Red Cat Holdings

RCAT · NASDAQ

$4.43+$0.06 (+1.37%)TodayMarket closed · Oct 23, 7:59 PM ET

Prev close $4.37

RCAT analyst rating

BuyConsensus of 6 analysts over the last 12 months. 83% rate it a buy.

Strong buy0
Buy5
Hold1
Underperform0
Sell0

12-month price target · 9 analysts

Average $17.63 (+298.0% upside)

Low: $9.09
Now: $4.43
High: $26.25

Upgrades and downgrades

The latest rating actions, newest first

RCAT analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Piper Sandler	Oct 23, 2026	Maintains	Neutral	$9.00 → $6.00	40%
Needham	Oct 20, 2026	Maintains	Buy	$15.00	18%
Piper Sandler	Sep 2, 2026	Initiates	Neutral	$9.00	40%
Evercore ISI Group	Aug 31, 2026	Initiates	Outperform	$15.00	65%
HC Wainwright & Co.	Aug 7, 2026	Maintains	Buy	$20.00	34%
Needham	Aug 7, 2026	Maintains	Buy	$20.00 → $15.00	18%
Roth Capital	Jun 1, 2026	Initiates	Buy	$25.00	31%
HC Wainwright & Co.	May 27, 2026	Initiates	Buy	$20.00	34%
Needham	Mar 19, 2026	Maintains	Buy	$16.00 → $20.00	18%
Ladenburg Thalmann	Mar 3, 2026	Maintains	Buy	$15.00 → $20.00	32%

The case for and against

Updated Oct 21, 2026

Bull case

Red Cat Holdings is positioned for growth because it has already demonstrated sharp revenue traction, with 1Q26 revenue rising 849% year over year to $15.5M and gross margin improving from negative 52.1% to positive 12.7%. Management reaffirmed 2026 revenue guidance of $150M-$180M, supported by a deep pipeline across SRR2, Drone Dominance, Blue Ops, and allied demand, while inventory and prepaid inventory increased by $54.5M to $84.8M, suggesting preparation for a large 2H26 delivery ramp. Its positive outlook is further reinforced by differentiated capabilities from Black Widow, WEB, FANG, and Quaze, plus a manufacturing footprint built to scale U.S.-made drones and USVs for military and government customers worldwide.

Bear case

Red Cat Holdings is generating rapid revenue growth, but the business still appears fundamentally loss-making, with 2Q26 revenue of $20.2M producing a $38.6M operating loss and a $31.8M adjusted EBITDA loss. Operating expenses ballooned to $41.9M as R&D, G&A, and sales and marketing all surged, suggesting scale is being bought with heavy cash consumption rather than durable earnings power. Although cash of $325.6M provides near-term flexibility, the need to hit a steep 2H26 ramp and the uncertainty around SRR2 volume, competition, and execution risk make the outlook cautious.

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