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olivLaw · US equity research

Red Cat Holdings, Inc. RCAT

Services-Prepackaged Software · SIC 7372 · Vertical: Services-Prepackaged Software (SIC 7372)

4.00USD−10.31% · 1 dayClose 04 Nov 2026

Red Cat Holdings develops drone and uncrewed robotic systems for defense, national security and civil uses across air, land and sea. The company grew revenue from 40.7 million USD in 2025 to 20.2 million USD in the second quarter of 2026 alone, placing it in a fast-expanding sector.

At the close of 04 Nov 2026, Red Cat Holdings, Inc. (RCAT) stock was 4.00 USD (−10.31% on the day), with market capitalisation 610.9 m USD, beta 2.90, 52-week range 4.00–17.36 USD. Latest reported quarter (Q2 2026): revenue of 20.2 m USD (+527.3% YoY), net income of -35.3 m USD, diluted EPS -0.26 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
610.9 m USD
shares as of 04 Aug 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.80 · TTM to 30 Jun 2026
E/P (TTM)
-20.12%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
2.90
Volatility (1y) 104%
52-week range
4.0017.36

Price history

Loading chart…

Technical reading

RSI (14)
26.3
oversold (≤ 30)
Bollinger (20, 2)
3.87 – 5.73
in the lower half of the band · %B 0.07 · band width 38.7%
SMA 50 / 200
6.38 / 10.35
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.57 / -0.62
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−37.0%−1.1%−35.9 pp—
3 months−53.8%−0.5%−53.4 pp—
6 months−62.3%+4.4%−66.7 pp—
Year to date−49.6%+12.3%−61.9 pp—
1 year−57.8%+13.5%−71.3 pp−0.7%
3 years+332.4%+76.4%+256.0 pp+23.7%
5 years+47.1%+63.7%−16.6 pp—
Max drawdown (1y)
−77.0%
22 Jan 2026 → 04 Nov 2026
Max drawdown (5y)
−79.9%
14 Mar 2022 → 07 Dec 2023
Compound annual growth (5y)
+8.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
20.2 m USD
+527.3% YoY
Net income
-35.3 m USD
unavailable YoY
Diluted EPS
-0.26
unavailable YoY
net / operating
-174.6% / -191.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue5.8 m6.3 m1.6 m3.2 m9.6 m26.2 m15.5 m20.2 m
Cost of revenue4.7 m5.1 m2.5 m2.8 m9.0 m25.1 m13.5 m16.9 m
Gross profit1.1 m1.2 m-850.0 k375.0 k637.5 k1.1 m2.0 m3.3 m
Research & development2.1 m1.0 m3.4 m3.6 m6.0 m4.9 m8.0 m14.2 m
Operating income-4.4 m-5.3 m-12.5 m-12.6 m-17.5 m-23.9 m-27.3 m-38.6 m
Depreciation & amortisation——588.0 k522.0 k ≈——812.0 k1.5 m ≈
Interest expense15.5 k11.5 k——————
Pre-tax income——-23.1 m-13.3 m-15.3 m-19.9 m-26.5 m-35.2 m
Income tax——00694.6 k-251.6 k5.0 k23.0 k
Net income-5.5 m-7.1 m-23.1 m-13.3 m-16.0 m-19.7 m-26.6 m-35.3 m
Diluted EPS——-0.27-0.15-0.16-0.16 ≈-0.22-0.26
Operating cash flow-4.1 m ≈—-15.9 m-12.9 m ≈——-31.9 m-46.8 m ≈
Capex44.7 k ≈74.5 k273.0 k307.0 k ≈669.2 k ≈5.4 m6.8 m5.8 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue105.1 kunavailable403.9 k5.0 m6.4 m4.6 m17.8 m40.7 m
Revenue YoY+11,167.8%unavailableunavailable+1,137.7%+28.6%−28.1%+286.0%+128.3%
Net income-2.6 m-751.3 k-1.6 m-13.2 m-11.7 m-28.1 m-24.1 m-72.1 m
Net income YoY−334.2%unavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS-0.02unavailableunavailableunavailableunavailable-0.52-0.40-0.73
Diluted EPS YoY−150.0%unavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-2,514.4%unavailable-396.6%-264.7%-181.8%-608.3%-134.9%-177.0%
Free cash flow-1.9 munavailableunavailableunavailable-16.4 m-31.6 munavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
unavailable USD
Financial debt
350.0 k USD
Net debt
unavailable USD
Equity
245.8 m USD
Total assets
273.7 m USD
Debt / equity
0.00x
Current ratio
15.29x
ROE
-49.8%
ROA
-44.7%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
4.6 m
2024
17.8 m
2025
40.7 m

SEC (XBRL)· 19 Mar 2026verified

Cost of revenue
2023
5.5 m
2024
14.2 m
2025
39.5 m

SEC (XBRL)· 19 Mar 2026verified

Gross profit
2023
-834.3 k
2024
3.7 m
2025
1.3 m

SEC (XBRL)· 19 Mar 2026verified

Research & development
2023
5.9 m
2024
6.3 m
2025
17.9 m

SEC (XBRL)· 19 Mar 2026verified

Operating income
2023
-26.3 m
2024
-19.3 m
2025
-66.6 m

SEC (XBRL)· 19 Mar 2026verified

Depreciation & amortisation
2023
—
2024
1.4 m
2025
2.3 m

SEC (XBRL)· 19 Mar 2026verified

EBITDA
2023
—
2024
-17.9 m ≈
2025
-64.3 m ≈

SEC (XBRL)· 19 Mar 2026derived

Interest expense
2023
122.0 k
2024
68.6 k
2025
—

SEC (XBRL)· 08 Aug 2024verified

Pre-tax income
2023
—
2024
-21.5 m
2025
-71.6 m

SEC (XBRL)· 19 Mar 2026verified

Income tax
2023
—
2024
0
2025
443.0 k

SEC (XBRL)· 19 Mar 2026verified

Net income
2023
-28.1 m
2024
-24.1 m
2025
-72.1 m

SEC (XBRL)· 19 Mar 2026verified

Diluted EPS
2023
-0.52
2024
-0.40
2025
-0.73

SEC (XBRL)· 19 Mar 2026verified

Weighted average diluted shares
2023
53.9 m
2024
60.1 m
2025
99.0 m

SEC (XBRL)· 19 Mar 2026verified

Balance sheet · USD

Cash
2023
3.2 m
2024
6.1 m
2025
—

SEC (XBRL)· 08 Aug 2024verified

Receivables
2023
719.9 k
2024
4.4 m
2025
26.2 m

SEC (XBRL)· 19 Mar 2026verified

Inventories
2023
8.9 m
2024
8.0 m
2025
23.5 m

SEC (XBRL)· 19 Mar 2026verified

Current assets
2023
32.2 m
2024
22.4 m
2025
226.9 m

SEC (XBRL)· 19 Mar 2026verified

Property, plant & equipment, net
2023
2.7 m
2024
2.3 m
2025
7.8 m

SEC (XBRL)· 19 Mar 2026verified

Goodwill
2023
17.0 m
2024
9.1 m
2025
17.7 m

SEC (XBRL)· 19 Mar 2026verified

Intangibles (excl. goodwill)
2023
6.9 m
2024
3.8 m
2025
6.9 m

SEC (XBRL)· 19 Mar 2026verified

Total assets
2023
60.7 m
2024
48.5 m
2025
273.7 m

SEC (XBRL)· 19 Mar 2026verified

Accounts payable
2023
1.4 m
2024
1.6 m
2025
3.6 m

SEC (XBRL)· 19 Mar 2026verified

Short-term debt
2023
922.1 k
2024
751.6 k
2025
350.0 k

SEC (XBRL)· 19 Mar 2026verified

Long-term debt
2023
401.6 k
2024
—
2025
—

SEC (XBRL)· 27 Jul 2023verified

Current liabilities
2023
4.1 m
2024
3.7 m
2025
14.8 m

SEC (XBRL)· 19 Mar 2026verified

Total liabilities
2023
6.0 m
2024
5.0 m
2025
27.8 m

SEC (XBRL)· 19 Mar 2026verified

Equity
2023
54.8 m †
2024
43.6 m †
2025
245.8 m †

SEC (XBRL)· 19 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
-29.2 m
2024
—
2025
—

SEC (XBRL)· 27 Jul 2023verified

Capex
2023
2.5 m
2024
259.0 k
2025
6.6 m

SEC (XBRL)· 19 Mar 2026verified

Free cash flow
2023
-31.6 m ≈
2024
—
2025
—

SEC (XBRL)· 27 Jul 2023derived

Investing cash flow
2023
29.6 m
2024
—
2025
—

SEC (XBRL)· 27 Jul 2023verified

Financing cash flow
2023
-1.2 m
2024
—
2025
—

SEC (XBRL)· 27 Jul 2023verified

Computed indicators

Growth

Revenue growth (YoY)
128.3%
computed by olivLawFY 2025
Revenue CAGR 3Y
85.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
151.6%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
9.7%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
-145.3%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
-150.2%
computed by olivLawTTM to 30 Jun 2026
Net margin
-136.3%
computed by olivLawTTM to 30 Jun 2026
FCF margin
unavailable
input data missing

Returns

ROE
-34.4%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
-30.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
-21.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
14.9x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
unavailable
input data missing
Capital expenditure
18.6 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
27 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
40 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
610.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-20.1%
computed by olivLawTTM to 30 Jun 2026
P/B
1.3x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
8.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
unavailable
input data missing

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 5 of at least 6
  • score weight coverage: 51.1% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

4.00 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 610.9 m USD

Key indicators

Market capitalisation
610.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
1.3x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
-34.4%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
-136.3%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
128.3%
computed by olivLawFY 2025
Dividend yield
unavailable
input data missing

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 04 Aug 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 1708derived 128

Score by group

51% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
  • Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)

no valuation method could be computed

Multiple comparisons use the SIC vertical: Services-Prepackaged Software (SIC 7372)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 51.1% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
Gross margin · Quality9.7%0 (on a fixed band)21%
EBIT margin · Quality-150.2%8 (vs peers)17%
FCF margin · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth85.0%100 (on a fixed band)33%
Revenue growth (YoY) · Growth128.3%97 (vs peers)17%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Current ratio · Balance sheet14.9x100 (on a fixed band)13%
EV/Sales · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/2 factors with a value
  • Growth99/100 · 2/2 factors with a value
  • Quality4/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/1 factors with a value
  • Valuation· partialunavailable · 0/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Red Cat Holdings, Inc. (RCAT). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 40.7 m USD in 2025; YoY growth 128.3%; net margin -136.3%; ROE -34.4%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 51.1% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 85.0%
  • Revenue growth (YoY): 128.3%
  • Current ratio: 14.9x

What contradicts it

  • Gross margin: 9.7%
  • EBIT margin: -150.2%

Not assessed (insufficient data or a ratio without meaning): FCF margin, Net debt / EBITDA, EV/Sales, FCF yield, Shareholder yield (distributions).

Versus the vertical median

Services-Prepackaged Software (SIC 7372) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
—
vertical median 42.8x
EV/EBITDA
—
vertical median 36.4x
P/S
8.5x
vertical median 7.2x
above median (+17.8%)
P/B
1.3x
vertical median 6.3x
below median (−79.5%)
ROE
-34.4%
vertical median 10.7%
below median (−422.0%)
Net margin
-136.3%
vertical median 10.6%
below median (−1,382.6%)
EBIT margin
-150.2%
vertical median 12.0%
below median (−1,355.4%)
Revenue YoY
128.3%
vertical median 14.8%
above median (+769.8%)
Net debt/EBITDA
—
vertical median 0.7x
Dividend yield
—
vertical median 1.0%

Price rebased to 100 (monthly, 5 years)

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ORCLOracle Corporation374.1 bn19.341.6%26.4%+17.3%−39% / +6%
CRWDCrowdStrike Holdings, Inc.246.8 bn1,120.41.3%1.1%+21.7%+89% / +307%
CRMSalesforce, Inc.186.9 bn20.719.4%22.0%+9.6%−1% / −10%
NOWServicenow, Inc.112.9 bn78.111.8%9.4%+20.9%−33% / −21%
SNOWSnowflake Inc.102.5 bn—-48.2%-20.1%+29.2%+16% / +55%
ADBEAdobe Inc.96.7 bn13.961.9%28.0%+10.5%−22% / −59%
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SNPSSynopsys Inc88.7 bn81.83.7%11.4%+15.1%+11% / −15%
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TWLOTwilio Inc.33.0 bn26.814.9%21.8%+13.7%+65% / +230%
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NTNXNutanix, Inc.17.2 bn12.337,460.2%52.8%+12.4%+33% / +48%
TYLTyler Technologies, Inc.16.8 bn53.310.5%13.5%+9.1%−10% / +4%
DOCUDocusign, Inc.15.0 bn49.117.8%9.8%+8.2%+16% / +87%
GWREGuidewire Software, Inc.14.0 bn104.710.5%9.4%+22.7%−21% / +71%
DTDynatrace, Inc.13.4 bn87.06.4%7.4%+18.8%+5% / −13%

1- and 3-year price returns: for RCAT from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    Red Cat Holdings develops drone and uncrewed robotic systems for defense, national security and civil uses across air, land and sea. The company grew revenue from 40.7 million USD in 2025 to 20.2 million USD in the second quarter of 2026 alone, placing it in a fast-expanding sector 12.

    SWOT

    Strengths

    • The company holds a strong cash position and a developed product range, including platforms already accepted in U.S. Army programs 12.
    • Rapid growth in sales and gross margin during 2026 suggests production can be scaled 23.
    • Partnerships with autonomy and software companies extend the capabilities of its uncrewed systems 13.

    Weaknesses

    • The company has never been profitable and continued to report large net losses in 2026 12.
    • The production facility runs below capacity, which raises fixed costs per unit 1.
    • Dependence on single suppliers and outside components can disrupt deliveries 1.

    Opportunities

    • If tactical drone procurement programs advance, Red Cat could win larger and repeated contracts 3.
    • The Hellcat platform and expansion into allied markets could open international revenue 3.
    • The acquired wireless charging technology could extend the duration of autonomous operations 3.

    Threats

    • Customers can cancel orders or delay deliveries on short notice, and the absence of long-term orders heightens this risk 1.
    • Larger competitors with superior resources could limit the company's market share 1.
    • Changes in procurement policy and export controls could shift market conditions 1.

    Risks

    • Persistent net losseshigh

      The company has not yet reached profitability, and if it does not improve margins and control costs, it could need additional capital 12.

    • Dependence on government contractshigh

      Funding depends on defense budgets and contract timing, which can be delayed or reduced 1.

    • Dilution from share issuancemedium

      Recent equity offerings increased the share count, and further capital raises could dilute existing shareholders 12.

    • Supply chainmedium

      Disruptions at key suppliers could delay production and raise costs 1.

    • Regulation and exportmedium

      Export controls and compliance rules can limit international sales and create costs 1.

    Investment thesis

    What would need to be true (bull case)

    • If sales keep growing and production reaches designed capacity, margins could improve further and losses could narrow over time 23.
    • A high cash position gives room to invest in new products and expansion into allied markets 3.
    • Participation in competitive procurement programs and technology partnerships could strengthen the company's position in uncrewed systems 3.

    What would break the thesis

    • The company continues to lose money, and if sales do not hold up, pressure on liquidity could increase 12.
    • Reliance on military contracts makes revenue sensitive to budget delays and policy changes 1.
    • Rapid growth in spending and headcount could weaken cost discipline if revenue does not rise at the same pace 2.

    What to watch

    • Achievement of the full-year revenue target of 150 to 180 million USD2026
    • Trend in gross margin and production at higher capacityQ3 2026
    • Outcome of Gauntlet II in the Drone Dominance program2026
    • Integration of the Quaze Technologies acquisition and payment of deferred considerationnext 10-Q

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    Red Cat Holdings, Inc. is a U.S. provider of advanced all-domain drone and robotic solutions for defense, national security and commercial applications, aiming to deliver American-made hardware and software for military, government and public safety operations 1. It runs as one operating segment, with the chief executive as the decision maker who evaluates consolidated net income or loss 1. Its strategy is to provide products that work for the warfighter, using proven technology adapted together with customers and partners 1.

    Segments

    Teal

    The Teal division designs and manufactures small tactical unmanned aircraft for defense and public safety customers. Its Black Widow product was selected in the U.S. Army Short Range Reconnaissance program, and AS9100 certification obtained in July 2025 confirms aerospace-grade quality 1.

    FlightWave

    FlightWave develops long-endurance vertical takeoff and landing fixed-wing unmanned aircraft for intelligence, surveillance and reconnaissance missions, with the Edge 130 as its main system 1.

    Blue Ops

    Blue Ops, launched in August 2025, develops uncrewed surface vessel weapons systems for maritime missions. The company reported that the Variant 7 vessel reached full-rate production and that it won a U.S. Navy lease and testing contract 12.

    Market context

    The unmanned systems sector is growing alongside rising defense budgets and military modernization, with threats from Russia, China, North Korea and Iran cited as reasons for recapitalizing weapon systems 1. A supplemental defense package under the OBBBA act could accelerate procurement if it converts into contracts 1.

    Trends

    • Military demand for tactical dronestailwind

      Armed forces are increasingly integrating uncrewed platforms into tactical units, which creates repeated demand for low-cost, rapidly fielded systems 1.

    • Defense budget fundingmixed

      Delays in appropriations and government shutdowns can postpone contracts, although supplemental funding passed in 2025 supports longer-term investment 1.

    • Beyond-visual-line-of-sight rulestailwind

      The proposed BVLOS rulemaking could expand the civil market if it is adopted 1.

    • Supply chain and productionheadwind

      The manufacturing facility runs below its designed capacity, and reliance on sole-source suppliers can delay deliveries and pressure margins 12.

    Competitive position

    The company competes with established defense contractors, venture-backed technology firms and international tactical drone makers, with the main factors being performance, reliability and acquisition cost 1. Its stated advantage is focus on tactical edge systems, fast innovation cycles and mission-driven design 1.

    • AeroVironmentAVAV

      A development partner rather than only a rival, working on integrating the FANG drone on its P550 platform; the source also notes competitors with similar endurance exist.

    • Palantir TechnologiesPLTR

      A software partner whose VNav visual navigation was tested on Black Widow, making it relevant mainly as a technology supplier.

    • Established defense contractors

      Large companies with greater financial and technical resources that can shape access to military programs.

    • International tactical drone makers

      Competitors from allied states, especially in foreign markets, offering comparable platforms.

    News & filings

    In the press

    The latest news item in our archive is from 21 Sept 2026; the newest SEC filing is from 23 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

    SEC filings

    • Current report23 Oct 2026
      Material agreement · Other events · Financial statements and exhibits
    • Quarterly report06 Aug 2026
    • Current report06 Aug 2026
      Results of operations · Financial statements and exhibits
    • Current report22 Jul 2026
      Departure or appointment of officers · Other events · Financial statements and exhibits
    • Current report25 Jun 2026
      Shareholder vote · Financial statements and exhibits
    • Current report20 May 2026
      Acquisition or disposition of assets · Item 3.02 · Regulation FD disclosure · Financial statements and exhibits
    • Current report18 May 2026
      Other events · Financial statements and exhibits
    • Current report14 May 2026
      Material agreement · Other events · Financial statements and exhibits
    • Current report11 May 2026
      Other events
    • Quarterly report07 May 2026

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Red Cat Holdings, Inc. · 19 Mar 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Red Cat Holdings, Inc. · 06 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Red Cat Holdings, Inc. · 06 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.