Stock Track | Red Cat Holdings Plunges 15.76% Pre-Market Following Q3 Earnings Miss and Slashed Revenue Guidance

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Shares of Red Cat Holdings Inc. (RCAT) are set to open sharply lower, plummeting 15.76% in pre-market trading on Friday, as investors react to the company's disappointing third-quarter financial results and drastically reduced revenue guidance for fiscal year 2025.

The drone technology firm reported a quarterly loss of $0.16 per share, missing analyst estimates of $0.10 by 60%. While Red Cat's revenue showed an impressive year-over-year increase of 646.59% to $9.646 million, it fell significantly short of the expected $16.675 million. Adding to investor concerns, the company lowered its full-year 2025 revenue guidance to a range of $34.5 million to $37.5 million, down from the previous forecast of $80 million to $120 million.

Despite highlighting an expanded partnership with the U.S. Army now valued at approximately $35 million and reporting a strong cash position of $212.5 million, the substantial earnings miss and slashed guidance have overshadowed these positive aspects. Investors appear to be reassessing Red Cat's near-term growth prospects and financial health in light of these results, leading to the significant pre-market sell-off.

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