Ocean Power Technologies (NYSE:OPTT) reported a dramatic surge in its forward-looking indicators for the preliminary third quarter of fiscal 2026, headlined by a $19.9 million backlog, representing a 165% increase year-over-year.
The New Jersey-based marine energy firm also saw its sales pipeline swell to approximately $163.9 million, an 84% jump since October 31, 2025.
The strategic momentum was bolstered by a new $6.5 million multi-buoy contract with the Department of Homeland Security (DHS).
Delivery for the DHS project is expected to commence in the fourth quarter of fiscal 2026, potentially stabilizing the firm's top line following a leaner third quarter.
Despite the record backlog, preliminary financial results for the quarter ended January 31, 2026, reflected the timing gaps inherent in large-scale government contracting.
Estimated Q3 revenue fell to between $0.4 million and $0.6 million, down from $0.8 million in the prior-year period.
The estimated net loss widened to a range of $11.3 million to $11.5 million, compared to a $6.7 million loss a year ago.
Cash utilization also increased, with cash used in operations reaching $20 million, up from $14.6 million in the same quarter last year.
The company is betting heavily on its "strategic progress" and the conversion of its massive pipeline to offset current burn rates.