Ocean Power Technologies Q3 revenue falls on U.S. federal government shutdown

Overview

• U.S. maritime tech firm's fiscal Q3 revenue fell yr/yr due to government shutdown timing impacts

• Company secured $6.5 mln DHS contract, boosting backlog to $19.9 mln, up 165% yr/yr

• Net loss widened in Q3, with higher operating expenses from stock-based compensation and headcount

Outlook

• Company expects a portion of delayed revenue to convert later in fiscal 2026

• Ocean Power Technologies targets early-access commercial launch of autonomous docking solution in calendar 2026

• Company sees infrastructure-focused strategy expanding long-term recurring revenue opportunities

Result Drivers

• GOVERNMENT SHUTDOWN DELAYS - Co said revenue decline was largely due to timing impacts from the U.S. federal government shutdown, which shifted deliverables and development activities into later quarters

• ONE-TIME CONTRACT LOSSES - Gross margin included recognition of one-time losses on certain strategic contracts, with most related expenses now substantially complete

• HIGHER OPERATING EXPENSES - Operating expenses rose due to increased non-cash stock-based compensation and higher headcount to support growth

Company press release: ID:nGNX4zZ4Rm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the renewable energy equipment & services peer group is "buy."

• Wall Street's median 12-month price target for Ocean Power Technologies Inc is $1.50, about 263.5% above its March 16 closing price of $0.41

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.