Red Cat Holdings, Inc. (NASDAQ:RCAT) announced on Tuesday that early figures indicate a sharp year-end sales surge as it scaled up production of unmanned aircraft and robotic systems for U.S. defense and national security customers.

The company expects fourth-quarter revenue to be between $24 million and $26.5 million for the period ended December 31, 2025, up from $1.3 million in the same period a year earlier.

Red Cat projects 2025 revenue of $38 million to $41 million, compared to $15.6 million in 2024, indicating a rapid expansion tied to program wins and higher-volume deliveries.

Management Commentary

CEO Jeff Thompson said, "These preliminary unaudited results for the fourth quarter and full year 2025 reflect strong execution across the business. This outperformance 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."

Thompson added, "As we look ahead into 2026, we see continued growth, supported by an increased pipeline, improving operating leverage, and our expanding role as a trusted provider of next-generation unmanned systems."

Spending Tailwind

President Donald Trump's proposal to sharply increase U.S. military spending has intensified attention on domestic defense and drone manufacturers.

Expectations of higher defense outlays, combined with regulatory pressure on Chinese drone makers and rising geopolitical tensions, have reinforced the strategic value of U.S.-based unmanned systems providers.

Together, these forces are creating a spending tailwind, keeping drone and robotics companies firmly in investor focus.

RCAT Price Action: Red Cat Holdings shares were up 1.80% at $12.15 at the time of publication on Tuesday, according to Benzinga Pro data.

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