Ocean Power Technologies Sees Revenue Rise 6% in Q4 Amid Record Backlog

Ocean Power Technologies reported Q4 revenue of $5.9 million, up 6% YoY, with operating expenses declining 28% and a net loss of $21.5 million. The company's backlog reached a record $12.5 million, up 155%. Despite progress in backlog and cost reduction, ongoing challenges in profitability and margin remain.

Title: Ocean Power Technologies Reports Q4 Revenue and FY25 Results

Ocean Power Technologies (OPTT) has released its fourth-quarter and full-year fiscal 2025 financial results, showcasing significant growth in key metrics despite ongoing profitability challenges. The company reported a Q4 revenue of $5.9 million, representing a 6% year-over-year (YoY) increase. Operating expenses declined by 28% to $23.3 million, while the company ended the year with a net loss of $21.5 million. Notably, OPTT achieved a record backlog of $12.5 million, up 158% year-over-year (YoY), and a pipeline of $137.5 million, an 88% increase from the previous year.

The company's strategic partnerships and global expansion efforts have been instrumental in driving this growth. OPTT secured agreements with Remah International Group, Unique Group, and Red Cat Holdings, and expanded its global presence through platform deployments and reseller agreements. The company also obtained a Department of Defense Facility Security Clearance and ISO 9001 certification, further bolstering its credibility in the defense and security sectors.

Despite these advancements, OPTT continues to operate at a loss. The company's burn rate remains substantial relative to its revenue, with $18.6 million in cash used in operations compared to $29.8 million in FY24. The cash position at the end of FY25 stood at $6.9 million, providing limited runway at current burn rates. However, the significant growth in backlog and pipeline suggests that the company's strategic pivot toward defense, security, and maritime robotics applications may be gaining traction.

The Department of Defense Facility Security Clearance represents a strategic inflection point, authorizing OPTT to support classified programs at the Secret level. This credential significantly expands their addressable market within defense procurement channels, as many maritime surveillance and security programs require contractors with established security protocols. The company's international defense positioning has strengthened through multiple channels, including a new contract with an international defense agency for WAM-V® Unmanned Surface Vehicles and a partnership with Remah International Group to create a dedicated channel into the Middle Eastern defense and security sectors.

Technically significant is OPTT's strategic alliance with Red Cat Holdings to integrate aerial drone capabilities with their WAM-V® platforms. This multi-domain approach addresses a critical capability gap in current defense systems by creating persistent, autonomous air-sea ISR (Intelligence, Surveillance, Reconnaissance) platforms that don't require human crews or conventional infrastructure. The defense sector increasingly values such autonomous, interconnected systems that can operate in contested environments with minimal human intervention.

The PowerBuoy® deployment with the U.S. Naval Postgraduate School integrating AT&T® 5G technology demonstrates how OPTT's platforms can serve dual roles as both surveillance assets and communications infrastructure nodes along coastlines – addressing a recognized vulnerability in maritime domain awareness. The company's successful navigation of defense procurement processes, evidenced by their growing backlog with defense customers, suggests their technology is transitioning from experimental to operationally relevant.

OPTT enters Fiscal 2026 with a record backlog of $12.5 million and a record pipeline of $137.5 million, signaling potential future growth. The company's focus for the upcoming fiscal year is disciplined execution, expanding recurring revenue, accelerating platform adoption, and delivering long-term value for shareholders.

References
[1] https://www.stocktitan.net/news/OPTT/ocean-power-technologies-inc-announces-fourth-quarter-and-full-year-b9pgkjvjxzu8.html