Red Cat Holdings, Inc. (RCAT) AI Stock Analysis

Red Cat Holdings, Inc. operates as a military technology firm focused on advancing the drone industry through products, services, and solutions. Headquartered in San Juan, Puerto Rico, the company specializes in developing unmanned aerial systems tailored for diverse applications. Its flagship offering is the Golden Eagle, a small unmanned system with high-resolution imaging capabilities optimized for nighttime operations. In addition, Red Cat provides specialized unmanned aircraft designed for interior spaces and hazardous environments where human access is limited or impractical, serving both military and commercial markets.

Revenue has shown sharp fluctuations, moving from $6.4M in FY2022 down to $4.6M in FY2023, recovering to $17.8M in FY2024, falling to $7.3M in FY2025, and surging 459.8% to $40.7M in FY2026. Across that period, five-year revenue compound annual growth reached 52.1%. However, profitability remains negative, with an FY2026 gross margin of 3.1%, an operating margin of -163.5%, and a net loss of -$72.1M. Over the trailing twelve months ended July 31, 2026, revenue stood at $71.5M with quarterly revenue growing 527.2% year-over-year, alongside an operating margin of -191.4% and diluted EPS of -$0.80.

As of July 31, 2026, Red Cat held $325.6M in cash and short-term investments against total debt of $24.9M, resulting in net cash of $300.7M. The current ratio stood at 14.86, and debt-to-equity was 0.05. In FY2026, the company generated negative operating cash flow of -$89.1M, incurred capital expenditures of $6.6M, and produced free cash flow of -$95.8M. Over five years, the share count increased by 162.5%.

Red Cat trades at a price-to-sales multiple of 10.1x and an enterprise value to revenue multiple of 10.5x, well above the 1.5x price-to-sales median of its US-listed Industrials peers. The company's price-to-book stands at 2.2x. Over the past year, RCAT shares declined 63.3%, trailing the S&P 500 return of 16.8%. Over five years, the stock gained 66.8%, compared to an 83.0% return for the benchmark.

Consensus ratings include 6 Strong Buy, 1 Buy, and 1 Hold recommendations, with zero Sell ratings. The mean price target is $16.50, representing a 249.6% premium over the last close of $4.72. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $151.0M and EPS of -$0.74. For the subsequent fiscal year, 2 analysts forecast revenue of $219.2M and EPS of -$0.56. Red Cat logged 0 EPS beats over the last 4 quarters, and the next earnings date is November 12, 2026.

This page is an AI-written research summary of Red Cat Holdings, Inc. (RCAT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: RCAT income statement, RCAT balance sheet, RCAT key metrics, RCAT analyst forecast, RCAT chart. See the RCAT stock overview for the latest quote and news.