
RCAT Stock Forecast & Price Target
RCAT Analyst Ratings
Bulls say
Red Cat Holdings is poised for substantial revenue growth, projected to reach $125 million in 2026, bolstered by the SRR2 LRP contract and rising international sales. The company ended the third quarter of 2025 with a robust cash balance of $206.4 million, indicating strong financial health and positioning for expansion in unmanned aerial systems (UAS). With the Department of Defense earmarking over $5 billion for unmanned service vehicles (USVs) in the FY26 defense budget, Red Cat is well-positioned to capitalize on increasing demand for innovative drone technology.
Bears say
Red Cat Holdings Inc. has revised its 2025 revenue guidance downward to between $34.5 million and $37.5 million, approximately 44% below consensus expectations, primarily due to delays stemming from the government shutdown and new product introductions like the Edge 130. The company's GAAP gross margins decreased significantly to 6.6%, down from 11.7% in the previous quarter, indicating deteriorating profitability. Additionally, higher-than-expected operating expenditures have resulted in a revised adjusted EBITDA estimate, projecting a loss of $48.3 million, highlighting potential cash burn and execution risks as the company attempts to scale into new unmanned domains.
This aggregate rating is based on analysts' research of Red Cat Holdings and is not a guaranteed prediction by Public.com or investment advice.
RCAT Analyst Forecast & Price Prediction
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