Red Cat Holdings Q1 revenue skyrockets 849% on new drone orders

Red Cat Holdings

07/05/2026 21:49

Overview

U.S. drone and robotics provider's Q1 revenue rose 849% yr/yr to $15.5 mln

Gross margin improved to 12.7% from negative 52.1% a year ago

Company announced acquisitions and strategic partnerships, including pending Quaze Technologies deal

Outlook

Red Cat targets annual revenue in short-medium term between $150 mln and $180 mln

Company expects improving margins and greater product diversity

Red Cat says it is ready to scale as defense budgets for UAVs and USVs may rise in 2027

Result Drivers

NEW DRONE ORDERS - Co said large new orders for Black Widow drones from NATO and Asia-Pacific allies drove revenue growth

STRATEGIC PARTNERSHIPS - Co cited new partnerships, including with Ukraine’s Spetstechnoexport, as supporting next-generation product development

ACQUISITIONS - Co said recent and pending acquisitions, including Apium Swarm Robotics and Quaze Technologies, expand capabilities and product diversity

Company press release: ID:nGNX93gjZ4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$15.5 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Red Cat Holdings Inc is $20.00, about 88.3% above its May 6 closing price of $10.62

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)