Red Cat Holdings Inc (NASDAQ:RCAT) reported first-quarter financial results after the market close on Wednesday. Here’s a rundown of the drone technology company’s report.

Q1 Earnings: Red Cat reported first-quarter revenue of $1.63 million, missing analyst estimates of $3.85 million. The company reported a first-quarter loss of 27 cents per share, missing analyst estimates for a loss of eight cents per share, according to Benzinga Pro.

Red Cat Holdings shares plunded 10% in overnight trading.

Red Cat said it expects its partnership with Palantir Technologies will reduce costs and improve margins moving forward.

Red Cat ended the first quarter with $9.3 million in cash and accounts receivable. The company noted that it also closed on $30 million of funding subsequent to the quarter’s end.

“Red Cat’s momentum continues to build as we execute on our strategy to deliver advanced, AI-enabled unmanned systems across air, land, and sea,” said Jeff Thompson, CEO of Red Cat.

“Our partnership with Palantir to deploy Warp Speed is optimizing our manufacturing and cost efficiency, while our expansion into maritime autonomy with Unmanned Surface Vessels significantly expands our Family of Systems.”

Guidance: Red Cat affirmed its full-year 2025 revenue guidance of $80 million to $120 million versus estimates of $80.17 million. Here’s a breakdown of guidance by category:

• SRR-related Black Widow revenue: $25 to $65 million

• Non-SRR Black Widow revenue: $25 million

• Edge 130 revenue: $25 million

• Fang FPV revenue: $5 million