Red Cat Holdings Reports Financial Results for Fiscal Second Quarter 2025 and Provides Corporate Update
Red Cat Holdings (RCAT) reported its fiscal Q2 2025 results with several significant developments. The company won the U.S. Army's Short Range Reconnaissance Program and formed a strategic partnership with Palantir Technologies to integrate Visual Navigation software into Black Widow drones. Financial highlights include year-to-date revenue of $4.3 million and cash/receivables of $5.7 million, with an additional $6 million financing secured post-quarter.
The company provided guidance of $80-$120 million for calendar year 2025, primarily driven by SRR-related sales. Red Cat halted Teal 2 production to focus on Black Widow drones, prioritizing long-term growth. The company also acquired FlightWave and secured a TACFI contract from the U.S. Air Force.
Red Cat Holdings (RCAT) ha riportato i risultati fiscali del secondo trimestre 2025 con diversi sviluppi significativi. L'azienda ha vinto il Programma di Ricognizione a Breve Raggio dell'Esercito degli Stati Uniti e ha formato una partnership strategica con Palantir Technologies per integrare il software di Navigazione Visiva nei droni Black Widow. I risultati finanziari includono un fatturato anno su anno di 4,3 milioni di dollari e liquidità/crediti di 5,7 milioni di dollari, con un finanziamento aggiuntivo di 6 milioni di dollari assicurato dopo il trimestre.
L'azienda ha fornito una guida di 80-120 milioni di dollari per l'anno solare 2025, principalmente guidata dalle vendite relative al SRR. Red Cat ha interrotto la produzione del Teal 2 per concentrarsi sui droni Black Widow, dando priorità alla crescita a lungo termine. L'azienda ha anche acquisito FlightWave e ha ottenuto un contratto TACFI dall'Aeronautica degli Stati Uniti.
Red Cat Holdings (RCAT) informó sobre los resultados fiscales del segundo trimestre de 2025 con varios desarrollos significativos. La empresa ganó el Programa de Reconocimiento de Corto Alcance del Ejército de EE. UU. y formó una asociación estratégica con Palantir Technologies para integrar el software de Navegación Visual en los drones Black Widow. Los aspectos financieros incluyen ingresos acumulados de 4,3 millones de dólares y efectivo/cuentas por cobrar de 5,7 millones de dólares, con 6 millones de dólares adicionales en financiamiento asegurado después del trimestre.
La empresa proporcionó una proyección de entre 80 y 120 millones de dólares para el año calendario 2025, impulsada principalmente por las ventas relacionadas con el SRR. Red Cat detuvo la producción del Teal 2 para centrarse en los drones Black Widow, priorizando el crecimiento a largo plazo. La empresa también adquirió FlightWave y obtuvo un contrato TACFI de la Fuerza Aérea de EE. UU.
레드 캣 홀딩스 (RCAT)는 2025 회계 연도 2분기 결과를 보고하며 여러 중요한 발전을 알렸습니다. 이 회사는 미국 육군의 단거리 정찰 프로그램을 수주하고 팔란티어 테크놀로지스와 전략적 파트너십을 결성하여 블랙 위도우 드론에 비주얼 내비게이션 소프트웨어를 통합했습니다. 재무 하이라이트에는 430만 달러의 연간 수익과 570만 달러의 현금/채권이 포함되어 있으며, 분기 이후 추가로 600만 달러의 자금 조달이 완료되었습니다.
회사는 2025년도 달력 연도에 대한 8천만~1억2천만 달러의 가이던스를 제공했으며, 이는 주로 SRR 관련 판매에 의해 추진되고 있습니다. 레드 캣은 블랙 위도우 드론에 초점을 맞추기 위해 티얼 2 생산을 중단하고 장기 성장에 우선순위를 두었습니다. 회사는 또한 플라이트웨이브를 인수하고 미국 공군으로부터 TACFI 계약을 확보했습니다.
Red Cat Holdings (RCAT) a publié ses résultats financiers pour le deuxième trimestre de l'exercice 2025 avec plusieurs développements significatifs. L'entreprise a remporté le programme de reconnaissance à courte portée de l'Armée américaine et a formé un partenariat stratégique avec Palantir Technologies pour intégrer un logiciel de navigation visuelle dans les drones Black Widow. Les points forts financiers comprennent des revenus de 4,3 millions de dollars à ce jour et des liquidités/comptes à recevoir de 5,7 millions de dollars, avec un financement supplémentaire de 6 millions de dollars sécurisé après le trimestre.
L'entreprise a donné une prévision de 80 à 120 millions de dollars pour l'année civile 2025, principalement soutenue par les ventes liées au programme SRR. Red Cat a interrompu la production de Teal 2 afin de se concentrer sur les drones Black Widow, en mettant l'accent sur une croissance à long terme. L'entreprise a également acquis FlightWave et a sécurisé un contrat TACFI avec l'Armée de l'air américaine.
Red Cat Holdings (RCAT) hat seine finanziellen Ergebnisse für das zweite Quartal 2025 mit mehreren bedeutenden Entwicklungen veröffentlicht. Das Unternehmen hat das Kurzstreckenaufklärungsprogramm des US-Army gewonnen und eine strategische Partnerschaft mit Palantir Technologies gegründet, um Visual-Navigation-Software in Black Widow-Drohnen zu integrieren. Zu den finanziellen Eckdaten gehören ein Umsatz von 4,3 Millionen US-Dollar bis dato und liquide Mittel/Forderungen von 5,7 Millionen US-Dollar, wobei zusätzlich 6 Millionen US-Dollar Finanzierung nach dem Quartal gesichert wurden.
Das Unternehmen gab eine Prognose von 80 bis 120 Millionen US-Dollar für das Kalenderjahr 2025 heraus, die hauptsächlich durch SRR-bezogene Verkäufe angetrieben wird. Red Cat stellte die Produktion des Teal 2 ein, um sich auf die Black Widow-Drohnen zu konzentrieren, und priorisierte das langfristige Wachstum. Das Unternehmen erwarb auch FlightWave und sicherte sich einen TACFI-Vertrag von der US-Luftwaffe.
- Won U.S. Army's Short Range Reconnaissance Program contract
- Strategic partnership with Palantir Technologies for Black Widow drones
- Secured $1 million contract for Edge 130 Blue drones from U.S. Army CECOM
- Strong 2025 revenue guidance of $80-$120 million
- Additional $6 million financing secured post-quarter
- Halted production of Teal 2 affecting short-term revenue
- Current revenue of $4.3 million YTD shows significant gap to reach 2025 guidance
Insights
SAN JUAN, Puerto Rico, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or “Company”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, reports its financial results for the fiscal second quarter ended October 31, 2024 and provides a corporate update.
Recent Operational Highlights:
- Announced selection as the winner of the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record.
- Announced a strategic partnership with Palantir Technologies Inc. (Nasdaq: PLTR) to integrate Visual Navigation software (VNav) into Red Cat’s Black Widow drones.
- Announced several executive leadership team updates, including Geoffrey Hitchcock’s promotion from General Manager of Teal Drones to Chief Revenue Officer (CRO) for Red Cat and Chris Rill’s transition from Director of Partner Integration to President of Teal Drones.
- Secured a
$1 million contract for its Edge 130 Blue drones from the United States Army Communications-Electronics Command (CECOM). - Introduced its ARACHNID™ family of unmanned intelligence, surveillance, and reconnaissance (ISR) and precision strike systems at AUSA 2024.
- Closed on acquisition of Flight Wave giving us a completely new revenue stream.
- Secured a Tactical Funding Increase (TACFI) contract from the U.S. Air Force, validating FlightWave’s drone technology for mission-critical defense applications.
- Broke ground on a plan for new manufacturing facility, significantly enhancing production capacity to fulfill existing contracts and scale future operations.
First Quarter 2025 Financial Highlights:
- Year-to-date revenue of
$4.3 million - Ended the quarter with cash and accounts receivable of
$5.7 million - Closed an additional
$6 million financing since quarter end - Guidance of
$80 -$120 million for calendar year 2025 including SRR-related sales
“In the second half of 2024, our company decided to focus on the Black Widow, anticipating its success in the SRR final production contract,” said Jeff Thompson, Red Cat CEO. “We halted production of the Teal 2 to retool for the Black Widow, prioritizing long-term growth over short-term revenue. This strategy has proven successful, enabling us to meet the demands of the new Army contract and all other Black Widow sales and programs of record while managing critical technology integration through our Red Cat Futures Initiative partners. We are now well-positioned to fulfill these demands.”
“We are also pleased to announce our partnership with Palantir,” added Thompson. “With Palantir’s Artificial Intelligence and visual navigation, we believe the Black Widow is one of the most capable drones ever fielded by the Department of Defense. This rucksack-portable drone, powered by Palantir’s software, will boost revenue per drone and increase gross margins.”
“This quarter’s accomplishments highlight Red Cat's growing momentum and strong positioning in the drone technology sector,” said Leah Lunger, Red Cat CFO. “Having been selected as the winner of the U.S. Army’s Short Range Reconnaissance Program of Record reflects the effectiveness of our strategic initiatives and we are now well-positioned to support our projected revenue guidance for calendar year 2025 while continuing to invest in scaling our operations and manufacturing capacity.”
Conference Call Today
CEO Jeff Thompson, CFO Leah Lunger, and CRO Geoffrey Hitchcock will host an earnings conference call at 4:30 p.m. ET on Monday, December 16, 2024 to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question-and-answer session.
Interested parties can attend the conference call through a live webcast that can be accessed at:
https://zoom.us/webinar/register/WN_t_SJfhxGSdyvpDz43XANqg
About Red Cat Holdings, Inc.
Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a leading-edge Family of Systems. This includes the flagship Black Widow™, a small unmanned ISR system that was awarded the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed wing VTOL for extended endurance and range, and FANG™, the industry's first line of NDAA compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.
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. 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-K filed with the Securities and Exchange Commission on July 27, 2023. 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:
E-mail: Investors@redcat.red
NEWS MEDIA:
Phone: (347) 880-2895
Email: peter@indicatemedia.com
| RED CAT HOLDINGS | |||||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| October 31, | April 30, | ||||||||||||
| 2024 | 2024 | ||||||||||||
| ASSETS | |||||||||||||
| Cash and marketable securities | $ | 4,611,092 | $ | 6,067,169 | |||||||||
| Accounts receivable, net | 1,121,398 | 4,361,090 | |||||||||||
| Inventory, including deposits | 12,554,330 | 8,610,125 | |||||||||||
| Intangible assets including goodwill, net | 26,403,796 | 12,882,939 | |||||||||||
| Other | 6,401,772 | 7,473,789 | |||||||||||
| Equity method investee | — | 5,142,500 | |||||||||||
| Note receivable | — | 4,000,000 | |||||||||||
| TOTAL ASSETS | $ | 51,092,388 | $ | 48,537,612 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
| Accounts payable and accrued expenses | $ | 3,244,776 | $ | 2,703,922 | |||||||||
| Debt obligations | 356,964 | 751,570 | |||||||||||
| Operating lease liabilities | 1,551,316 | 1,517,590 | |||||||||||
| Convertible notes payable | 11,911,307 | — | |||||||||||
| Acquisition consideration payable | 7,000,000 | — | |||||||||||
| Total liabilities | 24,064,363 | 4,973,082 | |||||||||||
| Stockholders’ capital | 133,909,751 | 124,690,641 | |||||||||||
| Accumulated deficit/comprehensive loss | (106,881,726 | ) | (81,126,111 | ) | |||||||||
| Total stockholders' equity | 27,028,025 | 43,564,530 | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 51,092,388 | $ | 48,537,612 | |||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| Three months ended October 31, | Six months ended October 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 1,534,727 | $ | 3,930,868 | $ | 4,311,262 | $ | 5,678,997 | ||||||||
| Cost of goods sold | 1,558,202 | 2,730,286 | 4,818,128 | 4,303,750 | ||||||||||||
| Gross (loss) profit | (23,475 | ) | 1,200,582 | (506,866 | ) | 1,375,247 | ||||||||||
| Operating Expenses | ||||||||||||||||
| Research and development | 2,231,470 | 2,222,137 | 3,857,910 | 3,575,688 | ||||||||||||
| Sales and marketing | 2,343,779 | 1,032,645 | 4,385,290 | 2,321,405 | ||||||||||||
| General and administrative | 4,517,695 | 2,838,080 | 8,000,790 | 5,701,838 | ||||||||||||
| Impairment loss | — | — | 93,050 | — | ||||||||||||
| Total operating expenses | 9,092,944 | 6,092,862 | 16,337,040 | 11,598,931 | ||||||||||||
| Operating loss | (9,116,419 | ) | (4,892,280 | ) | (16,843,906 | ) | (10,223,684 | ) | ||||||||
| Other (income) expense | ||||||||||||||||
| Convertible notes payable fair value adjustment | 4,230,307 | — | 4,230,307 | — | ||||||||||||
| Loss on sale of equity method investment | — | — | 4,008,357 | — | ||||||||||||
| Equity method loss | — | — | 734,143 | — | ||||||||||||
| Investment loss, net | — | 333,867 | — | 573,357 | ||||||||||||
| Interest (income) expense, net | (14,634 | ) | 19,696 | (39,188 | ) | 41,553 | ||||||||||
| Other, net | 2,526 | (1,544 | ) | (26,531 | ) | — | ||||||||||
| Other expense | 4,218,199 | 352,019 | 8,907,088 | 614,910 | ||||||||||||
| Net loss from continuing operations | (13,334,618 | ) | (5,244,299 | ) | (25,750,994 | ) | (10,838,594 | ) | ||||||||
| Loss from discontinued operations | — | (599,511 | ) | — | (842,084 | ) | ||||||||||
| Net loss | $ | (13,334,618 | ) | $ | (5,843,810 | ) | $ | (25,750,994 | ) | $ | (11,680,678 | ) | ||||
| Loss per share - basic and diluted | $ | (0.18 | ) | $ | (0.11 | ) | $ | (0.34 | ) | $ | (0.21 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 76,184,777 | 55,606,336 | 75,342,629 | 55,270,838 | ||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| Six months ended October 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss from continuing operations | $ | (25,750,994 | ) | $ | (10,838,594 | ) | ||
| Non-cash expenses | 12,662,208 | 3,411,397 | ||||||
| Changes in operating assets and liabilities | 601,073 | (3,813,162 | ) | |||||
| Net cash used in operating activities | (12,487,713 | ) | (11,240,359 | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Proceeds from sale of equity method investment and note receivable | 4,400,000 | — | ||||||
| Proceeds from sale of marketable securities | — | 10,205,501 | ||||||
| Other | (123,793 | ) | (139,860 | ) | ||||
| Net cash provided by investing activities | 4,276,207 | 10,065,641 | ||||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from issuance of convertible notes payable, net | 7,681,000 | — | ||||||
| Payments of debt obligations, net | (394,606 | ) | (279,126 | ) | ||||
| Payments related to employee equity transactions | (530,965 | ) | (16,292 | ) | ||||
| Proceeds from issuance of common stock through ATM facility, net | — | 9,212 | ||||||
| Net cash used in financing activities | 6,755,429 | (286,206 | ) | |||||
| Net cash used in discontinued operations | — | (384,094 | ) | |||||
| Net decrease in Cash | (1,456,077 | ) | (1,845,018 | ) | ||||
| Cash, beginning of period | 6,067,169 | 3,260,305 | ||||||
| Cash, end of period | 4,611,092 | 1,415,287 | ||||||
| Less: Cash of discontinued operations | — | (6,310 | ) | |||||
| Cash of continuing operations, end of period | 4,611,092 | 1,408,977 | ||||||
| Marketable securities | — | 2,615,289 | ||||||
| Cash of continuing operations and marketable securities | $ | 4,611,092 | $ | 4,030,576 | ||||
FAQ
What is Red Cat Holdings' revenue guidance for 2025?
How much revenue did RCAT report for year-to-date fiscal 2025?
What is the significance of RCAT's partnership with Palantir Technologies?
Why did RCAT halt production of the Teal 2 drone?
What major contracts did RCAT win in fiscal Q2 2025?
