Red Cat Holdings, Inc. (RCAT) Q4 2025 Earnings Results

Loss widens beyond expectations. Red Cat Holdings reported a loss of $0.17 per share for Q4 2025, wider than the consensus estimate of a $0.15 loss. The 13.3% wider loss came despite strong revenue growth, as the aerospace and defense company posted a net loss of $19.7 million. The stock climbed 8.1% following the report, suggesting investors focused on the top-line momentum rather than the bottom-line miss. Trading volume surged to 20.7 million shares, well above typical levels.

Revenue surges past consensus. Q4 revenue of $26.2 million topped the $23.9 million analyst consensus by 9.7%. Year-over-year revenue growth accelerated 315.8%, marking a dramatic expansion from the $6.3 million reported in Q4 2024. The company’s gross profit of $1.1 million translated to a 4.2% gross margin, pressured by $25.1 million in cost of revenue. Operating loss widened to $23.9 million, while adjusted EBITDA came in at negative $17.8 million. The analyst community maintains a bullish stance with four Buy or Strong Buy ratings and zero Hold or Sell recommendations.

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