Earnings Per Share (GAAP)
$-0.17
vs $-0.15 est.
Revenue
$26.2M
vs $23.9M est.
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.
What to Watch: The path to profitability hinges on whether Red Cat can maintain triple-digit revenue growth while improving gross margins above the current 4% level—Q1 2026 results will show if the Q4 surge represents sustainable momentum or a one-time spike in defense contract deliveries.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.
