RCAT

Company Overview — What Does Red Cat Holdings, Inc. Do?

Red Cat Holdings, Inc., through its subsidiaries, provides various products, services, and solutions to the drone industry. It offers commercial and government unmanned aerial vehicle technology for reconnaissance, public safety, and inspection applications. The company also provides First Person View (FPV) video goggles; and software and hardware solutions that enable drones to complete inspection services in locations where global positioning systems are not available. In addition, it is involved in the resale of FPV drones and equipment primarily to the consumer marketplace. Further, the company is developing drone flight data analytics and storage solutions, as well as diagnostic products and services. Red Cat Holdings, Inc. is based in Humacao, Puerto Rico. Red Cat Holdings, Inc. (RCAT) is classified as a small-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Jeffrey M. Thompson and employs approximately 70 people. With a market capitalization of $1.5B, RCAT is one of the notable companies in the Technology sector.

Red Cat Holdings, Inc. (RCAT) Stock Rating — Reduce (April 2026)

As of April 2026, Red Cat Holdings, Inc. receives a Reduce rating with a composite score of 34.8/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.RCAT ranks #3,048 out of 4,446 stocks in our coverage universe. Within the Technology sector, Red Cat Holdings, Inc. ranks #346 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

RCAT Stock Price and 52-Week Range

Red Cat Holdings, Inc. (RCAT) currently trades at $12.34. The stock gained $0.41 (3.4%) in the most recent trading session. The 52-week high for RCAT is $18.78, which means the stock is currently trading -34.3% from its annual peak. The 52-week low is $4.60, putting the stock 168.3% above its annual trough. Recent trading volume was 7.9M shares, reflecting moderate market activity.

Is RCAT Overvalued or Undervalued? — Valuation Analysis

Red Cat Holdings, Inc. (RCAT) carries a value factor score of 28/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 5.95x, versus the sector average of 3.16x. The price-to-sales ratio is 71.94x, compared to 1.06x for the average Technology stock.

At current multiples, Red Cat Holdings, Inc. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

Red Cat Holdings, Inc. Profitability — ROE, Margins, and Quality Score

Red Cat Holdings, Inc. (RCAT) earns a quality factor score of 25/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -23.6%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -21.2% versus the sector average of -1.0%.

On a margin basis, Red Cat Holdings, Inc. reports gross margins of -3.8%, compared to 50.9% for the sector. The operating margin is -354.1% (sector: -0.5%). Net profit margin stands at -522.8%, versus -1.5% for the average Technology stock. Revenue growth is running at 145.4% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

RCAT Debt, Balance Sheet, and Financial Health

Red Cat Holdings, Inc. has a debt-to-equity ratio of 11.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 15.29x, indicating strong short-term liquidity. Total debt on the balance sheet is $14M. Cash and equivalents stand at $206M.

RCAT has a beta of 2.50, meaning it is more volatile than the broader market — a $10,000 investment in RCAT would be expected to move 149.9% more than the S&P 500 on any given day. The stability factor score for Red Cat Holdings, Inc. is 15/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

Red Cat Holdings, Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Red Cat Holdings, Inc. reported revenue of $20M and earnings per share (EPS) of $-0.73. Net income for the quarter was $-58M. Gross margin was -3.8%. Operating income came in at $-47M.

In FY 2025, Red Cat Holdings, Inc. reported revenue of $41M and earnings per share (EPS) of $-0.73. Net income for the quarter was $-72M. Gross margin was 3.1%. Revenue grew 128.3% year-over-year compared to FY 2024. Operating income came in at $-67M.

In Q3 2025, Red Cat Holdings, Inc. reported revenue of $10M and earnings per share (EPS) of $-0.16. Net income for the quarter was $-16M. Gross margin was 6.6%. Revenue grew 65.0% year-over-year compared to Q3 2024. Operating income came in at $-18M.

In Q2 2025, Red Cat Holdings, Inc. reported revenue of $3M and earnings per share (EPS) of $-0.15. Net income for the quarter was $-13M. Gross margin was 11.7%. Revenue grew -18.1% year-over-year compared to Q2 2024. Operating income came in at $-13M.

Over the past 8 quarters, Red Cat Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $4M to $20M. Investors analyzing RCAT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

RCAT Dividend Yield and Income Analysis

Red Cat Holdings, Inc. (RCAT) does not currently pay a dividend. This is common among smaller companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

RCAT Momentum and Technical Analysis Profile

Red Cat Holdings, Inc. (RCAT) has a momentum factor score of 68/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 21/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

RCAT vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, Red Cat Holdings, Inc. (RCAT) ranks #346 out of 584 stocks based on the Blank Capital composite score. This places RCAT in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing RCAT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full RCAT vs S&P 500 (SPY) comparison to assess how Red Cat Holdings, Inc. stacks up against the broader market across all factor dimensions.

RCAT Next Earnings Date

No upcoming earnings date has been announced for Red Cat Holdings, Inc. (RCAT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy RCAT? — Investment Thesis Summary

The quantitative profile for Red Cat Holdings, Inc. suggests caution. The quality score of 25/100 flags below-average profitability. The value score of 28/100 indicates premium valuation. Price momentum is positive at 68/100, suggesting the trend favors buyers. High volatility (stability score 15/100) increases portfolio risk.

In summary, Red Cat Holdings, Inc. (RCAT) earns a Reduce rating with a composite score of 34.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on RCAT stock.

Related Resources for RCAT Investors

Explore more research and tools: RCAT vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare RCAT head-to-head with peers: RCAT vs IHS, RCAT vs VRSN, RCAT vs ESE.