Red Cat Holdings, Inc. (RCAT) operates as a multifaceted provider within the drone industry, offering a comprehensive suite of products, services, and ...
Red Cat Holdings, Inc. is a publicly traded aerospace, defense, and technology company whose principal focus is the development and delivery of unmanned aerial vehicles and robotic systems. The company positions itself as a U.S.-based provider of advanced all-domain drone solutions for defense and national-security customers, while also addressing public ...Red Cat Holdings, Inc. is a publicly traded aerospace, defense, and technology company whose principal focus is the development and delivery of unmanned aerial vehicles and robotic systems. The company positions itself as a U.S.-based provider of advanced all-domain drone solutions for defense and national-security customers, while also addressing public safety, infrastructure inspection, commercial operations, and selected consumer applications. Red Cat's corporate history is layered: the legal entity was originally incorporated in 1984, while the Red Cat operating identity and current strategic direction were established through later corporate changes and acquisitions, including the renaming of the company to Red Cat Holdings in 2019.
The company's product portfolio includes small unmanned aircraft systems, FPV drones, drone-control and mission software, video and communications equipment, sensors, and supporting hardware. Publicly associated platforms include the Black Widow small drone and the Hellcat dual-use sUAS built on the Black Widow platform. Red Cat has also been associated with specialized FPV technology and acquired or developed businesses intended to expand its capabilities in aircraft manufacturing, secure communications, remote piloting, and autonomous or semi-autonomous operations. These offerings are designed for reconnaissance, tactical observation, public safety, inspection, mapping, and operations in environments where GPS access may be limited or unavailable.
Its customers and end users may include military organizations, government agencies, law-enforcement and emergency-response groups, infrastructure operators, industrial companies, and commercial drone users. The business model can include direct hardware sales, integrated systems, software, accessories, training, support, maintenance, and potentially recurring service or software revenue. Government and defense contracts may provide larger opportunities but can involve lengthy qualification, testing, procurement, export-control, cybersecurity, and regulatory requirements. Commercial and consumer sales can broaden the customer base but may be more price-sensitive and exposed to changing demand.
The bill of materials for a typical Red Cat system may include an airframe, motors, propellers, batteries, flight controllers, radios, cameras, sensors, computing hardware, navigation components, ground-control equipment, and software. Red Cat does not generally disclose product-level BOM costs publicly, so component costs, contract margins, warranty expenses, and manufacturing economics can vary substantially by platform and customer configuration. Cost control, domestic or trusted-source procurement, production scale, supply-chain reliability, and the ability to reuse software and electronics across product families are therefore important factors in gross-margin performance.
The supplied trailing financial data indicate a company with substantial liquidity and working capital but negative operating profitability and negative free cash flow during the reported period. Reported metrics include approximately 244 full-time employees, a current ratio above 10, low debt relative to assets, negative net income, and significant research-and-development and selling, general, and administrative spending relative to revenue. This profile is consistent with a growth-stage technology and defense supplier investing heavily in product development, manufacturing capacity, sales infrastructure, and contract execution. Key people include Chief Executive Officer Jeffrey Thompson, Chief Operating Officer Chris Ericson, Chief Financial Officer Christian Morrison, and leaders associated with operating subsidiaries and product divisions. Red Cat's principal objectives are to win and fulfill defense and security contracts, scale production, improve margins, commercialize differentiated drone technology, and establish itself as a reliable U.S. supplier of mission-ready unmanned systems.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$40.7M
+459.8%
+30.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-72.1M
-10.2%
-32.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+3.1%
+111.2%
+27.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-163.5%
+69.3%
-8.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-177.0%
+80.3%
-1.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-95.8M
-362.7%
0.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-235.2%
+17.3%
+23.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
7.5%
+91.0%
-6.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
15.29x
+147.6%
+35.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
