Gross margins have deteriorated into negative territory at -147.2% in 2026Q3, reflecting a fundamental disconnect between direct contract costs and revenue generation.
| 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 |
|---|
| Sales/Revenue | 3.44M | 5.86M | 5.53M | 2.73M | 1.76M | 1.21M | 1.68M | 632K | 511K | 843K | 704.82K | 4.11M | 1.5M | 3.62M | 5.74M | 6.69M | 5.1M | 4.05M | 4.77M | 2.53M | 1.75M | 5.37M |
| Revenue Growth % | -43.82% | 6.08% | 102.23% | 55.32% | 45.85% | -28.3% | 166.14% | 23.68% | -39.38% | 19.61% | -82.83% | 173.9% | -58.55% | -36.98% | -14.24% | 31.16% | 25.98% | -15.14% | 88.52% | 44.84% | -67.43% | - |
| Cost of Goods Sold | 5.37M | 4.2M | 2.7M | 2.5M | 1.86M | 2.28M | 1.79M | 1.3M | 763K | 938K | 667.87K | 4.67M | 1.51M | 3.48M | 5.68M | 6.26M | 4.3M | 4.84M | 7.96M | 3.98M | 2.06M | 5.17M |
| COGS % of Revenue | - | 71.68% | 48.85% | 91.36% | 105.74% | 188.97% | 106.24% | 206.17% | 149.32% | 111.27% | 94.76% | 113.79% | 100.76% | 96.26% | 99.05% | 93.49% | 84.27% | 119.53% | 166.81% | 157.38% | 117.83% | 96.37% |
| Gross Profit | -1.94M | 1.66M | 2.83M | 236K | -101K | -1.07M | -105K | -671K | -252K | -95K | 36.95K | -565.98K | -11.44K | 135.31K | 54.77K | 435.64K | 802.36K | -790.96K | -3.19M | -1.45M | -311.6K | 194.71K |
| Gross Margin % | -56.37% | 28.32% | 51.15% | 8.64% | -5.74% | -88.97% | -6.24% | -106.17% | -49.32% | -11.27% | 5.24% | -13.79% | -0.76% | 3.74% | 0.95% | 6.51% | 15.73% | -19.53% | -66.81% | -57.38% | -17.83% | 3.63% |
| Gross Profit Growth % | - | -41.26% | 1097.46% | 333.66% | 90.59% | -921.9% | 84.35% | -166.27% | -165.26% | -357.1% | 106.53% | -4845.64% | -108.46% | 147.03% | -87.43% | -45.7% | 201.44% | 75.19% | -119.5% | -366.11% | -260.03% | - |
| Operating Expenses | 31.8M | 23.35M | 32.16M | 28.34M | 21.51M | 12.52M | 11.26M | 12.6M | 11.31M | 11.59M | 13.8M | 13.72M | 13.92M | 16.45M | 16.61M | 21.72M | 22.07M | 17.9M | 15.99M | 11.11M | 7.42M | 3.46M |
| OpEx % of Revenue | - | 398.33% | 582.03% | 1037.34% | 1222.97% | 1038.06% | 669.44% | 1993.67% | 2212.92% | 1375.09% | 1957.71% | 334.21% | 928.94% | 455.03% | 289.47% | 324.59% | 432.54% | 442.07% | 335.03% | 439.04% | 424.31% | 64.46% |
| Selling, General & Admin | 11.97M | 0 | 32.23M | 28.34M | 11.91M | 7.77M | 6.92M | 7.62M | 6.99M | 6.56M | 6.75M | 9.57M | 9.36M | 9.13M | 8.27M | 8.4M | 9.06M | 9.53M | 7.73M | 4.89M | 3.19M | 2.55M |
| SG&A % of Revenue | - | - | 583.33% | 1037.34% | 676.86% | 644.44% | 411.18% | 1205.06% | 1367.51% | 778.53% | 957.34% | 233.14% | 624.39% | 252.39% | 144.19% | 125.53% | 177.67% | 235.32% | 162.04% | 193.32% | 182.56% | 47.6% |
| Research & Development | 136K | 0 | 0 | 0 | 9.61M | 4.75M | 4.34M | 4.98M | 4.32M | 5.03M | 7.05M | 4.15M | 4.56M | 7.33M | 8.34M | 13.32M | 13M | 8.37M | 8.26M | 6.22M | 4.22M | 904.62K |
| R&D % of Revenue | - | - | - | - | 546.11% | 393.62% | 258.26% | 788.61% | 845.4% | 596.56% | 1000.37% | 101.07% | 304.55% | 202.64% | 145.29% | 199.06% | 254.87% | 206.75% | 172.99% | 245.72% | 241.74% | 16.86% |
| Other Operating Expenses | 2.86M | 23.35M | -72K | 0 | 60K | -83K | 0 | 0 | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -33.74M | -21.69M | -29.33M | -29.22M | -21.61M | -13.59M | -11.37M | -13.27M | -11.56M | -11.69M | -14.86M | -14.29M | -13.15M | -16.32M | -16.56M | -21.28M | -21.26M | -18.69M | -19.18M | -12.57M | -7.73M | -3.26M |
| Operating Margin % | -982.01% | -370.01% | -530.88% | -1069.4% | -1228.71% | -1127.03% | -675.68% | -2099.84% | -2262.23% | -1386.36% | -2108.05% | -347.99% | -877.34% | -451.29% | -288.52% | -318.08% | -416.81% | -461.6% | -401.84% | -496.42% | -442.14% | -60.83% |
| Operating Income Growth % | - | 26.06% | -0.39% | -35.18% | -59.01% | -19.6% | 14.36% | -14.8% | 1.09% | 21.34% | -4% | -8.64% | 19.42% | 1.43% | 22.21% | -0.09% | -13.75% | 2.52% | -52.6% | -62.62% | -136.76% | - |
| EBITDA | -33.49M | -19.93M | -28.17M | -28.58M | -21.1M | -13.22M | -11.01M | -13.09M | -11.44M | -11.55M | -14.75M | -13.32M | -12.73M | -15.82M | -16.12M | -20.92M | -20.9M | -18.39M | -18.93M | -12.3M | -7.49M | -3.12M |
| EBITDA Margin % | -974.83% | -340.04% | -509.86% | -1046.08% | -1199.43% | -1096.19% | -654.58% | -2071.36% | -2238.36% | -1369.75% | -2092.2% | -324.48% | -849.19% | -437.4% | -280.92% | -312.72% | -409.64% | -454.21% | -396.77% | -485.79% | -428.8% | -58.2% |
| EBITDA Growth % | -67.66% | 29.25% | 1.43% | -35.46% | -59.59% | -20.07% | 15.9% | -14.45% | 0.94% | 21.7% | -10.7% | -4.66% | 19.53% | 1.88% | 22.96% | -0.13% | -13.61% | 2.86% | -53.97% | -64.09% | -139.98% | - |
| D&A (Non-Cash Add-back) | 247K | 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 |
| EBIT | -33.78M | -22.55M | -29.4M | -28.1M | -21.61M | -13.59M | -11.37M | -13.27M | -11.56M | -11.69M | -13.76M | -14.29M | -13.15M | -16.32M | -16.56M | -21.28M | -21.26M | -18.69M | -19.18M | -12.57M | -7.22M | -3.26M |
| Net Interest Income | -1.57M | 47K | 800K | 902K | 124K | 124K | 124K | 35K | 83K | 28K | 8K | -31.63K | 29.66K | 126.38K | 418.05K | 689.28K | 1.03M | 1.67M | 0 | 0 | 0 | 0 |
| Interest Income | 34K | 47K | 800K | 902K | 124K | 124K | 124K | 35K | 83K | 28K | 8K | 0 | 29.66K | 126.38K | 418.05K | 689.28K | 1.03M | 1.67M | 0 | 0 | 0 | 0 |
| Interest Expense | 1.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 31.63K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -3.3M | -859K | 594K | 2.61M | 856K | -1.17M | 118K | 175K | 284K | 1.5M | -568.36K | -74.98K | 213.36K | 42.96K | 313.31K | 459.86K | 2.13M | 377.12K | 4.52M | 2.93M | 504.41K | 2.81M |
| Pretax Income | -37.04M | -22.55M | -28.74M | -26.6M | -20.7M | -14.76M | -11.25M | -13.1M | -11.28M | -10.18M | -14.76M | -14.36M | -12.94M | -16.28M | -16.24M | -20.82M | -19.13M | -18.32M | -14.66M | -9.64M | -7.22M | -457.97K |
| Pretax Margin % | -1077.94% | -384.66% | -520.13% | -973.79% | -1176.63% | -1223.88% | -668.67% | -2072.15% | -2206.65% | -1208.07% | -2093.94% | -349.82% | -863.1% | -450.1% | -283.06% | -311.2% | -375.04% | -452.29% | -307.14% | -380.78% | -413.28% | -8.54% |
| Income Tax | -1.03M | -1.03M | -1.25M | -278K | -1.82M | 0 | -895K | -850K | -1.12M | -698K | -1.67M | -1.14M | -1.75M | -1.45M | -1.05M | -364.11K | 38.3K | 0 | 0 | 0 | -143.96K | -29.34K |
| Effective Tax Rate % | 2.79% | 4.59% | 4.36% | 1.04% | 8.81% | 0% | 7.96% | 6.49% | 9.92% | 6.85% | 11.35% | 7.92% | 13.5% | 8.93% | 6.49% | 1.75% | -0.2% | 0% | 0% | 0% | 1.99% | 6.41% |
| Net Income | -36M | -21.51M | -27.48M | -26.33M | -18.87M | -15.85M | -10.35M | -12.25M | -10.16M | -9.49M | -13.13M | -13.11M | -10.97M | -14.68M | -15.14M | -20.44M | -19.17M | -18.32M | -14.66M | -9.64M | -7.08M | -428.63K |
| Net Margin % | -1047.85% | -367.02% | -497.43% | -963.62% | -1073% | -1313.85% | -615.46% | -1937.66% | -1987.67% | -1125.27% | -1862.74% | -319.44% | -731.82% | -406.01% | -263.84% | -305.42% | -375.79% | -452.29% | -307.14% | -380.78% | -405.04% | -7.99% |
| Net Income Growth % | -65.1% | 21.73% | -4.39% | -39.48% | -19.12% | -53.06% | 15.47% | -20.57% | -7.07% | 27.75% | -0.11% | -19.56% | 25.29% | 3.03% | 25.91% | -6.6% | -4.67% | -24.96% | -52.06% | -36.16% | -1551.5% | - |
| Net Income (Continuing) | -36.01M | -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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -427.25K | -374.3K | -169.52K | -28.63K | 21.95K | 40.89K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.02 | -0.17 | -0.47 | -0.47 | -0.35 | -0.53 | -1.44 | -9.52 | -13.24 | -44.54 | -145.06 | -149.96 | -182.19 | -284.97 | -294.63 | -398.87 | -375.26 | -358.76 | -287.37 | -62.26 | -78.44 | -16.69 |
| EPS Growth % | 22.24% | 63.83% | 0% | -34.29% | 33.96% | 63.19% | 84.87% | 28.1% | 70.27% | 69.3% | 3.27% | 17.69% | 36.07% | 3.28% | 26.13% | -6.29% | -4.6% | -24.84% | -361.56% | 20.63% | -369.98% | - |
| EPS (Basic) | - | -0.17 | -0.47 | -0.47 | -0.35 | -0.53 | -1.44 | -9.52 | -13.24 | -44.54 | -145.06 | -149.96 | -182.19 | -284.97 | -294.63 | -398.87 | -375.26 | -358.76 | -287.37 | -62.26 | -78.44 | -16.69 |
| Diluted Shares Outstanding | 1.95B | 126.91M | 59.03M | 56M | 54.01M | 30.02M | 7.21M | 1.29M | 767.33K | 212.96K | 90.51K | 87.45K | 60.21K | 51.52K | 51.39K | 51.23K | 51.09K | 51.05K | 51K | 154.81K | 90.24K | 25.68K |
| Basic Shares Outstanding | 1.95B | 126.91M | 59.03M | 56M | 54.01M | 30.02M | 7.21M | 1.29M | 767.33K | 212.96K | 90.51K | 87.45K | 60.21K | 51.52K | 51.39K | 51.23K | 51.09K | 51.05K | 51K | 154.81K | 90.24K | 25.68K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and dilution risk
According to recent financial disclosures, OPTT experienced a significant revenue decline, with the most recent quarterly figures showing a 37.8% year-over-year contraction, highlighting the inherent volatility and lack of recurring revenue stability within their current project-based maritime domain awareness and hardware-focused business model.
The erratic revenue performance suggests that the company remains heavily dependent on the timing of specific government and defense contract awards. This lumpy revenue profile complicates long-term forecasting and indicates that the transition toward a service-based model has yet to provide the necessary top-line durability.
As reported in the company's income statements, gross margins have deteriorated sharply, falling into negative territory at -147.2% in 2026Q3, which suggests that the direct costs of fulfilling maritime contracts are currently outpacing the revenue generated from those specific project engagements.
This margin collapse implies that the company is struggling to maintain cost discipline on its hardware deployments. Investors should monitor whether this is a temporary impact of prototype development or a structural inability to achieve the economies of scale required for profitable maritime operations.
Based on the provided income statement data, the company's operating expenses consistently dwarf its gross profit, resulting in persistent operating losses that reached $9.1 million in the most recent quarter, underscoring a high fixed-cost structure that remains unaligned with current commercial output.
The reliance on significant stock-based compensation and specialized engineering overhead creates a high hurdle for profitability. Without a substantial increase in unit volume or a pivot to higher-margin data services, the current cost structure appears unsustainable for a company of this size.
Analysis of the historical income statement suggests that the company's reliance on external financing to cover persistent operating losses, as evidenced by the recurring negative net income, warrants further investigation into the long-term viability of its current maritime robotics and energy harvesting strategy.
Short-sellers would likely focus on the widening gap between cash burn and revenue generation, which suggests that the company may be forced into further dilutive equity raises. The lack of a clear path to operating breakeven implies that the current valuation may be disconnected from the underlying financial performance.
Quick answers to the most common questions about buying OPTT stock.
For fiscal year 2025, Ocean Power Technologies, Inc. (OPTT) reported total revenue of $5.9M. This represents a 9.2% increase compared to $5.4M in 2005.
Ocean Power Technologies, Inc. (OPTT) reported a net loss of $21.5M for the fiscal year ending 2025.
Ocean Power Technologies, Inc. (OPTT) reported an operating income of $-21.7M, resulting in an operating profit margin of -370.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Ocean Power Technologies, Inc. (OPTT) generated $1.7M in gross profit for the year, representing a gross profit margin of 28.3%. This demonstrates the company's core pricing power and production efficiency.