Red Cat Holdings Inc. (RCAT:NASDAQ), the drone technology firm specializing in military, government, and commercial operations, announced plans to release its financial results for the 2024 Stub Period, covering the eight months ending December 31, 2024, on Monday, March 31, 2025, after market close. The company will host an earnings conference call at 4:30 pm Eastern Time the same day to discuss its results and provide a corporate update.
Investors and interested parties may join the call by dialing 1-844-413-3977 (U.S.) or 1-412-317-1803 (international). A live webcast will also be accessible online, with replays available through April 30, 2025.
The forthcoming update follows Red Cat's fiscal second quarter report from December 2024, which highlighted US$4.3 million in year-to-date revenue, US$5.7 million in cash and accounts receivable at quarter's end, and an additional $6 million in financing closed since. The company also issued revenue guidance of US$80 million to US$120 million for the 2025 calendar year, driven in part by expected sales related to the U.S. Army's Short Range Reconnaissance (SRR) Program of Record.
"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, CEO of Red Cat, in the company news release. "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."
Thompson also noted the integration of artificial intelligence and visual navigation software from Palantir Technologies, describing the Black Widow drone as "one of the most capable drones ever fielded by the Department of Defense."
Aerospace and Defense: Shifting Investment Priorities and Tactical Demands in the Drone Sector
Recent developments in the aerospace and defense sector have underscored a marked pivot toward unmanned aerial systems (UAS), particularly those serving military and counter-drone operations. According to a March 24 report from Drone Life, the global military drone market was projected to grow from US$13.9 billion in 2024 to US$25.6 billion by 2034, reflecting a compound annual growth rate (CAGR) of 6.3%. This growth aligned with a broader trend in which the U.S. Department of Defense reallocated approximately US$50 billion from legacy systems to strategic technologies, including drones and counter-drone capabilities.
The report highlighted that this shift in defense funding paralleled increasing investor interest in startups developing drone technology for battlefield applications. The U.S. Army's request for over US$500 million in its 2025 budget to support counter-unmanned aerial systems (CUAS) programs, such as LIDS (Low, Slow, Small UAS Integrated Defeat System), further emphasized the military's prioritization of these technologies.
On March 11, Northland Capital Markets initiated coverage of Red Cat Holdings with an "Outperform" recommendation.
Heightened attention to drone-related threats was also evident at the U.S.-Mexico border. News Nation reported on March 26 that lawmakers had raised concerns over cartel-operated drones monitoring U.S. Border Patrol agents.
According to Representative Juan Ciscomani of Arizona, "Cartel drone activity at the southern border threatens our national security." In a letter to key federal agencies, lawmakers requested detailed contingency plans for addressing threats posed by unmanned systems. The urgency stemmed from incidents such as a 2024 drone attack on Tower 22 in Jordan that killed three U.S. service members and injured 47 others, cited as an example of the danger even small drones could pose in active conflict zones.
Meanwhile, Defense News wrote on March 26 that the U.S. Army had accelerated efforts to develop low-cost munitions for use against drone threats. Gen. James Rainey of Army Futures Command stated, "We're asking companies to mass produce — in the thousands — fires capabilities, counter-[unmanned aircraft systems] capabilities at a lower price point." These efforts aimed to achieve cost-effective parity with adversarial drone systems, such as loitering munitions. Maj. Gen. Frank Lozano added that the Army was pursuing "a very high rate of fire" capability, citing Hydra rockets — costing roughly US$45,000 each — as a benchmark for scalable counter-drone firepower.
Third-Party Expert Analysis
On March 11, Northland Capital Markets initiated coverage of Red Cat Holdings with an "Outperform" recommendation. The firm's analysis reflected a highly favorable outlook on the company's growth trajectory, particularly in the defense-oriented drone segment. The average one-year price target for Red Cat Holdings was US$15.30 per share, with estimates ranging from US$15.15 to US$15.75. This average target represented a 210.03% increase from the company's most recent closing price of US$4.94 per share at the time of reporting.
Fintel also noted that the projected annual revenue for Red Cat Holdings was US$75 million, representing an anticipated increase of 356.30%. The company's projected annual non-GAAP earnings per share (EPS) stood at US$0.03. Institutional sentiment toward the company appeared notably strong. As of early March, there were 124 funds or institutions reporting positions in Red Cat, an increase of 65.33% over the previous quarter. Total institutional share ownership rose by 105.05% to 29.3 million shares.
Portfolio allocations also expanded considerably. For example, Waddell & Associates reported ownership of approximately 12.4 million shares, representing 15.50% of the company. The firm had no prior holdings, indicating a new and significant position. Susquehanna International Group increased its holdings to over 2.1 million shares, a 69.56% increase from the prior quarter, while boosting its portfolio allocation in Red Cat by 1,335.85%.
Fintel concluded that the company's put/call ratio of 0.35 signaled a bullish sentiment among options traders. Taken together, these factors suggested that institutional investors and analysts expressed confidence in Red Cat Holdings' strategic positioning within the evolving drone technology and defense landscape.
Company Catalysts and Competitive Positioning
Red Cat Holdings has continued to advance its strategic roadmap through both organic growth and acquisitions, as detailed on its website. The company operates via two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, and has developed a Family of Systems that includes several mission-specific platforms.
Among these is the Black Widow™, a compact unmanned intelligence, surveillance, and reconnaissance (ISR) system selected as the U.S. Army's SRR Program of Record. In addition, Red Cat's portfolio includes TRICHON™, a fixed-wing vertical takeoff and landing drone designed for extended range and endurance, and FANG™, an NDAA-compliant first-person-view drone designed for military strike applications.
The acquisition of FlightWave Aerospace in 2024 introduced a new revenue stream and added product depth, contributing to Red Cat's overall expansion. The company has also secured Tactical Funding Increase (TACFI) support from the U.S. Air Force, affirming its technology's relevance for mission-critical defense operations.
Red Cat's development pipeline includes the ARACHNID™ family of ISR and precision strike systems, introduced at the AUSA 2024 defense conference. The company recently broke ground on a new manufacturing facility aimed at scaling its production capacity to fulfill growing demand.
Streetwise Ownership Overview*"Our selection as the winner of the U.S. Army's Short Range Reconnaissance Program of Record reflects the effectiveness of our strategic initiatives," said Leah Lunger, Red Cat's Chief Financial Officer, in a December 16 company news release. "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."
Ownership and Share Structure
According to Refinitiv, management and insiders own just under 19% of Red Cat, including CEO Thompson, who holds 14.46%.
Institutional investors own about 33.69%. The Vanguard Group Inc. has 2.93%, AWM Investment Co. owns 2.10%, and Pelion Venture Partners has 1.05%.
The rest is in retail.
The drone company has 85.62M outstanding shares and 69.19M free float traded shares. Its market cap is US$497.87M. Over the past 52 weeks, its stock has traded between US$0.75 and US$15.27 per share.
| Want to be the first to know about interesting Technology investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Red Cat Holdings
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
