Red Cat Stock Slips As Q4 Loss Misses Estimates

• RCAT reported Q4 total revenue of $26.2 million, representing an increase of 1,985% or $24.9 million from $1.3 million in the prior year.
• Red Cat’s full-year 2025 total revenue was $40.7 million, representing an increase of 161%, from the year-ago period. 

Red Cat Holdings (RCAT) stock fell nearly 5% in extended hours of trading on Wednesday despite reporting a nearly 2,000% jump in its fourth quarter (Q4) revenue. 

RCAT reported Q4 total revenue of $26.2 million, up 1,985% or $24.9 million, compared to $1.3 million of revenue in the prior year. It was above analyst expectations of $23.9 million, according to Stocktwits data.

The company’s net loss per share of $0.17 during the quarter was narrower than $0.33 loss per share from the year-ago quarter. However, analysts had estimated a loss per share of $0.15. 

Leadership Take

“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," Thompson added.

During fiscal year 2025, Red Cat, across divisions, expanded its maritime division, BlueOps to 166,000 sq. ft., its VTOL drone, sensor and software solutions division FlightWave to 51,000 sq. ft., and Teal drones division to 37,000 sq. ft. Red Cat achieved a total capacity of 2,54,000 sq. ft. as of Dec. 31, 2025. 

Red Cat’s full-year 2025 revenue was $40.7 million, representing an increase of 161% or $25.1 million from $15.6 million in the prior year, according to the statement. 

Retail Reaction

Retail sentiment around RCAT stock trended in the ‘bearish’ territory amid ‘low’ message volume.

One bearish user predicted that RCAT’s stock will go under $15. 

Shares in the company have risen 106% year to date.

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