Ocean Power Technologies conducted a demonstration of its WAM-V 8 uncrewed surface vessel platform at the U.S. Army Corps of Engineers’ Research and Development Center in North Carolina.

The exercise aimed to generate data and operational insights to inform the continued development of the company’s 16- and 22-foot WAM-V platforms for demanding near-shore environments.

Testing Focus

The evaluation addressed sensor performance, vehicle configuration, and sensor deployment methods. It also identified design improvements and operational and safety considerations relevant to customer requirements.

Jason Weed, Chief Operating Officer of Ocean Power Technologies, stated that testing in challenging surf conditions provides valuable insight into advancing platforms for customer operations.

He noted that the experience will guide the development of larger WAM-V vehicles and refine how sensors are integrated and deployed in these environments. The company acknowledged the U.S. Army Corps of Engineers, Engineer Research and Development Center, and Field Research Facility teams for enabling the evaluation.

Ocean Power Technologies (NYSE: OPTT) reported first-quarter fiscal 2027 revenue of $1.703 million, missing analyst estimates of $1.836 million. The company posted a net loss of $10.5 million, with earnings per share (EPS) of $(1.28). This represents a widening loss compared to the $7.4 million net loss in the prior-year period.

The quarter saw significant activity in defense and research sectors. The company operated three PowerBuoy systems for U.S. Department of Homeland Security operations off Southern California and delivered an unmanned surface vehicle to Stevens Institute of Technology within five weeks of order receipt.

Financial Performance

Revenue growth was driven by an expansion in lease revenue, which rose from $67,000 in Q1 2025 to $657,000 in Q1 2027. Product and service revenue declined slightly to $1.0 million from $1.1 million in the same period last year. Total revenue increased 44% year-over-year from $1.2 million in Q1 2026.

Operating expenses totaled $12.2 million, up from $7.1 million in the prior-year quarter. This increase included non-cash stock-based compensation of approximately $1.8 million, $2.2 million in product development expenses related to the acquisition of Columbia Power Technologies assets, and $0.8 million in asset write-downs.

What the Numbers Show

A notable divergence exists between top-line growth and bottom-line performance. While total revenue increased by 44%, the company recorded a gross loss of $2.8 million, compared to a minimal gross loss of $23,000 in the prior-year period. This indicates that costs associated with generating new lease and product revenues significantly outpaced income generated, driven by strategic investments in long-term customer relationships.

Strategic Developments

Ocean Power Technologies achieved Cybersecurity Maturity Model Certification (CMMC) Level 2 compliance, enhancing eligibility for sensitive U.S. defense programs. Subsequent to the quarter end, the company was selected as one of six potential awardees under a $40 million multiple-award contract with the Naval Oceanographic Office for high-resolution ocean-floor mapping services.

The Board of Directors has initiated a review of strategic alternatives to accelerate growth and maximize stockholder value, with Bowen, Inc. serving as financial advisor. No timetable has been established for this review.

Balance Sheet Position

As of July 31, 2026, the company held combined unrestricted cash, cash equivalents, and short-term investments totaling $7.4 million. Total current assets stood at $15.4 million, against total current liabilities of $29.5 million. The backlog increased by 58% to $19.1 million, reflecting continued demand across defense, security, and commercial markets.