(RCAT) Red Cat Holdings - Overview

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US75644T1007

Stock: Drones, Sensors, Controllers, Software

Total Rating 24

Risk 39

Buy Signal -0.37

Aerospace & Defense » Electronic Equipment & Instruments
Age: 8.4y

Market Cap: 1,612m
Avg Trading Vol: 187M USD

ATR: 14.36%
Peers RS (IBD): 68.89

EPS (Earnings per Share)

EPS CAGR: 5.39%
EPS Trend: -17.7%

Last SUE: 2.23
Qual. Beats: 1

Revenue

Rev. CAGR: 55.18%
Rev. Trend: 50.6%

Last SUE: -4.00
Qual. Beats: 0

Risk 5d forecast
Volatility	136%
Relative Tail Risk	-13.6%

Reward TTM
Sharpe Ratio	0.69
Alpha	-5.22

Character TTM
Beta	2.598
Beta Downside	2.856

Drawdowns 3y
Max DD	67.16%
CAGR/Max DD	1.75

Description: RCAT Red Cat Holdings January 26, 2026

Red Cat Holdings Inc. (NASDAQ: RCAT) designs, manufactures, and integrates robotic hardware and software for the U.S. drone ecosystem, serving military, government, and commercial customers with short- and medium-range reconnaissance platforms, unmanned surface vessels, and ground-control stations such as the Warfighter Electronic Bridge.

In its latest filing (Q2 2024), RCAT reported revenue of $12.4 million, a 28 % year-over-year increase driven primarily by contracts for its ARACHNID ISR family and the Black Widow portable EW system; the company ended the quarter with a $9.1 million cash balance and a $15.2 million order backlog, indicating near-term operating visibility.

The drone sector is benefitting from a robust macro backdrop: U.S. defense spending on unmanned systems is projected to grow at a 12 % CAGR through 2028, while the broader commercial UAV market is expanding at roughly 15 % CAGR, propelled by logistics, infrastructure inspection, and precision agriculture demand.

For a deeper, data-driven valuation perspective, consider exploring RCAT’s metrics on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 0.0

Net Income: -75.5m TTM > 0 and > 6% of Revenue
FCF/TA: -0.25 > 0.02 and ΔFCF/TA -6.66 > 1.0
NWC/Revenue: 1395 % < 20% (prev 41.53%; Δ 1353 % < -1%)
CFO/TA -0.24 > 3% & CFO -68.6m > Net Income -75.5m
Net Debt/EBITDA: error (EBITDA <= 0)
Current Ratio: 10.42 > 1.5 & < 3
Outstanding Shares: last quarter (99.6m) vs 12m ago 30.71% < -2%
Gross Margin: -4.27% > 18% (prev 0.11%; Δ -437.5% > 0.5%)
Asset Turnover: 9.57% > 50% (prev 29.41%; Δ -19.84% > 0%)
Interest Coverage Ratio: -40.45 > 6 (EBITDA TTM -38.0m / Interest Expense TTM 980.9k)

Altman Z'' -4.12

A: 0.79 (Total Current Assets 248.8m - Total Current Liabilities 23.9m) / Total Assets 286.0m
B: -0.62 (Retained Earnings -177.2m / Total Assets 286.0m)
C: -0.24 (EBIT TTM -39.7m / Avg Total Assets 168.6m)
D: -5.41 (Book Value of Equity -177.0m / Total Liabilities 32.8m)
Altman-Z'' Score: -4.12 = D

Beneish M -0.13

DSRI: 5.08 (Receivables 6.11m/1.12m, Revenue 16.1m/15.0m)
GMI: 1.00 (fallback, negative margins)
AQI: 0.17 (AQ_t 0.09 / AQ_t-1 0.52)
SGI: 1.07 (Revenue 16.1m / 15.0m)
TATA: -0.02 (NI -75.5m - CFO -68.6m) / TA 286.0m)
Beneish M-Score: -0.13 (Cap -4..+1) = D

What is the price of RCAT shares?

As of February 08, 2026, the stock is trading at USD 12.63 with a total of 9,969,189 shares traded.
Over the past week, the price has changed by -6.44%, over one month by +16.73%, over three months by +46.52% and over the past year by +19.04%.

Is RCAT a buy, sell or hold?

Red Cat Holdings has received a consensus analysts rating of 5.00. Therefore, it is recommended to buy RCAT.

StrongBuy: 3
Buy: 0
Hold: 0
Sell: 0
StrongSell: 0

What are the forecasts/targets for the RCAT price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	19.5	54.4%
Analysts Target Price	19.5	54.4%
ValueRay Target Price	14.5	14.8%

RCAT Fundamental Data Overview February 02, 2026

P/S = 216.4862
P/B = 6.3627
Revenue TTM = 16.1m USD
EBIT TTM = -39.7m USD
EBITDA TTM = -38.0m USD
Long Term Debt = 8.17m USD (estimated: total debt 22.4m - short term 14.3m)
Short Term Debt = 14.3m USD (from shortTermDebt, last quarter)
Debt = 22.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -184.0m USD (from netDebt column, last quarter)
Enterprise Value = 1.43b USD (1.61b + Debt 22.4m - CCE 206.4m)
Interest Coverage Ratio = -40.45 (Ebit TTM -39.7m / Interest Expense TTM 980.9k)
EV/FCF = -20.37x (Enterprise Value 1.43b / FCF TTM -70.1m)
FCF Yield = -4.91% (FCF TTM -70.1m / Enterprise Value 1.43b)
FCF Margin = -434.7% (FCF TTM -70.1m / Revenue TTM 16.1m)
Net Margin = -468.5% (Net Income TTM -75.5m / Revenue TTM 16.1m)
Gross Margin = -4.27% ((Revenue TTM 16.1m - Cost of Revenue TTM 16.8m) / Revenue TTM)
Gross Margin QoQ = 6.61% (prev 11.65%)
Tobins Q-Ratio = 4.99 (Enterprise Value 1.43b / Total Assets 286.0m)
Interest Expense / Debt = 3.44% (Interest Expense 771.1k / Debt 22.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -31.3m (EBIT -39.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 10.42 (Total Current Assets 248.8m / Total Current Liabilities 23.9m)
Debt / Equity = 0.09 (Debt 22.4m / totalStockholderEquity, last quarter 253.3m)
Debt / EBITDA = 4.84 (negative EBITDA) (Net Debt -184.0m / EBITDA -38.0m)
Debt / FCF = 2.63 (negative FCF - burning cash) (Net Debt -184.0m / FCF TTM -70.1m)
Total Stockholder Equity = 101.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -44.82% (Net Income -75.5m / Total Assets 286.0m)
RoE = -74.30% (Net Income TTM -75.5m / Total Stockholder Equity 101.7m)
RoCE = -36.12% (EBIT -39.7m / Capital Employed (Equity 101.7m + L.T.Debt 8.17m))
RoIC = -21.53% (negative operating profit) (NOPAT -31.3m / Invested Capital 145.6m)
WACC = 15.31% (E(1.61b)/V(1.63b) * Re(15.49%) + D(22.4m)/V(1.63b) * Rd(3.44%) * (1-Tc(0.21)))
Discount Rate = 15.49% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 33.82%
Fair Price DCF = unknown (Cash Flow -70.1m)
EPS Correlation: -17.66 | EPS CAGR: 5.39% | SUE: 2.23 | # QB: 1
Revenue Correlation: 50.63 | Revenue CAGR: 55.18% | SUE: -4.0 | # QB: 0
EPS next Quarter (2026-03-31): EPS=-0.13 | Chg30d=+0.000 | Revisions Net=+1 | Analysts=3
EPS next Year (2026-04-30): EPS=-0.02 | Chg30d=+0.000 | Revisions Net=+0 | Growth EPS=+96.0% | Growth Revenue=+363.0%

Additional Sources for RCAT Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Fund Manager Positions: Dataroma | Stockcircle