Blue Ops Ramps into Full-Rate Production of U.S.-Built Variant 7, Advancing Red Cat’s Autonomy Stack Across Air, Land and Sea

Red Cat (Nasdaq: RCAT) announced that its maritime division, Blue Ops, is ramping into full-rate production of the Variant 7 (V7) uncrewed surface vessel, a U.S.-designed and U.S.-built maritime autonomy platform for U.S. and allied defense missions.

Rhea-AI Summary

Red Cat (Nasdaq: RCAT) announced that its maritime division, Blue Ops, is ramping into full-rate production of the Variant 7 (V7) uncrewed surface vessel, a U.S.-designed and U.S.-built maritime autonomy platform for U.S. and allied defense missions.

V7 uses NDAA-compliant components, follows Modular Open Systems Architecture principles, supports multiple mission types, and integrates with Red Cat’s autonomy stack, strengthened by the acquisition of Apium Swarm Robotics for coordinated operations across air, land and sea.

Positive

• Move of Variant 7 USV into full-rate production
• Expansion of Red Cat Family of Systems with a maritime platform
• Use of U.S.-made, NDAA-compliant components and trusted supply chains
• MOSA-based, payload-adaptable architecture for diverse defense missions
• Autonomy capabilities expanded via Apium Swarm Robotics acquisition

Negative

• None.

Argus May 28 session

+32.61% close to close Open Argus

Details

News Market Reaction – RCAT

In the May 28 session, RCAT gained 32.61%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +32.6% in the session following this news. A strong positive reaction aligns with a...

Analysis

The stock surged +32.6% in the session following this news. A strong positive reaction aligns with a series of autonomy and defense-focused milestones, including Variant 7’s move to full-rate production and recent acquisitions such as Apium and Quaze. The stock traded at $10.67, below its $11.18 200-day MA but well above the $5.71 52-week low. Prior equity offerings and an active S-3ASR shelf suggest investors may still weigh future capital raises alongside growth prospects.

Key Figures

U.S. maritime excellence: 250 years Hinckley legacy: 98-year SOF Week demo dates: May 18–21

U.S. maritime excellence

250 years

Historical U.S. maritime tradition referenced for V7 development

Hinckley legacy

98-year

Hinckley Yacht family boatbuilding legacy supporting Blue Ops

SOF Week demo dates

May 18–21

Live Variant 7 demonstration window referenced in prior partnership news

Historical Context

5 past events · Latest: May 21

5 events

1. May 21

   Defense contract update

   24h Move

   +1.0%

   Japan MOD Black Widow drone contract details and fulfillment partnership.

2. May 20

   Acquisition closed

   24h Move

   +3.9%

   Closing of Quaze Technologies deal adding wireless power capabilities.

3. May 14

   Strategic partnership

   24h Move

   +3.6%

   Kymeta connectivity integration into Blue Ops’ Variant 7 USV platform.

4. May 12

   Equity offering priced

   24h Move

   -14.8%

   Pricing of common stock offering at $9.40 with large share issuance.

5. May 12

   Equity offering planned

   24h Move

   -14.8%

   Announcement of proposed $200M common stock offering and option.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

uncrewed surface vessel, modular open systems architecture, multi-agent autonomy architecture, ndaA-compliant

4 terms

uncrewed surface vessel technical

"the Variant 7 (V7) uncrewed surface vessel (“USV”), a maritime autonomy platform"

An uncrewed surface vessel is a boat or ship that operates on the water without people onboard, using remote control or automated systems to navigate and carry out tasks. For investors, these vessels matter because they can reduce labor and operating costs, enable new services like offshore inspection, data collection or maritime security, and create market opportunities or risks tied to technology, regulation and reliability.

modular open systems architecture technical

"V7 is built around Modular Open Systems Architecture (“MOSA”) principles"

A modular open systems architecture is a way of designing complex products so they’re assembled from standardized, interchangeable parts that connect using publicly available rules — think of building with Lego bricks rather than gluing everything together. For investors, it matters because this approach lowers lifecycle costs, reduces dependence on any single supplier, speeds upgrades and innovation, and makes products and programs less risky and easier to sell or partner on.

multi-agent autonomy architecture technical

"Apium will continue developing its multi-agent autonomy architecture for integration"

A multi-agent autonomy architecture is a system design in which multiple independent software programs or robots act like cooperating team members to sense their environment, make decisions, and carry out tasks without constant human control. For investors, it matters because this approach can make products and services faster, more scalable and resilient—like replacing a single workers with a coordinated team—but also introduces technical complexity, integration costs and safety or regulatory risks that affect competitiveness and long-term value.

ndaA-compliant regulatory

"Blue Ops prioritized U.S.-made and NDAA-compliant components across its navigation"

NDAA-compliant means that a product, supplier, or company meets the rules in the U.S. National Defense Authorization Act that bar certain foreign technologies and require specific security practices. For investors, compliance matters because it determines whether a business can sell to the U.S. government, avoid fines or bans, and reduce supply‑chain or reputational risk—similar to passing a background check that lets you bid on a sensitive contract.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SALT LAKE CITY, May 28, 2026 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or the “Company”), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, today announced that its maritime division, Blue Ops, is ramping into full-rate production of the Variant 7 (V7) uncrewed surface vessel (“USV”), a maritime autonomy platform designed, built and assembled in the United States for U.S. and allied defense missions.

The Variant 7 is a mission-adaptable USV powered by a Steyr engine and integrated with a domestic autonomy, command-and-control, communications, and mission systems stack. As the U.S. -developed platform advanced from early prototype to production, Blue Ops prioritized U.S.-made and NDAA-compliant components across its navigation, control, marine hardware and perception systems, reflecting its commitment to domestic research and development, manufacturing, trusted supply chains and scalable production.

“Blue Ops is moving Variant 7 into full-rate production because the mission demand is here now,” said Barry Hinckley, President of Blue Ops. “This platform brings together U.S. boatbuilding expertise, a modern tech stack that was designed and developed domestically, and a defense-ready supply chain for customers who cannot compromise on origin, reliability, or adaptability. We designed Variant 7 to be built at scale and configured for the missions our customers face.”

The production launch builds on more than 250 years of U.S. maritime excellence, from the shipyards and seafaring traditions that helped establish the United States as a global maritime power to the modern defense industrial base now shaping autonomous systems. V7 is designed in Maine, manufactured in both Maine and Valdosta, Georgia, and supported by extensive research, development and testing in West Palm Beach, Florida. Blue Ops’ prototype work was supported by Hodgdon Shipbuilding, the oldest continuously operated shipbuilder in America, and reflects the Hinckley Yacht family’s 98-year legacy as premier quality boatbuilders.

Engineered for real-world maritime operations, V7 is designed for sea state endurance, maintainability, survivability, operational simplicity, and long-term mission reliability. The platform supports missions including intelligence, surveillance, and reconnaissance; force protection; harbor and coastal security; contested logistics; and payload-adaptable operations for U.S. and allied forces.

V7 is built around Modular Open Systems Architecture (“MOSA”) principles, enabling customers to configure payloads, sensors, communications, and mission systems based on operational requirements. The platform is designed to integrate with leading U.S. technology and manufacturing partners, including Allen Control Systems, Quaze, Kymeta, HADDY and other U.S. and allied defense technology providers, giving customers flexibility while preserving supply chain integrity.

Blue Ops’ autonomy roadmap is further strengthened by Red Cat’s acquisition of Apium Swarm Robotics, a California-based developer of distributed control systems for autonomous swarming drones and USVs. Apium will continue developing its multi-agent autonomy architecture for integration with the V7 and Red Cat’s Family of Systems, supporting coordinated operations across air, land, and sea.

The move into full-rate production comes as federal policy increasingly prioritizes the revitalization of the U.S. maritime industrial base and the rapid fielding of autonomous systems across multiple domains. V7 adds a maritime platform to Red Cat’s Family of Systems, expanding the Company’s ability to deliver modular, mission-adaptable robotic capabilities aligned with White House maritime industrial priorities and the Department of Defense’s demand for scalable autonomous systems.

About Red Cat Holdings, Inc.
Red Cat (Nasdaq: RCAT) is a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security. Through its wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat develops American-made hardware and software that support military, government, and public safety operations across air, land, and sea. Its Family of Systems, led by Black Widow™, delivers unmatched tactical capabilities in small, unmanned aircraft systems (sUAS). Expanding into the maritime domain through Blue Ops, Inc., Red Cat is also innovating in uncrewed surface vessels (USVs), delivering integrated platforms designed to enhance safety and multi-domain mission effectiveness. Learn more at www.redcat.red.

Safe Harbor Forward-Looking Statements
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Such statements include, but are not limited to, statements relating to our intended use of proceeds from the offering, annual revenue guidance, future manufacturing capacities and future market demand. Forward-looking statements are based on Red Cat Holdings, Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the Form 10-KT filed with the SEC on March 19, 2026 and the Form 10-Q filed with the SEC on May 7, 2026, Red Cat’s preliminary prospectus supplement filed with the SEC and the other filings that Red Cat makes with the SEC. Forward-looking statements contained in this announcement are made as of this date, and Red Cat undertakes no duty to update such information except as required under applicable law.

Investor Contact:
Ankit Hira
Solebury Strategic Communications for Red Cat Holdings, Inc.
E-mail: RCAT@soleburystrat.com

Media Contact:
Peter Moran
Phone: (347) 880-2895
Email: peter@indicatemedia.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the Variant 7 USV that Red Cat (NASDAQ: RCAT) is putting into full-rate production?

Variant 7 is a U.S.-designed uncrewed surface vessel for defense missions. According to Red Cat, it combines a domestic autonomy stack, NDAA-compliant components, and modular architecture to support configurable payloads, sensors, and mission systems for U.S. and allied forces.

How does full-rate production of Variant 7 impact Red Cat (RCAT) and its defense customers?

Full-rate production means Blue Ops can deliver Variant 7 at scale to meet existing mission demand. According to Red Cat, the platform is engineered for maintainability, survivability, and long-term mission reliability across intelligence, surveillance, reconnaissance, force protection, and coastal security missions.

How does the Apium Swarm Robotics acquisition enhance Red Cat (RCAT) Variant 7 autonomy?

The Apium Swarm Robotics acquisition adds distributed multi-agent autonomy for coordinated operations. According to Red Cat, Apium’s architecture will integrate with Variant 7 and the broader Family of Systems, enabling swarming across air, land, and sea autonomous platforms for defense applications.

Where is Red Cat’s Variant 7 (RCAT) uncrewed surface vessel designed, built, and tested?

Variant 7 is designed in Maine and manufactured in Maine and Valdosta, Georgia. According to Red Cat, it is supported by extensive research, development, and testing in West Palm Beach, Florida, leveraging longstanding U.S. maritime boatbuilding expertise and supply chains.

What missions can Red Cat’s Variant 7 (NASDAQ: RCAT) support for U.S. and allied forces?

Variant 7 supports intelligence, surveillance, reconnaissance, and a range of security missions. According to Red Cat, it can perform force protection, harbor and coastal security, contested logistics, and payload-adaptable operations, reflecting a modular design aligned with modern defense mission requirements.

How does Variant 7’s Modular Open Systems Architecture benefit Red Cat (RCAT) defense customers?

Modular Open Systems Architecture lets customers tailor Variant 7’s payloads and systems to specific missions. According to Red Cat, this approach supports integration with U.S. partners like Allen Control Systems, Quaze, Kymeta, and HADDY while preserving supply chain integrity.