Red Cat Holdings Faces Perfect Storm as Revenue Forecasts Collapse

The drone technology sector received a shock this week as Red Cat Holdings, a developer of unmanned aerial systems, confronts a devastating combination of disappointing financial results and looming technical selling pressure. Once viewed as a promising Pentagon contractor, the company now faces an existential crisis that has shattered investor confidence.

In a move that stunned market observers, Red Cat’s management dramatically slashed its fiscal 2025 revenue guidance during its recent earnings release. The company now anticipates generating only $34.5 to $37.5 million in revenue—a staggering reduction from the previously projected range of $80 to $120 million. This represents a collapse of more than two-thirds, even when compared to the lower end Read more...