Out Fox The $treet

Update - May 28, 2026   Red Cat is now up 40% on beginning production of the USVs, though no news on contracts. These boats cost upwards of $1M each. Also, the drone sector is jumping on news Trump is pushing for equity stakes in drone companies, though ironically shareholder dilution isn't bullish.  -Blue Ops Ramps into Full-Rate Production of U.S.-Built Variant 7, Advancing Red Cat’s Autonomy Stack Across Air, Land and Sea Original article posted on Apr. 21 Red Cat Holdings is positioned for significant growth in defense drones and robotics, with an unofficial 2026 revenue target of $170 million. The company is ramping up USV and drone production, targeting multi-billion-dollar opportunities, but refrains from formal guidance until government contracts are secured. Recent NATO-aligned Black Widow drone orders and robust cash reserves ($168 million) support operational expansion and future upside. Key risks include high competition and uncertainty in USV order flow; war de-es...

  Originally posted on Feb. 11 Red Cat Holdings enters Q4 earnings near highs, with anticipation building for its February 27 Innovation Day and updated long-term targets. The drone company offered preliminary Q4 revenue numbers of $24–$26.5 million, a dramatic increase from prior quarters. RCAT's valuation is compelling versus peers, trading at just 10x 2026 sales targets, with a strong $213 million cash balance and less dilution risk than Ondas. Upcoming Innovation Day could provide clarity on USV division growth and expanded order pipeline, offering potential upside to current conservative revenue targets. Red Cat Holdings, Inc. ( RCAT ) enters Q4 earnings with the stock trading back towards the highs. The company has an Innovation Day presentation each month to finally provide the market with some insights into 2026  targets and long-term goals. My  investment thesis  remains Bullish on the stock, though Red Cat isn't as cheap now as the multiple opportunities t...

Update - January 22, 2026 Red Cat just hit a new high of nearly $17.50. The stock is now up nearly 200% from when SFC pointed out the gift opportunity to buy the drone manufacturer in the $6s. The stock only has a $2 billion market cap, so the rally can continue.  Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Original article posted on Nov. 24, 2025 Red Cat has sharply declined to $6 despite strong momentum in the U.S. drone market and new product launches. The drone manufacturer reported record Q3 revenue with growth of 646% YoY, but 2025 guidance was cut significantly due to government contract delays. The company is expanding into uncrewed surface vessels, targeting a $150 million opportunity, and maintains a robust $213 million cash balance. RCAT stock trades at a low EV/S valuation, making the current dip an attractive entry point for investors seeking exposure to the gro...

Red Cat's post-earnings dip presents a buying opportunity, despite missing FQ2 revenue estimates and the CFO's departure. The company secured a major military contract and partnered with Palantir for AI software for drones, boosting 2025 revenue guidance to $80-$120 million. RCAT stock is trading at 8x 2025 sales estimates, but limited cash raises concerns, though new deals and potential government loans mitigate funding risks. Red Cat Holdings, Inc.  ( NASDAQ: RCAT ) was red-hot heading into the FQ2 earnings report. The drone technology stock slumped following disappointing quarterly results, but the future appears very bright. My investment thesis is Bullish on the stock, especially  if the post-earnings dip holds. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details.