Fourth Quarter and Full-Year 2025 Financial Highlights
Fourth quarter 2025 total revenue was $26.2 million, representing an increase of 1,985% or $24.9 million from $1.3 million in the prior year.
Fourth quarter 2025 total revenue increased sequentially by 172% to $26.2 million.
Full-year 2025 total revenue was $40.7 million, representing an increase of 161% or $25.1 million from $15.6 million in the prior year.
Business Highlights
Secured new orders for Black Widow™ drones from an Asia-Pacific ally. This is the second Asia-Pacific ally to recently order Black Widow systems for military use.
Across divisions, Red Cat expanded BlueOps to 166,000 sq. ft., expanded FlightWave to 51,000 sq. ft., expanded Teal to 37,000 sq. ft. Red Cat achieved total capacity of 254,000 sq. ft. as of December 31, 2025.
Red Cat's Innovation Day on February 27, 2026 showcased its transformation into a true multi‑domain autonomous defense platform, highlighted by the launch and live demonstration of its new USVs operating seamlessly with Black Widow drones, and reinforced by massive manufacturing scale‑up efforts across air and maritime systems.
Strengthened ecosystem of defense partners - including an expanded partnership with AeroVironment and established a new partnership with Redwire - to integrate Black Widow™ and FANG™ into broader mission-system architectures, enhancing interoperability, modularity, and deployment flexibility.
"2025 was a transformative year for Red Cat as we strengthened our position as a trusted provider of advanced drone solutions for defense and government customers," said Jeff Thompson, CEO of Red Cat. "We delivered year-over-year revenue growth of 161%, launched our FANG™ FPV platform, and expanded our Army relationship, and received our first order for 100 Black Widows through the NSPA - a major milestone that underscores growing international demand for our products."
"Our continued and deliberate investments in innovation, manufacturing scale, and strategic partnerships are delivering tangible results. At our inaugural Innovation Day last month, we discussed how well-positioned we remain to rapidly scale production across drones and USVs - which are supported by our major facility expansions in order to capitalize on the expanding addressable market across multi-domain defense."
"As we head into 2026, we continue to see strong momentum in customer engagement and contract activity, validating both our technology roadmap and our long‑term growth strategy. Our focus is clear: scaling production capacity to meet surging demand, advancing our autonomy roadmap, and expanding our customer base both domestically and with allied nations. We're not just responding to market opportunities - we're defining the future of American-made tactical drone systems. This is an exciting phase for Red Cat as we turn innovation into scale and opportunity."
Balance Sheet
Cash at December 31, 2025 totaled $167.9 million, compared to $9.2 million at December 31, 2024.
Inventory and prepaid inventory at December 31, 2025 totaled $30.4 million, compared to $13.6 million at December 31, 2024.
Conference Call Details
Red Cat will host a live video webinar to discuss its 2025 financial results at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) on March 18, 2026. Participants may register in advance to join the live Video Webinar on Zoom at Red Cat's Investor Relations website at https://ir.redcatholdings.com/news-events. Log-in instructions will be available after registering for the event. An archived replay of the event will be available on Red Cat's investor relations website beginning approximately two hours after the call concludes.
About Red Cat Holdings, Inc.
Red Cat (NASDAQ:RCAT) is a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security. Through its wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat 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 unmatched tactical capabilities in small, unmanned aircraft systems (sUAS). Expanding into the maritime domain through Blue Ops, Inc., Red Cat is also innovating in uncrewed surface vessels (USVs), delivering integrated platforms designed to enhance safety and multi-domain mission effectiveness. Learn more at www.redcat.red.
Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Such statements include, but are not limited to, statements relating to the expected timing of the offering and the satisfaction of customary closing conditions related to the offerings, and our intended use of proceeds from the offering. Forward-looking statements are based on Red Cat Holdings, Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the Form 10-KT filed with the Securities and Exchange Commission on March 31, 2025, Red Cat's quarterly reports on Form 10-Q, and the other filings Red Cat makes with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law.
Contact:
INVESTORS:Ankit HiraSolebury Strategic Communications for Red Cat Holdings, Inc.E-mail: [email protected]
NEWS MEDIA:Phone: (347) 880-2895Email: [email protected]
RED CAT HOLDINGS, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
December 31,
2025
2024
ASSETS
Cash
$
167,865
$
9,154
Accounts receivable, net
26,155
489
Inventory, including prepaid inventory
30,394
13,593
Prepaid expenses and other current assets
2,524
2,562
Total current assets
226,938
25,798
Goodwill and intangible assets, net
24,590
26,124
Property and equipment, net
7,797
1,881
Other
1,227
310
Operating lease right-of-use assets
13,125
1,491
Total long-term assets
46,739
29,806
TOTAL ASSETS
$
273,677
$
55,604
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
8,706
$
3,290
Debt obligations - short term
350
350
Contract liabilities and deposits
261
227
Operating lease liabilities
1,011
312
Convertible notes payable
4,518
—
Total current liabilities
14,846
4,179
Deferred income taxes
443
—
Operating lease liabilities
12,556
1,306
Total long-term liabilities
12,999
1,306
Total liabilities
27,845
5,485
Stockholders' equity
442,652
174,864
Accumulated deficit
(196,820
)
(124,745
)
Total stockholders' equity
245,832
50,119
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
273,677
$
55,604
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands)
For the Three Months Ended December 31,
For the Year Ended December 31,
2025
2024*
2025
2024*
Revenues, net
$
26,235
$
1,258
$
40,729
$
15,584
Cost of goods sold
25,122
2,285
