SAN JUAN – Red Cat Holdings, Inc. (NASDAQ:RCAT), a prominent drone technology company, announced today that it has secured a $1 million contract to supply the U.S. Army with its Edge 130 Blue drones. The procurement was facilitated through Noble, a provider of operations support to the U.S. military, and coordinated by the U.S. Defense Logistics Agency for the Army Communications-Electronics Command (CECOM).
The Edge 130 Blue, a military-grade tricopter drone, is designed for long-range mapping, inspection, surveillance, and reconnaissance operations. Weighing 1200 grams, the drone boasts over 60 minutes of flight time and can be assembled and launched by a single operator within a minute. It is part of a family of unmanned aerial systems developed by Red Cat's subsidiaries, Teal Drones and FlightWave Aerospace, which cater to intelligence, surveillance, reconnaissance (ISR), and precision strike missions.
This contract follows Red Cat's recent acquisition of FlightWave Aerospace in September 2024, which added the Edge 130 Blue to its product lineup. The Edge 130 Blue's vertical takeoff capabilities make it particularly suited for maritime and littoral operations, and it has been recognized with a TACFI award, signaling further advancements to its capabilities.
Jeff Thompson, CEO of Red Cat, expressed the company's commitment to supporting the U.S. Army's modernization strategy and its transformation into a multi-domain force. He highlighted the increasing role of small, portable unmanned aerial systems like the Edge 130 Blue in conducting intelligence and strike activities across various battlefield formations.
Red Cat's suite of products includes the Teal 2, which offers high-resolution thermal imaging, and FANG™, the industry's first line of NDAA-compliant FPV drones with precision strike capabilities.
This news is based on a press release statement and does not include any forward-looking statements. Red Cat Holdings, Inc. has not provided any updates on the contract beyond the information contained in the press release.
In other recent news, Red Cat Holdings has been making significant strides in the drone technology sector. The company recently secured a $1.6 million contract to supply Edge 130 Blue drones to the U.S. Customs & Border Protection, a deal facilitated by Darley and the U.S. Defense Logistics Agency. This development follows Red Cat's acquisition of FlightWave Aerospace Systems Corporation, which has expanded its portfolio and solidified its presence in the drone market.
The acquisition involved an Asset Purchase Agreement executed with shares of Red Cat's common stock. The inclusion of FlightWave in Red Cat's operations marks a strategic expansion for the company in the Unmanned Aerial Vehicles (UAV) market.
In terms of financial performance, Red Cat Holdings reported a robust 59% increase in its Q1 revenue, reaching approximately $2.8 million. The company also reported a backlog of $13 million, with revenue expectations of $50 million to $55 million for calendar 2025.
In a strategic move, Red Cat Holdings revised its fiscal year-end from April 30 to December 31, aligning it with the calendar year. This change aims to simplify the comparison of financial results with industry peers and provide a more intuitive timeframe for financial analysis.
Finally, Red Cat's financial reports will now include FlightWave financials, providing better visibility into the company's financials. The company has also successfully delivered 40 prototypes to the Army for IOT&E and is awaiting the announcement of SRR prototype results. These recent developments highlight Red Cat's growth trajectory in the drone technology sector.
InvestingPro Insights
Red Cat Holdings' recent $1 million contract with the U.S. Army aligns with the company's strong revenue growth trajectory. According to InvestingPro data, Red Cat's revenue grew by an impressive 259.85% over the last twelve months, with quarterly revenue growth of 58.83% in the most recent quarter. This contract could further boost these figures, supporting the InvestingPro Tip that analysts anticipate sales growth in the current year.
Despite the positive news, investors should be aware that Red Cat operates with some financial challenges. The company is not profitable over the last twelve months, and an InvestingPro Tip suggests that analysts do not anticipate profitability this year. This context is crucial when considering the impact of the new contract on the company's overall financial health.
The stock's performance has been noteworthy, with InvestingPro data showing a 284.21% price return over the past six months. This aligns with the InvestingPro Tip indicating a high return over the last year. However, potential investors should note that the stock generally trades with high price volatility, which could present both opportunities and risks.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Red Cat Holdings, providing a more comprehensive view of the company's financial position and market performance.
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