Ocean Power Technologies, Inc. reported preliminary financial results for the third quarter ended January 31 2026, showing revenue of $400,000 to $600,000, a net loss of $11.3 million to $11.5 million, and cash used in operating activities of less than $20 million. The revenue decline reflects a year‑over‑year drop from $0.8 million in the same quarter last year, while the net loss widened from $6.7 million to more than $11 million and cash burn increased from $14.6 million to under $20 million, underscoring short‑term liquidity pressure.
Despite the revenue miss, the company’s funded backlog surged to $19.9 million, up 165 % from the same period last year, and its project pipeline expanded to $163.9 million, an 84 % increase from the $89.2 million reported at the end of October. The backlog growth is largely driven by a $6.5 million contract with the U.S. Department of Homeland Security for four MERROWS‑equipped PowerBuoy systems, scheduled for delivery in the fourth quarter of fiscal 2026. The contract is positioned as a higher‑margin, recurring revenue source and integrates OPT’s technology with Anduril’s surveillance platform.
Management highlighted progress on its autonomous docking and charging platform, moving from prototype to full‑scale build with a commercial launch targeted for 2026. The company also shipped a WAM‑V autonomous surface vehicle to Greece, reinforcing its expanding global footprint in both defense and commercial markets.
Investors reacted negatively to the announcement, citing the significant revenue miss and widened loss as primary concerns, even as the backlog and pipeline growth signal future opportunities.
Analyst consensus for the quarter called for revenue of $1.931 million and an EPS of –$0.05. The reported revenue range of $400,000 to $600,000 represents a miss of 68 % to 79 % versus expectations, and the net loss suggests the EPS will also fall short of the consensus estimate. The results highlight a short‑term challenge in converting backlog into revenue while underscoring the company’s strategic focus on defense contracts and autonomous technology development.
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