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Red Cat Holdings
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Latest analysis
Updated Aug 6, 2026
Red Cat 527% YoY revenue growth to $20.2M in Q2 2026; gross margins expand 39% YoY as drone and autonomy platform scales
Red Cat Holdings delivered explosive revenue growth of 527% year-over-year in Q2 2026, reaching $20.2 million, while expanding gross margins 39 percentage points to 16.1% and sequentially 27 percentage points from Q1. The company advanced its Teal Drones platform to Gauntlet II of the Drone Dominance Program—a major milestone in low-cost attritable systems procurement—while completing the Quaze Technologies acquisition to address autonomous recharging barriers, scaling Blue Ops maritime systems to full-rate production, and securing new U.S. Air Force and Navy contracts. With $325.6 million in cash, expanded manufacturing capacity, and a growing air-land-sea systems portfolio, Red Cat reaffirmed its full-year revenue target of $150–180 million, positioning itself to capitalize on accelerating defense adoption of unmanned and autonomous systems.
Tone: bullishRevenue
$40.7M
RCAT 10-K · FY 2025
Employees
244
Revenue FYEight Months Ended December 31, 2024
$17.8M
Headquarters
South Salt Lake, UT
Profile
RCAT 10-K Item 1 · Mar 19, 2026Red Cat Holdings is a U.S.-based defense technology company that designs, manufactures, and sells all-domain unmanned systems — small UAS, VTOL fixed-wing aircraft, and uncrewed surface vessels — for military, government, and public safety customers. The company operates three product divisions (Teal, FlightWave, Blue Ops) and has scaled rapidly on the back of its U.S. Army Short Range Reconnaissance program of record win. Despite strong revenue growth, the company remains pre-profitability with a large accumulated deficit.
Read filing description ↓ Collapse description ↑
We are a U.S.-based provider of advanced all-domain drone and robotic solutions for defense, national security, and commercial applications. We develop American-made hardware and software that supports military, government, and public safety operations across air, land, and sea. Our family of systems delivers tactical capabilities in small, unmanned aircraft systems (sUAS) and uncrewed surface vessels (USVs), delivering integrated platforms designed to enhance safety and multi-domain mission effectiveness. Unmanned systems have become an increasingly important component of modern military operations. Unmanned aerial systems, as well as unmanned surface vessels, enable military forces to conduct intelligence, surveillance, and reconnaissance, target acquisition, electronic warfare, and strike missions while reducing risk to personnel. Advances in autonomy, sensors, communications, and artificial intelligence have expanded the operational capabilities of these systems and broadened the range of missions they can support. Our strategy is to provide products to the war fighter that work. In executing our strategy, Red Cat primarily seeks to utilize proven technology, which we modify, adopt, change, integrate and apply to address market opportunities that we identify jointly with our customers and with our partners. This approach allows us to rapidly develop and field relevant offerings, while reducing technical, schedule and financial risk. We view strategic partnerships as a means by which to further the reach of our innovative solutions by accessing new markets, customers, and complementary capabilities. We also consider acquisitions as a method to obtain valuable products, capabilities or technologies that can further enable our growth strategy.
Primary products
- Black Widow
- Teal 2
- FANG
- Edge 130
- Blue Ops USV
Business segments
End markets
Geographies
Named customers
“We believe our focus on tactical edge systems, rapid innovation cycles, and mission-driven design differentiates our offerings.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Revenues increased $35.8 million, or 739%, compared to the eight-month transition period ended December 31, 2024, driven primarily by the commencement and scaling of drone deliveries to the U.S. Army under the SRR program.
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