Ocean Power Technologies (OPT) is riding a wave of momentum, with its year-over-year backlog surging to $15.0 million—a nearly 300% increase. This isn’t just a number; it’s a clear signal that the company’s strategic bets are paying off. The backlog, which includes unfilled firm written orders for its products and services, is a critical metric for OPT. It’s not just about future revenue; it’s a validation of the company’s growth strategy and a tool for managing expectations, budgets, and cash requirements.
The company’s pipeline stands at $137.5 million, a 63% increase from the previous year. This pipeline, coupled with the backlog, underscores OPT’s growing demand and expanding production capacity. During the quarter, OPT shipped eight WAM-V® autonomous surface vehicles, a milestone that highlights the company’s ability to scale manufacturing to meet rising demand. This operational momentum is strengthening OPT’s competitive position and supporting the conversion of its growing pipeline.
OPT’s strategic partnerships are another key driver of its growth. In November 2025, the company signed a partnership with Mythos AI to integrate advanced AI-driven autonomy across its WAM-V® ASVs and PowerBuoy® platforms. This partnership creates a unified autonomy ecosystem, combining hardware, power, and AI software. It expands OPT’s addressable market in the rapidly growing autonomous maritime systems sector and accelerates the deployment of advanced capabilities, including real-time edge processing, multi-sensor fusion, adaptive learning, obstacle avoidance, and multi-vehicle coordination.
Also in November 2025, OPT became certified by AUVSI as a Trusted Uncrewed Maritime Systems Operator Training Provider. This certification positions OPT among a select group authorized to deliver the nation’s first industry-standardized USV operator training. It expands OPT’s revenue-generating training offerings and strengthens its role in shaping the future workforce for autonomous maritime operations.
In September 2025, OPT signed a strategic partnership with Gradient Marine to integrate advanced digital-twin and simulation capabilities across its PowerBuoy® and WAM-V® platforms. This partnership introduces “simulation-before-deployment” through Gradient Marine’s Virtual Maritime Picture (VMP), enabling mission rehearsal, lifecycle testing, and operational modeling in a virtual environment. It accelerates product development cycles, reduces operational risk, and strengthens OPT’s digital engineering ecosystem.
Despite a federal government shutdown that lasted nearly half of OPT’s fiscal quarter, the company continued to expand its pipeline and strengthen its position across key markets. Dr. Philipp Stratmann, OPT’s President and Chief Executive Officer, expressed confidence in the conversion of the pipeline into backlog. He highlighted the heightened focus on national security and the southern maritime border, which has accelerated customer urgency. OPT has already begun ramping up buoy readiness for expected deployments and maintained its vehicle production cadence, shipping a WAM-V roughly every two to three weeks to meet demo and milestone commitments.
While OPT’s revenues for the three and six months ended October 31, 2025, were lower than the previous year, this decline was largely driven by timing impacts associated with the U.S. federal government shutdown. These disruptions shifted a number of OPT deliverables and development activities into subsequent quarters, reducing revenue. However, these timing effects are not indicative of underlying demand, and OPT expects a portion of the delayed work to convert later in the fiscal year.
OPT’s gross profit for the three and six months ended October 31, 2025, was a loss of $1.4 million, compared to a gross profit of $0.8 million and $1.2 million for the corresponding periods in the prior year. Gross margin for the quarter includes recognition of one-time losses associated with certain contracts in accordance with U.S. GAAP. Despite these challenges, OPT’s core programs and commercial pipeline continue to demonstrate improving margin quality and operating leverage.
Operating expenses increased primarily due to higher non-cash stock-based compensation and increases in headcount necessary to convert pipeline into backlog and strengthen the Company’s competitive position. Net losses for the three and six months ended October 31, 2025, were $10.8 million and $18.2 million, respectively, compared to $3.9 million and $8.4 million for the corresponding periods in the prior year.
Combined cash, unrestricted cash, cash equivalents, and short-term investments as of October 31, 2025, were $11.7 million, compared to $6.7 million at the beginning of the fiscal year. Net cash used in operating activities for the six months ended October 31, 2025, was approximately $1