Red Cat Reports Financial Results for Second Quarter 2025 and Provides Corporate Update
Red Cat Holdings (Nasdaq: RCAT), a drone technology company, reported its Q2 2025 financial results and provided operational updates. The company secured a significant contract with the U.S. Army to deliver up to 690 SRR Black Widow systems and achieved AS9100 certification for aerospace and defense quality systems.
Financial highlights include quarterly revenue of $3.2 million and a strong balance sheet with $66.9 million in cash and receivables, plus $21.0 million in inventory and inventory deposits. The company also announced a strategic partnership with ESAero to support Black Widow™ manufacturing.
Red Cat Holdings (Nasdaq: RCAT), azienda di tecnologia per droni, ha reso noti i risultati finanziari del secondo trimestre 2025 e aggiornamenti operativi. La società ha ottenuto un contratto significativo con l'esercito statunitense per la fornitura di fino a 690 sistemi SRR Black Widow e ha conseguito la certificazione AS9100 per i sistemi di qualità nel settore aerospaziale e della difesa.
I principali dati finanziari includono ricavi trimestrali di 3,2 milioni di dollari e una solida situazione patrimoniale con 66,9 milioni di dollari in contanti e crediti, oltre a 21,0 milioni di dollari in inventario e acconti su inventario. L'azienda ha inoltre annunciato una partnership strategica con ESAero per supportare la produzione del Black Widow™.
Red Cat Holdings (Nasdaq: RCAT), una compañía de tecnología de drones, publicó sus resultados financieros del segundo trimestre de 2025 y brindó actualizaciones operativas. La empresa aseguró un contrato importante con el ejército de EE. UU. para entregar hasta 690 sistemas SRR Black Widow y obtuvo la certificación AS9100 para sistemas de calidad aeroespacial y de defensa.
Los aspectos financieros destacados incluyen ingresos trimestrales de 3,2 millones de dólares y un balance sólido con 66,9 millones de dólares en efectivo y cuentas por cobrar, además de 21,0 millones de dólares en inventario y depósitos de inventario. La compañía también anunció una asociación estratégica con ESAero para apoyar la fabricación del Black Widow™.
Red Cat Holdings (Nasdaq: RCAT)는 드론 기술 기업으로 2025년 2분기 실적과 운영 업데이트를 발표했습니다. 회사는 미 육군과 최대 690대의 SRR Black Widow 시스템을 공급하는 대형 계약을 체결했으며 항공우주 및 방위 품질 시스템에 대한 AS9100 인증을 획득했습니다.
재무 하이라이트로는 분기 매출 320만 달러와 현금 및 매출채권 6,690만 달러를 포함한 건전한 재무구조, 그리고 재고 및 재고보증금 2,100만 달러가 있습니다. 또한 Black Widow™ 제조를 지원하기 위해 ESAero와 전략적 파트너십을 발표했습니다.
Red Cat Holdings (Nasdaq: RCAT), une société de technologie de drones, a publié ses résultats financiers du deuxième trimestre 2025 et fourni des mises à jour opérationnelles. La société a obtenu un contrat important avec l'armée américaine pour livrer jusqu'à 690 systèmes SRR Black Widow et a obtenu la certification AS9100 pour les systèmes de qualité aéronautique et de défense.
Les points financiers clés incluent des revenus trimestriels de 3,2 millions de dollars et un bilan solide avec 66,9 millions de dollars en liquidités et créances, ainsi que 21,0 millions de dollars en stocks et acomptes sur stocks. La société a également annoncé un partenariat stratégique avec ESAero pour soutenir la fabrication du Black Widow™.
Red Cat Holdings (Nasdaq: RCAT), ein Drohnentechnologie-Unternehmen, berichtete über seine Finanzergebnisse für das zweite Quartal 2025 und gab betriebliche Neuigkeiten bekannt. Das Unternehmen sicherte sich einen bedeutenden Vertrag mit der US-Armee zur Lieferung von bis zu 690 SRR Black Widow-Systemen und erreichte die AS9100-Zertifizierung für Qualitätsmanagementsysteme in Luft- und Raumfahrt sowie Verteidigung.
Zu den finanziellen Eckdaten gehören Quartalsumsätze von 3,2 Millionen US-Dollar und eine starke Bilanz mit 66,9 Millionen US-Dollar an liquiden Mitteln und Forderungen sowie 21,0 Millionen US-Dollar an Inventar und Inventaranzahlungen. Das Unternehmen kündigte zudem eine strategische Partnerschaft mit ESAero zur Unterstützung der Black Widow™-Produktion an.
- Secured major U.S. Army contract for up to 690 SRR Black Widow systems
- Achieved AS9100 certification for aerospace and defense quality systems
- Strong liquidity position with $66.9M in cash and receivables
- Additional $21.0M in inventory and inventory deposits
- Strategic partnership with ESAero for manufacturing support
- Relatively modest quarterly revenue of $3.2M compared to cash position
Insights
Red Cat secures major Army drone contract while strengthening its financial position with $66.9M in cash and receivables.
The execution of the TD3 LRP contract with the U.S. Army marks a significant milestone for Red Cat's military drone business. This agreement to deliver up to 690 SRR Black Widow systems represents substantial revenue potential and validates the company's technology in the defense sector. The timing is particularly strategic given the CEO's reference to Secretary Hegseth's announcement on drone dominance and an expanded 2026 budget for SRR (Small Reconnaissance Robot) programs.
The company's achievement of AS9100 certification is particularly noteworthy as this aerospace quality management standard is extremely difficult to obtain and serves as a critical qualification for defense contractors. This certification will likely remove barriers to securing additional military contracts and positions Red Cat more competitively against larger defense contractors.
The partnership with ESAero for manufacturing support demonstrates prudent scaling strategy, allowing Red Cat to meet the production demands of the Black Widow program without overextending internal resources. This approach to production scaling indicates management is preparing for volume manufacturing while maintaining quality control.
Financially, the $66.9 million in cash and receivables against quarterly revenue of $3.2 million shows an extremely strong liquidity position relative to current operations. The additional $21 million in inventory and inventory deposits suggests the company is positioning for significant production ramp-up. This capital structure gives Red Cat substantial runway to execute on contracts while investing in the expansion of their USV (Uncrewed Surface Vessel) division and international opportunities without immediate financing concerns.
Red Cat's financial performance reveals a company with exceptionally strong liquidity relative to its current revenue generation. With $66.9 million in cash and receivables against quarterly revenue of $3.2 million, the company has over 20 quarters of operating capital at current burn rates, assuming no revenue growth. This substantial war chest positions Red Cat to comfortably fund production scaling for the Army contract without dilutive financing.
The company's inventory position of $21 million represents a significant commitment to production capacity that appears aligned with anticipated demand from the Army contract for up to 690 drone systems. This inventory strategy suggests management is preparing for substantial revenue acceleration in coming quarters.
While specific gross margin data wasn't provided, the company's focus on military contracting typically commands higher margins than commercial drone applications. The shift toward becoming a primary defense contractor through the SRR Black Widow program could significantly improve profitability metrics in future quarters.
The expansion into uncrewed surface vessels (USV) represents a strategic diversification of Red Cat's defense portfolio beyond aerial drones. This move leverages their existing expertise in autonomous systems while expanding their total addressable market within defense procurement.
Notably, the CEO's reference to the "significantly expanded 2026 budget for SRR" points to improving forward visibility on revenue, a crucial factor for defense contractors. The combination of strong liquidity, expanding product lines, and growing defense budget allocations creates a compelling financial foundation for potential revenue acceleration in upcoming quarters.
SAN JUAN, Puerto Rico, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) ("Red Cat" or the "Company"), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, reports its financial results for the second quarter ended June 30, 2025 and provides a corporate update.
Recent Operational Highlights
- SRR Black Widow Contract: In July 2025, the company executed the TD3 LRP contract with the U.S. Army to deliver up to 690 SRR Black Widow systems.
- Teal Drones achieved AS9100 certification from NSF International Strategic Registrations (NSF-ISR), a leading global certification body for aerospace and defense quality systems.
- Announced partnership with ESAero to support manufacturing for Teal’s Black Widow™.
Second Quarter 2025 Financial Highlights
- Ended the quarter with cash and accounts receivable of
$66.9 million . - Quarterly Revenue of
$3.2 million .
“Red Cat is at the forefront of a major transformation in unmanned systems,” said Jeff Thompson, CEO of Red Cat. “With our AS9100 certification, strategic partnerships, and expansion into uncrewed surface vessels, we’re entering the second half of 2025 in a strong position. Recent developments—including Secretary Hegseth’s announcement on drone dominance, the executive order on shipbuilding, our new Army contract, and a significantly expanded 2026 budget for SRR—signal that next year is shaping up to be a breakthrough moment for Red Cat and the industry as a whole.”
“Our balance sheet is in a fantastic position to execute our long-term goals,” said Chris Ericson, Red Cat CFO. “We have bolstered our quarter-end cash and receivables of
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, 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.
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. 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-K filed with the Securities and Exchange Commission on July 27, 2023. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law.
Contact:
INVESTORS:
E-mail: Investors@redcat.red
NEWS MEDIA:
Phone: (347) 880-2895
Email: peter@indicatemedia.com
RED CAT HOLDINGS | |||||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| June 30, | December 31, | ||||||||||||
| 2025 | 2024 | ||||||||||||
| ASSETS | |||||||||||||
| Cash | $ | 65,930,475 | $ | 9,154,297 | |||||||||
| Accounts receivable, net | 1,012,475 | 489,316 | |||||||||||
| Inventory, including deposits | 20,996,936 | 13,592,900 | |||||||||||
| Intangible assets including goodwill, net | 25,342,156 | 26,124,133 | |||||||||||
| Other | 8,085,809 | 6,243,621 | |||||||||||
| TOTAL ASSETS | $ | 121,367,851 | $ | 55,604,267 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
| Accounts payable and accrued expenses | $ | 3,320,836 | $ | 3,289,634 | |||||||||
| Debt obligations | 350,000 | 350,000 | |||||||||||
| Contract liabilities and deposits | 565,537 | 227,484 | |||||||||||
| Operating lease liabilities | 2,132,352 | 1,617,596 | |||||||||||
| Convertible notes payable | 19,434,004 | — | |||||||||||
| Total liabilities | 25,802,729 | 5,484,714 | |||||||||||
| Stockholders’ capital | 256,712,136 | 174,864,256 | |||||||||||
| Accumulated deficit/comprehensive loss | (161,147,014 | ) | (124,744,703 | ) | |||||||||
| Total stockholders' equity | 95,565,122 | 50,119,553 | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 121,367,851 | $ | 55,604,267 | |||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | 3,218,577 | $ | 6,419,669 | $ | 4,848,239 | $ | 13,033,698 | |||||||||||||||
| Cost of goods sold | 2,843,523 | 6,151,865 | 5,323,595 | 11,644,690 | |||||||||||||||||||
| Gross profit (loss) | 375,054 | 267,804 | (475,356 | ) | 1,389,008 | ||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Research and development | 3,598,267 | 289,016 | 7,030,860 | 2,958,518 | |||||||||||||||||||
| Sales and marketing | 3,187,585 | 2,203,522 | 6,502,333 | 3,614,028 | |||||||||||||||||||
| General and administrative | 6,235,749 | 2,738,285 | 11,116,197 | 5,822,780 | |||||||||||||||||||
| Impairment loss | — | 412,999 | — | 412,999 | |||||||||||||||||||
| Total operating expenses | 13,021,601 | 5,643,822 | 24,649,390 | 12,808,325 | |||||||||||||||||||
| Operating loss | (12,646,547 | ) | (5,376,018 | ) | (25,124,746 | ) | (11,419,317 | ) | |||||||||||||||
| Other expense | 632,413 | 2,784,001 | 11,277,565 | 2,148,325 | |||||||||||||||||||
| Net loss from continuing operations | (13,278,960 | ) | (8,160,019 | ) | (36,402,311 | ) | (13,567,642 | ) | |||||||||||||||
| Loss from discontinued operations | — | — | — | (1,373,457 | ) | ||||||||||||||||||
| Net loss | $ | (13,278,960 | ) | (8,160,019 | ) | $ | (36,402,311 | ) | $ | (14,941,099 | ) | ||||||||||||
| Loss per share - basic and diluted | $ | (0.15 | ) | $ | (0.11 | ) | $ | (0.41 | ) | $ | (0.20 | ) | |||||||||||
| Weighted average shares outstanding - basic and diluted | 91,295,342 | 74,247,575 | 88,400,431 | 74,226,099 | |||||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| Six months ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss from continuing operations | $ | (36,402,311 | ) | $ | (13,567,642 | ) | ||
| Non-cash expenses | 16,232,815 | 5,813,615 | ||||||
| Changes in operating assets and liabilities | (8,635,160 | ) | 1,184,517 | |||||
| Net cash used in operating activities | (28,804,656 | ) | (6,569,510 | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Proceeds from divestiture of consumer segment | — | 1,000,000 | ||||||
| Purchases of property and equipment | (579,626 | ) | (87,063 | ) | ||||
| Net cash (used in) provided by investing activities | (579,626 | ) | 912,937 | |||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from issuance of common stock through public offerings, net | 71,768,044 | — | ||||||
| Proceeds from issuance of convertible notes payable, net | 14,432,879 | — | ||||||
| Payments of convertible notes payable | (1,650,000 | ) | — | |||||
| Proceeds from exercise of stock options and warrants | 1,609,537 | — | ||||||
| Payments of debt obligations, net | — | (297,819 | ) | |||||
| Net cash provided by (used in) financing activities | 86,160,460 | (297,819 | ) | |||||
| Net cash used in discontinued operations | — | (194,969 | ) | |||||
| Net increase (decrease) in Cash | 56,776,178 | (6,149,361 | ) | |||||
| Cash, beginning of period | 9,154,297 | 10,245,064 | ||||||
| Cash, end of period | $ | 65,930,475 | $ | 4,095,703 | ||||
FAQ
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