Red Cat Reports Record Q4 Revenue Growth and 161% Full-Year Revenue Increase YoY; Increased Production Capacity by 520% With Momentum Building Into 2026

Red Cat (Nasdaq: RCAT) reported record fourth-quarter revenue of $26.2M (up 1,985% YoY; +172% sequential) and full-year 2025 revenue of $40.7M (up 161% YoY).

Rhea-AI Summary

Red Cat (Nasdaq: RCAT) reported record fourth-quarter revenue of $26.2M (up 1,985% YoY; +172% sequential) and full-year 2025 revenue of $40.7M (up 161% YoY). Cash totaled $167.9M at year‑end; manufacturing capacity reached 254,000 sq. ft. with major facility expansions and new partner agreements.

Orders include Black Widow sales to an Asia‑Pacific ally; Innovation Day showcased drones and new USVs and emphasized scaling production into 2026.

Positive

• Revenue +161% YoY to $40.7M for full-year 2025
• Q4 revenue $26.2M, up 1,985% YoY and +172% sequentially
• Cash balance increased to $167.9M at December 31, 2025
• Manufacturing capacity scaled to 254,000 sq. ft.
• Secured international Black Widow order from an Asia‑Pacific ally

Negative

• Inventory and prepaid inventory rose to $30.4M, up from $13.6M
• Rapid capacity expansion may pressure near‑term operating costs and execution
• Revenue base remains modest at $40.7M despite high growth

Argus Mar 19 session

-10.97% close to close Open Argus

Details

News Market Reaction – RCAT

On Mar 19, the first trading day after this news, RCAT closed 10.97% below the previous close.

Data tracked by StockTitan Argus for the Mar 19 session.

Key Figures

Q4 2025 revenue: $26.2 million Q4 YoY revenue change: 1,985% increase (+$24.9 million) Q4 sequential growth: 172% increase +5 more

Q4 2025 revenue

$26.2 million

Fourth quarter 2025 total revenue

Q4 YoY revenue change

1,985% increase (+$24.9 million)

From $1.3 million in prior-year quarter

Q4 sequential growth

172% increase

Q4 2025 revenue vs prior quarter

Full-year 2025 revenue

$40.7 million

Total revenue for year ended Dec 31, 2025

Full-year YoY revenue change

161% increase (+$25.1 million)

From $15.6 million in prior year

Cash balance

$167.9 million

Cash at Dec 31, 2025 (vs $9.2 million at Dec 31, 2024)

Total production capacity

254,000 sq. ft.

Manufacturing capacity as of Dec 31, 2025

Black Widow order size

100 Black Widows

First order via NSPA in 2025

Historical Context

5 past events · Latest: Mar 02

5 events

1. Mar 02

   Defense partnership

   24h Move

   +17.3%

   ACS Bullfrog counter-drone system integrated into Red Cat autonomy ecosystem.

2. Feb 19

   Corporate visibility

   24h Move

   +6.2%

   COO to ring Nasdaq Opening Bell ahead of inaugural Innovation Day.

3. Feb 18

   Earnings scheduling

   24h Move

   +6.0%

   Announced Q4 2025 earnings release date and investor webinar details.

4. Feb 05

   Partner AI milestone

   24h Move

   -10.4%

   Palladyne AI swarming flight milestone with collaboration on Red Cat platforms.

5. Feb 02

   Drone orders

   24h Move

   +1.0%

   New Black Widow™ orders from Asia-Pacific ally for 2026 delivery.

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

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

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SALT LAKE CITY, March 18, 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, reports its financial results for the year ended December 31, 2025.

Fourth Quarter and Full-Year 2025 Financial Highlights

Fourth quarter 2025 total revenue was $26.2 million, representing an increase of 1,985% or $24.9 million from $1.3 million in the prior year.

Fourth quarter 2025 total revenue increased sequentially by 172% to $26.2 million.

Full-year 2025 total revenue was $40.7 million, representing an increase of 161% or $25.1 million from $15.6 million in the prior year.

Business Highlights

• Secured new orders for Black Widow™ drones from an Asia-Pacific ally. This is the second Asia-Pacific ally to recently order Black Widow systems for military use.
• Across divisions, Red Cat expanded BlueOps to 166,000 sq. ft., expanded FlightWave to 51,000 sq. ft., expanded Teal to 37,000 sq. ft. Red Cat achieved total capacity of 254,000 sq. ft. as of December 31, 2025.
• Red Cat’s Innovation Day on February 27, 2026 showcased its transformation into a true multi‑domain autonomous defense platform, highlighted by the launch and live demonstration of its new USVs operating seamlessly with Black Widow drones, and reinforced by massive manufacturing scale‑up efforts across air and maritime systems.
• Strengthened ecosystem of defense partners - including an expanded partnership with AeroVironment and established a new partnership with Redwire - to integrate Black Widow™ and FANG™ into broader mission-system architectures, enhancing interoperability, modularity, and deployment flexibility.
  
  

“2025 was a transformative year for Red Cat as we strengthened our position as a trusted provider of advanced drone solutions for defense and government customers,” said Jeff Thompson, CEO of Red Cat. “We delivered year-over-year revenue growth of 161%, launched our FANG™ FPV platform, and expanded our Army relationship, and received our first order for 100 Black Widows through the NSPA - a major milestone that underscores growing international demand for our products."

"Our continued and deliberate investments in innovation, manufacturing scale, and strategic partnerships are delivering tangible results. At our inaugural Innovation Day last month, we discussed how well-positioned we remain to rapidly scale production across drones and USVs - which are supported by our major facility expansions in order to capitalize on the expanding addressable market across multi-domain defense."

"As we head into 2026, we continue to see strong momentum in customer engagement and contract activity, validating both our technology roadmap and our long‑term growth strategy. Our focus is clear: scaling production capacity to meet surging demand, advancing our autonomy roadmap, and expanding our customer base both domestically and with allied nations. We're not just responding to market opportunities - we're defining the future of American-made tactical drone systems. This is an exciting phase for Red Cat as we turn innovation into scale and opportunity.”

Balance Sheet

Cash at December 31, 2025 totaled $167.9 million, compared to $9.2 million at December 31, 2024.

Inventory and prepaid inventory at December 31, 2025 totaled $30.4 million, compared to $13.6 million at December 31, 2024.

Conference Call Details

Red Cat will host a live video webinar to discuss its 2025 financial results at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) on March 18, 2026. Participants may register in advance to join the live Video Webinar on Zoom at Red Cat's Investor Relations website at https://ir.redcatholdings.com/news-events. Log-in instructions will be available after registering for the event. An archived replay of the event will be available on Red Cat’s investor relations website beginning approximately two hours after the call concludes.

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.

Notice Regarding 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 the expected timing of the offering and the satisfaction of customary closing conditions related to the offerings, and our intended use of proceeds from the offering. 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 Securities and Exchange Commission on March 31, 2025, Red Cat's quarterly reports on Form 10-Q, and the other filings Red Cat makes with the Securities and Exchange Commission. 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:
Ankit Hira
Solebury Strategic Communications for Red Cat Holdings, Inc.
E-mail: RCAT@soleburystrat.com

NEWS MEDIA:
Phone: (347) 880-2895
Email: peter@indicatemedia.com

RED CAT HOLDINGS, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
	December 31,
		2025				2024
ASSETS
Cash	$	167,865			$	9,154
Accounts receivable, net		26,155				489
Inventory, including prepaid inventory		30,394				13,593
Prepaid expenses and other current assets		2,524				2,562
Total current assets		226,938				25,798
Goodwill and intangible assets, net		24,590				26,124
Property and equipment, net		7,797				1,881
Other		1,227				310
Operating lease right-of-use assets		13,125				1,491
Total long-term assets		46,739				29,806
TOTAL ASSETS	$	273,677			$	55,604
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	8,706			$	3,290
Debt obligations - short term		350				350
Contract liabilities and deposits		261				227
Operating lease liabilities		1,011				312
Convertible notes payable		4,518				—
Total current liabilities		14,846				4,179
Deferred income taxes		443				—
Operating lease liabilities		12,556				1,306
Total long-term liabilities		12,999				1,306
Total liabilities		27,845				5,485
Stockholders’ equity		442,652				174,864
Accumulated deficit		(196,820	)			(124,745	)
Total stockholders’ equity		245,832				50,119
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	273,677			$	55,604

Condensed Consolidated Statements of Operations (Unaudited)
(In thousands)
	For the Three Months Ended December 31,								For the Year Ended December 31,
		2025			2024*					2025			2024*
Revenues, net	$	26,235			$	1,258			$	40,729			$	15,584
Cost of goods sold		25,122				2,285				39,455				15,614
Gross profit (loss)		1,113				(1,027	)			1,274				(30	)
Operating Expenses:
Research and development		4,891				3,235				17,890				8,073
Sales and marketing		3,619				3,929				13,106				9,512
General and administrative		16,543				4,868				36,875				14,799
Impairment loss		—				—				—				506
Total operating expenses		25,053				12,032				67,871				32,890
Operating loss		(23,940	)			(13,059	)			(66,597	)			(32,920	)
Interest (income) expense, net		(1,730	)			—				(2,711	)			39
Other (income) expense, net		(2,303	)			13,082				7,746				19,183
Total other (income) expense, net		(4,033	)			13,082				5,035				19,222
Net loss from continuing operations		(19,907	)			(26,141	)			(71,632	)			(52,142	)
Income tax (benefit) expense		(251	)			—				443				—
Loss from discontinued operations		—				—				—				(1,373	)
Net loss	$	(19,656	)		$	(26,141	)		$	(72,075	)		$	(53,515	)
Loss per share - basic and diluted	$	(0.17	)		$	(0.33	)		$	(0.73	)		$	(0.70	)
Weighted average shares outstanding - basic and diluted		119,445				79,657				98,957				75,963

*The Condensed Consolidated Statements of Operations for the fourth quarter 2024 and calendar year 2024 have not been previously presented. The Company included the prior calendar periods for comparability purposes.

Condensed Consolidated Statements of Cash Flows (Unaudited)
	For the Year Ended December 31, 2025				For the Year Ended December 31, 2024*
(In thousands)
Cash Flows from Operating Activities
Net loss from continuing operations	$	(72,075	)		$	(51,936	)
Adjustments to reconcile net loss to net cash from operations:
Stock based compensation		10,562				5,698
Depreciation and amortization of intangible assets		2,265				2,098
Deferred income taxes		443				—
Payments of taxes related to equity transactions		(982	)			(942	)
Loss on sale of equity method investment and note receivable		—				4,008
Gain on divestiture of consumer segment		—				(9,642	)
Impairment on equity method investment		—				11,354
Equity method loss		—				1,238
Impairment on goodwill and intangible assets		—				506
Convertible note payable fair value adjustment		11,444				13,121
Gain on extinguishment of convertible notes payable		(3,211	)			—
Changes in operating assets and liabilities
Accounts receivable		(25,666	)			603
Inventory		(10,501	)			(835	)
Prepaid inventory		(6,300	)			634
Prepaid expenses and other		(879	)			(1,144	)
Operating lease right-of-use assets and liabilities		315				5
Contract liabilities and deposits		34				(15	)
Accounts payable		1,569				(102	)
Accrued expenses		3,848				262
Net cash used in operating activities		(89,134	)			(25,089	)
Cash Flows from Investing Activities
Purchases of property and equipment		(6,647	)			(183	)
Proceeds from divestiture of consumer segment		—				1,000
Proceeds from sale of equity method investment and note receivable		—				4,400
Net cash (used in) provided by investing activities		(6,647	)			5,217
Cash Flows from Financing Activities
Proceeds from issuance of convertible notes payable, net of issuance costs		14,433				13,456
Proceeds from issuance of common stock, net		234,339				—
Redemption of convertible notes payable		(1,650	)			—
Payments under debt obligations		—				(598	)
Proceeds from exercise of stock options and warrants		7,370				6,325
Net cash provided by financing activities		254,492				19,183
Net cash used in discontinued operations		—				(195	)
Net increase (decrease) in cash		158,711				(884	)
Cash, beginning of period		9,154				10,038
Cash, end of period	$	167,865			$	9,154

*The Condensed Consolidated Statements of Operations for the fourth quarter 2024 and calendar year 2024 have not been previously presented. The Company included the prior calendar periods for comparability purposes.

Reconciliation of Non-GAAP adjusted EBITDA (Unaudited)
(In thousands)
	Three Months Ended								Twelve Months Ended
	December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Net loss	$	(19,656	)		$	(26,141	)		$	(72,075	)		$	(53,515	)
Adjustments:
Income tax (benefit) expense		(251	)			—				443				—
Interest (income) expense, net		(1,730	)			—				(2,711	)			39
Depreciation and amortization		611				887				2,265				2,098
Other (income) expense, net(1)		(2,303	)			13,082				7,746				19,183
Impairment loss(2)		—				—				—				506
Restructuring costs(3)		44				—				120				30
Stock based compensation		3,307				2,657				10,562				5,698
Non-routine legal expenses(4)		2,214				81				2,399				244
Other adjustment items(5)		—				250				—				250
Adjusted EBITDA	$	(17,764	)		$	(9,184	)		$	(51,251	)		$	(25,467	)

(1) Other (income) expense, net. Represents convertible note payable fair value adjustment, gain on extinguishment of convertible notes payable, loss on sale of equity method investment, equity method loss, and other income, net.
(2) Impairment loss. Represents an impairment charge to goodwill and or intangible assets.
(3) Restructuring costs. Represents restructuring costs incurred for cost reduction actions which may include employee termination costs, facility shut-down related costs, costs for unused, excess or exited facilities.
(4) Non-routine legal expenses. Represents external legal expenses incurred in connection with pending legal settlements and other legal related matters.
(5) Other adjustment items. Represents other adjustments that are non-recurring and outside the normal course of operations that do not readily fall into any other categories.

Notice Regarding Use of Non-GAAP Financial Measures

This press release contains Non-GAAP financial measures, including Adjusted EBITDA (which excludes, among other things, income tax expenses (benefits), net interest (income) expenses, depreciation and amortization, other expenses (income), impairment losses, restructuring related items, stock-based compensation expense, non-routine legal expenses, and any other one-time adjustments. The Company’s management uses these non-GAAP financial measures, along with the most directly comparable GAAP financial measures, in evaluating the Company’s performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and investors should carefully evaluate the Company’s financial results calculated in accordance with GAAP and reconciliations to those financial results. In addition, non-GAAP financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies. As appropriate, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company’s financial results prepared in accordance with GAAP are included in this news release.

FAQ

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

How much revenue did Red Cat (RCAT) report for Q4 2025 and full-year 2025?

Red Cat reported $26.2 million in Q4 2025 and $40.7 million for full-year 2025. According to the company, Q4 revenue rose 1,985% year-over-year and full-year revenue increased 161% versus 2024, reflecting production scale‑up and new orders.

What did Red Cat announce about its cash position and balance sheet at December 31, 2025 (RCAT)?

Cash on hand was $167.9 million at December 31, 2025. According to the company, this compares to $9.2 million a year earlier and supports manufacturing expansion and inventory buildup for anticipated contracts.

How much manufacturing capacity does Red Cat (RCAT) have after its 2025 expansions?

Red Cat achieved total manufacturing capacity of 254,000 sq. ft. as of December 31, 2025. According to the company, expansions included BlueOps, FlightWave, and Teal facilities to support rapid air and maritime production scaling.

Did Red Cat (RCAT) secure any international orders for Black Widow systems in 2025?

Yes. Red Cat secured new Black Widow orders from an Asia‑Pacific ally in 2025. According to the company, this is the second Asia‑Pacific ally to order Black Widow systems, signaling rising international demand.

What product and technology milestones did Red Cat (RCAT) highlight at Innovation Day in 2026?

Innovation Day showcased the launch of USVs operating with Black Widow drones and the FANG FPV platform. According to the company, the event demonstrated multi‑domain autonomy and live demos supporting their production roadmap.

How should investors view Red Cat's (RCAT) 2025 growth and near‑term risks?

The company delivered rapid revenue growth and large cash reserves, supporting scale-up efforts. According to the company, risks include execution of facility expansions and higher inventory levels while converting orders into sustained revenue.