt of -2.753m, but profitability remains elusive. Current assets cover current liabilities with a 1.58x ratio. The absence of long-term debt reduces leverage risk, yet the large accumulated deficit and negative gross margins emphasize the need for sustained fundraising and/or revenue scale to reach a durable financial position.
SWOT Analysis
Strengths
Pioneering wave-energy technology via the PowerBuoy platform with potential for offshore, remote power generation.
Diversified product and services ecosystem (PowerBuoy systems, subsea batteries, software controls, and data analytics) offering multiple revenue and service avenues.
Global market scope across North America, Europe, and Asia, enabling geographic diversification of pilots and deployments.
Weaknesses
Significant near-term cash burn with quarterly gross loss and negative EBITDA, signaling a need for scale to achieve profitability.
Heavy reliance on external financing to fund ongoing R&D and deployment efforts; elevated dilution risk before revenue ramp.
Accumulated deficit resulting in negative retained earnings, implying ongoing capital market dependence to sustain operations.
Opportunities
Growing demand for offshore renewable energy and remote power solutions in defense, oil & gas, and maritime research sectors.
Potential partnerships, pilots, and government programs that could accelerate adoption and provide revenue visibility.
Cross-sell opportunities across product lines (hardware, software, and services) and potential licensing opportunities.
Threats
Execution risk in transitioning from R&D to commercial deployments, with long sales cycles and customer concentration risk.
Regulatory, policy, and environmental uncertainties that could impact offshore energy projects and budgets.
Competition from other offshore energy technologies and alternative renewables, plus macroeconomic headwinds that affect capex budgets.
Threats
Technology risk if PowerBuoy performance or reliability does not meet customer expectations in real-world deployments.
Funding and dilution risk as ongoing losses require additional capital raises to sustain operations until profitability.
Market volatility in offshore energy spending and potential delays in pilot projects due to regulatory or geopolitical factors.
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