Ocean Power Technologies Posts $11.4M Net Loss on Plunging Q3 Revenue

Ocean Power Technologies, a marine renewable energy company, posted a net loss of $11.4 million for the three months ending January 31, 2026, compared to a $6.7 million loss in the same quarter a year earlier. Revenue fell 38% to $513,000 from $825,000 in the prior-year quarter. Read more earnings reports.

The company swung to a gross loss of $755,000 in the quarter from a gross profit of $197,000 a year ago, as cost of revenue more than doubled to $1.3 million from $628,000. Operating expenses climbed to $8.4 million from $6.1 million, driving an operating loss of $9.1 million versus a $5.9 million loss in the year-earlier period.

For the nine months ending January 31, Ocean Power Technologies reported a net loss of $29.6 million on revenue of $2.1 million, compared to a $15.1 million loss on $4.5 million in revenue for the same period last year. Revenue for the nine-month period fell 53%.

The company's gross margin deteriorated sharply over the nine-month period, with cost of revenue climbing to $4.3 million from $3.1 million while revenue declined. This resulted in a gross loss of $2.2 million for the nine months, reversing a $1.4 million gross profit in the prior year.

Operating expenses for the nine months totaled $24.2 million, up from $15.7 million a year earlier. The increase was driven in part by labor and related expenses, which rose to $7.1 million from $5.6 million. Research and development spending declined to $1.1 million from $1.4 million.

Cash burn accelerated substantially, with cash used in operations reaching $19.9 million for the nine months compared to $14.6 million in the prior-year period. The company offset this through financing activities, raising $22.0 million during the nine months.

Ocean Power Technologies held $7.1 million in cash and cash equivalents as of January 31, up modestly from $6.7 million at the end of April 2025. Total assets increased to $41.1 million from $30.8 million, while total liabilities surged to $21.1 million from $4.1 million over the same period.

Accounts receivable stood at $6.1 million as of January 31, up sharply from $1.2 million at the end of the prior fiscal year. Inventory increased to $5.2 million from $4.2 million. The company expanded property, plant and equipment to $5.8 million from $3.4 million.

Stockholders' equity declined to $20.1 million as of January 31 from $26.7 million at the end of April 2025. The company raised capital during the period, with common shares outstanding increasing to 216.1 million from 171.3 million.

The Delaware-incorporated company reported a basic and diluted loss per share of $0.06 for the quarter and $0.16 for the nine-month period, based on weighted average shares outstanding of 195.5 million and 184.0 million respectively.