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Ocean Power Stock Falls on Wider Y/Y Loss in Q3, Lower Sales
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Shares of Ocean Power Technologies, Inc. (OPTT - Free Report) have declined 22.7% since reporting results for the third quarter of fiscal 2025. This compares with the S&P 500 index’s 0.2% slip over the same time frame. Over the past month, the stock has lost 24% compared with the S&P 500’s 5.3% fall.
Earnings & Revenue Performance
For the third quarter ended Jan. 31, 2025, Ocean Power reported revenues of $0.8 million, a sharp decline of 54% from $1.8 million in the year-ago period. The company’s net loss for the quarter widened to $6.7 million from $6.5 million a year earlier. On a per-share basis, the loss improved to 4 cents from 11 cents, aided by a significant increase in average shares outstanding.
Operating expenses fell 29% year over year to $6.1 million, contributing to the reduced loss. For the nine months ended Jan. 31, 2025, revenues rose 15% year over year to $4.5 million, while the net loss decreased 27% to $15.1 million from $20.8 million.
Ocean Power Technologies, Inc. Price, Consensus and EPS Surprise
Ocean Power reported a record backlog of $7.5 million at the end of the third quarter of fiscal 2025, more than double the $3.3 million reported a year earlier. The increase was primarily driven by $5 million in new purchase orders from a Latin American partner, which included commitments for both Next Generation PowerBuoys and WAM-V Unmanned Surface Vehicles. Despite the sequential revenue decline, the trailing 12-month revenues rose 24% to $6.1 million from the prior-year period.
The gross margin for the quarter was $197,000 compared with $813,000 a year ago, reflecting lower sales volume and possibly changes in the sales mix. Cash used in operating activities was $3.7 million for the quarter and $14.6 million for the nine months ended Jan. 31, 2025, a 41% improvement from the $24.7 million used in the same nine-month period last year. The company attributed this improvement to its restructuring and streamlining initiatives.
Ocean Power ended the quarter with $10.2 million in combined cash, restricted cash and cash equivalents, a substantial increase from $3.3 million as of April 30, 2024.
Management Commentary
CEO Philipp Stratmann emphasized Ocean Power’s operational and commercial progress despite a challenging macro and political backdrop. He cited achievements such as the company’s presence at NAVDEX 2025 in Abu Dhabi, successful multi-day offshore testing of the WAM-V 22 in California, and continued momentum in Latin America.
Stratmann also highlighted a 59% year-over-year reduction in cash used in operations as a reflection of Ocean Power’s strategic focus on operational efficiency. Looking forward, he expressed confidence in converting backlog into revenues and advancing the company’s autonomous ocean security and AI-powered maritime technologies.
Factors Influencing the Headline Numbers
The year-over-year decline in revenues in the fiscal third quarter stemmed primarily from reduced lease activity and fewer product shipments than the prior year. The decrease was partially offset by an increase in contracted backlog, which management expects to convert to revenues in future periods. The company noted that geopolitical uncertainties, including delays in decision-making during the recent U.S. election cycle, slowed project activity across key sectors.
Operating expenses declined substantially, with management attributing the drop to reduced external expenditure and lower third-party spend. This decrease was a direct result of restructuring efforts aimed at aligning costs with current revenue levels.
Guidance
Ocean Power indicated its intent to continue executing its priorities, including growing its presence in defense, security and commercial maritime applications, and increasing its installed base of AI-capable autonomous systems.
Other Developments
In the quarter, Ocean Power actively pursued international expansion and commercial engagement. In February 2025, the company showcased its technologies at NAVDEX in the UAE through its exclusive regional distributor, Remah International Group. Live demonstrations featured WAM-V vehicles integrated with underwater sensors and drones, as well as the AI-enabled Merrows system.
In March 2025, Ocean Power participated in the NDIA Pacific Operations Support Team conference to explore defense opportunities in the Pacific region. To support its growth in federal markets, the company added a dedicated sales executive focused on the Department of Homeland Security and Department of Defense.
In December 2024, Ocean Power announced a strategic partnership in Latin America involving $5 million in orders for PowerBuoys and WAM-V units. These systems will support hydrographic applications and persistent maritime monitoring powered by solar, wind and wave energy.
Overall, Ocean Power’s fourth quarter underscored a transitional phase marked by increased contract momentum and improved cost control, though near-term revenue volatility and ongoing losses remain key investor considerations.
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Ocean Power Stock Falls on Wider Y/Y Loss in Q3, Lower Sales
Shares of Ocean Power Technologies, Inc. (OPTT - Free Report) have declined 22.7% since reporting results for the third quarter of fiscal 2025. This compares with the S&P 500 index’s 0.2% slip over the same time frame. Over the past month, the stock has lost 24% compared with the S&P 500’s 5.3% fall.
Earnings & Revenue Performance
For the third quarter ended Jan. 31, 2025, Ocean Power reported revenues of $0.8 million, a sharp decline of 54% from $1.8 million in the year-ago period. The company’s net loss for the quarter widened to $6.7 million from $6.5 million a year earlier. On a per-share basis, the loss improved to 4 cents from 11 cents, aided by a significant increase in average shares outstanding.
Operating expenses fell 29% year over year to $6.1 million, contributing to the reduced loss. For the nine months ended Jan. 31, 2025, revenues rose 15% year over year to $4.5 million, while the net loss decreased 27% to $15.1 million from $20.8 million.
Ocean Power Technologies, Inc. Price, Consensus and EPS Surprise
Ocean Power Technologies, Inc. price-consensus-eps-surprise-chart | Ocean Power Technologies, Inc. Quote
Other Key Business Metrics
Ocean Power reported a record backlog of $7.5 million at the end of the third quarter of fiscal 2025, more than double the $3.3 million reported a year earlier. The increase was primarily driven by $5 million in new purchase orders from a Latin American partner, which included commitments for both Next Generation PowerBuoys and WAM-V Unmanned Surface Vehicles. Despite the sequential revenue decline, the trailing 12-month revenues rose 24% to $6.1 million from the prior-year period.
The gross margin for the quarter was $197,000 compared with $813,000 a year ago, reflecting lower sales volume and possibly changes in the sales mix. Cash used in operating activities was $3.7 million for the quarter and $14.6 million for the nine months ended Jan. 31, 2025, a 41% improvement from the $24.7 million used in the same nine-month period last year. The company attributed this improvement to its restructuring and streamlining initiatives.
Ocean Power ended the quarter with $10.2 million in combined cash, restricted cash and cash equivalents, a substantial increase from $3.3 million as of April 30, 2024.
Management Commentary
CEO Philipp Stratmann emphasized Ocean Power’s operational and commercial progress despite a challenging macro and political backdrop. He cited achievements such as the company’s presence at NAVDEX 2025 in Abu Dhabi, successful multi-day offshore testing of the WAM-V 22 in California, and continued momentum in Latin America.
Stratmann also highlighted a 59% year-over-year reduction in cash used in operations as a reflection of Ocean Power’s strategic focus on operational efficiency. Looking forward, he expressed confidence in converting backlog into revenues and advancing the company’s autonomous ocean security and AI-powered maritime technologies.
Factors Influencing the Headline Numbers
The year-over-year decline in revenues in the fiscal third quarter stemmed primarily from reduced lease activity and fewer product shipments than the prior year. The decrease was partially offset by an increase in contracted backlog, which management expects to convert to revenues in future periods. The company noted that geopolitical uncertainties, including delays in decision-making during the recent U.S. election cycle, slowed project activity across key sectors.
Operating expenses declined substantially, with management attributing the drop to reduced external expenditure and lower third-party spend. This decrease was a direct result of restructuring efforts aimed at aligning costs with current revenue levels.
Guidance
Ocean Power indicated its intent to continue executing its priorities, including growing its presence in defense, security and commercial maritime applications, and increasing its installed base of AI-capable autonomous systems.
Other Developments
In the quarter, Ocean Power actively pursued international expansion and commercial engagement. In February 2025, the company showcased its technologies at NAVDEX in the UAE through its exclusive regional distributor, Remah International Group. Live demonstrations featured WAM-V vehicles integrated with underwater sensors and drones, as well as the AI-enabled Merrows system.
In March 2025, Ocean Power participated in the NDIA Pacific Operations Support Team conference to explore defense opportunities in the Pacific region. To support its growth in federal markets, the company added a dedicated sales executive focused on the Department of Homeland Security and Department of Defense.
In December 2024, Ocean Power announced a strategic partnership in Latin America involving $5 million in orders for PowerBuoys and WAM-V units. These systems will support hydrographic applications and persistent maritime monitoring powered by solar, wind and wave energy.
Overall, Ocean Power’s fourth quarter underscored a transitional phase marked by increased contract momentum and improved cost control, though near-term revenue volatility and ongoing losses remain key investor considerations.