Red Cat Holdings Inc. (NASDAQ:RCAT) shares are under pressure after reporting strong revenue growth but a wider-than-expected loss.
The company’s shares fell on Thursday following the release of its fourth-quarter 2025 results, despite strong revenue growth.
Q4 Results
Red Cat reported quarterly revenue of $26.24 million, exceeding the $23.92 million analyst estimate and up 1,985% from $1.26 million a year earlier. However, it posted a loss of 17 cents per share, wider than the expected 15-cent loss.
For the full year, revenue grew 161% to $40.7 million, up from $15.6 million in 2024. Cash surged to $167.9 million at year-end, compared to $9.2 million a year earlier, while inventory and prepaid inventory rose to $30.4 million from $13.6 million
Key operational highlights included new Black Widow drone orders, a 100-unit order through the NSPA, expanded partnerships with AeroVironment and Redwire, the launch of the FANG FPV platform, and increased manufacturing capacity to 254,000 square feet.
CEO Jeff Thompson said the company is “not just responding to market opportunities,” but rather “defining the future of American-made tactical drone systems.”
Technical Analysis
The …