Red Cat Holdings (NASDAQ: RCAT) is a defense technology company that designs and manufactures small unmanned aircraft systems (sUAS) for military and public safety customers. Revenue comes from the sale of tactical drones and related systems to defense end markets, primarily the U.S. Army and other government customers. The company operates through its Teal Drones subsidiary, which achieved AS9100 aerospace and defense quality certification in July 2025 and was selected as a winner of the U.S. Army's Short Range Reconnaissance (SRR) Program of Record in November 2024. For the year ended December 31, 2025, consolidated revenue implied a gross profit of $1.3 million on a 3% gross margin, against a net loss from continuing operations of $72.1 million. The manufacturing facility operated below designed production capacity during FY2025, which weighed on gross margins. Research and development spending totaled $17.9 million in FY2025, up 186% from the year ended April 30, 2024.

Revenue model

Transactional product sales of tactical sUAS hardware and systems to defense and public safety customers, primarily under U.S. government contracts and programs of record.

Products and services

Teal Drones small unmanned aircraft systems including the Black Widow, designed for tactical military missions such as short range reconnaissance (SRR), battlefield intelligence, force protection, and precision targeting.

Customers and end markets

U.S. Army and defense/public safety agencies. Primary end market is U.S. military tactical units. The company was selected for the U.S. Army SRR Program of Record as of November 2024.

Geographic exposure

United States, with manufacturing and operations domestically. Filing does not specify international revenue breakdown.

Source: SEC 10-K, filed 2026-03-19

Industry: Services-Prepackaged Software Peers: Unusual Machines Inc