Ocean Power Technologies (OPTT) Q3 2026 earnings summary

Executive summary

• Backlog reached a record $19.9 million as of January 31, 2026, up 165% year-over-year, with a pipeline of $163.9 million, up 84% year-over-year, driven by defense and security programs, international expansion, and a $6.5 million DHS contract.

• Major contract wins include a $6.5 million DHS award and integration with Anduril, positioning the company in next-generation defense sensing networks and supporting a recurring revenue strategy.

• Operational progress includes shipping autonomous vehicles internationally, advancing autonomous docking and charging solutions, and expanding real-world deployments in regions such as Greece, Brazil, Chile, and UAE.

• The business is transitioning toward providing persistent offshore autonomy infrastructure, with increasing focus on services, data, and system support.

• Report covers the quarter ended January 31, 2026, with continued focus on maritime domain awareness solutions and a recurring revenue business model.

Financial highlights

• Revenue for the quarter was $0.5 million, down from $0.8 million year-over-year; nine-month revenue was $2.1 million, down from $4.5 million, mainly due to timing impacts from the U.S. government shutdown.

• Gross profit for the quarter was a loss of $0.8 million, compared to a profit of $0.2 million last year; nine-month gross loss was $2.2 million versus a profit of $1.4 million, with one-time contract losses impacting margin.

• Net loss for the quarter was $11.4 million, up from $6.7 million year-over-year; nine-month net loss was $29.6 million, up from $15.1 million.

• Operating expenses rose to $8.4 million for the quarter, primarily due to higher non-cash stock-based compensation and increased headcount.

• Cash, cash equivalents, and short-term investments totaled $7.2 million as of January 31, 2026.

Outlook and guidance

• Delayed revenue from government shutdown is expected to convert later in the fiscal year, with management expecting continued negative cash flows and operating losses in the near term.

• Gross margin is expected to improve as one-time losses are behind and larger scale deployments commence.

• Early access commercial launch of autonomous docking and charging solution targeted for calendar year 2026.

• Growing portion of business expected from services, data, and system support for long-duration offshore operations.

• Current cash and equivalents of $7.2 million may not be sufficient to fund planned expenditures through March 2027.