Red Cat Holdings Reports Record Q4 and Full-Year 2025 Results, Signals Major Growth Ahead

SALT LAKE CITY, March 18, 2026 – Red Cat Holdings, Inc. (Nasdaq: RCAT), a leading U.S. provider of advanced all-domain drone and robotic solutions for defense and national security, has reported its financial results for the fourth quarter and full fiscal year ended December 31, 2025. The results highlight explosive top-line growth, significant operational expansion, and a robust balance sheet, all of which position the company for substantial momentum into 2026.

Key Financial Highlights

• Q4 2025 Revenue: \$26.2 million, a staggering increase of 1,985% (\$24.9 million) from \$1.3 million in Q4 2024. Sequential growth over Q3 was 172%.
• Full-Year 2025 Revenue: \$40.7 million, up 161% (\$25.1 million) from \$15.6 million in 2024.
• Cash Position: Ended 2025 with \$167.9 million in cash, compared to just \$9.2 million at the end of 2024, reflecting substantial capital raises and improved liquidity.
• Inventory and Prepaid Inventory: Increased to \$30.4 million from \$13.6 million, signaling investments in future demand fulfillment.
• Net Loss: FY25 net loss was \$72.1 million, compared to \$53.5 million in FY24, reflecting ramp-up expenses, R&D, and scaling costs.
• Adjusted EBITDA: Loss of \$51.3 million (non-GAAP), compared to a loss of \$25.5 million in FY24, mainly due to increased operating expenses, investments in innovation, and scaling.

Major Business and Operational Developments

• New Strategic Orders: Secured new orders for Black Widow™ drones from a second Asia-Pacific ally, indicating growing international defense demand.
• Facility Expansion: Expanded production capacity by 520%, with BlueOps now at 166,000 sq.ft., FlightWave at 51,000 sq.ft., and Teal at 37,000 sq.ft., totaling 254,000 sq.ft. as of year-end 2025.
• Innovation Day Showcase: February 27, 2026 marked the company’s inaugural Innovation Day, where Red Cat unveiled new uncrewed surface vessels (USVs) and demonstrated integrated operations with Black Widow drones—heralding a move into multi-domain autonomous defense platforms.
• Defense Partnerships: Expanded collaboration with AeroVironment and entered a new partnership with Redwire, integrating Black Widow™ and FANG™ into broader mission architectures to enhance interoperability, modularity, and deployment flexibility.
• International Milestone: Received its first order for 100 Black Widow drones through the NATO Support and Procurement Agency (NSPA), underscoring rising global demand.

CEO Commentary and Strategic Outlook

“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. “We delivered year-over-year revenue growth of 161%, launched our FANG™ FPV platform, 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. 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.”

Balance Sheet and Liquidity Details

• Total Assets: Increased to \$273.7 million at December 31, 2025 from \$55.6 million a year earlier.
• Shareholder Equity: \$245.8 million, up from \$50.1 million at the end of 2024.
• Convertible Notes Payable: \$4.5 million, reflecting ongoing financing activity.
• Operating Expenses: R&D expenses nearly doubled to \$17.9 million, sales/marketing at \$13.1 million, and G&A at \$36.9 million, all supporting scale-up, innovation, and business development.

Investor and Shareholder Considerations

• Rapid Revenue Growth: The company’s extraordinary revenue growth—both sequentially and year-over-year—is likely to be viewed very positively by the market and could drive share price appreciation.
• Significant Cash Raise: A massive increase in cash reserves (\$167.9 million) from equity and convertible note issuances provides Red Cat with ample runway to execute on its ambitious scaling and R&D plans.
• Expanding Addressable Market: The move into maritime USVs and multi-domain autonomous systems, along with new international and NATO-linked orders, puts Red Cat in a position to capture significant new market share and drive long-term growth.
• Strategic Partnerships: Strengthened and new partnerships with leading defense integrators could accelerate adoption and deployment of Red Cat’s technologies, enhancing competitiveness and market relevance.
• Ongoing Losses: Investors should note the ongoing net and operating losses, driven by heavy investment in scaling and innovation. While this is common for high-growth defense tech firms, continued losses may pressure near-term share price if growth slows or capital markets tighten.

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. Registration and replay details are available on Red Cat’s Investor Relations website.

About Red Cat Holdings

Red Cat (Nasdaq: RCAT) develops and manufactures American-made drones, robotics, and uncrewed surface vessels for defense, government, and public safety, operating through subsidiaries Teal Drones and FlightWave Aerospace. The company’s Family of Systems—including Black Widow™ and FANG™—delivers tactical sUAS and USV capabilities for multi-domain operations, with a growing focus on interoperability and autonomous mission execution.

Disclaimer

Forward-Looking Statements: This article contains forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied. Investors should review Red Cat Holdings’ filings with the SEC for further information regarding risks and uncertainties. This article is for informational purposes only and does not constitute investment advice.

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