Liquidity remains under pressure with a 2026Q3 FCF margin of -13.3% and an OCF/NI ratio of 0.60, indicating that core operations are failing to generate sufficient cash to cover net losses.
| Metric | TTM | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 |
|---|
| Cash from Operations | -23.93M | -18.63M | -29.76M | -21.71M | -21.3M | -11.67M | -10.58M | -12.14M | -10.7M | -10.04M | -10.93M | -17.17M | -6.5M | -10.85M | -13.91M | -18.77M | -15.77M | -16.71M | -13.66M | -7.47M | -5.07M | -1.87M |
| Operating CF Margin % | - | -317.93% | -538.7% | -794.55% | -1210.69% | -967.99% | -628.95% | -1920.89% | -2093.15% | -1190.75% | -1550.79% | -418.33% | -433.46% | -299.92% | -242.48% | -280.52% | -309.15% | -412.6% | -286.3% | -295.02% | -290.19% | -34.92% |
| Operating CF Growth % | -110.43% | 37.39% | -37.11% | -1.93% | -82.42% | -10.35% | 12.86% | -13.5% | -6.56% | 8.16% | 36.36% | -164.34% | 40.1% | 22.06% | 25.87% | -19.02% | 5.61% | -22.29% | -82.95% | -47.25% | -170.71% | - |
| Net Income | -36M | -21.51M | -27.48M | -26.33M | -18.87M | -14.76M | -10.35M | -12.25M | -10.16M | -9.49M | -13.08M | -13.22M | -11.19M | -14.82M | -15.19M | -20.46M | -19.13M | -18.32M | -14.66M | -9.64M | -7.08M | -428.63K |
| Depreciation & Amortization | 925K | 1.76M | 1.16M | 637K | 515K | 372K | 355K | 180K | 122K | 140K | 111.71K | 965.16K | 421.84K | 502.1K | 436.06K | 358.72K | 365.75K | 299.4K | 241.72K | 269.07K | 233.13K | 140.98K |
| Stock-Based Compensation | 11.06M | 4.6M | 1.16M | 1.46M | 1.17M | 781K | 340K | 295K | 329K | 1.23M | 336.34K | 332.59K | 771.65K | 858.9K | 1.12M | 1.45M | 1.12M | 1.51M | 1.93M | 1.15M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 817K | -377K | 0 | 0 | 0 | 0 | 16K | 150.56K | 109.11K | 221.86K | 141.17K | 49.5K | 22.95K | -280.72K | 340.87K | -1.93M | -2.65M | 0 | 0 |
| Other Non-Cash Items | 2.56M | 994K | -154K | 407K | -674K | -13K | 6K | -140K | -192K | -1.49M | 596.6K | 357.37K | -501.5K | -18.16K | 730.99K | 282.99K | -21.65K | 1.52M | 1.85M | 1.16M | 1.03M | -1.32M |
| Working Capital Changes | -2.47M | -4.48M | -4.44M | 1.3M | -3M | 1.95M | -928K | -229K | -798K | -449K | 958.12K | -5.71M | 3.78M | 2.49M | -1.06M | -424.23K | 2.18M | -2.06M | -1.1M | 2.24M | 741.77K | -263.37K |
| Change in Receivables | -4.75M | -1.47M | 83K | -262K | -133K | -245K | -42K | 108K | -123K | -48K | 103.47K | 205.26K | 787.6K | 264.08K | -126.72K | 277.12K | -474.41K | 472.42K | -878.64K | -827.29K | 0 | 0 |
| Change in Inventory | -2.38M | 230K | -3.79M | -602K | -292K | 1.92M | -771K | 65K | -402K | -575K | 793.76K | -73.76K | -1.31M | 1.94M | -433K | -569.43K | 1.76M | -1.23M | -18.03K | -109.36M | 0 | 0 |
| Change in Payables | 911K | -2.8M | 2.41M | 47K | 217K | 441K | -92K | 23K | -296K | 213K | 21.75K | -144.79K | -12.36K | 105.04K | -546.71K | -891.42K | 953.82K | -448.14K | -122.32K | 1.23M | 0 | 0 |
| Cash from Investing | -1.91M | -505K | 25.5M | 20.46M | -54.03M | 74K | -65K | -29K | -658K | -176K | 114.87K | 21.17M | -6.45M | 8.06M | 19.31M | 18.43M | 7.31M | -58.58M | -4.4M | -9.34M | 24.3M | -25.12M |
| Capital Expenditures | -1.91M | -505K | -2.58M | -1.02M | -145K | -26K | -65K | -54K | -658K | -37K | -24.14K | -76.39K | -27.27K | -394.63K | -727.26K | -331.73K | -393.12K | -1.06M | -532.54K | -325.03K | -387.44K | -560.9K |
| CapEx % of Revenue | 55.56% | 8.62% | 46.79% | 37.3% | 8.24% | 2.16% | 3.86% | 8.54% | 128.77% | 4.39% | 3.43% | 1.86% | 1.82% | 10.91% | 12.67% | 4.96% | 7.71% | 26.06% | 11.16% | 12.84% | 22.17% | 10.45% |
| Acquisitions | 0 | 0 | 0 | 371K | -4.44M | 100K | 0 | -25K | 0 | 0 | 0 | 0 | 0 | 0 | -180.01K | 258.73K | -153.67K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -371K | -53.89M | 100K | -65K | 25K | 0 | -189K | 139.02K | 6.83M | -5.92M | 75K | 233.95K | -258.73K | -98.41K | -28.84M | -27.71K | -983.38K | 87.37M | -78.4K |
| Cash from Financing | 22.87M | 22.7M | 469K | -14K | 87K | 84.17M | 4.45M | 17.18M | 14.58M | 11.95M | 220.67K | -100.66K | 20.43M | -121.5K | -199.03K | 207.7K | -99.84K | 207.2K | -582.32K | 90.84M | 122.7K | 233.65K |
| Debt Issued (Net) | 17.65M | 3.17M | 0 | 0 | 0 | 890K | 0 | -23K | -35K | -78K | -62.52K | -100K | -100K | -100K | -139.38K | 243.99K | -93.4K | 207.2K | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 3.19M | 1000K | 483K | 0 | -3K | 1000K | 1000K | 1000K | 1000K | 1000K | -6K | -659 | 1000K | -21.5K | -59.65K | -36.29K | -6.44K | 0 | -582.32K | 1000K | 122.7K | 233.65K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -14K | -3K | -36K | -1K | -1K | -37K | -125K | -6K | -1.31K | -6.81K | -21.5K | -59.65K | -36.29K | -6.44K | 0 | -870.12K | 0 | 0 | 0 |
| Other Financing | -808K | -3.82M | -14K | -14K | 90K | 2.76M | -16K | 20K | 0 | 0 | 289.19K | 0 | 8.53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -2.97M | 3.56M | -3.8M | -1.26M | -75.27M | 72.7M | -6.23M | 4.93M | 3.32M | 1.69M | -10.61M | 3.48M | 7.49M | -2.98M | 4.98M | 139.54K | -8.03M | -76.57M | -18.67M | 75.55M | 18.37M | -25.26M |
| Free Cash Flow | -25.84M | -19.14M | -32.35M | -22.73M | -21.44M | -11.7M | -10.64M | -12.19M | -11.35M | -10.07M | -10.95M | -17.25M | -6.52M | -11.24M | -14.64M | -19.1M | -16.16M | -17.76M | -14.2M | -7.79M | -5.46M | -2.43M |
| FCF Margin % | -752.01% | -326.55% | -585.48% | -831.84% | -1218.93% | -970.15% | -632.82% | -1929.43% | -2221.92% | -1195.14% | -1554.22% | -420.19% | -435.28% | -310.84% | -255.16% | -285.48% | -316.86% | -438.66% | -297.46% | -307.86% | -312.35% | -45.37% |
| FCF Growth % | -20.79% | 40.83% | -42.34% | -5.99% | -83.26% | -9.92% | 12.71% | -7.4% | -12.69% | 8.03% | 36.5% | -164.4% | 41.96% | 23.23% | 23.35% | -18.18% | 9% | -25.14% | -82.16% | -42.75% | -124.25% | - |
| FCF per Share | -0.01 | -0.15 | -0.55 | -0.41 | -0.40 | -0.39 | -1.48 | -9.48 | -14.80 | -47.31 | -121.03 | -197.26 | -108.36 | -218.17 | -284.93 | -372.84 | -316.41 | -347.95 | -278.32 | -50.34 | -60.49 | -94.81 |
| FCF Conversion (FCF/Net Income) | 0.72x | 0.87x | 1.08x | 0.82x | 1.13x | 0.74x | 1.02x | 0.99x | 1.05x | 1.06x | 0.83x | 1.31x | 0.59x | 0.74x | 0.92x | 0.92x | 0.82x | 0.91x | 0.93x | 0.77x | 0.72x | 4.37x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and dilution risk
As reported in recent financial filings, OPTT's operating cash flow consistently trails net losses, with an OCF/NI ratio of 0.60 in 2026Q3, suggesting that the company's accounting losses are not merely non-cash items but reflect a fundamental inability to generate positive cash from core operations.
The persistent gap between net income and operating cash flow indicates that the company's accrual-based losses are being compounded by cash-based operational deficits. Investors should monitor this trend, as the inability to bridge this conversion gap suggests that the business model remains structurally cash-negative regardless of accounting adjustments.
Based on the provided cash flow statements, OPTT's free cash flow remains deeply negative, with a 2026Q3 FCF margin of -13.3%, underscoring a trajectory where the company continues to consume capital at a rate that far exceeds its current ability to monetize its maritime technology assets.
The consistent negative free cash flow trajectory highlights the company's reliance on external financing to sustain its R&D and operational overhead. This trend appears to be accelerating, as the lack of a clear path to positive cash generation suggests that the current burn rate may necessitate further dilutive capital raises.
According to historical data, OPTT's capital expenditure relative to revenue has been highly volatile, reaching as high as 122.9% in 2026Q1, which indicates that the company is investing heavily in hardware infrastructure that has yet to yield a commensurate return in top-line growth.
The high capital intensity relative to revenue suggests that the company is still in a heavy investment phase, likely focused on building out its WAM-V fleet and PB3 units. This level of spending appears unsustainable without a significant increase in commercial contract volume to justify the ongoing asset deployment.
As evidenced by the quarterly cash flow data, working capital changes have been erratic, swinging from a $2.4 million inflow in 2025Q2 to a $1.3 million outflow in 2025Q4, reflecting the lumpy nature of project-based revenue and the difficulty in managing cash cycles for defense contracts.
The significant fluctuations in working capital suggest that the company's cash position is highly sensitive to the timing of milestone payments and inventory procurement. This volatility complicates cash flow forecasting and may indicate that the company lacks the leverage to optimize its payment terms with suppliers or customers.
Based on reported figures, stock-based compensation has remained a significant non-cash add-back, reaching $2.6 million in 2026Q3, which effectively masks the true extent of the company's cash burn by reducing the reported net loss without providing any actual liquidity to the balance sheet.
The reliance on stock-based compensation as a primary tool for talent retention, while common in early-stage firms, serves to dilute existing shareholders while the company continues to burn through its limited cash reserves. Analysts should adjust for these non-cash expenses to understand the true cash-based cost of the company's operations.
Quick answers to the most common questions about buying OPTT stock.
Ocean Power Technologies, Inc. (OPTT) generated $-18.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ocean Power Technologies, Inc. (OPTT) reported negative free cash flow of $19.1M in 2025, indicating capital requirements exceeded cash from operations.
Ocean Power Technologies, Inc. (OPTT) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.