Red Cat Soars with 646% Revenue Growth and New Maritime Defense Division
Red Cat Holdings, Inc. (Nasdaq: RCAT) has announced significant developments, including the launch of a new division, expansion of manufacturing facilities, and substantial growth in revenue and contracts. The company also provided updates on its cash position and future plans.
Red Cat launched Blue Ops, a Maritime Division focused on developing and delivering battle-proven uncrewed surface vessel (USV) weapons systems. To support this, Blue Ops opened a 155,000 square foot facility in Georgia, capable of producing over 500 vessels annually.
The company's financial results for the third quarter ended September 30, 2025, showed impressive growth. Quarterly revenue surged 646% year over year and 200% over the prior quarter to $9.6 million. Red Cat's cash and accounts receivable stood at $212.5 million at the end of Q3. Looking ahead, annual revenue is guided to between $34.5 - $37.5 million, with Q4 revenue expected to be between $20 - $23 million.
Red Cat expanded its manufacturing space in Salt Lake City (Teal) and Los Angeles (FlightWave) facilities, enabling increased speed and volume for the Department of War and U.S. Allies through Foreign Military Sales (FMS). The U.S. Army's SRR UAS Tranche 2 (T2) Program contract has been expanded to approximately $35 million.
Blue Ops partnered with Hodgdon Shipbuilding to produce the first five uncrewed surface vessel prototypes, with delivery starting in Q4. Additionally, Apium Swarm Robotics joined Red Cat's Futures Initiative, advancing scalable, decentralized drone swarming capabilities for tactical operations. Red Cat plans to expand its production capacity in 2026, focusing on improving internal manufacturing and increasing productivity per employee to enhance margins and operational stability.
Red Cat's strategic initiatives, including the launch of Blue Ops and expansion of manufacturing facilities, have contributed to significant revenue growth and a strong cash position. With expanded contracts and partnerships, the company is well-positioned for continued success in the uncrewed systems market.
