Revenue growth is accelerating to $15.5M in 2027Q1, yet structural profitability remains elusive as evidenced by a -176.5% operating margin.
| Metric | TTM | Dec'25 | Mar'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Sales/Revenue | 37.98M | 40.73M | 7.28M | 17.84M | 4.62M | 6.43M | 5M | 403.94K | 105.13K | 933 | 203.64K | 6.5K | 42.09K | 8.47K | 31.74K | 7.6K | 7.6K | -67.46K | 45.5K | 7.6K | 6.97K | 173.88K | 884.97K | 967.83K |
| Revenue Growth % | 374.03% | 459.81% | -59.21% | 286% | -28.12% | 28.59% | 1137.69% | 284.23% | 11167.85% | -99.54% | 3032.92% | -84.56% | 397.15% | -73.33% | 317.68% | 0% | 111.27% | -248.26% | 498.68% | 9.09% | -95.99% | -80.35% | -8.56% | - |
| Cost of Goods Sold | 50.48M | 39.45M | 9.31M | 14.16M | 5.46M | 5.5M | 3.93M | 325.38K | 351.84K | 280 | 105.9K | 49.77K | 20.08K | 0 | 24.47K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 96.87% | 127.96% | 79.36% | 118.06% | 85.6% | 78.6% | 80.55% | 334.68% | 30.01% | 52% | 765.68% | 47.71% | - | 77.09% | - | - | - | - | - | - | - | - | - |
| Gross Profit | 3.62M | 1.27M | -2.03M | 3.68M | -834.31K | 925.51K | 1.07M | 78.56K | -246.71K | 653 | 97.74K | 9.63K | 22.01K | 8.47K | 7.27K | 7.6K | -28.96K | -67.46K | 425.03K | 108.09K | 391.54K | -97.23K | 884.97K | 967.83K |
| Gross Margin % | 9.52% | 3.13% | -27.96% | 20.64% | -18.06% | 14.4% | 21.4% | 19.45% | -234.68% | 69.99% | 48% | 148.23% | 52.29% | 100% | 22.91% | 100% | -381.05% | 100% | 934.13% | 1422.25% | 5619.97% | -55.92% | 100% | 100% |
| Gross Profit Growth % | - | 162.63% | -155.27% | 541.15% | -190.15% | -13.48% | 1261.6% | 131.84% | -37881.62% | -99.33% | 914.42% | -56.22% | 159.95% | 16.42% | -4.3% | 126.24% | 57.07% | -115.87% | 293.21% | -72.39% | 502.71% | -110.99% | -8.56% | - |
| Operating Expenses | 85.51M | 67.87M | 36.73M | 21.56M | 25.5M | 13.93M | 5.95M | 1.71M | 1.98M | 2.69M | 1.55M | 248.67K | 417K | 36.54K | 230.39K | 53.78K | -28.96K | 16.58K | 28.29K | 108.09K | 391.54K | -97.23K | 884.97K | 967.83K |
| OpEx % of Revenue | - | 166.64% | 504.82% | 120.86% | 551.92% | 216.64% | 118.94% | 422.96% | 1885.11% | 288191.21% | 761.17% | 3825.74% | 990.65% | 431.59% | 725.78% | 707.59% | -381.05% | -24.57% | 62.18% | 1422.25% | 5619.97% | -55.92% | 100% | 100% |
| Selling, General & Admin | 63.08M | 49.98M | 26.67M | 15.25M | 16.82M | 9.97M | 4.84M | 1.22M | 384.74K | 1.64M | 734.75K | 23.57K | 0 | 10.25K | 230.39K | 53.78K | 25.83K | 16.58K | 27.65K | 9.02K | 6.49K | 311.74K | 360.41K | 498.88K |
| SG&A % of Revenue | - | 122.72% | 366.6% | 85.49% | 363.93% | 155.04% | 96.81% | 301.91% | 365.97% | 175777.92% | 360.81% | 362.68% | - | 121.06% | 725.78% | 707.59% | 339.84% | -24.57% | 60.78% | 118.74% | 93.08% | 179.28% | 40.73% | 51.55% |
| Research & Development | 22.43M | 17.89M | 9.92M | 6.29M | 5.86M | 2.61M | 516.08K | 488.99K | 366.59K | 993.93K | 860.53K | 353.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 43.92% | 136.3% | 35.27% | 126.82% | 40.54% | 10.32% | 121.06% | 348.7% | 106530.98% | 422.58% | 5436.89% | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 139.58K | 17.89K | 2.83M | 1.35M | 590.34K | 0 | 1.23M | 54.88K | -45.23K | -128.3K | 417K | 26.29K | 0 | 0 | -54.79K | 0 | 640 | 99.07K | 385.06K | -408.96K | 524.57K | 468.95K |
| Operating Income | -75.01M | -66.6M | -38.76M | -17.88M | -26.34M | -13M | -4.88M | -1.63M | -2.23M | -185.4K | -1.45M | -379.92K | -394.99K | -28.08K | -223.12K | -84.75K | -96.48K | -84.04K | 17.21K | -147.58K | -20.07K | -385.41K | 0 | 0 |
| Operating Margin % | -197.49% | -163.51% | -532.78% | -100.22% | -569.98% | -202.25% | -97.54% | -403.52% | -2119.78% | -19871.7% | -713.17% | -5844.89% | -938.36% | -331.59% | -702.87% | -1115.17% | -1269.51% | 124.57% | 37.82% | -1941.88% | -288.14% | -221.65% | - | - |
| Operating Income Growth % | - | -71.81% | -116.84% | 32.13% | -102.56% | -166.63% | -199.19% | 26.86% | -1101.98% | 87.23% | -282.27% | 3.82% | -1306.87% | 87.42% | -163.26% | 12.16% | -14.81% | -588.42% | 111.66% | -635.16% | 94.79% | - | - | - |
| EBITDA | -72.59M | -64.33M | -36.64M | -16.45M | -25.37M | -12.74M | -4.84M | -1.57M | -2.07M | -172.8K | -1.44M | -370.47K | -374.39K | -28.08K | -223.12K | -46.16K | -33.8K | -47.46K | 17.21K | -147.58K | -20.07K | -383.11K | 574.75K | 686.09K |
| EBITDA Margin % | -191.12% | -157.95% | -503.65% | -92.24% | -549.07% | -198.13% | -96.8% | -389.35% | -1972.62% | -18520.47% | -707.14% | -5699.57% | -889.42% | -331.59% | -702.87% | -607.32% | -444.67% | 70.35% | 37.82% | -1941.88% | -288.14% | -220.33% | 64.94% | 70.89% |
| EBITDA Growth % | -62.58% | -75.57% | -122.71% | 35.15% | -99.19% | -163.18% | -207.73% | 24.16% | -1100.14% | 88% | -288.7% | 1.05% | -1233.5% | 87.42% | -383.4% | -36.58% | 28.79% | -375.82% | 111.66% | -635.16% | 94.76% | -166.66% | -16.23% | - |
| D&A (Non-Cash Add-back) | 2.49M | 2.27M | 2.12M | 1.42M | 966.07K | 264.8K | 36.83K | 0 | 154.71K | 12.61K | 12.3K | 9.45K | 20.6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.04K | 9.98K |
| EBIT | -81.96M | -66.6M | -38.62M | -17.46M | -23.51M | -11.54M | -12.01M | -1.57M | -2.23M | 3.1M | -3.37M | -379.92K | -7.36M | -28.08K | -223.12K | -46.16K | -96.48K | -84.04K | 17.21K | -147.58K | -20.07K | -383.11K | 564.71K | 676.11K |
| Net Interest Income | 2.99M | 0 | 84.94K | -68.61K | -122K | -147.72K | -1.22M | -29.19K | -489.59K | -376.08K | -10.4K | -1.82K | -4.36K | 10K | -9.49K | -38.56K | -36.56K | -36.58K | -26.83K | -25.86K | -25.86K | -25.86K | -50.18K | -217.14K |
| Interest Income | 3.95M | 0 | 84.94K | 0 | 0 | 0 | 0 | 0 | 10.59K | 0 | 3 | 0 | 0 | 10K | 0 | 17 | 17 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 68.61K | 122K | 147.72K | 1.22M | 29.19K | 500.18K | 376.08K | 10.4K | 1.82K | 4.36K | 0 | 9.49K | 38.58K | 36.58K | 36.58K | 26.83K | 25.86K | 25.86K | 25.86K | 50.18K | 217.14K |
| Other Income/Expense | 6.36M | -5.04M | -26.66M | -3.65M | -38.81K | 1.31M | -8.36M | 28.03K | -1.09M | 0 | -1.92M | -1.82K | -6.97M | 195.92K | 1.08M | 17 | 26.11K | 0 | 380.17K | 246.65K | 405.13K | -23.55K | 514.53K | 458.97K |
| Pretax Income | -75.06M | -71.63M | -65.42M | -21.53M | -26.38M | -11.69M | -13.24M | -1.6M | -3.31M | -185.4K | -3.38M | -381.74K | -7.36M | 167.84K | 851.93K | -84.74K | -70.38K | -84.04K | 397.37K | 99.07K | 385.06K | -408.96K | 514.53K | 458.97K |
| Pretax Margin % | -197.61% | -175.87% | -899.2% | -120.69% | -570.82% | -181.82% | -264.75% | -396.58% | -3151.9% | -19871.7% | -1658.21% | -5872.85% | -17485.24% | 1982.34% | 2683.74% | -1114.95% | -925.99% | 124.57% | 873.35% | 1303.51% | 5526.88% | -235.2% | 58.14% | 47.42% |
| Income Tax | 448.56K | 443K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.45K | 1.65K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.6% | -0.62% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 5.63% | 0.19% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -71.86M | -72.08M | -65.42M | -24.05M | -28.11M | -11.69M | -13.24M | -1.6M | -751.33K | 1.13M | -3.38M | -381.74K | -7.36M | 158.39K | 832.95K | -84.74K | -70.38K | -84.04K | 397.37K | 99.07K | 385.06K | -408.96K | 514.53K | 417.14K |
| Net Margin % | -189.21% | -176.96% | -899.2% | -134.85% | -608.27% | -181.82% | -264.75% | -396.58% | -714.68% | 120988.96% | -1658.21% | -5872.85% | -17485.24% | 1870.72% | 2623.95% | -1114.95% | -925.99% | 124.57% | 873.35% | 1303.51% | 5526.88% | -235.2% | 58.14% | 43.1% |
| Net Income Growth % | 1.37% | -10.17% | -171.99% | 14.42% | -140.45% | 11.69% | -726.26% | -113.21% | -166.56% | 133.43% | -784.59% | 94.81% | -4746.79% | -80.98% | 1082.99% | -20.41% | 16.26% | -121.15% | 301.12% | -74.27% | 194.15% | -179.48% | 23.35% | - |
| Net Income (Continuing) | -75.5M | -72.08M | -65.42M | -21.53M | -26.38M | -11.69M | -13.24M | -1.6M | -3.31M | -185.4K | -3.38M | -381.74K | -7.36M | 158.39K | 924.21K | -84.74K | -70.38K | -84.04K | 397.37K | 99.07K | 385.06K | -408.96K | 514.53K | 458.97K |
| Discontinued Operations | 0 | 0 | 0 | -2.53M | -1.73M | 0 | 0 | 0 | 0 | -1.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -41.82K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K |
| EPS (Diluted) | -0.59 | -0.60 | -0.85 | -0.40 | -0.49 | -0.24 | -0.56 | -0.12 | -2.63 | 19.43 | -144.00 | -12.00 | -7237.20 | 1721.67 | 10045.00 | -1059.20 | -890.82 | -1077.41 | 5094.53 | 1270.09 | 4936.64 | -5243.14 | 8039.48 | 6517.88 |
| EPS Growth % | 19.77% | 29.41% | -112.5% | 18.37% | -104.17% | 57.14% | -366.67% | 95.44% | -113.54% | 113.49% | -1100% | 99.83% | -520.36% | -82.86% | 1048.36% | -18.9% | 17.32% | -121.15% | 301.12% | -74.27% | 194.15% | -165.22% | 23.34% | - |
| EPS (Basic) | - | -0.60 | -0.85 | -0.40 | -0.49 | -0.24 | -0.56 | -0.12 | -2.70 | 29.18 | -144.00 | -12.00 | -7237.20 | 1721.67 | 10045.00 | -1059.20 | -890.82 | -1077.41 | 5094.53 | 1270.09 | 4936.64 | -5243.14 | 8039.48 | 6517.88 |
| Diluted Shares Outstanding | 120.85M | 119.44M | 77.04M | 60.12M | 53.86M | 48.22M | 23.66M | 13.73M | 285.35K | 58.08K | 34.97K | 34.49K | 1.02K | 92 | 92 | 80 | 79 | 78 | 78 | 78 | 78 | 78 | 64 | 64 |
| Basic Shares Outstanding | 120.85M | 119.44M | 77.04M | 60.12M | 53.86M | 48.22M | 23.66M | 13.73M | 277.93K | 38.67K | 34.97K | 34.49K | 1.02K | 92 | 92 | 80 | 79 | 78 | 78 | 78 | 78 | 78 | 64 | 64 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Manufacturing scale and margin
As reported in recent financial statements, RCAT has achieved significant top-line expansion, with quarterly revenue reaching $15.5M in 2027Q1, signaling a transition from development-stage operations to the fulfillment phase of government contracts, though the sustainability of this growth remains contingent on securing long-term federal program status.
The recent revenue acceleration appears to be driven by the successful pivot toward the Teal 2 platform and government-focused hardware sales. Investors should monitor whether this growth represents a repeatable run rate or is merely a reflection of initial, non-recurring government fill orders.
Based on RCAT's reported figures, gross margins have remained under intense pressure, fluctuating significantly and reaching only 3.13% in recent periods, which suggests that the company has yet to realize the manufacturing efficiencies necessary to offset the high costs of NDAA-compliant component procurement.
The inability to maintain double-digit gross margins as revenue scales indicates that the company's current cost structure is heavily burdened by specialized hardware requirements. This margin profile warrants further investigation into whether the company possesses the pricing power to pass through input cost volatility to its government clients.
According to the income statement data, RCAT's operating expenses, particularly SG&A and R&D, continue to outpace gross profit generation, resulting in an operating margin of -176.5% in 2027Q1, which indicates that the company is currently prioritizing market capture over immediate operational efficiency or profitability.
The lack of operating leverage suggests that the company's fixed cost base is scaling in tandem with, or faster than, its revenue growth. This trend may indicate that the company is still in a heavy investment phase, requiring significant future volume to reach a break-even point.
As indicated by the provided financial data, net income remains deeply negative, with 2027Q1 losses reaching $26.6M, a figure that is further complicated by stock-based compensation expenses of $4.8M, which may be masking the true cash-based operational burn rate of the core business.
The reliance on stock-based compensation as a component of the cost structure warrants caution regarding shareholder dilution. Analysts should strip out non-operating items and interest income from the company's large cash balance to accurately assess the underlying health of the drone manufacturing operations.
While the company benefits from regulatory tailwinds, the persistent near-zero gross margins suggest that RCAT may face structural challenges in achieving profitability, as larger defense primes could potentially commoditize the small UAS market and squeeze the company on price and integration capabilities.
Short-term growth figures may be masking the risk of component obsolescence, where inventory could lose value before it is deployed. Investors should consider the possibility that the current margin profile is a permanent feature of domestic manufacturing rather than a temporary scaling hurdle.
Quick answers to the most common questions about buying RCAT stock.
For fiscal year 2026, Red Cat Holdings, Inc. (RCAT) reported total revenue of $40.7M. This represents a 4108.3% increase compared to $1.0M in 2004.
Red Cat Holdings, Inc. (RCAT) reported a net loss of $72.1M for the fiscal year ending 2026.
Red Cat Holdings, Inc. (RCAT) reported an operating income of $-66.6M, resulting in an operating profit margin of -163.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Red Cat Holdings, Inc. (RCAT) generated $1.3M in gross profit for the year, representing a gross profit margin of 3.1%. This demonstrates the company's core pricing power and production efficiency.