Shares of Ocean Power Technologies shifted sharply lower for a second straight session, trading at $1.85 (down 9.8%), as investors digested a triple blow: a massive quarterly loss, the abrupt departure of CEO Philipp Stratmann, and a board-initiated review of "strategic alternatives" — corporate language that often signals a company may be exploring a sale, merger, or breakup.
• The Losses Dwarf the Revenue Growth
Revenue for Q1 fiscal 2027 was $1.7 million, up 44% from $1.2 million a year earlier. But that growth is almost irrelevant next to the red ink. Cost of revenues surged to $4.5 million, resulting in a gross loss of $2.8 million, and operating expenses increased to $12.2 million, producing an operating loss of $15.1 million and a net loss of $10.5 million.
The per-share loss came in at $1.88 versus the consensus estimate of just $0.03 — an earnings surprise of -6,367%.
• Cash Is Running Out Fast
Cash and short-term investments totaled just $7.4 million, with net cash used in operations of $10.2 million. In plain terms, the company burned more cash in one quarter than it had left on the balance sheet. Without fresh capital — likely through stock sales that would dilute existing shareholders — the company cannot sustain operations at this pace.
• A CEO Exit and a Lawyer Taking the Helm Raise Questions
Stratmann resigned effective immediately by mutual agreement.
Tracy Pagliara, the company's general counsel, was named acting CEO , while former Navy Captain Jason Weed was appointed COO. Replacing a CEO with an interim lawyer-turned-executive during a cash crisis signals urgency, not stability. The interim nature of the CEO role may create uncertainty until a permanent leadership decision is made.
• The Reverse Split Masked the Magnitude of the Collapse
OPT executed a 1-for-30 reverse stock split starting September 14 , inflating the per-share price from pre-split levels near $0.11–$0.16. The board said the split was "necessary to maintain our listing on the NYSE American." But the stock has cratered from its split-adjusted open, falling roughly -35% across two sessions — a sign the market sees through the cosmetic price adjustment.
Backlog rose 58% to $19.1 million and the sales pipeline hit $150.8 million. Those numbers offer a lifeline — if the new team can convert contracts into cash before the treasury runs dry. That is now the only question that matters.