Red Cat Holdings reported second quarter 2026 revenue of $20.2 million, missing the analyst consensus of $22.65 million despite a 527% year-over-year increase. Net loss widened to $35.3 million, resulting in an EPS of -$0.26 which was lower than the anticipated -$0.21 loss as the company scaled production capacity.
Key Highlights
- Gross margin improved to 16.1%, representing a 39% increase year-over-year and a 27% sequential improvement from the first quarter 2026.
- Total cash position strengthened significantly to $325.6 million at June 30, 2026, up from $167.9 million at the end of 2025.
- The company reaffirmed its full-year 2026 revenue target range of $150 million to $180 million, supported by the advancement to Gauntlet II of the Drone Dominance program.
- Inventory and prepaid inventory levels rose to $84.8 million to support the anticipated ramp-up in military contract fulfillment.