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