RCAT
Red Cat Holdings, Inc.

Red Cat Holdings, Inc.RCAT

Industrials · Aerospace & Defense
4.04USD
+18.65%
Nov 08, 2026
RCAT overview ready
Supplier of tactical ISR and configurable small unmanned systems for defense
Red Cat is a defense-focused unmanned-systems manufacturer seeking to supply tactical ISR and other mission-configurable small UAS, alongside adjacent uncrewed-surface-vessel, autonomy, swarm, and integration capabilities.
Primary theme is lagging
Defense / Drones is lagging (+0.2pp vs SPY over 21 sessions; 13 of 25 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.
Unremarkable fundamentals
Primary risk
Dependence on U.S. Government defense procurement budgets.
Market Nov 6Filing Jun 30Price action Nov 7Research Aug 11

Conviction Level

PriceAction1.4BusinessPerformance—BusinessQuality—Valuation3.5ThemeMomentum1.0A revenue trend needs at least three unbroken comparable quarters, so none is read here.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+0.2pp
Theme return
−4.8%
Beating SPY
13 of 25
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$617.0M
Avg Volume (60D)
7.6M
60 sessions
Revenue Growth YoY
+128.4%
FY2025 vs FY2024
Gross Margin
+9.7%
Trailing twelve months
Operating Margin
-150.1%
Trailing twelve months
Free Cash Flow Yield
-19.0%
Distance from 200DMA
-60.5%
Next Earnings
2026-11-16
P/E
N/M
EV / Sales
4.1x
Market metrics as of Nov 6, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Insufficient evidence

A revenue trend needs at least three unbroken comparable quarters, so none is read here.

Latest reported: Q2 FY2026, ended Jun 30
Revenue growthNot enough data
+527%
$20.2M in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. +646%
  2. n/a
  3. +849%
  4. +527%
Earnings growthLoss widening
-$0.26
Diluted EPS -$0.26 vs -$0.15 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Gross marginExpanding
16.1%
+4.5 pp YoY

Business Quality

Not assessed

Not assessed yet — the business is too early-stage for its economics to show in filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; peers is the dissenting view. The published stance is held at fair because no positive free cash flow behind the low multiple.
Red Cat Holdings, Inc. has a Fair valuation stance because the price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.

What changed

  • RCAT rose 18.6% in one session
    RCAT closed +18.6% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Red Cat is a defense-focused unmanned-systems manufacturer seeking to supply tactical ISR and other mission-configurable small UAS, alongside adjacent uncrewed-surface-vessel, autonomy, swarm, and integration capabilities. The exposure is direct: this demand is served by the company's own core products.
Opportunity
High opportunity
Defense procurement and operational adoption of attritable small unmanned systems, tactical ISR drones, autonomous platforms, and layered counter-UAS capabilities in response to rapidly proliferating drone threats.
Key risk
Dependence on U.S. Government defense procurement budgets.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Aerospace & Defense
What they do

Red Cat Holdings designs, manufactures, and sells small and tactical unmanned aircraft systems (UAS) and robotic solutions primarily for defense, national security, and commercial customers in the United States.

How it earns

The company generates revenue primarily through project-based sales of unmanned systems and related autonomous technologies.

Products & services
BLACK WIDOW short-range reconnaissance UAS
TEAL 2 tactical UAS
FANG first-person view small UAS
Customers & end markets
U.S. Department of Defense and military forces
Law enforcement and first responders
Commercial and industrial inspection sectors
Market position

Niche player focused on tactical unmanned systems and autonomy solutions within the defense aerospace sector.

Demand drivers
High cyclicality

Dependent on defense spending cycles and government procurement budgets.