Drone Maker Red Cat’s Stock Plummets Despite Record Revenue Surge

Drone technology company Red Cat Holdings Inc. reported staggering third-quarter revenue growth of 646% on November 13, 2025, yet saw its shares tumble 10% in after-hours trading. This contradictory market reaction stems from deeper financial challenges that overshadowed the impressive top-line performance.

The company announced quarterly revenues reaching $9.65 million, representing a dramatic 646% increase compared to the same period last year and a 200% sequential improvement over the previous quarter. These results substantially exceeded analyst projections, driven primarily by supplying drone systems to the U.S. Army through the Short Range Reconnaissance program.

However, investor enthusiasm quickly evaporated as attention turned to the bottom line. Red Cat’s net loss ballooned to $16 million, equating to Read more...