Red Cat Holdings Plunges as Revenue Misses and Outlook Dims

Despite posting staggering revenue growth and securing major military contracts, Red Cat Holdings saw its shares plummet by nearly 23 percent. The drone manufacturer’s third-quarter 2025 results, while showing a 646 percent year-over-year sales increase, failed to meet market expectations, triggering a significant sell-off.

On the surface, the financial results appeared robust. Red Cat reported record quarterly revenue of $9.6 million, a figure that not only represented a 646 percent surge compared to the same period last year but also tripled the revenue from the preceding quarter. However, this impressive growth fell dramatically short of analyst forecasts, which had projected $14.12 million—a miss of 32 percent.

The company’s losses also deepened, with Read more...