Ocean Power Technologies delivered a transformative QQ2 2025 quarter, marked by a record quarterly revenue of $2.4 million, a 170% year-over-year increase and a 142% sequential rise, driven by stronger demand in national security, critical infrastructure, and expanding international markets. Management emphasized disciplined cost control, resulting in a 41% reduction in operating expenses to $4.7 million, and a material reduction in cash burn, positioning OPTT toward profitability by calendar year 2025. The company is layering in recurring revenue via as-a-service offerings and formal maintenance services, while expanding strategic partnerships in Latin America and the Middle East to diversify the revenue mix and elevate backlog visibility.
Looking ahead, OPTT highlights a viable path to profitability by the end of calendar 2025, supported by a growing pipeline and a disciplined operating model. However, near-term liquidity remains a consideration, with year-to-date operating cash flow of around -$4.77 million and a cash balance of roughly $2.3 million at quarter-end, underscoring the need to convert pipeline into backlog and revenue timely while managing costs. The firm remains focused on leveraging its WAM-V platforms, PowerBuoys, and AI-enabled autonomous systems to capture defense and offshore energy opportunities, particularly in LATAM and the Middle East, while piloting expanded service revenues that can extend the economic life of deployed assets.