Ocean Power Technologies (OPTT) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked a transformative year, with expanded capabilities, record backlog, and entry into new markets, highlighted by the largest deployment and recurring revenue contract in company history, supporting the U.S. Coast Guard with a $6.5 million program.

• Broadened international presence and acquired strategic subsea technology assets, with increased focus on defense and security markets.

• Strategic investments in personnel, operational capabilities, and infrastructure to support larger programs and recurring revenue contracts.

• Appointed Rear Admiral Joe DiGuardo as acting chairman, reflecting a focus on defense and security markets.

Financial highlights

• Backlog reached $19.8 million, up 58% year-over-year from $12.5 million.

• Sales pipeline at year-end was $142.3 million, up from $137.5 million.

• Fiscal 2026 revenue was $4.1 million, down from $5.9 million the prior year, due to timing of deployments.

• Gross loss of $8.1 million versus gross profit of $1.7 million last year, reflecting project mix and lower-margin strategic contracts.

• Net loss widened to $43.7 million from $21.5 million, driven by increased OpEx and non-cash stock-based compensation.

Outlook and guidance

• Fiscal 2027 priorities include executing on backlog, expanding recurring services, growing internationally, and securing additional defense contracts.

• Focus on converting pipeline into contract awards and advancing AI-enabled maritime autonomy platform, scaling business to meet demand.

• Anticipates continued demand for integrated maritime operational infrastructure across defense and commercial sectors.