Red Cat Holdings, Inc.
- Open
- 8.70
- Day high
- 8.98
- Day low
- 8.48
- Prev close
- 8.49
- Volume
- 6.1M
- Mkt cap
- $1.3B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 2.8
- P/S
- 20.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$5.6M over the last 3 months (0 open-market buys, 6 sales)
- 🏛Institutions accumulating (13F)
Red Cat Holdings, Inc. (RCAT) is a Technology company listed on NASDAQ. The stock is down 3% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 6 sales (SEC Form 4). Drillr has 2 published research articles covering RCAT.
Red Cat Holdings, Inc. (RCAT) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RCAT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.20 | $-0.26 | -27.5% | $20M | -9.2% |
| May 7, 2026 | $-0.13 | $-0.22 | -76.0% | $15M | -12.3% |
| Mar 18, 2026 | $-0.15 | $-0.17 | -13.3% | $26M | +10.9% |
| Nov 13, 2025 | $-0.07 | $-0.16 | -128.6% | $10M | -53.9% |
| Aug 14, 2025 | $-0.12 | $-0.14 | -21.7% | $3M | -57.8% |
| May 14, 2025 | $-0.10 | $-0.14 | -40.0% | $2M | -78.9% |
| Dec 16, 2024 | $-0.08 | $-0.18 | -125.0% | $2M | -64.7% |
| Aug 8, 2024 | $-0.05 | $-0.10 | -100.0% | $3M | -27.9% |
| Mar 18, 2024 | $-0.03 | $-0.08 | -150.0% | $6M | -14.9% |
| Dec 15, 2023 | $-0.07 | $-0.09 | -28.6% | $4M | +34.1% |
| Sep 19, 2023 | $-0.11 | $-0.11 | +0.0% | $2M | -55.6% |
| Mar 7, 2023 | $0.09 | $-0.10 | -211.1% | $3M | -24.6% |
RCAT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 19, 2026 | Thompson Jeffrey Mdirector, 10 percent owner, officer: Chairman of the Board, CEO | Sell | 150,000 | $10.45 |
| Aug 13, 2026 | Liuzza Nicholas Reyland JRdirector | Sell | 55,000 | $10.63 |
| Aug 13, 2026 | Moe Christopher R.director | Sell | 10,000 | $10.04 |
| Aug 13, 2026 | Moe Christopher R.director | Sell | 20,000 | $10.51 |
| Jul 16, 2026 | Thompson Jeffrey Mdirector, 10 percent owner, officer: Chairman of the Board, CEO | Sell | 150,000 | $8.51 |
| Jun 15, 2026 | Funk Paul IIdirector | Sell | 165,028 | $11.50 |
| May 11, 2026 | Thompson Jeffrey Mdirector, 10 percent owner, officer: Chairman of the Board, CEO | Grant | 21,182 | — |
| May 11, 2026 | Thompson Jeffrey Mdirector, 10 percent owner, officer: Chairman of the Board, CEO | Option | 5,295 | — |
| May 11, 2026 | Thompson Jeffrey Mdirector, 10 percent owner, officer: Chairman of the Board, CEO | Tax | 1,570 | $13.06 |
| May 11, 2026 | Thompson Jeffrey Mdirector, 10 percent owner, officer: Chairman of the Board, CEO | Grant | 1,040,000 | $13.06 |
| May 4, 2026 | Funk Paul IIdirector | Option | 7,429 | — |
| May 4, 2026 | Liuzza Nicholas Reyland JRdirector | Option | 7,429 | — |
| May 4, 2026 | Freedman Joseph Daviddirector | Option | 7,429 | — |
| May 4, 2026 | Moe Christopher R.director | Option | 7,429 | — |
| Apr 29, 2026 | Liuzza Nicholas Reyland JRdirector | Grant | 7,429 | — |
Source: RCAT SEC Form 4 filings, latest Aug 19, 2026. For informational purposes only — not investment advice.
See the full RCAT insider & 13F page →RCAT research & analysis
Drone Orders Outrun Electronics Supply at Codan and UMAC
Codan (CODAF), Unusual Machines (UMAC), Mobilicom (MOB) and Twin Disc (TWIN) say drone orders outrun electronics supply: parts need 6-18 months' notice, orders only 4-6.
AMPXCODAFMOBCodan (CODAF), Unusual Machines (UMAC): Drone Demand Outruns Electronics Supply
Codan, Unusual Machines and Mobilicom told August 2026 earnings calls that drone demand is outrunning electronics supply, making Codan's 20% FY27 target conditional.
AMPXCODAFMOB
Red Cat Holdings, Inc. company profile
Overview
Red Cat Holdings, Inc. (NASDAQ:RCAT) is a Puerto Rico-based drone technology company that has evolved from a consumer-focused business into a defense contractor specializing in military and government unmanned aerial systems. Founded in 2008 and going public in 2002, the company has undergone significant strategic transformation over the past few years, divesting its consumer drone operations to focus exclusively on enterprise and military markets. Red Cat currently operates through its primary subsidiary Teal Drones, which manufactures reconnaissance and surveillance drones for the U.S. military and allied nations, positioning itself as a domestic alternative to Chinese drone manufacturers in an increasingly security-conscious market.
Business
Red Cat Holdings operates in the unmanned aerial vehicle (UAV) or drone industry, which encompasses the design, manufacturing, and deployment of remotely piloted aircraft systems. The drone industry serves multiple sectors including military defense, public safety, commercial inspection, and consumer recreation. Drones are essentially flying robots equipped with cameras, sensors, and communication systems that can be controlled remotely or operate autonomously to perform various tasks such as reconnaissance, surveillance, mapping, and inspection. The company's core business revolves around military-grade small unmanned aircraft systems (sUAS) designed for reconnaissance and surveillance missions. Red Cat's primary product line includes the Teal 2 and Teal 3 drones, which are portable, field-repairable systems capable of operating in challenging environments including GPS-denied areas. These drones feature advanced capabilities such as night vision, autonomous flight modes, and encrypted communications for secure military operations. Through its recent acquisition of FlightWave Aerospace, Red Cat has expanded its portfolio to include the Edge 130 Blue, a larger drone system that complements its existing smaller platforms. The company also develops the FANG First Person View (FPV) drone system, designed for more specialized tactical applications. Red Cat's business is now entirely focused on the enterprise and military segment, which represents 100% of its revenue following the divestiture of its consumer operations to Unusual Machines. The company primarily serves the U.S. Department of Defense, with particular focus on the Army's Short Range Reconnaissance (SRR) program, while also pursuing opportunities with NATO allies and other international military customers.
Revenue model
Red Cat generates revenue primarily through direct product sales of military-grade drone systems to government and defense customers. The company operates on a traditional manufacturing business model where it designs, produces, and sells physical drone hardware along with associated software and services. Revenue is recognized upon delivery of completed drone systems, with typical contract values ranging from hundreds of thousands to millions of dollars depending on the quantity and specifications required. The company's primary customers are government entities, particularly the U.S. Department of Defense and its various branches, with the U.S. Army being a key customer through the Short Range Reconnaissance program. Red Cat also targets NATO member countries and other allied nations seeking alternatives to Chinese-manufactured drones for security reasons. The company has indicated potential contracts worth hundreds of millions of dollars, with individual programs potentially requiring thousands of units. Red Cat's margins are significantly influenced by production scale and manufacturing efficiency. The company has indicated expectations of reaching 50% gross margins once it achieves consistent high-volume production, compared to current negative margins due to prototype development costs and low production volumes. Key factors that could improve margins include economies of scale from large military contracts, standardization of production processes, and the integration of high-margin software capabilities through partnerships like the one with Palantir. Conversely, margin pressures come from the capital-intensive nature of drone manufacturing, supply chain disruptions affecting electronic components, the need for continuous R&D investment to maintain technological competitiveness, and the competitive bidding process typical in government contracting. The company's transition from prototype to mass production phases also creates temporary margin volatility as fixed costs are spread across varying production volumes.
Competitive moat
Red Cat's competitive moat is moderately strong but primarily dependent on regulatory and geopolitical factors rather than technological superiority. The company's strongest defensive position comes from being a domestic U.S. manufacturer in an industry where foreign competitors, particularly Chinese companies like DJI, face increasing regulatory restrictions and security concerns from government customers. The "Buy American" mandate and growing security consciousness around Chinese technology provides Red Cat with significant protection in the military and government markets. This regulatory moat is reinforced by the company's positioning as a trusted domestic supplier with appropriate security clearances and manufacturing processes that meet military standards. Red Cat has also invested in achieving AS9100 aerospace certification, which creates additional barriers for potential competitors. However, the company's technological moat appears limited. While Red Cat's drones incorporate advanced features like GPS-denied navigation and secure communications, these capabilities are not necessarily unique or impossible for competitors to replicate. The partnership with Palantir for AI and visual navigation software could strengthen the technological differentiation, but this represents shared rather than proprietary technology. The primary competitive threats come from other domestic drone manufacturers who could potentially scale more rapidly or offer superior technology, large defense contractors who might enter the small drone market, and the possibility that geopolitical tensions could ease, reducing the regulatory advantages against foreign competitors. Additionally, the company's relatively small scale compared to major defense contractors makes it vulnerable to being acquired or outcompeted by larger players with greater resources for R&D and manufacturing capacity.
Risks & safety
Red Cat's margin of safety appears moderate but concerning given its current financial trajectory and cash burn rate. • Cash and Liquidity: $7.7 million in cash as of Q4 2025, down from previous quarters, with negative free cash flow of $16.2 million in the most recent quarter indicating rapid cash consumption • Debt Position: Relatively low debt-to-equity ratio of 0.96, but total liabilities have increased significantly, and the company has secured additional debt financing of $8 million • Profitability: Deeply unprofitable with net losses of $23.1 million in Q4 2025 and negative EBITDA, though this is expected during the scaling phase • Valuation Metrics: Trading at negative P/E ratios due to losses, high price-to-book ratio of 17.4x suggesting potential overvaluation, current ratio of 1.02 indicating tight liquidity position • Operational Cash Flow: Negative $15.9 million in operating cash flow for Q4 2025, indicating the business is consuming significant cash to fund operations and growth • Other Considerations: Revenue volatility and dependence on large government contracts creates uncertainty, while the company's transition from prototype to production phase may require additional capital investment before achieving profitability
Recent development
Over the past few years, Red Cat has executed a dramatic strategic pivot from a diversified drone company serving both consumer and enterprise markets to a focused defense contractor specializing in military applications. The most significant transformation was the divestiture of its consumer-focused subsidiaries, including Fat Shark and Rotor Riot, to Unusual Machines, allowing management to concentrate entirely on the higher-value government and military segments. The company has rapidly expanded its product portfolio through both internal development and strategic acquisitions. The acquisition of FlightWave Aerospace brought the Edge 130 Blue drone system into Red Cat's offerings, complementing the internally developed Teal 2 and Teal 3 systems. This "Family of Systems" approach allows the company to address different mission requirements within the military market, from small tactical reconnaissance to larger surveillance operations. A pivotal development has been Red Cat's selection for the U.S. Army's Short Range Reconnaissance (SRR) Program of Record, which represents a potential multi-hundred million dollar opportunity over multiple tranches. The company has also formed a strategic partnership with Palantir Technologies to integrate advanced AI and visual navigation capabilities into its drone systems, potentially creating high-margin software revenue streams alongside hardware sales. Manufacturing capabilities have been significantly enhanced with the expansion of the Salt Lake City facility, which can potentially produce up to 1,000 drones per month at full capacity. The company has also pursued AS9100 aerospace certification to meet stringent military manufacturing standards. International expansion efforts include active engagement with NATO countries, with Red Cat indicating potential programs requiring up to 25,000 systems, significantly larger than domestic opportunities.
RCAT company profile · for informational purposes only — not investment advice.
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