Red Cat (RCAT)


Market Price (10/9/2026): $5.715 | Market Cap: $782.3 MilSector: Industrials | Industry: Aerospace & Defense

Red Cat (RCAT)


Market Price (10/9/2026): $5.715
Market Cap: $782.3 Mil
Sector: Industrials
Industry: Aerospace & Defense

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

0

Cash is significant % of market cap
Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -38%

Strong revenue growth
Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is 681%

Valuation becoming less expensive
P/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -61%

Megatrend and thematic drivers
Megatrends include Advanced Aviation & Space, Autonomous Technologies, and Artificial Intelligence. Themes include Drone Technology, Show more.

Not profitable at operating income level
Op Inc LTMOperating Income, Last Twelve Months is -107 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -150%

Expensive valuation multiples
P/SPrice/Sales ratio is 11x

Significant share based compensation
SBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 23%

Not cash flow generative
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -194%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -220%

Yield minus risk free rate is negative
ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -16%

High stock price volatility
Vol 12M is 108%

Significant short interest
Short Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 27%

Short seller report
Fuzzy Panda Research report on 10/10/2025.

Key risks
RCAT key risks include [1] significant unprofitability and high cash burn, Show more.

0 Cash is significant % of market cap
Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -38%
1 Strong revenue growth
Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is 681%
2 Valuation becoming less expensive
P/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -61%
3 Megatrend and thematic drivers
Megatrends include Advanced Aviation & Space, Autonomous Technologies, and Artificial Intelligence. Themes include Drone Technology, Show more.
4 Not profitable at operating income level
Op Inc LTMOperating Income, Last Twelve Months is -107 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -150%
5 Expensive valuation multiples
P/SPrice/Sales ratio is 11x
6 Significant share based compensation
SBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 23%
7 Not cash flow generative
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -194%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -220%
8 Yield minus risk free rate is negative
ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -16%
9 High stock price volatility
Vol 12M is 108%
10 Significant short interest
Short Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 27%
11 Short seller report
Fuzzy Panda Research report on 10/10/2025.
12 Key risks
RCAT key risks include [1] significant unprofitability and high cash burn, Show more.

RCAT in ETFs

Weight = RCAT's share of each fund

VTI0.00%
ITOT0.00%
IWM0.03%
ITA0.07%
IWO0.06%
VTWO0.03%
SCHA0.02%
ONEQ0.00%
+2 more covered ETFs

Valuation & Metrics

Price Chart

Why The Stock Moved

Qualitative Assessment

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Updated on 10/1/2026

Red Cat (RCAT) stock has lost about 45% since 6/30/2026 because of the following key factors:

1. Red Cat Holdings (RCAT) reported a significant financial underperformance in its fiscal Q1 2027, which ended July 31, 2026. The company announced an adjusted loss of $0.26 per share, missing the consensus estimate of a $0.21 loss. Additionally, revenue for the quarter was $20.2 million, falling short of the anticipated $22.65 million. Despite a 527% year-over-year revenue increase, the miss on both the top and bottom lines likely contributed to negative investor sentiment, as the company remains deeply unprofitable with a negative net margin of 136.26%.

2. Significant insider selling by the Chairman and CEO, Jeffrey M. Thompson, created investor concern. On September 15, 2026, Mr. Thompson settled a variable prepaid forward contract, delivering 750,000 shares of Red Cat common stock. He had previously received an upfront cash payment of $6,565,293.75 for this contract. This large-value transaction, combined with other open market sales by the CEO on July 15, 2026, for approximately $1.28 million, likely signaled a lack of confidence to the market.

Show more
Updated on 10/1/2026

Red Cat (RCAT) stock has lost about 45% since 6/30/2026 because of the following key factors:

1. Red Cat Holdings (RCAT) reported a significant financial underperformance in its fiscal Q1 2027, which ended July 31, 2026. The company announced an adjusted loss of $0.26 per share, missing the consensus estimate of a $0.21 loss. Additionally, revenue for the quarter was $20.2 million, falling short of the anticipated $22.65 million. Despite a 527% year-over-year revenue increase, the miss on both the top and bottom lines likely contributed to negative investor sentiment, as the company remains deeply unprofitable with a negative net margin of 136.26%.

2. Significant insider selling by the Chairman and CEO, Jeffrey M. Thompson, created investor concern. On September 15, 2026, Mr. Thompson settled a variable prepaid forward contract, delivering 750,000 shares of Red Cat common stock. He had previously received an upfront cash payment of $6,565,293.75 for this contract. This large-value transaction, combined with other open market sales by the CEO on July 15, 2026, for approximately $1.28 million, likely signaled a lack of confidence to the market.

3. Analyst price targets for RCAT were reduced following the company's financial results and market conditions. For instance, Needham & Company LLC cut its price objective for Red Cat from $20.00 to $15.00 on August 7, 2026. Furthermore, Piper Sandler initiated coverage with a "neutral" rating and a $9.00 target price on September 2, 2026. These adjustments indicated a more cautious outlook from financial analysts, impacting investor perception.

4. Despite strong revenue growth in a growing industry, the company continues to face challenges in achieving profitability. While the broader drone market is experiencing growth, with projections suggesting the global commercial drone market could reach $189.9 billion by 2034, Red Cat remains deeply unprofitable, reporting a trailing twelve-month net income of -$97.5 million. This ongoing unprofitability, despite substantial revenue growth in fiscal Q1 2027, suggests operational inefficiencies or high investment costs that weigh on the stock performance.

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Stock Movement Drivers

Fundamental Drivers

The -44.5% change in RCAT stock from 6/30/2026 to 10/8/2026 was primarily driven by a -52.1% change in the company's P/S Multiple.
(LTM values as of)630202610082026Change
Stock Price ($)10.655.91-44.5%
Change Contribution By: 
Total Revenues ($ Mil)557231.1%
P/S Multiple23.611.3-52.1%
Shares Outstanding (Mil)121137-11.7%
Cumulative Contribution-44.5%

LTM = Last Twelve Months as of date shown

Market Drivers

6/30/2026 to 10/8/2026
ReturnCorrelation
RCAT-44.5% 
Market (SPY)3.6%49.0%
Sector (XLI)-9.1%41.4%

Fundamental Drivers

The -54.9% change in RCAT stock from 3/31/2026 to 10/8/2026 was primarily driven by a -70.5% change in the company's P/S Multiple.
(LTM values as of)331202610082026Change
Stock Price ($)13.095.91-54.9%
Change Contribution By: 
Total Revenues ($ Mil)417275.6%
P/S Multiple38.411.3-70.5%
Shares Outstanding (Mil)119137-12.7%
Cumulative Contribution-54.9%

LTM = Last Twelve Months as of date shown

Market Drivers

3/31/2026 to 10/8/2026
ReturnCorrelation
RCAT-54.9% 
Market (SPY)19.3%44.6%
Sector (XLI)4.4%26.4%

Fundamental Drivers

The -42.9% change in RCAT stock from 9/30/2025 to 10/8/2026 was primarily driven by a -89.0% change in the company's P/S Multiple.
(LTM values as of)930202510082026Change
Stock Price ($)10.355.91-42.9%
Change Contribution By: 
Total Revenues ($ Mil)972681.0%
P/S Multiple103.211.3-89.0%
Shares Outstanding (Mil)91137-33.3%
Cumulative Contribution-42.9%

LTM = Last Twelve Months as of date shown

Market Drivers

9/30/2025 to 10/8/2026
ReturnCorrelation
RCAT-42.9% 
Market (SPY)17.1%43.7%
Sector (XLI)10.1%35.3%

Fundamental Drivers

The 509.9% change in RCAT stock from 9/30/2023 to 10/8/2026 was primarily driven by a 1264.7% change in the company's Total Revenues ($ Mil).
(LTM values as of)930202310082026Change
Stock Price ($)0.975.91509.9%
Change Contribution By: 
Total Revenues ($ Mil)5721264.7%
P/S Multiple10.211.311.4%
Shares Outstanding (Mil)55137-59.9%
Cumulative Contribution509.9%

LTM = Last Twelve Months as of date shown

Market Drivers

9/30/2023 to 10/8/2026
ReturnCorrelation
RCAT509.9% 
Market (SPY)87.3%28.5%
Sector (XLI)72.7%26.3%

Return vs. Risk

Price Returns Compared

 202120222023202420252026Total [1]
Returns
RCAT Return32%-55%-6%1360%-38%-22%289%
Peers Return-14%-17%29%24%135%-31%84%
S&P 500 Return27%-19%24%23%16%14%108%

Monthly Win Rates [3]
RCAT Win Rate33%50%50%75%58%40% 
Peers Win Rate32%33%45%42%55%32% 
S&P 500 Win Rate75%42%67%75%67%50% 

Max Drawdowns [4]
RCAT Max Drawdown-74%-72%-61%-47%-67%-65% 
Peers Max Drawdown-36%-39%-29%-29%-49%-56% 
S&P 500 Max Drawdown-5%-25%-10%-8%-19%-9% 


[1] Cumulative total returns since the beginning of 2021
[2] Peers: AVAV, KTOS, ONDS, AIRO, LHX.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 10/8/2026 (YTD)

How Low Can It Go

EventRCATS&P 500
2025 US Tariff Shock
  % Loss-46.7%-18.8%
  % Gain to Breakeven87.6%23.1%
  Time to Breakeven49 days79 days
Summer-Fall 2023 Five Percent Yield Shock
  % Loss-50.0%-9.5%
  % Gain to Breakeven100.0%10.5%
  Time to Breakeven131 days24 days
2023 SVB Regional Banking Crisis
  % Loss-31.5%-6.7%
  % Gain to Breakeven45.9%7.1%
  Time to Breakeven56 days31 days
2022 Inflation Shock & Fed Tightening
  % Loss-39.3%-24.5%
  % Gain to Breakeven64.7%32.4%
  Time to Breakeven636 days427 days
2020 COVID-19 Crash
  % Loss-76.5%-33.7%
  % Gain to Breakeven325.0%50.9%
  Time to Breakeven408 days140 days

Compare to AVAV, KTOS, ONDS, AIRO, LHX

In The Past

Red Cat's stock fell -46.7% during the 2025 US Tariff Shock. Such a loss loss requires a 87.6% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

EventRCATS&P 500
2025 US Tariff Shock
  % Loss-46.7%-18.8%
  % Gain to Breakeven87.6%23.1%
  Time to Breakeven49 days79 days
Summer-Fall 2023 Five Percent Yield Shock
  % Loss-50.0%-9.5%
  % Gain to Breakeven100.0%10.5%
  Time to Breakeven131 days24 days
2023 SVB Regional Banking Crisis
  % Loss-31.5%-6.7%
  % Gain to Breakeven45.9%7.1%
  Time to Breakeven56 days31 days
2022 Inflation Shock & Fed Tightening
  % Loss-39.3%-24.5%
  % Gain to Breakeven64.7%32.4%
  Time to Breakeven636 days427 days
2020 COVID-19 Crash
  % Loss-76.5%-33.7%
  % Gain to Breakeven325.0%50.9%
  Time to Breakeven408 days140 days

Compare to AVAV, KTOS, ONDS, AIRO, LHX

In The Past

Red Cat's stock fell -46.7% during the 2025 US Tariff Shock. Such a loss loss requires a 87.6% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

About Red Cat (RCAT)

Red Cat Holdings, Inc. (RCAT) is a technology company focused on providing a comprehensive suite of products, services, and solutions to the drone industry. The company develops and supplies unmanned aerial vehicle (UAV) technology for both commercial and government sectors, specializing in applications such as reconnaissance, public safety, and various inspection services.

RCAT's offerings extend beyond core UAV technology to include First Person View (FPV) video goggles for immersive drone operation. It also provides specialized software and hardware solutions designed to enable drones to conduct inspection services in challenging environments where global positioning systems (GPS) are not accessible. Additionally, Red Cat engages in the resale of FPV drones and related equipment, primarily serving the consumer marketplace. The company is also actively developing advanced solutions, including drone flight data analytics, storage, and diagnostic products and services.

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'Honeywell for drones'.

'Cisco for the drone industry'.

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  • Commercial & Government UAV Technology: Provides unmanned aerial vehicle technology for reconnaissance, public safety, and inspection applications.
  • FPV Video Goggles: Offers First Person View (FPV) video goggles for drone operation.
  • GPS-Denied Environment Solutions: Develops software and hardware solutions that enable drones to complete inspection services in locations where global positioning systems are not available.
  • FPV Drone & Equipment Resale: Resells FPV drones and associated equipment primarily to the consumer marketplace.
  • Drone Flight Data Analytics & Storage: Developing drone flight data analytics and storage solutions.
  • Drone Diagnostic Products & Services: Developing diagnostic products and services for drones.

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Red Cat Holdings, Inc. (RCAT) serves a diverse range of customers across its various product and service offerings. Given its mixed business model, which includes both business-to-business (B2B), business-to-government (B2G), and business-to-consumer (B2C) sales, its major customers can be categorized as follows:

  • Government Agencies: This category includes military, intelligence, and public safety organizations (such as police departments, fire services, and emergency response teams) that utilize Red Cat's unmanned aerial vehicle technology for reconnaissance, surveillance, and public safety applications.
  • Commercial Enterprises: Companies across various industries, including energy, utilities, infrastructure, construction, and potentially mining, are customers for Red Cat's advanced drone technology, specialized inspection services (especially in GPS-denied environments), and developing drone flight data analytics and storage solutions.
  • Individual Consumers and Hobbyists: Red Cat serves the consumer marketplace through the resale of FPV (First Person View) drones and related equipment. This category primarily includes drone enthusiasts, hobbyists, and professional drone pilots who purchase products for recreational use, drone racing, or specialized aerial content creation.

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Jeffrey Thompson, President, Chief Executive Officer and Director

Jeffrey Thompson has been President, Chief Executive Officer, and Director of Red Cat Holdings, Inc. since May 2019, following the acquisition of Red Cat Propware, Inc., a company he founded. He is described as a serial tech entrepreneur with a history of founding and leading companies from startup to successful exits and IPOs. Previously, Mr. Thompson founded EdgeNet Inc., a privately held Internet service provider that was sold to Citadel Broadcasting Corporation in 1997. He also co-founded and served as President, Chief Executive Officer, and Director of Towerstream Corporation (NASDAQ:TWER), a fixed-wireless company, from November 2005 to February 2016.

Christian Morrison, Chief Financial Officer

Christian Morrison was appointed Chief Financial Officer of Red Cat Holdings, Inc. in December 2025. He brings over 20 years of experience in corporate finance, encompassing high-stakes financial milestones such as IPOs, M&A transactions, divestitures, strategic planning, and capital markets. Before joining Red Cat, Mr. Morrison served as Vice President, Finance, and Interim Chief Financial Officer at Skullcandy, Inc. from 2018 to 2025, where he played a pivotal role in the strategic transition from public to private governance. He was also a financial leader at Varex Imaging, Inc. from 2016 to 2018 as Director of SEC Reporting and Technical Accounting, instrumental in the carve-out of Varex Imaging, Inc. as a separate public company.

Christian Koji Ericson, Chief Operating Officer

Christian Koji Ericson was promoted to Chief Operating Officer in December 2025. Prior to this, he served as Red Cat's Chief Financial Officer since March 2025. Mr. Ericson has over 20 years of finance and accounting experience, including 11 years with PricewaterhouseCoopers. He also held senior finance roles at Nu Skin Enterprises, where he was Chief Audit Executive, VP of Business Development, and VP of Finance for its agriculture technology division. Most recently, before joining Red Cat, he was Head of Finance and Accounting at Western Steel Buildings, where he was involved in scaling financial operations.

Geoffrey Hitchcock, Chief Revenue Officer

Geoffrey Hitchcock serves as the Chief Revenue Officer of Red Cat Holdings, Inc. and has been the General Manager of its subsidiary, Teal Drones, Inc., since March 2024. Previously, he was the Senior Vice President for Global Defense Solutions at Red Cat Holdings, Inc. since September 2021. Before joining Red Cat, Mr. Hitchcock was the Vice President for Sales and Business Development at Vantage Robotics, a supplier of military and commercial UAVs, from April 2021 through August 2021. He also has a distinguished background of twenty-two years in the U.S. Air Force, where he served as the UAV Subject Matter Expert for the Air Force Special Operations Command.

George Matus, Chief Technology Officer

George Matus was appointed Chief Technology Officer of Red Cat Holdings, Inc. in November 2023. He founded Teal Drones in 2015 and continued to lead the company after it was acquired by Red Cat in August 2021, serving as its CEO. Mr. Matus has been instrumental in the company's efforts to secure the U.S. Army's Short-Range Reconnaissance (SRR) contract. He is also a Peter Thiel Fellow and has been recognized as a Forbes 30 Under 30 member.

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Here are the key risks to Red Cat's business:
  1. Financial Sustainability and Profitability: Red Cat Holdings is currently deeply unprofitable, characterized by negative gross margins and significant cash burn from operations. The company incurs high operating expenses related to research and development, marketing, and administration. This financial strain raises concerns about its ability to achieve profitability and may necessitate additional external funding, potentially leading to dilutive capital raises for existing shareholders.
  2. Execution Risk and Reliance on Government Contracts: The company faces substantial execution risk in scaling production to fulfill its obligations, particularly for major government contracts like the U.S. Army's Short Range Reconnaissance (SRR) program. Delays in production, cost overruns, or quality control issues could severely damage its credibility with military clients and hinder future contract acquisition. A significant portion of Red Cat's revenue is tied to U.S. government contracts, exposing it to risks associated with changes in procurement cycles, budget shifts, and the government's option to refresh drone models or switch contractors. There have also been allegations of overstated production capabilities and contract importance, which could lead to legal and reputational damage.
  3. Market Volatility, Competition, and Rapid Technological Change: Red Cat's stock has experienced extreme price volatility, reflecting investor uncertainty and market fluctuations. The drone industry is highly competitive, with numerous players, and is characterized by rapid technological advancements. This rapid evolution presents a risk that Red Cat's current products could quickly become obsolete, necessitating continuous and costly investment in research and development to remain competitive.

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For Red Cat (RCAT), the addressable markets for its main products and services are estimated as follows:

  • Commercial and Government Unmanned Aerial Vehicle (UAV) Technology for Reconnaissance, Public Safety, and Inspection Applications:

    • The global commercial drone market was valued at approximately USD 30.02 billion in 2024 and is projected to reach USD 54.64 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 10.6% from 2025 to 2030. Other estimates place the global commercial drone market at USD 13.86 billion in 2024, projected to grow to USD 65.25 billion by 2032, exhibiting a CAGR of 20.8% during the forecast period. Additionally, another report valued the global commercial drone market at USD 38.2 Billion in 2025, expecting it to reach USD 189.9 Billion by 2034 with a CAGR of 19.50% from 2026-2034.

      The broader global Unmanned Aerial Vehicle (UAV) market, which encompasses both commercial and government applications, was valued at approximately USD 44.54 billion in 2025 and is predicted to increase to USD 209.91 billion by 2035, representing a CAGR of 16.77% from 2026 to 2035. Another estimate projects the global UAV market size to grow from USD 47.55 billion in 2026 to USD 160.44 billion by 2034, with a CAGR of 16.40%.

    • The global public safety drones market was valued at USD 2.3 billion in 2023 and is projected to reach USD 9.9 billion by 2033, growing at a CAGR of 15.7% from 2024 to 2033. North America held the dominant public safety drone market share in 2024. Another report indicates the market was valued at USD 1.6 billion in 2023 and is projected to reach USD 4.1 billion by 2033, with a CAGR of 9.87%.
    • The global inspection drones market was valued at USD 3.37 billion in 2024 and is projected to grow to USD 12.34 billion by 2032, exhibiting a CAGR of 17.6%. Another source estimates the global inspection drones market size at USD 10.2 billion in 2022, expected to reach USD 39.8 billion by 2032 at a CAGR of 14.5%. The market is also projected to reach USD 61.4 billion by 2032, exhibiting a CAGR of 21.66% during the forecast period (2025-2034).
  • First Person View (FPV) Video Goggles and Resale of FPV Drones and Equipment (Consumer Marketplace):

    • The global FPV Drone Market was valued at USD 287 million in 2024 and is projected to reach USD 1.12 billion by the end of 2030, growing at a CAGR of 31.38% from 2025-2030. Another source estimates the global FPV Racing Drone Market reached USD 759.2 million in 2024 and is projected to grow to approximately USD 3,906.6 million by 2034, at a CAGR of 17.80%. The estimated worth of the global FPV Drone Market stands at USD 335.62 Million in 2023, with projections indicating an increase to USD 1349.66 Million by 2030, representing a growth rate of 19% during the forecast period from 2024 to 2030.
  • Software and Hardware Solutions for GPS-Denied Inspection, Drone Flight Data Analytics, and Storage Solutions:

    • The global drone software market was valued at USD 9.27 billion in 2024 and is projected to reach USD 24.39 billion by 2030, growing at a CAGR of 16.0% from 2025 to 2030. Other estimates for the global drone software market include USD 5.9 billion in 2023 and USD 6.8 billion in 2023, projected to reach USD 43.20 billion by the end of 2030 with a CAGR of 26%.
    • The global drone analytics market size was estimated at USD 14.99 billion in 2024 and is estimated to reach USD 49.97 billion in 2030, growing at a CAGR of 22.0% from 2025 to 2030. Another report valued the global drone analytics market size at USD 18.64 billion in 2025 and projected it to grow to USD 115.05 billion by 2034, exhibiting a CAGR of 22.42% during the forecast period.
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Red Cat Holdings (RCAT) is poised for significant revenue growth over the next 2-3 years, driven by several key factors in the rapidly expanding defense and national security sectors.

Here are 3-5 expected drivers of future revenue growth:

  1. U.S. Army Short Range Reconnaissance (SRR) Program of Record and Black Widow Drone Sales: A primary driver is the company's Black Widow drone, which was selected as the sole provider for the U.S. Army's SRR Program of Record. Red Cat secured an expanded TD3/LRIP (Tranche 3/Limited Rate Production) contract with the U.S. Army for Black Widow systems, valued at approximately $35 million. The long-term SRR program could involve the acquisition of up to 5,880 Black Widow drones over five years, with a potential future FRIP (Full Rate Production) contract expected to further accelerate orders from hundreds to thousands of drones. SRR-related sales alone are projected to contribute $25-$65 million to FY2025 revenue.
  2. Expansion in Government and International Defense Markets: Beyond the SRR program, Red Cat is experiencing increased adoption of its specialized drone solutions within the broader defense and national security sectors, including federal agencies and over 10 NATO countries. The Teal 2 drone is gaining traction as a preferred small unmanned aerial system (sUAS) for the Department of Defense (DoD), and the company anticipates continued growth from sales of its Edge 130 VTOL drones and FANG drones, backed by increasing government orders and new international contracts. This expansion is supported by a global rise in defense expenditures on drone technology.
  3. Entry into the Maritime Domain with Blue Ops: Red Cat launched a new Maritime Division, Blue Ops, focusing on developing and delivering uncrewed surface vessel (USV) weapons systems. This division has established a 155,000 square foot facility with a manufacturing capacity of over 500 vessels per year, representing a significant new market opportunity. The anticipated increase in USV shipments is aligned with the DoD's commitment to maritime autonomy, indicating a robust demand for Red Cat's innovative solutions in this emerging sector.
  4. Advanced Software Integrations and AI Capabilities: Red Cat is enhancing its drone platforms through strategic software integrations and technological advancements, which can drive both sales and higher margins. Key initiatives include integrating Palantir Technologies' Visual Navigation (VNav) software into the Black Widow drone for operations in GPS-denied environments. The company is also working on integrating Teledyne FLIR's Prism AI into next-generation drones and incorporating AI-driven voice control technology through a partnership with Primordial Labs, further improving autonomous drone control and functionality. These advanced capabilities increase the strategic value and appeal of Red Cat's offerings to military buyers.

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Share Issuance

  • In July 2021, Red Cat Holdings closed a public offering of 13,333,334 shares of common stock at $4.50 per share, generating gross proceeds of approximately $60,000,000. The funds were intended for services, sales and marketing, strategic acquisitions, and general working capital.
  • The company completed a registered direct offering in April 2025, selling 4,724,412 shares of common stock to institutional investors for gross proceeds of approximately $30,000,000. These funds were designated for general corporate purposes and working capital.
  • In September 2025, Red Cat Holdings announced the closing of an underwritten public offering of 17,968,750 shares of common stock, including the full exercise of the underwriters' over-allotment option, resulting in gross proceeds of approximately $172,500,000. The net proceeds were intended for general corporate and working capital purposes, including operating expenditures for its new unmanned surface vessel division.

Outbound Investments

  • Proceeds from a July 2021 public offering were intended, in part, for strategic acquisitions.
  • Red Cat is expanding into the maritime domain through its unmanned surface vessel (USV) division, including Blue Ops, Inc., indicating investments in new product lines and capabilities.

Capital Expenditures

  • Red Cat Holdings reported annual capital expenditures of $2,450,000 in 2023 and $422,700 in 2024.
  • For the quarter ending September 30, 2025, capital expenditures were $669,600, marking a significant increase of 2,713.45% from the same period in the prior year.
  • The company's capital expenditures have focused on aggressive investment in production and engineering to meet increasing demand, particularly for new Army contracts and defense programs.

Better Bets vs. Red Cat (RCAT)

Peer Outperformance in Aerospace & Defense

RCAT has outperformed 60% of its 53 Aerospace & Defense peers over 5Y. Aerospace & Defense ranks 4th of 23 industries in Industrials by median 5Y return.
Share of Aerospace & Defense constituents that RCAT has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
20%
of 70 industry peers · -58.8% return
3Y
97%
of 60 industry peers · 525.4% return
5Y
60%
of 53 industry peers · 94.4% return
No Aerospace & Defense peer with a comparable growth profile has beaten RCAT by more than 20pp over 5Y.
Median price return by industry across the Industrials sector, ranked by 5Y. Aerospace & Defense is RCAT's own industry. Use this to see which corners of the sector have carried the returns.
Industry Names 1Y med3Y med5Y med Top 3 by 5Y
Construction & Engineering 31 0.6%121.3%191.4% FIX 2120% · STRL 2118% · CDNL 1828%
Marine Transportation 5 102.6%68.1%165.6% HOS 40058% · MATX 195% · KEX 166%
Construction Machinery & Heavy Transportation Equipment 13 -3.9%42.7%93.9% CAT 345% · ALSN 230% · WAB 222%
Aerospace & Defense ← 54 -19.0%68.3%61.3% ATI 1010% · FTAI 848% · HWM 614%
Industrial Machinery & Supplies & Components 72 8.3%42.0%45.7% PSIX 1160% · CRS 1131% · EROC 602%
Rail Transportation 7 22.1%58.9%43.8% FSTR 127% · CSX 55% · RAIL 46%
Trading Companies & Distributors 19 3.2%32.3%42.1% DXPE 467% · AIT 261% · URI 218%
Cargo Ground Transportation 16 30.1%1.3%31.9% XPO 282% · R 219% · CVLG 145%
Diversified Support Services 32 4.8%25.8%26.8% LIME 3310% · TH 364% · CXW 248%
Electrical Components & Equipment 39 -0.9%56.4%26.3% POWL 2269% · BE 1325% · VRT 992%
Building Products 33 -15.4%1.9%16.4% LMB 723% · GFF 340% · PPIH 261%
Industrial Conglomerates 17 6.8%2.2%-2.3% RCMT 575% · CSW 115% · DD 73%
Agricultural & Farm Machinery 17 6.0%-5.2%-7.2% BLBD 178% · DE 103% · GENC 62%
Environmental & Facilities Services 30 -37.6%17.9%-8.5% CECO 819% · ADUR 406% · NVRI 321%
Research & Consulting Services 13 -5.5%-26.5%-12.4% HURN 229% · CRAI 76% · GRNQ 30%
Passenger Ground Transportation 3 -24.8%46.8%-16.2% UBER 47% · CAR -16% · LYFT -71%
Security & Alarm Services 9 -43.0%33.6%-16.6% CIX 165% · MG 113% · BCO 70%
Data Processing & Outsourced Services 6 -31.1%-11.5%-23.6% EXLS 46% · BR 7% · G -22%
Office Services & Supplies 9 21.8%18.3%-24.8% PBI 184% · TILE 125% · HNI 47%
Passenger Airlines 11 9.0%21.7%-33.9% LTM 3351% · UAL 119% · DAL 96%
Air Freight & Logistics 12 -25.8%-27.6%-36.5% FDX 80% · EXPD 80% · CHRW 76%
Human Resource & Employment Services 22 8.2%-19.5%-41.3% BBSI 67% · ADP 47% · KFY 6%
Airport Services 3 -76.3%-78.7%-71.6% JOBY -37% · ASLE -72% · UP -100%
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.

Recent Active Movers

Peer Comparisons

Peers to compare with:

Financials

RCATAVAVKTOSONDSAIROLHXMedian
NameRed Cat AeroViro.Kratos D.Ondas AIRO L3Harris. 
Mkt Price5.73136.1441.896.666.05237.3624.27
Mkt Cap0.86.87.93.30.244.25.1
Rev LTM722,0031,52217410722,932848
Op Inc LTM-107-1223-225-212,313-17
FCF LTM-158-45-129-172-572,808-93
FCF 3Y Avg-73-71-62-79-202,152-67
CFO LTM-13959-40-161-503,292-45
CFO 3Y Avg-66-1112-74-172,594-14

Growth & Margins

RCATAVAVKTOSONDSAIROLHXMedian
NameRed Cat AeroViro.Kratos D.Ondas AIRO L3Harris. 
Rev Chg LTM681.0%84.4%25.5%979.3%6.9%7.3%55.0%
Rev Chg 3Y Avg306.1%52.5%16.6%351.6%96.8%8.6%74.7%
Rev Chg Q527.3%5.7%30.5%1,235.4%75.9%8.4%53.2%
QoQ Delta Rev Chg LTM31.1%1.3%7.6%80.2%21.2%2.0%14.4%
Op Inc Chg LTM-156.5%64.2%13.2%-513.0%-2,367.7%4.5%-76.0%
Op Inc Chg 3Y Avg-84.7%265.1%109.1%-162.9%-733.9%9.9%-37.4%
Op Mgn LTM-150.2%-0.6%1.5%-129.4%-20.2%10.1%-10.4%
Op Mgn 3Y Avg-239.0%1.8%2.3%-243.9%-15.9%9.9%-7.1%
QoQ Delta Op Mgn LTM-0.9%3.0%-0.4%-35.4%28.5%0.2%-0.1%
CFO/Rev LTM-194.4%2.9%-2.6%-92.5%-47.3%14.4%-24.9%
CFO/Rev 3Y Avg-249.8%-1.0%1.4%-200.4%-16.1%11.9%-8.6%
FCF/Rev LTM-220.4%-2.2%-8.5%-98.8%-53.4%12.2%-30.9%
FCF/Rev 3Y Avg-261.5%-5.5%-4.4%-212.2%-19.2%9.8%-12.3%

Valuation

RCATAVAVKTOSONDSAIROLHXMedian
NameRed Cat AeroViro.Kratos D.Ondas AIRO L3Harris. 
Mkt Cap0.86.87.93.30.244.25.1
P/S11.03.45.219.21.81.94.3
P/Op Inc-7.3-570.7340.5-14.8-8.919.1-8.1
P/EBIT-7.3-28.1202.124.39.515.712.6
P/E-8.0-33.4255.719.9-7.523.86.2
P/CFO-5.6115.3-199.5-20.7-3.813.4-4.7
Total Yield-12.0%-3.0%0.4%4.9%-13.1%6.3%-1.3%
Dividend Yield0.0%0.0%0.0%0.0%0.0%2.1%0.0%
FCF Yield 3Y Avg-13.1%-0.5%-0.7%-31.9%-9.6%4.4%-5.1%
D/E0.00.10.00.00.10.20.0
Net D/E-0.40.0-0.2-0.4-0.10.2-0.1

Returns

RCATAVAVKTOSONDSAIROLHXMedian
NameRed Cat AeroViro.Kratos D.Ondas AIRO L3Harris. 
1M Rtn-34.1%-8.5%-13.1%-12.6%-17.5%-7.2%-12.8%
3M Rtn-37.6%-8.3%-14.2%-12.9%-8.5%-17.7%-13.6%
6M Rtn-52.0%-23.4%-38.7%-27.1%-25.1%-33.1%-30.1%
12M Rtn-60.1%-66.6%-60.4%-40.9%-69.5%-21.3%-60.2%
3Y Rtn506.3%25.0%149.2%1,093.5%51.2%39.5%100.2%
1M Excs Rtn-31.2%-5.0%-12.1%-10.3%-13.7%-6.9%-11.2%
3M Excs Rtn-37.5%-8.3%-15.6%-10.7%-6.1%-20.5%-13.1%
6M Excs Rtn-65.3%-37.0%-52.5%-40.5%-38.7%-46.9%-43.7%
12M Excs Rtn-76.4%-81.0%-75.2%-55.2%-85.1%-35.6%-75.8%
3Y Excs Rtn425.8%-55.6%99.9%989.2%-31.0%-35.2%34.5%

Comparison Analyses

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Financials

Segment Financials

Revenue by Segment
$ Mil2025202420232022
Single segment411856
Total411856


Operating Income by Segment
$ Mil2023
Consumer-2
Corporate-12
Enterprise-13
Total-27


Net Income by Segment
$ Mil2023
Consumer-2
Corporate-12
Enterprise-14
Total-27


Price Behavior

Price Behavior
Market Price$5.91 
Market Cap ($ Bil)0.8 
First Trading Date03/16/2018 
Distance from 52W High-66.0% 
   50 Days200 Days
DMA Price$8.16$10.93
DMA Trendindeterminatedown
Distance from DMA-27.5%-46.0%
 3M1YR
Volatility77.0%108.3%
Downside Capture452.93475.11
Upside Capture151.25297.19
Correlation (SPY)49.1%44.2%
RCAT Betas & Captures as of 9/30/2026

 1M2M3M6M1Y3Y
Beta2.073.403.493.503.712.17
Up Beta3.184.935.654.133.601.44
Down Beta4.387.063.753.323.322.59
Up Capture50%201%155%235%1116%6823%
Bmk +ve Days6162766132424
Stock +ve Days8182656120360
Down Capture418%337%358%302%189%112%
Bmk -ve Days16263760120328
Stock -ve Days13233769130377

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with RCAT
RCAT-60.2%108.1%-0.36-
Sector ETF (XLI)10.2%17.4%0.3935.6%
Equity (SPY)16.7%13.0%0.9144.3%
Gold (GLD)3.4%29.6%0.1128.3%
Commodities (DBC)45.0%20.9%1.6712.6%
Real Estate (VNQ)2.8%13.7%-0.051.5%
Bitcoin (BTCUSD)-31.7%44.2%-0.7332.7%

Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with RCAT
RCAT12.3%104.5%0.58-
Sector ETF (XLI)13.1%17.6%0.5723.0%
Equity (SPY)14.0%17.1%0.6324.5%
Gold (GLD)18.2%18.9%0.7811.0%
Commodities (DBC)10.3%19.6%0.405.2%
Real Estate (VNQ)1.3%18.8%-0.0412.7%
Bitcoin (BTCUSD)13.7%52.2%0.4316.3%

Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with RCAT
RCAT108.5%142,973.8%0.41-
Sector ETF (XLI)13.1%20.1%0.57-3.9%
Equity (SPY)15.4%17.9%0.73-1.9%
Gold (GLD)11.6%16.4%0.585.2%
Commodities (DBC)8.3%18.1%0.37-5.8%
Real Estate (VNQ)4.2%20.7%0.160.0%
Bitcoin (BTCUSD)63.6%66.2%1.032.1%

Smart multi-asset allocation framework can stack odds in your favor. Learn How

Short Interest

Short Interest: As Of Date9152026
Short Interest: Shares Quantity37.1 Mil
Short Interest: % Change Since 831202615.6%
Average Daily Volume5.6 Mil
Days-to-Cover Short Interest6.6 days
Basic Shares Quantity136.9 Mil
Short % of Basic Shares27.1%

Earnings Returns History

Updated 9/9/2026
Expand for More
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
8/6/20266.2%18.0%-3.5%
5/7/20260.1%-6.0%20.3%
3/18/2026-11.0%-6.6%-25.2%
1/13/20269.4%20.7%0.5%
3/18/2024-6.4%-0.6%82.1%
9/21/2023-1.6%0.1%0.8%
SUMMARY STATS   
# Positive334
# Negative332
Median Positive6.2%18.0%10.6%
Median Negative-6.4%-6.0%-14.3%
Max Positive9.4%20.7%82.1%
Max Negative-11.0%-6.6%-25.2%
Collapse to Preview
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
8/6/20266.2%18.0%-3.5%
5/7/20260.1%-6.0%20.3%
3/18/2026-11.0%-6.6%-25.2%
1/13/20269.4%20.7%0.5%
3/18/2024-6.4%-0.6%82.1%
9/21/2023-1.6%0.1%0.8%
SUMMARY STATS   
# Positive334
# Negative332
Median Positive6.2%18.0%10.6%
Median Negative-6.4%-6.0%-14.3%
Max Positive9.4%20.7%82.1%
Max Negative-11.0%-6.6%-25.2%

SEC Filings

Expand for More
Report DateFiling DateFiling
06/30/202608/06/202610-Q
03/31/202605/07/202610-Q
12/31/202503/19/202610-K
09/30/202511/13/202510-Q
06/30/202508/14/202510-Q
03/31/202505/14/202510-Q
12/31/202403/31/202510-KT
10/31/202412/16/202410-Q
07/31/202409/23/202410-Q
04/30/202408/08/202410-K
01/31/202403/18/202410-Q
10/31/202312/15/202310-Q
07/31/202309/19/202310-Q
04/30/202307/27/202310-K
01/31/202303/07/202310-Q
10/31/202212/15/202210-Q
Collapse to Preview
Report DateFiling DateFiling
06/30/202608/06/202610-Q
03/31/202605/07/202610-Q
12/31/202503/19/202610-K
09/30/202511/13/202510-Q
06/30/202508/14/202510-Q
03/31/202505/14/202510-Q
12/31/202403/31/202510-KT
10/31/202412/16/202410-Q
07/31/202409/23/202410-Q
04/30/202408/08/202410-K
01/31/202403/18/202410-Q
10/31/202312/15/202310-Q
07/31/202309/19/202310-Q
04/30/202307/27/202310-K
01/31/202303/07/202310-Q
10/31/202212/15/202210-Q
07/31/202209/12/202210-Q
04/30/202207/27/202210-K
01/31/202203/17/202210-Q
10/31/202112/20/202110-Q
07/31/202109/20/202110-Q
04/30/202108/12/202110-K
01/31/202103/22/202110-Q
10/31/202012/21/202010-Q
07/31/202009/21/202010-Q
04/30/202008/13/202010-K
01/31/202003/23/202010-Q
10/31/201912/23/201910-Q

Recent Forward Guidance

Updated 10/8/2026

Latest: Q2 2026 Earnings Reported 8/6/2026

Forward GuidanceGuidance Change
MetricSourceLowMidHigh% Chg% DeltaChangePrior
2026 RevenueReported150.00 Mil165.00 Mil180.00 Mil0 AffirmedGuidance: 165.00 Mil for 2026

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Insider Activity

Updated 10/6/2026
Expand for More
#OwnerTitleHoldingActionFiling DatePriceSharesTransacted
Value
Value of
Held Shares
Form
1Thompson, Jeffrey MChairman of the Board, CEODirectSell91720267.74150,0001,161,00090,652,443Form
2Liuzza, Nicholas Reyland JRDirectSell90120268.5065,000552,5003,611,429Form
3Thompson, Jeffrey MChairman of the Board, CEODirectSell819202610.45150,0001,567,500131,797,511Form
4Moe, Christopher RDirectSell813202610.5120,000210,2002,107,276Form
5Liuzza, Nicholas Reyland JRDirectSell813202610.6355,000584,6505,207,361Form
Collapse to Preview
#OwnerTitleHoldingActionFiling DatePriceSharesTransacted
Value
Value of
Held Shares
Form
1Thompson, Jeffrey MChairman of the Board, CEODirectSell91720267.74150,0001,161,00090,652,443Form
2Liuzza, Nicholas Reyland JRDirectSell90120268.5065,000552,5003,611,429Form
3Thompson, Jeffrey MChairman of the Board, CEODirectSell819202610.45150,0001,567,500131,797,511Form
4Moe, Christopher RDirectSell813202610.5120,000210,2002,107,276Form
5Liuzza, Nicholas Reyland JRDirectSell813202610.6355,000584,6505,207,361Form
6Moe, Christopher RDirectSell813202610.0410,000100,4002,213,840Form
7Thompson, Jeffrey MChairman of the Board, CEODirectSell71620268.51150,0001,276,500108,606,339Form
8Funk, Paul IIDirectSell615202611.50165,028  Form
9Moe, Christopher RDirectSell930202510.9110,000109,100579,026Form
Core Cache Last Updated: 10/8/2026