Red Cat Reports Financial Results for First Quarter 2025 and Provides Corporate Update

SAN JUAN, Puerto Rico, May 14, 2025 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) ("Red Cat" or the "Company"), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, reports its financial results for the first quarter ended March 31, 2025 and provides a corporate update.

Recent Operational Highlights

   -- Announced the expansion of our multi-domain Family of Systems with a new 
      line of Unmanned Surface Vessels (USVs). This strategic move marks Red 
      Cat's official entry into the rapidly evolving maritime autonomy market 
      and reinforces its position as a provider of comprehensive, interoperable 
      unmanned systems for air, land, and sea operations. 
 
   -- Expanded our Red Cat Futures Industry Consortium to include Palantir and 
      Palladyne to boost AI capabilities in contested environments, including 
      visual navigation. 
 
   -- Introducing Black Widow$(TM)$ and Edge 130 drones to the Latin American 
      market at LAAD 2025 in Rio De Janeiro, Brazil in April 2025. 
 
   -- Introduced our Black Widow(TM) short-range reconnaissance drone and Edge 
      130 Tricopter to the Middle East market at the International Defense 
      Exhibition and Conference in Abu Dhabi, UAE, Feb 17-21, 2025. 
 
   -- Introduced Black Widow(TM) to the Asia Pacific Market at the AISSE 
      conference in Putrajaya, Malaysia in January 2025. 
 
   -- Announced that the Black Widow drone and FlightWave Edge 130 were 
      included on the list of 23 platforms and 14 unique components and 
      capabilities selected as winners of the Blue UAS Refresh. The platforms 
      will undergo National Defense Authorization Act $(NDAA)$ verification and 
      cyber security review with the ultimate goal of joining the Blue UAS 
      List. 
 
   -- Partnered with Palantir to deploy Warp Speed, Palantir's manufacturing 
      OS. This collaboration will transform our supply and manufacturing 
      operations with Palantir's AI enabled monitoring, process flow 
      enhancement and comprehensive data analysis. Palantir's Warp Speed will 
      optimize Red Cat's production and streamline its supply chain, change 
      management, and quality assurance, ultimately reducing costs and 
      improving margins. 

First Quarter 2025 Financial Highlights

   -- Quarterly Revenue of $1.7 million 
 
   -- Ended the quarter with cash and accounts receivable of $9.3 million 
 
   -- In addition, closed funding of $30.0 million subsequent to quarter end 
 
   -- Reiterate 2025 annual revenue guidance of $80 to $120 million for 
      calendar year 2025, which consists of: 
 
          -- $25 to $65 million in SRR-related Black Widow sales 
 
          -- $25 million in Non-SRR Black Widow sales 
 
          -- $25 million in Edge 130 sales 
 
          -- $5m in Fang FPV sales 

"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, Red Cat CEO. "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. A strong balance sheet bolstered by a recent $30 million capital raise positions us strongly to meet growing domestic and international demand in the second half of 2025."

"Our balance sheet remains strong as we transition to production and delivery of our new Black Widow drones," said Chris Ericson, Red Cat CFO. "We have bolstered our quarter-end cash and receivables of $9 million with an additional $30 million from a capital raise executed soon after quarter-end. This liquidity has given us ample strength and ability to expand manufacturing to meet the impending demands of the U.S. Army's SRR program and international opportunities for the second half of 2025."

Conference Call Today

CEO Jeff Thompson and CFO Chris Ericson will host an earnings conference call at 4:30 p.m. ET on Wednesday, May 14, 2025, to review financial results and provide an update on corporate developments. Following management's formal remarks, there will be a question-and-answer session. Interested parties can attend the conference call through a live webcast that can be accessed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=OqffyYp4

About Red Cat Holdings, Inc.

Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a Family of Systems. This includes the Black Widow(TM), a small unmanned ISR system that was awarded the U.S. Army's Short Range Reconnaissance $(SRR.AU)$ Program of Record contract. The Family of Systems also includes TRICHON(TM), a fixed-wing VTOL for extended endurance and range, and FANG(TM), the industry's first line of NDAA-compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.

Forward Looking Statements

This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate, " "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Red Cat Holdings, Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the Form 10-K filed with the Securities and Exchange Commission on July 27, 2023. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law.

Contact:

INVESTORS:

E-mail: Investors@redcat.red

NEWS MEDIA:

Phone: (347) 880-2895

Email: peter@indicatemedia.com

 
 
                      RED CAT HOLDINGS 
            Condensed Consolidated Balance Sheets 
 
                               March 31,       December 31, 
                                 2025             2024 
ASSETS 
 
  Cash                      $   7,722,410    $   9,154,297 
  Accounts receivable, net      1,554,295          489,316 
  Inventory, including 
   deposits                    17,107,860       13,592,900 
  Intangible assets 
   including goodwill, 
   net                         25,718,450       26,124,133 
  Other                         7,552,833        6,243,621 
                             ------------     ------------ 
 
TOTAL ASSETS                $  59,655,848    $  55,604,267 
                             ============     ============ 
 
LIABILITIES AND 
STOCKHOLDERS' EQUITY 
 
  Accounts payable and 
   accrued expenses         $   2,712,333    $   3,289,634 
  Debt obligations                350,000          350,000 
  Customer deposits               220,517          227,484 
  Operating lease 
   liabilities                  2,329,194        1,617,596 
  Convertible notes 
  payable                      25,132,556               -- 
     Total liabilities         30,744,600        5,484,714 
 
  Stockholders' capital       176,779,302      174,864,256 
  Accumulated 
   deficit/comprehensive 
   loss                      (147,868,054)    (124,744,703) 
                             ------------     ------------ 
     Total stockholders' 
      equity                   28,911,248       50,119,553 
                             ------------     ------------ 
TOTAL LIABILITIES AND 
 STOCKHOLDERS' EQUITY       $  59,655,848    $  55,604,267 
                             ============     ============ 
 
 
 
       Condensed Consolidated Statements of Operations 
 
                                      Three months ended 
                                           March 31, 
                                 ----------------------------- 
                                     2025            2024 
Revenues                         $  1,629,662   $ 6,614,029 
 
Cost of goods sold                  2,480,072     5,492,825 
                                  -----------    ---------- 
 
Gross (loss) profit                  (850,410)    1,121,204 
 
Operating Expenses 
   Research and development         3,432,593     2,669,502 
   Sales and marketing              3,314,748     1,410,506 
   General and administrative       4,880,448     3,084,495 
                                  -----------    ---------- 
      Total operating 
       expenses                    11,627,789     7,164,503 
                                  -----------    ---------- 
Operating loss                    (12,478,199)   (6,043,299) 
 
Other expense (income)             10,645,152      (635,676) 
                                  -----------    ---------- 
 
Net loss from continuing 
 operations                       (23,123,351)   (5,407,623) 
 
Loss from discontinued 
 operations                                --    (1,373,457) 
                                  -----------    ---------- 
Net loss                         $(23,123,351)  $(6,781,080) 
                                  ===========    ========== 
 
Loss per share - basic and 

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