Red Cat Holdings Inc (RCAT), a leading drone technology company, reported its first-quarter financial results for fiscal year 2025 after the market closed on Monday. While the company saw a 59% year-over-year increase in revenue, reaching $2.78 million, it fell short of analyst expectations of $3.85 million. The company also reported a loss of 17 cents per share, missing analyst estimates of a loss of 8 cents per share.
Despite the earnings miss, Red Cat remains optimistic about its future prospects. The company boasts a record backlog of $13 million, indicating strong demand for its products. This demand is driven by both domestic and international adoption, particularly for its “Family of Systems,” which includes the Edge 130 Blue drone.
Jeff Thompson, chairman and CEO of Red Cat, highlighted the company’s significant global demand and growth trajectory. He expressed confidence in the company’s ability to maintain this momentum, stating that the anticipated revenue range of $50-$55 million for calendar year 2025 reflects this ongoing growth. Red Cat’s future outlook is further bolstered by its involvement in the U.S. Army’s Short-Range Reconnaissance Program of Record and its plans to expand production capacity.
During the quarter, Red Cat made notable progress. The company presented drone solutions at multiple Defense conferences, announced the development of a new family of small ISR (Intelligence, Surveillance, Reconnaissance) and precision strike systems, closed the FlightWave asset purchase agreement, and launched the Red Cat futures initiative.
Looking ahead, Red Cat is focused on achieving its ambitious revenue targets and capitalizing on the growing demand for its drone technology. Management will host a conference call at 4:30 p.m. ET to discuss these results in greater detail.
