10-K · March 19, 2026
Red Cat reported a sharp top-line increase to approximately $41.0M in 2025 (from $16.0M in 2024) driven by a $26.235M Q4 2025 quarter, but profitability and cash generation deteriorated materially with a 2025 free cash…
Earnings analysis · 10-Q
RCAT earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Red Cat Holdings reported substantial growth in Q1 2026, with revenues of $15.5 million, a staggering 849% increase from $1.6 million in Q1 2025. However, the company reported a diluted EPS of -$0.22, missing consensus…
Read full summary
Red Cat Holdings reported substantial growth in Q1 2026, with revenues of $15.5 million, a staggering 849% increase from $1.6 million in Q1 2025. However, the company reported a diluted EPS of -$0.22, missing consensus estimates. Operational challenges remain evident with significant cash outflows and rising expenses, indicating ongoing financial stress despite promising revenue growth.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.22
- Gross margin
- 13%
What stood out
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Revenue Growth of 849%
Q1 2026 revenues reached $15.5 million compared to $1.6 million in Q1 2025, an increase of $13.8 million.
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Gross Profit Turnaround
Gross profit improved to $2.0 million in Q1 2026 from a loss of $0.8 million in Q1 2025.
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Increase in Operating Expenses
Total operating expenses surged to $29.3 million in Q1 2026, up from $11.6 million in Q1 2025, a rise of 152%.
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Significant Cash Outflows
Operating cash flow was -$31.9 million in Q1 2026, compared to -$15.9 million in Q1 2025.
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Strong Cash Position
As of March 31, 2026, cash totaled $131.9 million, highlighting liquidity despite operational losses.
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Inventory Management Challenges
Inventory balances totaled $62.7 million at the end of Q1 2026.
What to watch
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High Operating Cash Flow Losses
Net cash used in operating activities increased to $31.9 million in Q1 2026 from $15.9 million in Q1 2025.
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Increased Legal Risks
The company is involved in several legal proceedings, including class action lawsuits that could adversely affect its financial condition.
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Weak Internal Controls
Management noted issues with internal controls over financial reporting, creating risks for misstatements.
Management's outlook
Management anticipates annual revenues between $150 million and $180 million for the current fiscal year.
Earlier filings 4
10-Q · August 14, 2025
Red Cat reported Q2 revenue of $3,218,577, down 49.9% YoY from $6,419,669, while gross margin improved to 11.7% from 4.2% YoY. Operating loss widened to $12,646,547 (operating margin -392.9%) driven by sharp increases…
10-Q · December 16, 2024
Red Cat reported a sharp revenue decline to $1,534,727 for the three months ended October 31, 2024 and a GAAP net loss of $13,334,618 (loss per share $0.18). Operating loss widened to $9,116,419 and management added…
10-Q · March 18, 2024
Revenue and gross margin improved sharply in the quarter — revenue rose to $5,847,933 from $1,667,683 a year earlier and gross margin moved to $1,101,651 (18.8% of sales) from a $(96,929) loss. Despite top-line…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.