Loss widens beyond expectations. Red Cat Holdings reported a loss of $0.17 per share for Q4 2025, wider than the consensus estimate of a $0.15 loss. The 13.3% wider loss came despite strong revenue growth, as the aerospace and defense company posted a net loss of $19.7 million. The stock climbed 8.1% following the report, suggesting investors focused on the top-line momentum rather than the bottom-line miss. Trading volume surged to 20.7 million shares, well above typical levels.
Revenue surges past consensus. Q4 revenue of $26.2 million topped the $23.9 million analyst consensus by 9.7%. Year-over-year revenue growth accelerated 315.8%, marking a dramatic expansion from the $6.3 million reported in Q4 2024. The company’s gross profit of $1.1 million translated to a 4.2% gross margin, pressured by $25.1 million in cost of revenue. Operating loss widened to $23.9 million, while adjusted EBITDA came in at negative $17.8 million. The analyst community maintains a bullish stance with four Buy or Strong Buy ratings and zero Hold or Sell recommendations.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.