Announcement • Oct 10

Red Cat Holdings, Inc. Introduces Fang™? - A Low-Cost, Ndaa-Compliant Line of Fpv Drones for Defense and Security Operations

Red Cat Holdings, Inc. announced the launch of its FANG™? line of NDAA-compliant First Person View (FPV) drones, starting with the 7-inch FANG™? F7. Initially developed through a U.S. military lab program, FANG has progressed from concept to field-ready, providing secure, retrievable FPV systems that meet federal procurement requirements. The FANG line, part of Red Cat's Arachnid Family of Systems, provides operators with secure, American-made FPV drones that combine performance with significant savings. The FANG™? F7 features a 7-inch carbon fiber frame engineered for durability and stability, paired with a retrievable design that makes it reusable and cost-efficient. This balance of rugged construction and affordability ensures the drone is equally effective as a training tool and as a mission-ready asset. The FANG line was created to strengthen domestic drone production by reshoring manufacturing and replacing components traditionally sourced from China. Built to meet federal purchasing requirements, FANG offers NDAA-compliant solutions for defense, public safety, and other government agencies. All critical components are independently certified and listed on the DIU Blue UAS Framework, with the full system pending inclusion on the Blue UAS cleared list. Setting a New Standard for FPV Drones: Unmatched Affordability: The FANG line is designed as the lowest-cost family of NDAA-compliant FPV drones on the market, addressing demand for attritable systems for training and practice. Retrievable & Reusable: Unlike one-time-use loitering systems, FANG drones are recoverable, reducing total cost of ownership. Training Advantage: Enables operators to build proficiency and mission readiness through repeated, cost-efficient practice. Precision Effects: Dual-use design supports ISR (intelligence, surveillance, reconnaissance) and precision effects missions, broadening tactical flexibility. Ecosystem Integration: Future models in the FANG line will integrate with Red Cat's ArachnID ecosystem and UAS Tool (ATAK) command-and-control environment. NDAA-Compliant Components: FANG drones incorporate UMAC-manufactured motors and other key parts, ensuring trusted, U.S.-sourced components. Availability: The FANG F7 is now available for purchase by defense, public safety, and government agencies operating under NDAA restrictions. Red Cat will fulfill orders directly and through authorized procurement channels.

Announcement • May 26

Pomerantz Law Firm Announces the Filing of a Class Action Against Red Cat Holdings, Inc. and Certain Officers

Pomerantz LLP announces that a class action lawsuit has been filed against Red Cat Holdings, Inc. and certain officers. The class action, filed in the United States District Court for the District of New Jersey, and docketed under 25-cv- 05427, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Red Cat securities between March 18, 2022 and January 15, 2025, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials. Red Cat, together with its subsidiaries, provides various products, services, and solutions to the United States ("U.S.") drone industry. The Company's products include, inter alia, the "Teal 2" drone, a small, unmanned aircraft system ("sUAS") designed to purportedly "Dominate the Night" during nighttime military operations.Red Cat manufactures its drones through its subsidiary Teal Drones, Inc. ("Teal") at a facility located in Salt Lake City, Utah (the "Salt Lake City Facility"). Throughout 2022, Defendants touted their development of the Salt Lake City Facility's capacity to produce "thousands of drones per month" or "tens of thousands of drones" per year. In March 2022, Red Cat announced that Teal had been selected by the U.S. Department of Defense's Defense Innovation Unit and the U.S. Army to compete in Tranche 2 of the U.S. Army's Short Range Reconnaissance Program of Record (the "SRR Program"). The SRR Program is a U.S. Army initiative to provide a small, rucksack-portable sUAS to U.S. Army platoons.At all relevant times, Defendants suggested or otherwise asserted that the SRR Program's Tranche 2 contract (the "SRR Contract") was worth potentially hundreds of millions to over a billion dollars in contract revenues. In March 2023, Company management confirmed that "[t]he Salt Lake City factory is complete and ready to go" and "[w]e now have the capacity to produce thousands of drones per month."The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Salt Lake City Facility's production capacity, and Defendants' progress in developing the same, was overstated; (ii) the overall value of the SRR Contract was overstated; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.On July 27, 2023, Red Cat hosted a conference call with investors and analysts to discuss its financial and operating results for its fiscal year 2023. During the call, Defendants revealed that the Salt Lake City Facility could only currently produce 100 drones per month, and that the facility was still being built, refined, and expanded. Red Cat filed an annual report on Form 10-K with the U.S. Securities and Exchange Commission the same day, which likewise reported that construction of the facility was only "substantially completed" and potentially could reach a production capacity of one thousand drones per month over the next 2 to 3 years, but only with additional capital investments and manufacturing efficiencies realized.Following these disclosures, Red Cat's stock price fell $0.10 per share, or 8.93%, to close at $1.02 per share on July 28, 2023.On September 23, 2024, Red Cat issued a press release announcing its financial and operating results for the first quarter of its fiscal year 2025. Among other results, the Company reported losses per share of $0.17, missing consensus estimates by $0.09, and revenue of $2.8 million, missing consensus estimates by $1.07 million. On a subsequent conference call that Red Cat hosted with investors and analysts the same day to discuss these results, Company management disclosed that Red Cat had spent "the past four months . . . retooling [the Salt Lake City Facility] and preparing for high volume production[,]" while admitting that a "pause in manufacturing of Teal 2 and building our Army prototypes impacted Teal 2 sales" because, inter alia, Red Cat "couldn't produce and sell Teal 2 units[] while retooling [its] factory."On this news, Red Cat's stock price fell $0.80 per share, or 25.32%, over the following two trading sessions, to close at $2.36 per share on September 25, 2024. On November 19, 2024, Red Cat issued a press release announcing that it had won the SRR Contract. On a subsequent conference call that Red Cat hosted with investors and analysts the same day to discuss the contract win, Defendants continued to assert that the SRR Contract was worth potentially hundreds of millions of dollars, while expressing their confidence that Red Cat could realize up to $50 million to $79.5 million in revenue from the SRR Contract during it fiscal year 2025 alone.Then, on January 16, 2025, Kerrisdale Capital ("Kerrisdale") published a report (the "Kerrisdale Report") alleging, inter alia, that Defendants had overstated the value of the SRR Contract, which Kerrisdale found was only worth approximately $20 million to $25 million based on U.S. Army budget documents. The Kerrisdale Report also alleged that Defendants had been misleading investors about the Salt Lake City Facility's production capacity for years, while also raising concerns about the timing of executive departures and insider transactions that took place shortly after Red Cat announced it had won the SRR Contract. On this news, Red Cat's stock price fell $2.35 per share, or 21.54%, over the following two trading sessions, to close at $8.56 per share on January 17, 2025.

Aerospace & Defense earnings growth	18.0%
Revenue growth rate	42.6%
Future return on equity	n/a
Analyst coverage	Good
Last updated	18 Aug 2026

Date	Revenue	Earnings	Free Cash Flow	Cash from Op	Avg. No. Analysts
12/31/2028	273	-131	N/A	-100	2
12/31/2027	221	-111	-70	-64	5
12/31/2026	152	-116	-216	-191	6
6/30/2026	72	-97	-158	-139	N/A
3/31/2026	55	-76	-118	-105	N/A
12/31/2025	41	-72	-96	-89	N/A
9/30/2025	7	-92	-70	-69	N/A
6/30/2025	-1	-88	-54	-53	N/A
3/31/2025	2	-83	-43	-42	N/A
12/31/2024	7	-65	-31	-31	N/A
10/31/2024	16	-36	-20	-19	N/A
7/31/2024	19	-28	-14	-14	N/A
4/30/2024	18	-22	-19	-19	N/A
1/31/2024	13	-27	-25	-24	N/A
10/31/2023	8	-28	-29	-27	N/A
7/31/2023	5	-28	-34	-32	N/A
4/30/2023	5	-26	-32	-30	N/A
1/31/2023	5	-20	-27	-25	N/A
10/31/2022	5	-17	-23	-21	N/A
7/31/2022	6	-14	-18	-17	N/A
4/30/2022	6	-12	-16	-16	N/A
1/31/2022	7	-10	-13	-13	N/A
10/31/2021	7	-16	-9	-9	N/A
7/31/2021	6	-14	-5	-5	N/A
4/30/2021	5	-13	-1	-1	N/A
1/31/2021	3	-11	-1	-1	N/A
10/31/2020	1	-2	-1	-1	N/A
7/31/2020	1	-2	-1	-1	N/A
4/30/2020	0	-2	N/A	-1	N/A
1/31/2020	0	-1	N/A	-1	N/A
10/31/2019	N/A	-1	N/A	-1	N/A
7/31/2019	N/A	-1	N/A	-1	N/A
4/30/2019	N/A	-1	N/A	-1	N/A

Data	Last Updated (UTC time)
Company Analysis	2026/08/23 03:01
End of Day Share Price	2026/08/21 00:00
Earnings	2026/06/30
Annual Earnings	2025/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
Amit Dayal	H.C. Wainwright & Co.
Jon Hickman	Ladenburg Thalmann & Company
Glenn Mattson	Ladenburg Thalmann & Company

Red Cat Holdings Future Growth

Future criteria checks 2/6

Key information

Recent future growth updates

Consensus EPS estimates fall by 13%

Red Cat Holdings, Inc. Reaffirms Earnings Guidance for the Full Year 2026

Consensus EPS estimates fall by 111%, revenue upgraded

Consensus estimates of losses per share improve by 13%

Price target increased by 12% to US$21.75

Consensus revenue estimates decrease by 20%

Recent updates

Red Cat Holdings’ Blue Ops Teams Up With Havoc on Autonomous Maritime Defense Systems

Independent Director recently sold US$585k worth of stock

Red Cat Holdings, Inc. Announces Promotion of Mitch Mcdonald to Divisional Chief Executive Officer of Its UAS Operations, Effective August 12, 2026

Consensus EPS estimates fall by 13%

Independent Director notifies of intention to sell stock

Red Cat Holdings Unifies UAS Leadership With Mitch McDonald as Divisional CEO

Red Cat Holdings, Inc. Reaffirms Earnings Guidance for the Full Year 2026

New major risk - Revenue and earnings growth

Red Cat Holdings Delivers 7x Revenue Growth and Advances in Major US Drone Competition

RCAT: Drone Dominance Progress And Defense Contracts Will Support Long Term Confidence

Second quarter 2026 earnings: EPS and revenues miss analyst expectations

Blue Ops Integrates Volvo Penta D4-320 Propulsion System into Variant 7 Uncrewed Surface Vessel

Blue Ops Adds Volvo Penta Propulsion Option to Variant 7 Uncrewed Surface Vessel

Red Cat Wins $2.49 Million Air Force Contract for Black Widow Drone Systems

Red Cat Completes Black Widow Drone Integration with C3A Tactical Fires Networks

RCAT: Drone Dominance Program Progress Will Drive Confidence In Long Term Contracts

Red Cat Holdings Dismisses Revenue Chief Triggering Legal Dispute Ahead of Results

Red Cat Holdings, Inc. Announces Termination of Geoffrey Hitchcock from Chief Revenue Officer Role, Effective July 23, 2026

Red Cat Holdings, Inc. to Report Q2, 2026 Results on Aug 06, 2026

Red Cat: How To Pick A Winner In A Crowded Drone Market

Founder notifies of intention to sell stock

Red Cat Holdings Draws Attention After Reports Link Sea Drone to U.S. Iran Operations

RCAT: Defense Drone Contracts Will Drive Long Term Upside Potential

Red Cat Holdings Unveils Hellcat Drone and Lands Japan Defense Program as China Curbs Exports

RCAT: Drone Dominance Program Prospects Will Drive Future Upside Potential

Red Cat Holdings Delivers Strong Q1 2026 Growth on US Army and NATO Drone Orders

Red Cat Holdings (RCAT) Stock Could Be 32.7% Undervalued After Hellcat Debut

Independent Director recently sold US$1.9m worth of stock

Red Cat Holdings Introduces Hellcat, A Global Small Uas Configuration Built on the Black Widow Platform

Red Cat Holdings Expands Defense Contracts With Army AI Kit and Pentagon Drone Program Finalist Status

Red Cat’s Black Widow Drones Chosen for U.S. Army AI Threat Detection Program

Red Cat Holdings, Inc. (NasdaqCM:RCAT) completed the acquisition of Quaze Technologies Inc for $27 million.

Red Cat Holdings, Inc. has completed a Follow-on Equity Offering in the amount of $225.000007 million.

Red Cat Holdings, Inc. has filed a Follow-on Equity Offering in the amount of $200 million.

New major risk - Financial position

First quarter 2026 earnings: EPS and revenues miss analyst expectations

Consensus EPS estimates fall by 111%, revenue upgraded

Red Cat Holdings, Inc., Annual General Meeting, Jun 18, 2026

Red Cat Holdings, Inc. to Report Q1, 2026 Results on May 07, 2026

Red Cat Holdings, Inc. (NasdaqCM:RCAT) entered into a Share Purchase Agreement to acquire Quaze Technologies Inc for $30 million.

Red Cat Holdings, Inc. (NasdaqCM:RCAT) acquired Apium Swarm Robotics, Inc.

Consensus estimates of losses per share improve by 13%

Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind

Price target increased by 12% to US$21.75

Red Cat Holdings, Inc. to Report Q4, 2025 Results on Mar 18, 2026

Consensus revenue estimates decrease by 20%

Price target increased by 22% to US$19.50

Autonomous Defense Systems And Maritime Expansion Will Support A Stable Long Term Outlook

Price target increased by 13% to US$17.00

Red Cat Holdings, Inc. Provides Earnings Guidance for the Fourth Quarter and Full Year Ended December 31, 2025

Founder notifies of intention to sell stock

New major risk - Share price stability

Red Cat Holdings, Inc. Announces Chief Financial Officer Changes

No longer forecast to breakeven

Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind

Red Cat Holdings, Inc. Updates Earnings Guidance for the Full Year 2025

Red Cat Holdings, Inc. to Report Q3, 2025 Results on Nov 13, 2025

Red Cat’s FANG FPV Drone for Defense and Security Operations Receives Blue UAS Cleared List Certification

Red Cat Holdings, Inc. Successfully Completes Flight Testing of Palantir's VNav Software on Black Widow™? Drone

Red Cat Holdings, Inc. Introduces Fang™? - A Low-Cost, Ndaa-Compliant Line of Fpv Drones for Defense and Security Operations

Chief Revenue Officer exercised options and sold US$941k worth of stock

Red Cat Holdings, Inc. has completed a Follow-on Equity Offering in the amount of $150 million.

Independent Director recently sold US$502k worth of stock

Independent Director notifies of intention to sell stock

Independent Director recently sold US$251k worth of stock

Independent Director notifies of intention to sell stock

Consensus EPS estimates fall by 21%

New major risk - Revenue size

Founder exercised options and sold US$468k worth of stock