10-K · August 19, 2026
OPT describes a differentiated maritime-autonomy strategy built around PowerBuoy, WAM-V and software-enabled as-a-service offerings, with backlog of $20.1 million and a stronger international revenue mix. Nevertheless,…
Earnings analysis · 10-Q
OPTT earnings analysis
Filed September 14, 2026 · Our reading of the company's report
The latest report
Revenue improved sequentially to $513,000 from $424,000, but declined from $825,000 in the prior-year period. Gross and operating margins remained severely negative at -147.2% and -1,777.4%, respectively, while free…
Read full summary
Revenue improved sequentially to $513,000 from $424,000, but declined from $825,000 in the prior-year period. Gross and operating margins remained severely negative at -147.2% and -1,777.4%, respectively, while free cash flow was negative $7.0 million and diluted EPS was negative $0.06. The filing also reports ineffective disclosure controls as of July 31, 2026 and two material weaknesses in internal control over financial reporting, creating substantial execution and reporting risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.06
- Gross margin
- -147.2%
- Operating margin
- -1777.4%
What stood out
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Sequential revenue recovery, still down YoY
Revenue was $513,000, up from $424,000 in the prior quarter but down from $825,000 in the prior-year period, indicating sequential recovery but a 37.8% year-over-year decline.
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Gross margin remains severely negative
Gross margin improved to -147.2% from -325.5% sequentially, but remained deeply negative and deteriorated from 23.9% in the prior-year period.
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Operating loss rate improved sequentially
Operating margin improved to -1,777.4% from -2,387.5% in the prior quarter, but was substantially worse than -712.1% a year earlier.
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Cash burn remains elevated
Free cash flow was negative $7.0 million, improving from negative $8.0 million in the prior quarter but worsening from negative $4.0 million in the prior-year period.
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Management identifies control deficiencies
Management concluded disclosure controls were not effective as of July 31, 2026, and identified two material weaknesses in internal control over financial reporting.
What to watch
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Ineffective disclosure controls
The CEO and CFO concluded that disclosure controls and procedures were not effective as of July 31, 2026, increasing the risk of delayed, incomplete, or inaccurate reporting.
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Two material weaknesses in reporting controls
Management identified two material weaknesses: controls over complex or non-routine transactions, including revenue recognition and convertible debt, and controls over inventory-system data and inventory valuation.
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High cash burn relative to revenue
Free cash flow was negative $7.0 million while revenue was only $513,000, implying substantial cash consumption relative to the current revenue base and continued liquidity pressure.
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Losses remain elevated
Diluted EPS was negative $0.06, unchanged sequentially but worse than negative $0.04 in the prior-year period, reflecting continued significant losses.
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No reduction in disclosed risk exposure
The filing states there were no material changes in risk factors from the April 30, 2026 Form 10-K, so previously disclosed business and financing risks remain applicable.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Risk factors state there have been no material changes from the April 30, 2026 10-K.
Earlier filings 4
10-Q · March 17, 2026
Ocean Power Technologies, Inc. reported significant declines in both revenue and EPS for the third quarter ended January 31, 2026, compared to prior periods. Revenue dropped to $513,000, down 38% year-over-year, while…
10-Q · December 15, 2025
Ocean Power Technologies, Inc. reported a significant decline in revenue for Q2 2025, generating only $424,000 compared to $2.4 million in the prior year, resulting in an operating loss of $10.1 million and net loss of…
10-Q · September 15, 2025
Ocean Power Technologies, Inc. reported a revenue of $1.2 million in Q1 2025, a decline from $1.3 million a year prior. The company also registered a net loss of $7.4 million, reflecting higher operational expenses.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.