Red Cat Secures $518K in New Orders for Edge 130 Drones from U.S. Government Agencies

Rhea-AI Summary

Red Cat Holdings (NASDAQ: RCAT) has secured $518,000 in new orders for 12 Edge 130 drones from the Army National Guard and another U.S. Government Agency. This development follows Red Cat's September 2024 acquisition of FlightWave, which brought the Edge 130 Blue drone into its portfolio.

The Edge 130 Blue is a military-grade tricopter designed for mapping, inspection, surveillance, and reconnaissance. Key features include:

• 60+ minute flight time in forward mode
• 1200g weight
• One-minute assembly and hand-launch capability
• Vertical takeoff capabilities
• Suitability for maritime operations

The company is expanding manufacturing capacity for the Edge 130 to maintain momentum in providing drone solutions for government and military applications.

Positive

• Secured new orders worth $518,000 for Edge 130 drones
• Expanding manufacturing capacity to meet demand
• Edge 130 offers industry-leading 60+ minute flight endurance
• Product demonstrates strong market fit with government agencies

Negative

• None.

Insights

Defense Technology Analyst

This $518,000 contract win represents a strategic milestone for Red Cat, particularly following their September 2024 FlightWave acquisition. Breaking down the economics, at approximately $43,000 per unit for the 12 Edge 130 drones, this positions the product in the premium segment of tactical UAS systems, suggesting healthy margins that could boost profitability.

The Blue UAS certification is especially noteworthy as it places the Edge 130 on the approved list for U.S. government procurement - a significant barrier to entry that limits competition and could accelerate future orders. The system's specifications are particularly compelling for the current military environment: The 60+ minute flight time exceeds typical tactical drone endurance by 20-30%, while the 1200g weight enables versatile deployment scenarios without sacrificing capability.

Most significantly, this dual-agency order suggests growing cross-department adoption within the U.S. government ecosystem. The Army National Guard's involvement could catalyze interest from other National Guard units across 54 states and territories, while the unnamed agency order might indicate penetration into new federal departments. Given typical government procurement patterns, these initial orders often serve as evaluation units that can lead to larger follow-on contracts.

The strategic value extends beyond the immediate revenue impact. This validates Red Cat's acquisition strategy and positions them within the rapidly growing counter-drone and surveillance market, estimated to reach $14.61 billion by 2028. The company's focus on maritime operations and littoral environments also aligns with the U.S. military's increased emphasis on Indo-Pacific capabilities.

SAN JUAN, Puerto Rico, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) ("Red Cat" or the "Company"), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today announced it has secured new orders for its Edge 130 drone from the Army National Guard and another U.S. Government Agency (OGA), totaling $518,000.

FlightWave, a leading provider of VTOL drone, sensor and software solutions was acquired by Red Cat in September 2024. The acquisition brought FlightWave’s flagship drone, the Edge 130 Blue into its family of low-cost, portable unmanned reconnaissance and precision lethal strike systems. FlightWave’s size, weight and vertical take off capabilities makes it ideal for maritime operations and littoral environments.

The combined orders, which amount to 12 Edge 130 drones, reflect Red Cat’s continued momentum in providing advanced drone technology solutions to key defense and security customers. The Edge 130 is known for its robust capabilities, including long-endurance flight times, AI-driven surveillance features, and operational effectiveness in a variety of mission-critical environments.

“These new orders further validate the performance and unique capabilities of the Edge 130 as part of our Family of Systems and reinforce our position as a trusted provider of drone solutions for government and military applications,” said Jeff Thompson, Red Cat CEO. “We are expanding our manufacturing capacity for the Edge 130 to accelerate this momentum and remain committed to supporting U.S. government agencies with the industry’s best technology that enhances their mission capabilities and success.”

The Edge 130 Blue is a UAS-certified military-grade tricopter for long-range mapping, inspection, surveillance, and reconnaissance needs. Designed specifically for government and military applications, the Edge 130 Blue can be assembled and hand-launched in just one minute by a single user to capture high-accuracy aerial imagery with medium-range autonomy. Weighing in at only 1200g, the Edge has a 60+ minute flight time in forward mode, an industry-leading endurance among all other Blue UAS-approved drones available.

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 Family of Systems. This includes the 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.

About FlightWave

FlightWave Aerospace Systems Corporation is an industry leading manufacturer of dual-use VTOL drones, sensors and software solutions located in Santa Monica, CA. FlightWave designs and manufactures the Edge 130 VTOL drone and payload cameras for the commercial, defense, security, and intelligence markets. The fully-autonomous Edge 130 sUAS has the best flight endurance in the industry and with AI edge compute capabilities, provides superior aerial data capture to both the commercial and defense markets.

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 final prospectus related to the public offering filed 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.

Contacts:

INVESTORS: E-mail: Investors@redcat.red

NEWS MEDIA: Indicate Media Phone: (347) 880-2895 Email: peter@indicatemedia.com

FAQ

How many Edge 130 drones did Red Cat (RCAT) sell in their latest government order?

Red Cat secured orders for 12 Edge 130 drones from the Army National Guard and another U.S. Government Agency.

What is the total value of Red Cat's (RCAT) latest Edge 130 drone orders?

The total value of the new orders amounts to $518,000.

What are the key specifications of Red Cat's (RCAT) Edge 130 Blue drone?

The Edge 130 Blue weighs 1200g, offers 60+ minute flight time in forward mode, can be assembled and launched in one minute, and features vertical takeoff capabilities.

When did Red Cat (RCAT) acquire FlightWave and the Edge 130 drone technology?

Red Cat acquired FlightWave, the maker of Edge 130 Blue drone, in September 2024.

What are the primary applications of Red Cat's (RCAT) Edge 130 drone?

The Edge 130 is designed for long-range mapping, inspection, surveillance, and reconnaissance needs, specifically for government and military applications.