Red Cat Holdings (RCAT) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Red Cat Holdings

NasdaqCM•Industrials•Aerospace & Defense

$8.37-0.17(-0.02%)Market closed

Market Cap

$1.09B

P/S

15.2x

P/B

2.3x

Red Cat Holdings, Inc., together with its subsidiaries, provides drone and robotic solutions for defense, national security, and commercial applications in the United States. The company designs and manufactures small and tactical unmanned aircraft systems (UAS), such as BLACK WIDOW, a short-range reconnaissance war fighter with selectable integrated AI software capabilities; TEAL 2, a blue UAS product of defense used by combat soldiers, police officers, firefighters, wildlife managers, and industrial inspectors; and FANG, a first-person view small UAS. It also develops and produces long-endurance, vertical takeoff, and landing fixed-wing unmanned aircraft systems designed for extended-range intelligence, surveillance, and reconnaissance missions, such as THE EDGE 130. In addition, the company develops BLUE OPS, a battle-tested uncrewed surface vessel weapons system. Further, it provides FANG FPV DRONE, part of ARACHNID family of unmanned intelligence. The company has a Partnership with Havoc to develop open-architecture autonomous maritime defense systems. Red Cat Holdings, Inc. is based in South Salt Lake, Utah.

How this company scores

AverageMetricSide Score: 52.5/100

Strongest: Balance Sheet & Red Flags (19/25); weakest: Cash & Earnings Quality (8/25).

Profitability8/25

Growth17.5/25

Balance Sheet & Red Flags19/25

Cash & Earnings Quality8/25

Strengths

Growing revenueLong cash runwayLow leverageCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 15.2x5y range 15.2x – 48.6x

Currently below its 6-quarter median.

P/B · 2.3x5y range 2.3x – 17.4x

Currently below its 6-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 8 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $1.09B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $71.54M
Q. Revenue: $20.19M
TTM EBITDA: $-103.98M
TTM Op. Income: $-107.42M
Q. Op. Income: $-38.65M
TTM Net Income: $-97.48M
Q. Net Income: $-35.26M
EPS: $-0.26
Shares Out.: $136.89M

$71.54M in TTM revenue grew 320.7% YoY, reaching $20.19M last quarter. TTM EBITDA of $-103.98M and TTM operating income of $-107.42M show growth is flowing through to the bottom line. However, net income is negative at $97.48M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 16.1%
EBITDA Margin: -184.1%
Op. Margin: -191.4%
Net Margin: -174.6%

Op. margin of -191.4% is up 201.5% YoY — cost efficiency is improving. Net margin at -174.6% and gross margin of 16.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 15.2x
P/B Ratio: 2.3x

P/S of 15.2x and P/B of 2.3x. P/S is high, meaning growth expectations are priced in.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $527.49M
Cash: $325.55M
Long-Term Debt: $892,000
Book Value: $471.18M
D/E Ratio: 0.0
Debt/EBITDA: N/A

With $527.49M in assets and $892,000 in long-term debt, D/E is 0.0and book value is $471.18M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 0% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-46.80M
TTM Free Cash Flow: $-157.70M
FCF Margin: -220.4%
FCF / Net Income: 1.6

TTM FCF of $-157.70M on $-46.80M in operating cash flow. The FCF / Net Income ratio of 1.6x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 6 consecutive quarters — a weakening trend.