Shares of Red Cat Holdings (NASDAQ:RCAT) climbed about 6% after the drone technology firm released preliminary fourth-quarter revenue figures showing exceptional year-on-year growth.
The U.S.-based supplier of advanced drone systems for defense and national security said unaudited Q4 revenue is expected to land between $24.0 million and $26.5 million. That compares with just $1.3 million in the same quarter of 2024, implying growth of roughly 1,842%.
For the full year 2025, Red Cat forecast revenue in the range of $38.0 million to $41.0 million, representing an increase of about 153% from the $15.6 million recorded in 2024.
Chief executive Jeff Thompson said the surge was driven by “robust demand from defense and government customers, expanding program wins, and our ability to rapidly scale production to meet mission-critical requirements.”
The company cautioned that the figures are preliminary and unaudited, and remain subject to completion of year-end audit and financial closing procedures, which could result in adjustments.
Red Cat, which focuses on all-domain drone and robotic solutions, said it is optimistic about maintaining growth momentum into 2026, pointing to a larger sales pipeline and improving operating leverage as it scales its unmanned systems business.