Red Cat Holdings (RCAT) Preannounces Q4 Revenue of $24M-$26.5M, Stock Surges Over 11%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: Fool
- Revenue Expectations: Red Cat Holdings anticipates Q4 2025 revenue between $24 million and $26.5 million, exceeding analyst forecasts, indicating strong demand in the military drone market that could drive future performance.
- Staggering Year-over-Year Growth: The projected Q4 revenue reflects a staggering year-over-year increase of up to 1,842%, and while the full-year performance is less impressive, a total revenue increase of 153% is still noteworthy, showcasing the company's potential in the rapidly growing drone sector.
- Ongoing Losses: Despite significant revenue growth, Red Cat reported losses exceeding $52 million in the first three quarters of 2025, nearly double the losses from the same period last year, highlighting serious challenges in achieving profitability that may affect investor confidence.
- Cash Reserves: As of the latest report, Red Cat holds $184 million in cash reserves, net of debt, which may sustain operations for three more years; however, analysts do not expect profitability before 2028, indicating a pressing need for the company to accelerate its path to self-sufficiency.
Analyst Views on RCAT
Wall Street analysts forecast RCAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RCAT is 15.00 USD with a low forecast of 12.00 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 14.250
Low
12.00
Averages
15.00
High
18.00
Current: 14.250
Low
12.00
Averages
15.00
High
18.00
About RCAT
Red Cat Holdings Inc is a Puerto Rico-based provider of products, services, and solutions to the drone industry. The Company provides its services to the enterprise, military, and consumer markets via designing, developing, marketing, and drone software and products' sales. Red Cat's Golden Eagle drones are approved by the Department of Defense for reconnaissance, public safety, and inspection applications. Through its wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, The Company develops American-made hardware and software that support military, government, and public safety operations across air, land, and sea. Its Family of Systems, led by Black Widow, delivers tactical capabilities in small, unmanned aircraft systems (sUAS). The Company's offering also includes uncrewed surface vessels (USVs), delivering integrated platforms designed to enhance safety and multi-domain mission effectiveness.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
