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RCAT

Red Cat Holdings, Inc.

RCAT

Red Cat Holdings, Inc. • NASDAQ
$7.42 ▲ 1.23% (+0.09)
Market Cap $665.47 M
52w High $16.70
52w Low $4.58
Dividend Yield 0%
P/E -14.55
Volume 3.34M
Outstanding Shares 89.69M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $9.646M ▲ $16.654M ▲ $-16.016M ▼ -166.036% ▲ $-0.16 ▼ $-14.008M ▼
Q1-2026 $3.219M ▲ $13.022M ▲ $-13.279M ▲ -412.572% ▲ $-0.15 ▲ $-12.123M ▼
Q4-2025 $1.63M ▲ $11.628M ▲ $-23.123M ▼ -1.419K% ▼ $-0.27 ▼ $-11.891M ▼
Q2-2025 $1.535M ▼ $9.093M ▲ $-13.335M ▼ -868.859% ▼ $-0.17 $-8.744M ▼
Q1-2025 $2.777M $7.244M $-12.416M -447.19% $-0.17 $-7.16M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $206.426M ▲ $286.024M ▲ $32.75M ▲ $253.274M ▲
Q1-2026 $65.93M ▲ $121.368M ▲ $25.803M ▼ $95.565M ▲
Q4-2025 $7.722M ▲ $59.656M ▲ $30.745M ▲ $28.911M ▲
Q2-2025 $4.611M ▲ $51.092M ▲ $24.064M ▲ $27.028M ▼
Q1-2025 $4.024M $50.607M $4.732M $45.875M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $-16.016M ▼ $-23.852M ▼ $-669.591K ▼ $165.017M ▲ $140.496M ▲ $-24.522M ▼
Q1-2026 $-13.279M ▲ $-12.897M ▲ $-306.523K ▼ $71.412M ▲ $58.208M ▲ $-13.203M ▲
Q4-2025 $-23.123M ▼ $-15.908M ▼ $-273.103K ▼ $14.749M ▲ $-1.432M ▲ $-16.181M ▼
Q2-2025 $-13.335M ▼ $-10.139M ▼ $-23.836K ▼ $7.041M ▲ $-3.122M ▼ $-10.163M ▼
Q1-2025 $-8.16M $-2.194M $-11.072K $-150.672K $-2.356M $-2.205M

Revenue by Products

Product Q2-2023Q3-2023Q4-2023Q2-2026
Product
Product
 $0 ▲$0 ▲$0 ▲$10.00M ▲
Service
Service
 $0 ▲$0 ▲$0 ▲$0 ▲
Consumer
Consumer
 $0 ▲$0 ▲$0 ▲$0 ▲
Corporate and Other
Corporate and Other
 $0 ▲$0 ▲$0 ▲$0 ▲
Other Segments
Other Segments
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue remains very small and has not yet ramped in a meaningful way, while losses have been steady to widening over the past few years. The company appears still in a build‑out phase: spending ahead of sales on product development, integration, and overhead. Profitability is not in sight yet based on this history, and earnings per share have stayed negative, reflecting both operating losses and the impact of a small equity base. Overall, the income statement tells a story of a company still trying to convert its technology and relationships into material, recurring revenue.

Balance Sheet

Balance Sheet The balance sheet is lean, with a modest level of total assets and equity and essentially no financial debt, which reduces interest burden but also signals limited resources. Cash is present but not abundant, giving the company only a thin cushion against ongoing losses unless it can raise additional capital. The repeated reverse stock splits over the company’s life suggest past dilution and value erosion for shareholders as management has recapitalized to keep funding operations. Financially, this is a small, lightly capitalized business operating with little room for prolonged setbacks.

Cash Flow

Cash Flow Cash flow from operations has been consistently negative, indicating the business is consuming cash rather than generating it. Free cash flow is also negative, although capital spending appears light, so the primary drain is operating costs rather than big equipment investments. This pattern is typical of an early‑stage tech or defense contractor before large contracts fully ramp, but it also means the company likely depends on external financing—equity raises or other funding—to sustain and scale its activities. The key question is whether contract wins and production scale can flip cash flow toward neutral or positive before cash resources run thin.

Competitive Edge

Competitive Edge Red Cat operates in a strategically attractive but highly demanding niche: U.S. and allied defense‑grade drones and unmanned systems. Its strongest competitive advantages come from U.S. manufacturing, compliance with U.S. defense regulations, and the Blue UAS certifications that allow its drones to be more easily procured by the Department of Defense and other agencies. That positioning is reinforced by a focus on a “family of systems” that work together across air and sea, creating an ecosystem effect that can make it harder for single‑product rivals to displace them. On the other hand, the company is small relative to large defense primes and established drone makers, likely faces lumpy and competitive contract bidding, and may be exposed to customer concentration and shifting defense priorities. The moat is more regulatory and relationship‑based than scale‑based at this stage.

Innovation and R&D

Innovation and R&D Innovation is the clear highlight. Red Cat is building interoperable aerial and surface platforms with modular, open architectures, which should make upgrades and integrations easier over time. Its drones emphasize advanced sensors, nighttime and contested‑environment operations, and growing autonomy, aided by partnerships such as the one with Palantir for AI and navigation in GPS‑denied settings. The move into unmanned surface vessels and swarming capabilities via the Blue Ops division and “Red Cat Futures Initiative” shows an ambition to be a multi‑domain robotics provider, not just a drone maker. The flip side is execution risk: the company must turn this R&D pipeline into reliable, scalable products that win and retain sizeable contracts, all while managing limited financial resources.

Summary

Overall, Red Cat looks like a small, early‑stage defense technology company with ambitious multi‑domain robotics plans, strong innovation credentials, and valuable regulatory positioning, but with a very modest revenue base and persistent losses. The financials show a business still in investment mode, reliant on external capital and successful contract capture to justify ongoing spending. The strategic story—U.S.‑made, NDAA‑compliant, Blue UAS‑certified systems spanning drones and unmanned surface vessels—is compelling on paper, but the key uncertainties are the pace and size of contract wins, the ability to scale production efficiently, and the path to sustainable, self‑funded operations. Anyone following the company would likely focus on new defense and international contracts, backlog growth, cash runway, and evidence that its “family of systems” strategy is translating into durable, higher‑margin revenue rather than remaining primarily an R&D and prototype narrative.

NEWS

November 13, 2025 · 4:05 PM UTC

Red Cat Holdings Reports Q3 2025 Revenue Growth of 646% Y/Y Sequential Quarterly Revenue Growth of 200%; Guides Q4 Revenue to 1455% Y/Y; FY 2025 Revenue Guidance to 124% Y/Y, Beating Q3 Revenue Consensus Expectations

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November 11, 2025 · 8:00 AM UTC

Red Cat Proudly Supports Military Servicemembers through its Veterans Outreach Initiative

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November 4, 2025 · 8:00 AM UTC

Apium Joins Red Cat Futures Initiative to Advance Swarming Autonomy for Tactical Drones

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November 4, 2025 · 6:00 AM UTC

Red Cat to Announce Third Quarter 2025 Financial Results on November 13th and Participate in Upcoming Investor Conferences

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October 30, 2025 · 9:14 AM UTC

Red Cat's FANG™ FPV Drone for Defense and Security Operations Receives Blue UAS Cleared List Certification

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