Start here if you're new
what it is
It builds ocean buoys and maritime systems that make power, data, and communications work far from shore.
how it gets paid
Last year Ocean Power made $6M in revenue. Defense and security was the main engine at $1.9M, or 32% of sales.
why it's growing
Revenue grew 6.1% last year. Revenue was $2M, up 279% vs. prior year, while EPS was -$0.10.
what just happened
The latest quarter brought in $2M, but the business still ran at a -87.4% gross margin.
At a glance
C++ balance sheet — some cracks in the foundation
40/100 earnings predictability — expect surprises
-$0.17 fy2024 eps est
$6M fy2024 rev est
n/a operating margin
xvary composite: 32/100 — weak
What they do
It builds ocean buoys and maritime systems that make power, data, and communications work far from shore.
It sells into 4 markets: defense and security, offshore oil and gas, science and research, and offshore wind. That gives your customer list 4 places to hide when one budget freezes. The company also has 53 employees, so you are backing a tiny team chasing a weirdly broad ocean niche.
How they make money
$6M
annual revenue · their business grew +6.1% last year
Defense and security
$1.9M
Offshore oil and gas
$1.6M
Science and research
$1.3M
Offshore wind
$1.2M
The products that matter
offshore power and sensing systems
Autonomous Maritime Systems
$5.9M trailing revenue
it's the business as it exists today. at $5.9M in trailing revenue, scale is still the problem.
current revenue base
deployment, support, and other services
Service & Other
$1.6M in the pre-released quarter
service revenue was four times product revenue in the quarter pre-released on march 11, 2026. that tells you recognized product sales are still thin.
quarterly mix matters
signed but unrecognized contract value
Backlog
$19.9M · +33% from prior quarter
this is the number keeping the equity story alive. it's more than three times annual revenue, but it only matters if it converts into reported sales.
the entire story
Key numbers
$6M
annual revenue
That is the whole top line. It is tiny next to a $74M market cap.
87.4%
gross margin
You lose $0.87 before overhead for every $1 sold.
$2M
long-term debt
Debt is low in dollars, but it still matters when revenue is only $6M.
2.2
beta
The stock moves about 2.2 times the market.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $2M (2% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for OPTT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest quarter brought in $2M, but the business still ran at a -87.4% gross margin.
Revenue was $2M, up 279% vs. prior year, while EPS was -$0.10. That is growth, but it is expensive growth.
$2.0M
revenue
-$0.10
eps
87.4%
gross margin
the number that mattered
Gross margin was -87.4%, which means each sales dollar still lost $0.874 before overhead.
source: company earnings report, 2026
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What could go wrong
the #1 risk is contract conversion of the $19.9M backlog.
med
Backlog stays theoretical
A $19.9M backlog sounds large next to $5.9M of annual revenue. It means far less if delivery timing slips or customers do not convert into recognized sales on schedule.
Impact: this is the main support for the growth narrative. If backlog growth does not become reported revenue, the equity story loses its center of gravity.
med
Cash burn leads to dilution
balance sheet grade is C++, earnings are estimated at -$0.17 per share, and the quarter was still loss-making. That is not a forgiving setup for a company at this scale.
Impact: if revenue conversion drags, more capital may be needed before the business reaches self-funding scale, which would dilute existing shareholders.
med
Commercial demand is still unproven
The pre-released quarter showed only $0.4M of product revenue against $1.6M of service revenue. That is not yet evidence of broad product-market pull.
Impact: without repeatable product sales, investors are underwriting a niche technology platform rather than a proven operating business.
A forced wait on revenue matters here because 100% of the story depends on turning a $19.9M backlog into something larger than a $5.9M annual revenue base before financing pressure grows.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
recognized revenue, not just backlog
The key test is whether the $19.9M backlog starts showing up in reported sales. If backlog stays big while quarterly revenue stays small, the market will eventually stop giving it full credit.
calendar
full Q3 FY2026 earnings release
The pre-release gave the headline numbers. You want the full filing for cash position, loss detail, and any timeline on when backlog converts into recognized revenue.
trend
product mix versus service mix
Product revenue was $0.4M while service revenue was $1.6M in the pre-released quarter. If product sales do not start carrying more of the load, scale remains hard to prove.
risk
balance sheet flexibility
C++ balance sheet grade, a 5 / 100 price stability score, and ongoing losses mean timing matters. You do not need a balance sheet crisis for dilution to become the path of least resistance.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not expect smooth quarters here. small contracts and project timing can swing the numbers.
risk rank
5
This sits near the bottom of the market on safety. Translation: you are being paid with upside potential because the downside is very real.
price stability
5 / 100
The stock does not trade like a steady operating business. It trades like a small-cap narrative that can move hard on thin information.
source: institutional data
Institutional activity
institutional ownership data for OPTT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$0
current price
n/a
target midpoint · n/a from current
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