Ocean Power Technologies Reports Q3 FY2026 Results: Record Backlog, Strategic DHS Contract, and Progress in Maritime Autonomy

Key Highlights from Q3 FY2026

• Record Backlog: As of January 31, 2026, OPT’s backlog reached approximately \$19.9 million, marking a dramatic increase of \$12.4 million (165%) compared to the prior year period.
• Expanding Sales Pipeline: The company’s pipeline surged to \$163.9 million, up \$74.7 million (84%) from \$89.2 million at the end of Q2 FY2026. This robust pipeline reflects growing interest in OPT’s maritime solutions.
• Strategic DHS Contract: OPT secured a significant multi-buoy contract valued at around \$6.5 million from the U.S. Department of Homeland Security (DHS). The contract supports a U.S. Coast Guard maritime domain awareness mission off San Diego and will deliver four newly built MERROWS®-equipped PowerBuoy® systems, with deployment beginning in Q4 FY2026.
• Collaboration with Anduril: The DHS project is in partnership with Anduril, a leading U.S. defense technology firm and prime contractor. The integration of OPT’s PowerBuoy® systems with Anduril’s surveillance towers aims to establish a scalable, next-generation defense sensing architecture in a critical maritime region.
• Potential for Future Growth: OPT believes successful execution of this contract could pave the way for additional buoy deployments and geographic expansion, reinforcing the company’s role in providing persistent, mission-critical maritime infrastructure for U.S. national security.

Financial Performance

• Revenue: Q3 FY2026 revenue is estimated between \$400,000 and \$600,000, down from \$0.8 million in the same period last year. This reflects timing of revenue recognition and the transition to higher-margin, recurring revenue contracts.
• Net Loss: The company anticipates a net loss between \$11.3 million and \$11.5 million, compared to a net loss of \$6.7 million in the prior-year period. This increase is due to investments in infrastructure, R&D, and project execution.
• Cash Used in Operating Activities: Expected to be less than \$20.0 million, compared to \$14.6 million in the prior year. The rise in cash usage aligns with OPT’s strategic expansion and product development initiatives.

Operational Update & Strategic Initiatives

• Global Expansion: OPT continued to expand its global operational footprint. During the quarter, it shipped a WAM-V® autonomous surface vehicle to Greece to support ongoing customer missions, furthering its presence in international defense and commercial markets.
• Technology Development: The company advanced its integrated autonomous docking and charging solution from prototype to full-scale build. This solution is targeted for an early-access commercial launch in calendar 2026, enabling autonomous systems to dock, recharge, and redeploy for persistent offshore missions.
• Partnerships: OPT progressed system integration and open-water validation with its partner Mythos AI, enhancing autonomous navigation and control. This collaboration supports the development of a scalable maritime recharging network, which is foundational for persistent, multi-domain offshore autonomy.
• Long-Term Strategy: These infrastructure-focused initiatives are expected to strengthen OPT’s competitive position and expand long-term recurring revenue opportunities in both defense and commercial maritime markets.

Upcoming Events

Investors are invited to join the Q3 FY2026 earnings conference call on March 18, 2026, at 9:00 a.m. Eastern time, hosted by CEO Philipp Stratmann and CFO Bob Powers. The webcast and replay details are available on the company’s investor relations website.

What Shareholders Need to Know (Price-Sensitive Information)

• Record Backlog and Pipeline Growth: The substantial increase in backlog and pipeline signals robust forward demand and improved revenue visibility, which may be positively viewed by the market.
• Strategic DHS Contract: The \$6.5 million DHS contract is not only significant in size but also strategically important, as it positions OPT as a technology provider for U.S. national security. This partnership with Anduril and the U.S. Coast Guard may open new avenues for future contracts and expansion.
• Transition to Recurring Revenue Model: The company’s progress in deploying higher-margin, recurring revenue products and solutions could support future margin expansion, though current revenue and net loss figures reflect ongoing investment in growth.
• Increased Cash Usage: Shareholders should note the increased cash outflows, which are funding growth initiatives but also put a spotlight on the company’s ability to manage liquidity as it scales.
• Potential Share Price Impact: The combination of record backlog, strategic government contract wins, and advancements in autonomous maritime infrastructure are all material developments that could influence investor sentiment and share price. However, the increased net loss and higher cash usage also carry risks that investors must watch closely.

Company Overview

Ocean Power Technologies (NYSE American: OPTT) delivers intelligent maritime solutions for defense, security, oil and gas, science, research, and offshore wind markets. Its portfolio includes PowerBuoy® platforms for remote power and data communications, WAM-V® autonomous surface vessels, and the AI-capable Merrows™ Maritime Domain Awareness System. Headquartered in Monroe Township, New Jersey, with an office in Richmond, California, OPT is positioning itself as a leader in persistent offshore autonomy and maritime infrastructure.

Disclaimer

This article contains forward-looking statements based on management’s current expectations, subject to risks and uncertainties that may cause actual results to differ materially. Investors should consult the company’s filings with the SEC for a fuller discussion of risks and uncertainties. The information provided herein is for informational purposes only and does not constitute investment advice.

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