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 $15.6 million in the prior year.
Business Highlights
-- Secured new orders for Black Widow$(TM)$ 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(TM) and FANG(TM) 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(TM) 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(TM), 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 For the Year Ended
Ended December 31, 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 For the Year Ended December
(In thousands) December 31, 2025 31, 2024*
-------------------------- ---------------------------
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 December December December
31, 2025 31, 2024 31, 2025 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
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