Ocean Power Technologies, Inc. (OPTT): History, Ownership, Mission, How It Works & Makes Money

Do you understand the true scale of the opportunity in autonomous maritime systems, or are you still thinking of Ocean Power Technologies, Inc. (OPTT) as just a wave-energy play?

This U.S. publicly owned renewable energy company, with a market capitalization of approximately $71.22 million as of April 2025, is rapidly pivoting its core mission to persistent maritime surveillance and defense, leveraging its PowerBuoy® and WAM-V® Unmanned Surface Vehicles.

The shift is defintely showing up in the financials: while fiscal year 2025 revenue was a modest $5.9 million, the funded backlog exploded by 158% to hit $12.5 million, suggesting a real acceleration in its ability to convert a massive $137.5 million sales pipeline into firm orders.

We need to look beyond the current stock price of around $0.405 per share and dig into how their AI-enabled Merrows™ suite actually works and where the next wave of revenue-and profitability-will come from.

Ocean Power Technologies, Inc. (OPTT) History

You need a clear line of sight on where Ocean Power Technologies, Inc. (OPTT) has been to understand its current pivot toward commercialization in the autonomous maritime space. The company's history is a long, capital-intensive journey from pure wave energy research to a provider of integrated, intelligent maritime solutions.

Given Company's Founding Timeline

Year established

The company was originally established in 1984, a very early start for a wave energy technology firm.

Original location

Ocean Power Technologies, Inc. started in Pennington, New Jersey, before eventually moving its headquarters to Monroe Township, New Jersey.

Founding team members

The core vision belongs to Dr. George W. Taylor, recognized as the founder, with Joseph R. Burns also noted as a founder.

Initial capital/funding

Specific initial capital amounts are not public, but the company's first major funding mechanism was its Initial Public Offering (IPO) in 2003, which was essential to raise the capital needed for its ambitious wave energy research and development (R&D) efforts.

Given Company's Evolution Milestones

The company's trajectory shows a clear shift from a pure-play wave power developer to a diversified provider of autonomous maritime solutions.

Given Company's Transformative Moments

The most critical shift for Ocean Power Technologies, Inc. was moving away from utility-scale, grid-connected wave farms-a concept that proved commercially unviable in early projects-to providing autonomous, off-grid power and data solutions for remote maritime applications. This was a defintely necessary change.

The company's focus is now on its intelligent maritime solutions, which include the PowerBuoy and the WAM-V® Unmanned Surface Vehicle (ASV), targeting defense, security, and offshore markets. This shift is evident in the fiscal year 2025 (FY25) results, which ended April 30, 2025, where the company saw:

• Revenues of $5.9 million, a 6% increase over the previous year.
• A narrowed Net Loss of $21.5 million, down from $27.5 million in FY24, driven by a 28% reduction in operating expenses to $23.3 million.
• The successful delivery of its AI-enabled Merrows™ PowerBuoy® to a Middle Eastern customer, showcasing the integration of advanced subsea sensors and AT&T® 5G technology.

Here's the quick math: the massive 158% jump in backlog to $12.5 million by April 30, 2025, and the 88% increase in the sales pipeline to $137.5 million shows that the market is finally responding to their new, focused strategy. This momentum is built on multi-million-dollar orders in Latin America and new contracts with international defense agencies for their WAM-V® systems, which is a clear sign of product-market fit in the autonomous maritime sector.

To be fair, while the net loss narrowed, the company still burned approximately $18.6 million in net cash from operating activities in FY25, so managing that cash burn is still paramount. For a deeper dive into the capital structure supporting this growth, you should read Exploring Ocean Power Technologies, Inc. (OPTT) Investor Profile: Who's Buying and Why?

Ocean Power Technologies, Inc. (OPTT) Ownership Structure

Ocean Power Technologies, Inc. is largely controlled by a dispersed base of individual and retail investors, which is typical for a small-cap, high-growth potential company in the deep-tech sector. This structure means the company is primarily governed by its Board of Directors and executive team, but the stock price is defintely more susceptible to retail trading sentiment than a large institutional holding would suggest.

Ocean Power Technologies, Inc.'s Current Status

Ocean Power Technologies, Inc. is a publicly traded company, listed on the NYSE American exchange under the ticker symbol OPTT. This public status subjects the company to all U.S. Securities and Exchange Commission (SEC) reporting requirements, ensuring a level of transparency for all stakeholders, from the smallest retail investor to the largest institutional fund.

As of November 2025, the company has approximately 53 employees, focusing its efforts on scaling its PowerBuoys and WAM-V Unmanned Surface Vehicles (USVs). The firm reported fiscal year 2025 (FY25) revenue of $5.9 million, a modest 6% increase, but the real story is the project backlog which surged 155% to $12.5 million by April 30, 2025.

Ocean Power Technologies, Inc.'s Ownership Breakdown

The company's ownership profile is heavily skewed toward the public, or retail, side, meaning you and other individual investors hold the vast majority of the equity. Institutional accumulation-the buying by large funds-is growing, but it's still a small piece of the pie. Here's the quick math on who owns the shares as of late 2025:

Ocean Power Technologies, Inc.'s Leadership

The company is steered by an executive team with deep experience across the energy, defense, and maritime sectors, often blending traditional oil and gas backgrounds with new renewable technology expertise. This mix is crucial for navigating the complex energy transition. The average tenure of the management team is about 2.4 years, showing a relatively fresh but experienced leadership group.

The key management and board members driving the strategy as of November 2025 include:

• Dr. Philipp Stratmann: President and Chief Executive Officer (CEO). He assumed the CEO role in June 2021 and his total yearly compensation was $5.95 million as of April 2025.
• Robert P. Powers, CPA: Senior Vice President and Chief Financial Officer (CFO). He joined in December 2021, bringing over 25 years of financial leadership experience.
• Jason Weed: Senior Vice President, Commercial Sales. A retired U.S. Navy Captain, he focuses on driving sales in the maritime and defense sectors, which is a key growth area.
• Terence J. Cryan: Chairman of the Board. He has served on the Board since October 2012 and as Chairman since June 2014, providing long-term governance continuity.

The Board also utilizes an Advisory Board, which as of January 2025, includes decorated Naval Veterans and a cybersecurity expert, which directly supports the company's growing focus on Unmanned Surface Vehicles (USVs) and defense contracts. If you want to dive deeper into the strategic goals guiding this team, you can review the Mission Statement, Vision, & Core Values of Ocean Power Technologies, Inc. (OPTT).

Ocean Power Technologies, Inc. (OPTT) Mission and Values

Ocean Power Technologies, Inc. (OPTT) is driven by a dual purpose: to commercialize intelligent, autonomous maritime solutions and to champion a cleaner, more productive ocean environment. Their mission extends beyond wave energy, focusing on providing reliable, low-carbon power and data services for critical sectors like defense and offshore wind.

You're looking at a company that has shifted from pure R&D to disciplined commercial execution, which is the key to understanding their cultural DNA. This focus is clearly reflected in their fiscal year 2025 (FY25) results, where they reported a net loss of $21.5 million, a significant improvement from the prior year, alongside a massive 155% surge in their project backlog to $12.5 million. That's a clear signal: the market is starting to buy the solution.

Ocean Power Technologies, Inc.'s Core Purpose

Official Mission Statement

The company's mission is a precise statement of who they serve and what they deliver, moving past just wave energy to intelligent systems. They provide a suite of solutions-PowerBuoy® platforms, WAM-V® autonomous surface vessels (ASVs), and Merrows™ AI-enabled systems-to four high-value markets.

• Provide intelligent maritime solutions and services.
• Enable safer, cleaner, and more productive ocean operations.
• Target the defense and security, oil and gas, science and research, and offshore wind markets.

To be fair, this mission is a roadmap for how they generated $5.9 million in revenue in FY25, a 6% increase over the previous year, by diversifying their offerings beyond just power. You can see how this strategy plays out in detail in Exploring Ocean Power Technologies, Inc. (OPTT) Investor Profile: Who's Buying and Why?

Vision Statement

The vision is elegantly simple and speaks to the core problem they solve: persistent communication and power in remote ocean environments.

• Connecting our oceans with those who operate there.

This vision is the long-term goal that justifies the company's investment in autonomous maritime systems (AMS). It's all about making the ocean accessible and manageable for their customers, whether a naval agency or an offshore wind farm operator.

Ocean Power Technologies, Inc. Slogan/Tagline

Their tagline encapsulates the value proposition of their AI-capable PowerBuoys and WAM-V systems, which deliver both energy and real-time data.

• Energizing Ocean Intelligence™.

This is a solid one-liner. It tells you they are selling power and data, which is where the real value is in defense and energy markets. Their push for operational efficiency is defintely working, with operating expenses dropping to $23.3 million in FY25, a 28% reduction, showing they are serious about their stated goal of reaching profitability in calendar year 2025.

Ocean Power Technologies, Inc. (OPTT) How It Works

Ocean Power Technologies, Inc. (OPTT) operates by providing autonomous, intelligent maritime solutions that deliver persistent power and real-time data from the ocean, fundamentally shifting from a pure wave-energy company to a full-service marine robotics and data provider. The company makes money by selling and leasing its proprietary hardware-PowerBuoys and Unmanned Surface Vehicles-and through recurring service revenue for data, maintenance, and its AI-enabled software platform.

Ocean Power Technologies, Inc.'s Product/Service Portfolio

Ocean Power Technologies, Inc.'s Operational Framework

The core of Ocean Power Technologies, Inc.'s operational framework is a disciplined shift from a research and development (R&D) focus to commercialization and execution, which is defintely a necessary move for a growth-stage company. We saw this play out in fiscal year 2025 (FY25), which ended April 30, 2025, with a significant reduction in cash burn.

Here's the quick math: Net cash used in operating activities for FY25 dropped to approximately $18.6 million, an improvement of over 38% compared to the $29.8 million used in FY24. This efficiency came from cost management and the divestiture of its non-core consulting team to focus resources on product delivery. More than 50% of employees are now dedicated to customer delivery, not R&D.

• Design and Manufacture: Build and integrate PowerBuoys and WAM-V® USVs at their New Jersey and California facilities.
• Global Deployment: Ship AI-enabled platforms, like the Merrows™ PowerBuoy®, to international customers, including a recent deployment to a Middle Eastern customer.
• Service and Support: Provide 24/7 Global Service Support with tiered options to maintain operations and ensure high uptime for critical maritime missions.
• Strategic Partnering: Execute reseller and Master Services Agreements (MSAs) with regional experts, such as the $3 million reseller agreement in Central America and the expanded partnership with Unique Group in the UAE, to scale sales and support without adding significant overhead.

Ocean Power Technologies, Inc.'s Strategic Advantages

The company's main advantage is its unique position at the intersection of persistent, clean power and intelligent maritime autonomy, which is a high-growth sector. They are no longer just a wave energy play; they are a multi-solution platform company.

• Record Backlog Conversion: The funded backlog-firm, written orders-surged 158% to a record $12.5 million as of April 30, 2025, reflecting strong, near-term revenue visibility.
• Massive Sales Pipeline: The total sales pipeline stands at an eye-watering $137.5 million, an 88% increase over the prior year, indicating huge future opportunities in defense and commercial markets.
• Proprietary Wave-to-Power Technology: The PowerBuoy® offers a distinct competitive edge by providing long-duration, off-grid power, enabling persistent maritime domain awareness (MDA) where competitors rely on batteries or costly shore-based power.
• Defense Market Penetration: Securing contracts with allied naval markets and demonstrating capabilities, like the U.S. Naval Postgraduate School deployment integrating AT&T® 5G, validates their technology for high-value government applications.

What this estimate hides is the fact that despite the record backlog, the company reported a net loss of $21.5 million for FY25 on revenues of just $5.9 million, so the core action is converting that large pipeline into realized revenue fast enough to achieve their profitability target. You can get a sense of their long-term strategy by reviewing their Mission Statement, Vision, & Core Values of Ocean Power Technologies, Inc. (OPTT).

Ocean Power Technologies, Inc. (OPTT) How It Makes Money

Ocean Power Technologies, Inc. (OPTT) makes money by selling and deploying its intelligent, autonomous maritime platforms-primarily the PowerBuoy® and WAM-V® Unmanned Surface Vehicles (USVs)-and by providing the high-value data and monitoring services that run on them, especially for the defense and security sectors.

The company is transitioning from a pure hardware model to a solutions-as-a-service provider, where the platforms act as a foundation for recurring revenue from data, surveillance, and communications services. This strategy is defintely the key to converting their massive sales pipeline into sustainable cash flow.

Ocean Power Technologies, Inc.'s Revenue Breakdown

For the fiscal year 2025 (FY25), Ocean Power Technologies reported total revenue of $5.9 million, a modest 6% increase over the prior year. The real story is the shift in revenue mix, moving toward a balance of systems and higher-margin services, which is reflected in the massive growth of their backlog.

Business Economics

The core economic model is shifting from a low-volume, high-cost wave energy device sale to a higher-volume, integrated autonomous maritime solution sale. This shift is critical because it moves the company toward a recurring revenue model.

• Platform-as-a-Service: The PowerBuoy® and WAM-V® are sold as hardware, but the real margin is in the multi-year data and surveillance contracts for the Merrows™ AI-enabled platform that runs on them.
• Defense Market Focus: The company's focus on the defense and security sectors-which often involves non-cancellable, multi-quarter contractual commitments-is driving the surge in their backlog. This provides better revenue visibility than typical commercial projects.
• Channel Strategy: Using strategic reseller agreements, like the $3 million deal with a Mexican engineering firm for Central America, allows the company to scale sales and support without exponentially increasing its own operating expenses. This is how they can expand globally fast.

What this estimate hides is the high cost of goods sold (COGS) for the hardware, which resulted in a lower gross profit of $1.7 million in FY25, down from $2.8 million in FY24. The margin expansion must come from the software and services component, which is the goal of the Merrows™ platform.

Ocean Power Technologies, Inc.'s Financial Performance

While the top-line revenue growth was modest, the financial health story for FY25 is about cost control and future contract momentum. The company is still deep in the scaling phase, but the forward-looking metrics are showing real traction.

• Total Revenue: The full-year FY25 revenue was $5.9 million, a 6% year-over-year increase.
• Net Loss: The net loss for FY25 narrowed to $21.5 million, a significant improvement from the $27.5 million loss in FY24, which was primarily driven by cost management.
• Operating Expenses (OpEx): Operating expenses saw a sharp reduction of 28% to $23.3 million in FY25, showing management's commitment to operational efficiency.
• Record Backlog: The funded backlog, representing firm orders, exploded to a record $12.5 million as of April 30, 2025, marking a massive 158% increase from the prior year. This is your clearest indicator of near-term revenue potential.
• Sales Pipeline: The total sales pipeline stood at an eye-watering $137.5 million as of July 2025, an 88% increase, validating the market demand for their intelligent maritime solutions.
• Cash Position: The company ended FY25 with $6.9 million in combined cash and equivalents, up from $3.3 million at the start of the fiscal year.

The challenge is simple: converting that $137.5 million pipeline into realized revenue fast enough to close the gap on the $21.5 million net loss. You can read more about the strategic direction in the Mission Statement, Vision, & Core Values of Ocean Power Technologies, Inc. (OPTT).

Ocean Power Technologies, Inc. (OPTT) Market Position & Future Outlook

Ocean Power Technologies, Inc. (OPTT) is currently transitioning from a pure wave-energy research and development (R&D) company to a commercial provider of intelligent maritime solutions, positioning itself in the high-growth defense and security sectors. While the company reported a modest FY25 revenue of $5.9 million and a net loss of $21.5 million, its future trajectory is clearly defined by a record backlog of $12.5 million and a sales pipeline soaring to $137.5 million as of mid-2025, signaling accelerated commercial traction.

Competitive Landscape

In the specialized, fragmented market for autonomous maritime solutions, Ocean Power Technologies, Inc. competes on two fronts: the nascent wave energy sector and the rapidly growing Unmanned Surface Vehicle (USV) market, particularly in defense and security applications. The global USV market alone is estimated at $0.82 billion in 2025, showing the scale of the opportunity.

Opportunities & Challenges

The company's strategic pivot to defense and security is the main growth driver, but converting the massive sales pipeline into realized revenue remains the single biggest near-term risk. Here's the quick math: the $137.5 million pipeline is over 23 times larger than the entire FY25 revenue, showing the high-stakes potential.

Industry Position

Ocean Power Technologies, Inc. is a niche player in the broader $645.99 million wave and tidal energy market, but it is carving out a more defensible position in the high-margin intelligent maritime solutions space.

The core strength is the PowerBuoy®'s unique value proposition: persistent, autonomous power and 5G-enabled data transmission for remote ocean operations. That's a strong proposition.

• The company secured a Facility Security Clearance from the U.S. Department of Defense in FY25, which deepens its eligibility for classified and long-term government programs.
• The focus has shifted from selling single PowerBuoy® units to providing a full suite of intelligent maritime solutions (PowerBuoy®, WAM-V® USVs, and Merrows™ software), which drives recurring service revenue potential.
• While the company aims for profitability in late calendar year 2025, the path is dependent on executing the current backlog, which grew 158% year-over-year.

For a deeper dive into the capital behind this transition, you should be Exploring Ocean Power Technologies, Inc. (OPTT) Investor Profile: Who's Buying and Why?