📊 RCAT Key Takeaways
Is Red Cat Holdings, Inc. (RCAT) a Good Investment?
Red Cat Holdings exhibits severely deteriorating fundamentals with operating losses of $27.3M on just $15.5M revenue, resulting in an unsustainable -176.5% operating margin and negative free cash flow of -$38.7M. While the strong cash position of $131.9M provides runway, at current burn rates the company has approximately 4 years of liquidity remaining without operational improvement, making this a high-risk, cash-depleting venture.
Red Cat Holdings, Inc. Key Strengths (RCAT)
- Strong cash position of $131.9M provides operational runway
- Minimal debt burden with only $350K long-term debt and 0.00x debt/equity ratio
- Excellent liquidity ratios (10.99x current ratio, 8.34x quick ratio) reduce near-term bankruptcy risk
RCAT Stock Risks: Red Cat Holdings, Inc. Investment Risks
- Massive operating losses of -$27.3M on minimal $15.5M revenue indicates broken unit economics
- Severe negative operating cash flow of -$31.9M demonstrates unsustainable cash burn
- Diluted EPS deteriorating 82.5% YoY with no path to profitability visible in current fundamentals
- Tiny revenue base relative to operating expenses suggests structural cost issues
- FCF margin of -250.3% indicates value destruction at an alarming rate
Key Metrics to Watch
- Operating cash flow trajectory toward positive territory
- Revenue growth acceleration to offset fixed cost structure
- Operating margin improvement and path to breakeven
- Cash burn rate deceleration and cash runway extension
- Gross margin expansion through pricing or cost of goods reduction
Red Cat Holdings, Inc. (RCAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 10.99x current ratio provides a solid financial cushion.
RCAT Profit Margin, ROE & Profitability Analysis
RCAT vs Technology Sector: How Red Cat Holdings, Inc. Compares
How Red Cat Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Red Cat Holdings, Inc. Stock Overvalued? RCAT Valuation Analysis 2026
Based on fundamental analysis, Red Cat Holdings, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Red Cat Holdings, Inc. Balance Sheet: RCAT Debt, Cash & Liquidity
RCAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Red Cat Holdings, Inc.'s revenue has grown significantly by 876% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.40 indicates the company is currently unprofitable.
RCAT Revenue Growth, EPS Growth & YoY Performance
RCAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.6M | -$23.1M | $-0.22 |
| Q3 2025 | $1.3M | -$6.8M | $-0.16 |
| Q2 2025 | $529.4K | -$5.8M | $-0.11 |
| Q1 2025 | $310.9K | -$5.8M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Red Cat Holdings, Inc. Dividends, Buybacks & Capital Allocation
RCAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Red Cat Holdings, Inc. (CIK: 0000748268)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RCAT
What is the AI rating for RCAT?
Red Cat Holdings, Inc. (RCAT) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RCAT's key strengths?
Claude: Strong cash position of $131.9M provides operational runway. Minimal debt burden with only $350K long-term debt and 0.00x debt/equity ratio.
What are the risks of investing in RCAT?
Claude: Massive operating losses of -$27.3M on minimal $15.5M revenue indicates broken unit economics. Severe negative operating cash flow of -$31.9M demonstrates unsustainable cash burn.
What is RCAT's revenue and growth?
Red Cat Holdings, Inc. reported revenue of $15.5M.
Does RCAT pay dividends?
Red Cat Holdings, Inc. does not currently pay dividends.
Where can I find RCAT SEC filings?
Official SEC filings for Red Cat Holdings, Inc. (CIK: 0000748268) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RCAT's EPS?
Red Cat Holdings, Inc. has a diluted EPS of $-0.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RCAT's fundamental grade?
Based on our AI fundamental analysis in May 2026, Red Cat Holdings, Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is RCAT stock overvalued or undervalued?
Valuation metrics for RCAT: ROE of -11.1% (sector avg: 22%), net margin of -171.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is RCAT's AI grade for 2026?
Our dual AI analysis gives Red Cat Holdings, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RCAT's free cash flow?
Red Cat Holdings, Inc.'s operating cash flow is $-31.9M, with capital expenditures of $6.8M. FCF margin is -250.3%.
How does RCAT compare to other Technology stocks?
Vs Technology sector averages: Net margin -171.6% (avg: 18%), ROE -11.1% (avg: 22%), current ratio 10.99 (avg: 2.5).