Why Is RCAT Stock Rising Pre-Market Today?

• On Monday, RCAT acquired Apium Swarm Robotics, a developer of distributed control systems, and also partnered with Spetstechnoexport, a state-owned enterprise under Ukraine’s Ministry of Defense.
• Retail sentiment on RCAT fell to ‘bearish’ from ‘bullish’ one month ago.
• Earlier this month, Red Cat reported a fourth-quarter loss of $0.17 per share that missed estimates.

Shares of Red Cat Holdings (RCAT) rose nearly 2% in premarket trading on Tuesday, after the drone technology firm doubled down on its defense ambitions, concluding the acquisition of Apium Swarm Robotics, a developer of distributed control systems, and a partnership tied to Ukraine’s Ministry of Defense

On Monday, Red Cat Holdings said that Apium Swarm Robotics will operate as an independent RCAT company, while continuing to develop and scale its architecture for integration across Red Cat’s Family of Systems. Apiumi’s decentralized control approach offers greater resilience, reduces operator burden, and improves performance in complex scenarios.

Chief Executive Officer Jeff Thompson said that “near-peer adversaries are moving quickly to develop systems that can operate in coordinated, decentralized ways, and Apium’s proven, scalable swarm technology will help Red Cat remain at the forefront of this rapidly evolving space.

Ukraine Partnership Expands Global Ambitions

Additionally, the company said that its partnership with Spetstechnoexport will enable broader access to U.S. and Ukrainian defense innovations in global markets. Under the deal, RCAT and Spetstechnoexport will work with the Ukrainian developers to pursue joint initiatives aligned with evolving mission needs in contested environments.

The partnership and acquisition come after the company reported a quarterly loss earlier this month that missed estimates.

Earnings Miss Clouds Near-Term Outlook

On March 18, RCAT reported a fourth-quarter loss of $0.17 per share, narrower than a $0.33 loss a year earlier but wider than analysts’ expectations of a $0.15 loss, while revenue came in at $26.2 million, beating estimates of $23.9 million.

In the report, the company said that it continues to see strong momentum into 2026. The company ended 2025 with $167.9 million in cash, up from $9.2 million a year earlier.

RCAT Stock: What are Retail Traders Saying?

Engagement on the platform has soared: RCAT message activity grew 2328%, while the number of watchers grew 53% over the year.

A user said “$RCAT Army contract, Taiwan contracts, and now Ukraine contracts. They is a lot going on in the background. Just slower than we would like.” 

Another added, “$RCAT defense drone theme keeps it on watch and a clean volume burst can stretch quickly.”

However, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volumes.

Year-to-date, Red Cat stock is up 46%, and it's up about 97% over the last year.