Ocean Power Technologies, Inc. (OPTT): Business Model Canvas [Dec-2025 Updated]

You're looking at a company finally moving from the lab to the ledger, and for Ocean Power Technologies, Inc., fiscal year 2025 was that pivot point. Honestly, seeing the numbers confirms the shift: they closed FY25 with $5.9 million in revenue, up 6% year-over-year, while simultaneously slashing operating expenses by 28%. The real juice, though, is the $12.5 million contract backlog, showing their wave energy and USV (Unmanned Surface Vehicle) tech is finally translating into firm orders. Dive into the Business Model Canvas below to see exactly how their key partnerships, like the one with AT&T for 5G integration, are fueling this commercial push into defense and maritime domain awareness.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Key Partnerships

You're looking at how Ocean Power Technologies, Inc. (OPTT) scales its reach and capability through external alliances, which is crucial given their focus on channel-driven growth. These partnerships are the backbone for geographic expansion and technology enhancement, moving beyond just selling hardware to offering integrated maritime solutions.

The company's fiscal year 2025 (ended April 30, 2025) showed a 158% increase in backlog to $12.5 million, which these partnerships are designed to help convert into future revenue. Also, the pipeline grew 88% to $137.5 million as of that date.

Here is a breakdown of the key relationships driving the Ocean Power Technologies, Inc. (OPTT) strategy:

The collaboration with Gradient Marine, announced in September 2025, is about embedding digital engineering processes. You get access to their Virtual Maritime Picture (VMP) software to create digital twins. This lets customers conduct mission rehearsal and lifecycle testing virtually before deploying physical assets like the PowerBuoy® or WAM-V®. It's about reducing risk through simulation-before-deployment.

The relationship with AT&T is focused on enhancing the data communication aspect of the PowerBuoy®. A deployment with the U.S. Naval Postgraduate School specifically integrated AT&T® 5G technology and subsea sensors. This validates the PowerBuoy® as a viable platform for persistent maritime surveillance and 5G infrastructure offshore.

In the Middle East, Ocean Power Technologies, Inc. (OPTT) has two distinct, but complementary, strategic partners:

• Remah International Group (RIG): This partnership, established in late 2024, targets the defense and security market exclusively in the UAE.
• Unique Group: This relationship was formalized with a Master Services Agreement (MSA) in August 2025. Unique Group handles execution for non-defense WAM-V projects in the UAE.

The Unique Group MSA is designed to accelerate revenue conversion and scale recurring lease income in the UAE without adding significant overhead for Ocean Power Technologies, Inc. (OPTT). The plan includes establishing a dedicated Maintenance, Repair, and Overhaul (MRO) hub in the UAE to support these regional operations efficiently.

The Latin American reseller agreement, signed in July 2025, is a direct sales channel play targeting the Mexican offshore and maritime markets. This deal includes a firm $3 million purchase commitment specifically for WAM-V® Unmanned Surface Vehicles.

Finance: review the Q2 FY2026 cash flow projections against the expected revenue realization from the $3 million Latin America commitment by end of Q3 FY2026.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Key Activities

You're looking at the core engine driving Ocean Power Technologies, Inc. (OPTT) right now, which is all about turning advanced maritime technology into booked revenue. The key activities are heavily weighted toward execution on high-value, multi-quarter commitments, especially in the defense and international commercial sectors, which is reflected in their year-end numbers for fiscal 2025.

Manufacturing and deploying PowerBuoy® and WAM-V® platforms.

The physical delivery of hardware is a major focus, showing a shift from pure R&D to product fulfillment. You saw shipments happening simultaneously across different regions, which signals operational evolution. For instance, in the week leading up to early May 2025, Ocean Power Technologies shipped both a Merrows™-capable PowerBuoy® and a WAM-V® 22' autonomous surface vehicle (ASV) outside of the United States. The WAM-V® was specifically engineered for offshore survey missions, capable of conducting a three-day fully remote, continuous survey while deploying a simulated payload. Also, Ocean Power Technologies received multi-million-dollar orders for both PowerBuoy® and WAM-V® systems from customers in Latin America, with deliveries scheduled across several quarters. Furthermore, a new contract was secured for the immediate delivery of a PowerBuoy® along the U.S. East Coast.

Integrating AI-enabled Merrows™ software for Maritime Domain Awareness.

The integration of the proprietary Merrows™ suite is central to the value proposition, moving the platforms beyond simple data collection. A key deployment was shipping an AI-enabled Merrows™ PowerBuoy® to a Middle Eastern customer following a competitive procurement process. This activity also includes research collaborations, such as the completed deployment of a PowerBuoy® equipped with Merrows™ at the U.S. Naval Postgraduate School for persistent maritime surveillance research, which also integrated AT&T® 5G technology as a communications node.

Executing on the record $12.5 million contract backlog.

This is where the rubber meets the road for near-term revenue visibility. Ocean Power Technologies entered fiscal 2026 with a record funded backlog of $12.5 million as of April 30, 2025. This figure represents a 158% year-over-year increase from the $4.9 million backlog at the end of fiscal 2024. Management views this backlog as reflecting multi-quarter contractual commitments across both international defense and commercial segments. The company's overall sales pipeline also grew significantly, standing at $137.5 million, an 88% increase from $71.6 million the prior year. Here's the quick math on the financial discipline supporting this execution:

What this estimate hides is that despite the backlog growth, FY2025 revenue was only $5.9 million, which came alongside a contraction in gross profit to $1.7 million from $2.8 million in FY2024.

Expanding global channel sales and localized technical support.

Scaling internationally relies heavily on channel partners to provide localized support and accelerate market penetration. You see concrete examples of this strategy in action:

• Signed a $3 million reseller agreement with a leading Mexican engineering firm to expand reach across Central America.
• Formed exclusive distribution alliances with Remah International Group in the UAE for defense/security markets.
• Formed an alliance with Unique Group to expand WAM-V® deployments across the GCC region.
• Secured an agreement with Elektron SAS in Colombia, which included a multi-million-dollar purchase commitment.
• Partnered with Ocean Wave Solutions Ltda in Brazil to address South American demand.

This focus on partnerships helped drive expansion in Latin America and the Middle East.

Securing and fulfilling U.S. DoD and allied defense contracts.

Defense work is clearly a priority, validated by key certifications and contract awards. Ocean Power Technologies secured a Department of Defense Facility Security Clearance, which enables participation in classified contracts. On the fulfillment side, the company was awarded a $1 million follow-on contract as a subcontractor to EpiSci for the U.S. Naval Information Warfare Center Pacific's Project Overmatch. Furthermore, a contract was announced in May 2025 for the delivery of multiple WAM-V®s to certain Allied Forces, structured as a contractor-owned contractor-operated (COCO) delivery in late Spring 2025, though the specific terms were undisclosed due to the sensitive nature of the relationship. The company also achieved ISO 9001 certification for its quality management system, which helps credibility in government bidding.

Finance: draft 13-week cash view by Friday.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Key Resources

You're looking at the core assets Ocean Power Technologies, Inc. (OPTT) relies on to execute its business strategy-the things they own or control that are essential for delivering value. Honestly, for a company in this space, the IP and specialized hardware are the real moat, but the cash on hand is what keeps the lights on while those assets are being commercialized.

The financial foundation as of the end of fiscal year 2025 shows a specific liquidity position. As of April 30, 2025, Ocean Power Technologies, Inc. reported $6.9 million in combined cash, unrestricted cash, cash equivalents, and short-term investments. This was up from $3.3 million at the beginning of that fiscal year. To give you a sense of the order book supporting future work, the backlog stood at $12.5 million at April 30, 2025, which was a 158% increase over the prior year, and the pipeline reached $137.5 million.

Proprietary Technology and Fleet Assets

The tangible and intangible assets are centered around their unique hardware and the software that makes it smart. These resources are what allow Ocean Power Technologies, Inc. to serve the defense, oil and gas, science and research, and offshore wind markets.

The core technology assets are detailed below. It's clear they are pushing for integrated, autonomous maritime intelligence:

• Proprietary PowerBuoy® wave energy conversion technology.
• WAM-V® Unmanned Surface Vehicle (USV) fleet.
• AI-capable Merrows™ software suite for data integration.

Here's a quick breakdown of the specifications and capabilities we know for these key platforms as of late 2025:

The WAM-V® is engineered with a unique articulating suspension system, which absorbs wave impact, ensuring stability in harsh conditions. The WAM-V 16 model, for example, can execute a 360-degree turn within its own length, which is best-in-class maneuverability. Ocean Power Technologies, Inc. has also been actively deploying this fleet; for instance, they recently shipped two WAM-V® USVs to a defense partner in the UAE.

The Merrows™ software is key to making the hardware intelligent. It allows for the fusion of third-party feeds, such as global AIS and weather data, and enables multiple users to monitor different assets simultaneously. This AI-capability is integrated directly into the latest PowerBuoy® systems, as seen in a deployment for the Naval Postgraduate School.

Regulatory and Security Assets

Beyond the technology itself, access to certain government work is a critical resource. Ocean Power Technologies, Inc. has secured the necessary credentials to engage deeply with defense customers.

• U.S. Department of Defense Facility Security Clearance.

Securing this Facility Security Clearance from the U.S. Department of Defense is a significant gate-opener, deepening the Company's eligibility for classified programs and defense contracts, which are a stated focus area. This clearance, combined with the AI-enabled platforms, positions Ocean Power Technologies, Inc. to serve mission-critical needs in allied naval markets, as evidenced by recent contract wins.

Finance: draft 13-week cash view by Friday.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Value Propositions

Persistent, low-carbon electric power for remote maritime operations.

• PowerBuoy® platforms provide clean and reliable electric power for remote maritime and subsea applications.
• A single OPT PowerBuoy can monitor more than 1,600 square miles of ocean surface.
• FY2025 revenues reached $5.9 million, reflecting increased demand for these solutions.

Real-time Maritime Domain Awareness (MDA) and data communications.

• Merrows™ provides AI-capable seamless integration of Maritime Domain Awareness (MDA) Systems across platforms.
• PowerBuoy systems deliver real-time data communications.
• A PowerBuoy deployment for the Naval Postgraduate School integrates AT&T® 5G technology for seamless MDA.
• WAM-V demonstrated real-time hydrographic and survey data collection over several days.

Order-of-magnitude cost savings versus traditional manned vessel operations.

• WAM-V multi-day operations reduce ancillary costs by eliminating the need for a crew to recover nightly.
• The company is positioned as a provider of cost-effective low-carbon marine power, data, and service solutions.
• OPT secured a $3 million reseller agreement in Mexico to expand reach through integrated sales.

Integrated, multi-asset solutions (PowerBuoy, WAM-V, Merrows AI).

Reduced operational risk and carbon emissions for offshore activities.

• WAM-V multi-day operations materially remove people out of the loop, which starts reducing carbon emissions by avoiding steaming with support boats.
• OPT is a leader in low-carbon marine power, data, and service solutions.
• The company secured a U.S. Department of Defense Facility Security Clearance, bolstering eligibility for classified programs.
• Operating expenses for FY25 decreased 28% to $23.3 million versus $32.2 million in FY24.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Customer Relationships

You're looking at how Ocean Power Technologies, Inc. (OPTT) manages its key customer interactions as they scale up from technology demonstration to commercial deployment. It's a mix of direct government engagement and leveraging partners to cover global ground.

Dedicated account management for defense and government agencies

The relationship with defense and government customers is clearly a high-touch area, evidenced by strategic operational milestones. Ocean Power Technologies, Inc. secured a Facility Security Clearance from the U.S. Department of Defense during Fiscal Year 2025, which definitely signals a deeper level of engagement and eligibility for classified programs. This focus is reflected in the order book; the backlog, which includes orders from governmental customers, reached a record $12.5 million as of April 30, 2025, representing a 158% year-over-year increase. By July 31, 2025, this backlog grew further to $15.0 million, a 184% increase over the prior year's first quarter. Also, Ocean Power Technologies, Inc. was awarded a contract for multiple WAM-V® systems for delivery to certain Allied Forces in late Spring 2025. The terms of this specific defense contract were not disclosed due to the sensitive nature of the relationship.

Channel-driven model relying on regional reseller and distributor networks

To achieve global reach without a massive direct sales force, Ocean Power Technologies, Inc. leans heavily on channel partners. This strategy is actively being executed with concrete financial commitments. For instance, they signed a $3 million reseller agreement with a Latin America-based partner focused on the Mexican offshore and maritime markets, which includes a $3 million purchase commitment for WAM-V® Unmanned Surface Vehicles. Furthermore, the company formed exclusive distribution and integration alliances with Remah International Group (UAE) and Unique Group to expand WAM-V® deployments across the GCC region. This channel focus is a key part of their strategy to scale through high-impact regional partnerships.

Here's a quick look at the channel activity around the close of FY2025:

Collaborative R&D and demonstration projects (e.g., Naval Postgraduate School)

Collaborative projects serve as high-profile demonstrations that transition directly into revenue-generating relationships. Ocean Power Technologies, Inc. completed the deployment of its PowerBuoy® system, integrated with AT&T® 5G technology and the Merrows™ suite, for the U.S. Naval Postgraduate School (NPS) in Monterey Bay. The CEO noted excitement to move into the lease phase of this contract following the successful installation in July 2025. This deployment is designed to support defense, security, and research missions, allowing future customers to evaluate the technology as a critical asset for maritime security.

Long-term lease and service agreements for recurring revenue

The shift toward recurring revenue streams is a stated focus. You can see this manifesting in service contracts and leasing arrangements. The company reported signing its first service contract for multi-year support services for vehicles, which was noted in the context of preliminary results released in December 2024. More recently, Ocean Power Technologies, Inc. expanded its partnership with UAE-based Unique Group through a Master Services Agreement that includes the immediate leasing of a WAM-V 22, explicitly positioning this for a scalable path to recurring revenue and revenue sharing. The company's overall FY2025 revenues were $5.9 million, a 6% increase over FY2024 revenues of $5.5 million, showing the initial conversion of these activities.

Key metrics related to future revenue visibility:

• Pipeline as of July 31, 2025: $133.5 million.
• Backlog at July 31, 2025: $15.0 million.
• FY2025 Revenues: $5.9 million.

Finance: draft 13-week cash view by Friday.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Channels

You're looking at how Ocean Power Technologies, Inc. (OPTT) gets its intelligent maritime solutions-like the PowerBuoy and WAM-V-into the hands of defense agencies and commercial clients as of late 2025. The channels are clearly segmented between direct government engagement and leveraging a growing international partner network.

Direct Sales to U.S. and International Defense/Security Agencies

The focus on defense is concrete, evidenced by operational milestones and certifications. Ocean Power Technologies, Inc. secured a U.S. Department of Defense Facility Security Clearance, which is a necessary step for engaging in classified programs. You see this direct channel activity reflected in the backlog growth; the backlog at April 30, 2025, reached a record $12.5 million, representing a 158% increase over the prior year's $4.9 million at April 30, 2024. This backlog includes unfilled firm written orders from governmental customers. Furthermore, Ocean Power Technologies, Inc. secured a new contract with an international defense agency specifically to demonstrate multiple WAM-V Unmanned Surface Vehicles. The company also strengthened its sales team in March 2025 by adding a dedicated executive focused on the Department of Homeland Security (DHS) and Department of Defense (DOD) sectors.

The company continuously ships systems and solutions to its customers, both domestic and overseas. A specific example of a domestic channel success is the completion of a U.S. Naval Postgraduate School project featuring the AI-enabled Merrows PowerBuoy technology.

Global Network of Regional Resellers and Integration Partners

Ocean Power Technologies, Inc. is actively scaling its global reseller network, which is a key channel for international market penetration. In late 2024, the company appointed Remah International Group (RIG) as its distributor for defense and security solutions in the UAE. RIG, which partners with industry-leading solution providers like Red Cat and SAAB, operates through a locally owned group of 48 companies in the UAE. This partnership was used to showcase capabilities at NAVDEX 2025. Also, in Latin America, Ocean Power Technologies, Inc. signed a $3 million reseller agreement with a leading Mexican engineering firm to expand reach across Central America.

The impact of these partnerships is visible in the order book. The backlog as of January 31, 2025 (Q3 FY25), which stood at $7.5 million, was primarily driven by a new partner in Latin America.

Direct Leasing and Sales of PowerBuoy and WAM-V Platforms

Sales and orders for the core platforms are being recognized through these channels. The backlog at April 30, 2025, reflects a healthy mix of PowerBuoy, WAM-V vehicles, and related services. You can see the specific platform order values contributing to the Q3 FY25 backlog:

The company also reported receiving multi-million-dollar orders for PowerBuoy and WAM-V systems from customers in Latin America, with deliveries scheduled to span several quarters.

Participation in Key Defense Exhibitions like NAVDEX 2025

Exhibitions serve as a critical channel for generating leads, demonstrating capabilities, and solidifying partnerships. Ocean Power Technologies, Inc. successfully demonstrated its WAM-V Unmanned Surface Vehicles and Next Generation PowerBuoy at NAVDEX 2025 in Abu Dhabi, partnering with RIG. The company also exhibited at ADIPED for commercial customers. Looking ahead from the Q3 FY25 report, the team planned for further outreach:

• Speaking at defense and security meetings in the Pacific.
• Participating in a trade mission to Southeast Asia in March.
• Exhibiting systems at CS: Space in Washington D.C. in early April.

These events are designed to accelerate the adoption of autonomous ocean security services in the regions targeted.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Customer Segments

You're looking at the core groups Ocean Power Technologies, Inc. (OPTT) sells its intelligent maritime solutions to as of late 2025. This isn't just about who buys the product; it's about where the confirmed orders and the big potential pipeline dollars are coming from.

Defense and Security (U.S. DoD, international naval markets)

This segment appears to be a major driver of near-term revenue visibility. Ocean Power Technologies, Inc. secured a contract in May 2025 to deliver multiple WAM-V® Unmanned Surface Vehicles, complete with integrated sensors and operators, under a contractor-owned contractor-operated (COCO) model for an international defense customer, with deliveries scheduled for late Spring 2025. The terms of this specific agreement were not disclosed due to its sensitive nature. Ocean Power Technologies, Inc. also announced securing a new contract in Fiscal Year 2025 to demonstrate multiple WAM-V® systems to an international defense agency. Furthermore, the company achieved a U.S. Department of Defense Facility Security Clearance, which definitely bolsters its eligibility for future U.S. Government contracts. The company's success builds on prior commercial wins for its WAM-V® and PowerBuoy® systems across North America, Latin America, and the Middle East for applications like Maritime Domain Awareness and Mine Counter Measure Solutions. The CEO noted that these systems act as a cost-efficient force multiplier for surface and seabed warfare efforts for the U.S. Government and other Allied Forces.

The company's overall financial health reflects this focus:

• Backlog at April 30, 2025, was $12.5 million, a 158% increase over the prior year.
• The overall pipeline of potential projects stood at $137.5 million as of the July 24, 2025 release.
• Revenues for Fiscal Year 2025 reached $5.9 million, a 6% increase year-over-year.

Oil and Gas/Offshore Energy companies

Ocean Power Technologies, Inc. targets the Oil and Gas market as one of its four core operational areas. The PowerBuoy® platforms are positioned to provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications, which is exactly what offshore platforms need for sensors and autonomous vehicles. While the company has this segment listed, the concrete financial data tied specifically to Oil and Gas contracts in FY2025 is bundled into the overall backlog and revenue figures. You should note that the company divested its non-core strategic consulting team to focus more heavily on product commercialization, particularly for national security and defense markets, as of late 2023.

Science and Research institutions (e.g., Naval Postgraduate School)

This segment shows concrete, high-value engagement. Ocean Power Technologies, Inc. completed a deployment of a PowerBuoy® equipped with its Merrows™ suite to the U.S. Naval Postgraduate School for persistent maritime surveillance research. This specific system integrated AT&T® 5G technology and advanced subsea sensors. Also, the company has received multiple contracts from the National Oceanic and Atmospheric Administration (NOAA) for uncrewed maritime systems services and scientific hardware delivery, training, and integration. These deployments support the company's stated goal of providing persistent and resident monitoring for research applications.

Offshore Wind and Aquaculture industries

The Offshore Wind and Aquaculture sectors are listed as key markets for the company's intelligent maritime solutions, which aim to enable safer, cleaner, and more productive ocean operations. For Aquaculture, the technology could power offshore fish farms, supporting automated feeding systems and monitoring equipment. In the Offshore Wind space, the solutions are positioned for integrating wave energy systems into national grids as part of clean energy initiatives. A strategic reseller agreement signed with a leading Mexican engineering firm for $3 million in purchase commitments is intended to expand reach across Central America through integrated sales, which covers energy and commercial markets in that region.

Here's a quick look at how the confirmed business activity maps across the key segments as of the end of FY2025:

The company is actively expanding its presence in Latin America, evidenced by multi-million-dollar orders and a $3 million reseller agreement in that region, which serves all these end-markets.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Cost Structure

You're looking at the cost side of Ocean Power Technologies, Inc. (OPTT) for fiscal year 2025 (FY25), which ended April 30, 2025. The story here is one of deliberate cost containment while scaling up sales efforts.

The headline figure for overhead control is the total Operating Expenses, which were $23.3 million in FY25. That's a significant 28% reduction compared to the $32.2 million recorded in fiscal year 2024. This streamlining was a key driver in narrowing the net loss to $21.5 million for FY25 from $27.5 million the prior year. It definitely reflects a focus on lean execution. The net cash used in operating activities also improved substantially, dropping to approximately $18.6 million for FY25 from $29.8 million in FY24.

For the costs directly tied to delivering the product, we look at the Cost of Revenue, which is essentially the Manufacturing and assembly costs for hardware platforms and associated services. With FY25 revenues at $5.9 million and a gross profit of $1.7 million, the Cost of Revenue (COGS) comes out to $4.2 million ($5.9 million Revenue minus $1.7 million Gross Profit). This figure represents the direct costs associated with shipping platforms like the AI-enabled Merrows™ PowerBuoy® and WAM-V® Unmanned Surface Vehicles.

Here is a quick snapshot of the key cost and expense metrics for Ocean Power Technologies, Inc. for the fiscal year ended April 30, 2025:

The reduction in the overall Operating Expenses is where the Sales, General, and Administrative (SG&A) costs for global expansion and R&D live. While the specific breakdown between SG&A and Research & Development isn't itemized here, the overall 28% cut suggests management has been aggressive in managing overhead. The context suggests that Reduced R&D expenditure following commercialization phase completion is a factor, as the company shifts focus from pure development to deployment and sales execution. The signing of a $3 million reseller agreement with a Mexican engineering firm, plus multi-million-dollar orders in Latin America and the Middle East, shows that SG&A spending is being directed toward building out the sales channel.

The costs associated with maintaining the global reseller and MRO (Maintenance, Repair, and Overhaul) network are embedded within the operating expenses, likely under SG&A or service delivery costs. Given the expansion into Central America and new defense contracts, these costs are necessary to support the record backlog of $12.5 million as of April 30, 2025. You'll want to watch the Q1 FY26 results, which showed WAM-V® Product Line revenue at $1,105,000 for the quarter ending July 31, 2025, to see if the cost structure supports the revenue generated from these new channel partners.

The company is clearly operating under a leaner structure, but the cost base remains high relative to current revenue, which is typical for a company executing on a large pipeline-the pipeline stood at $137.5 million as of mid-2025. Finance: draft 13-week cash view by Friday.

Ocean Power Technologies, Inc. (OPTT) - Canvas Business Model: Revenue Streams

You're looking at Ocean Power Technologies, Inc. (OPTT) and trying to map out exactly where the money is coming from, which is smart because the revenue mix is shifting. For the fiscal year ended April 30, 2025 (FY25), the total revenue came in at $5.9 million. That's a modest 6% increase compared to the $5.5 million they booked in FY24. Honestly, the top-line growth is less exciting than the massive jump in their committed future work.

Here's a quick snapshot of the key financial figures as of late 2025, giving you the context for these revenue streams:

The revenue streams are definitely diversifying beyond just selling hardware. The core product sales of the PowerBuoy® and the WAM-V® Unmanned Surface Vehicles (USVs) are a major component. We see evidence of this continuing into the next fiscal period; for instance, the WAM-V® Product Line alone generated $1,105,000 in revenue for the first quarter of fiscal 2026, which ended July 31, 2025. This shows you the hardware sales are still active.

Beyond the initial sale, you need to account for recurring or near-recurring income. Leasing and rental income from the WAM-V® USVs is a recognized stream, often tied to demonstration contracts or short-term deployments, which helps smooth out the lumpy nature of large system sales. Also, the company is increasingly focused on services revenue from marine robotics and data solutions. This includes the integration of proprietary suites like Merrows™ and support for deployments in defense and surveillance roles, which often carry a service component.

The real story for future revenue is the backlog. You're looking at future revenue from the $12.5 million backlog as of April 30, 2025. That backlog represents firm, written orders for products and services, and it's a massive 158% jump from the prior year. This future revenue is supported by significant contractual wins; for example, a reseller agreement signed in FY25 was valued at $3 million, which is now baked into that forward-looking number. The management team is clearly banking on converting that record backlog, along with the even larger $137.5 million sales pipeline, into realized revenue over the coming quarters.

You should track the mix within that backlog, as it reportedly contains a healthy balance of:

• Next Generation PowerBuoys® orders.
• WAM-V® purchase orders.
• Associated services contracts.

Finance: draft 13-week cash view by Friday.