Red Cat Holdings Reports Financial Results for Fiscal Third Quarter 2024 and Provides Corporate Update

Red Cat reports record revenue for the company in Fiscal Third Quarter 2024, the third consecutive quarter of double-digit sequential growth

SAN JUAN, Puerto Rico, March 18, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or “Company”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, reports its financial results for the second quarter ended March 18, 2024, and provides a business update.

Operating Highlights:

  • Continued global expansion with entry into Latin America and Middle East markets
  • Partnered with Primordial Labs to integrate AI-driven voice control technology to its platforms
  • Part of successful joint drone industry effort resulting in the passing of the American Security Drone Act by Congress
  • Red Cat subsidiary, Teal Drones, received $750k Manufacturing Modernization Grant from the State of Utah
  • Selected as finalist for US Army's Short Range Reconnaissance program with $3M extended contract award 
  • In Q4, Retired Four-Star Army General Paul Edward Funk II joined Red Cat’s Board of Directors

Financial Highlights:

  • Record revenues of $5.8 million for fiscal third quarter ending January 31, 2024, representing growth of more than 250% compared to the prior-year period and 49% on a sequential basis
  • Funded backlog remained strong as of January 31, 2024, at $5.1 million
  • Closed the sale of the Consumer segment on February 16, 2024, resulting in 4,250,000 shares of UMAC common stock issued to Red Cat, a $1 million cash payment, and a $2 million note payable to Red Cat
  • $12.7 million of combined Cash and Account Receivable balances as of January 31, 2024

"Red Cat has continued to meet global customer demand resulting in record third quarter revenue that is more than 250 percent above the same period in our previous fiscal year," said Jeff Thompson, Red Cat Chairman and Chief Executive Officer. "The Teal 2 drone has quickly become the small uncrewed system of choice and our ability to scale production has been well received by our domestic and international customers. We believe we are well positioned for the U.S. Department of Defense Replicator Initiative and the U.S. Army’s Short Range Reconnaissance Program of Record being awarded later this year, in which we are one of two finalists."

"With the increasing demand for our drone solutions with U.S. Defense and Security Forces and NATO Allies, our growing pipeline and strong backlog, Red Cat is positioned for continued growth.  Our guidance for the upcoming fourth quarter of $7 million will be another record quarter and continued double digit sequential growth into fiscal year 2025," Thompson added.

“We are reporting record revenues again for the third quarter of fiscal 2024,” stated Leah Lunger, Interim Chief Financial Officer. “Having closed the sale of our Consumer segment, we look forward to focusing exclusively on the expanding opportunities for our Enterprise segment, such as external partnerships, entrance into new global markets, and delivering Army prototypes between now and the beginning of fiscal 2025.”

Retirement of Chief Financial Officer and Appointment of Leah Lunger as Interim Chief Financial Officer

“With the sale of the Consumer Segment completed and the focus solely on Teal Drones going forward, it’s a perfect time to slightly accelerate my planned retirement date,” stated Joseph Hernon. “I’ve thoroughly enjoyed working with Leah over the past three plus years and congratulate her on a hard-earned, well-deserved promotion.”

“Joseph and I have worked together for more than 12 years at two technology companies, and I thank him for deferring his previously planned retirement for four years to assist in the maturation of Red Cat from an early-stage development,” said Jeff Thompson. “He built an All-Star corporate finance team and left us in good hands.”

“Red Cat is pleased to announce Leah Lunger as interim Chief Financial Officer. She has done a stellar job, and the company expects this to become a permanent position for Lunger,” added Thompson.

Earnings Conference Call

CEO Jeff Thompson and Interim CFO Leah Lunger will host an earnings conference call at 4:30 p.m. ET on Monday, March 18, 2024, 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 listen to the conference call by dialing 1-844-413-3977 (within the U.S.) or 1-412-317-1803 (international). Callers should dial in approximately ten minutes prior to the start time and ask to be connected to the Red Cat conference call. Participants can also pre-register for the call using the following link:

The conference call will also be available through a live webcast that can be accessed at:

A replay of the webcast will be available until June 18, 2024, and can be accessed through the above link or at A telephonic replay will be available until April 1, 2024, by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using access code 8799674.

About Red Cat
Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Red Cat’s solutions are designed to “Dominate the Night™” and include the Teal 2, a small unmanned system offering the highest-resolution thermal imaging in its class. Learn more at

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 final prospectus related to the public offering filed with the Securities and Exchange Commission. 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.



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Condensed Consolidated Balance Sheets
      January 31,     April 30,  
      2024     2023  
Cash and marketable securities   $ 7,697,335   $ 15,987,687  
Intangible assets including goodwill, net     23,685,067     24,335,836  
Inventory, including deposits     10,063,812     9,280,073  
Accounts receivable, net     5,091,724     719,862  
Other     5,061,948     4,478,080  
Assets of discontinued operations     3,717,313     5,391,552  
TOTAL ASSETS   $ 55,317,199   $ 60,193,090  
Accounts payable and accrued expenses   $ 3,270,795   $ 1,957,975  
Debt obligations     899,935     1,323,707  
Warrant derivative liability     285,384     588,205  
Operating lease liabilities     492,162     661,263  
Liabilities of discontinued operations     796,210     1,052,315  
Total liabilities     5,744,486     5,583,465  
Stockholders’ capital     121,135,099     110,057,535  
Accumulated deficit/comprehensive loss     (71,562,386 )   (55,447,910 )
Total stockholders' equity     49,572,713     54,609,625  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 55,317,199   $ 60,193,090  

Condensed Consolidated Statements of Operations

    Three months ended January 31,   Nine months ended January 31,
    2024   2023   2024   2023
Revenues   $ 5,847,933     $ 1,667,683     $ 11,526,930     $ 3,541,846  
Cost of goods sold     4,746,282       1,764,612       9,050,032       3,432,804  
Gross Margin     1,101,651       (96,929 )     2,476,898       109,042  
Operating Expenses                                
Operations     527,447       663,668       1,675,795       3,131,789  
Research and development     2,125,268       1,221,738       5,251,285       2,938,658  
Sales and marketing     883,982       1,015,412       2,546,380       1,986,121  
General and administrative     1,426,531       1,397,667       4,329,760       4,275,385  
Stock based compensation     585,771       788,691       2,693,702       2,790,958  
Total operating expenses     5,548,999       5,087,176       16,496,922       15,122,911  
Operating loss     (4,447,348 )     (5,184,105 )     (14,020,024 )     (15,013,869 )
Other (income) expense     (258,015 )     151,818       818,901       (254,762 )
Net loss from continuing operations     (4,189,333 )     (5,335,923 )     (14,838,925 )     (14,759,107 )
Loss from discontinued operations     (1,299,205 )     (330,079 )     (2,141,289 )     (962,971 )
Net loss   $ (5,488,538 )   $ (5,666,002 )   $ (16,980,214 )   $ (15,722,078 )
Loss per share - basic and diluted   $ (0.10 )   $ (0.10 )   $ (0.31 )   $ (0.29 )
Weighted average shares outstanding - basic and diluted     55,688,114       54,294,116       55,409,930       54,050,127  

Condensed Consolidated Statements of Cash Flows

      Nine months ended January 31,  
      2024       2023  
Cash Flows from Operating Activities                
Net loss from continuing operations   $ (14,838,925 )   $ (14,759,107 )
Non-cash expenses     4,250,925       2,752,691  
Changes in operating assets and liabilities     (4,766,934 )     (4,799,734 )
Net cash used in operating activities     (15,354,934 )     (16,806,150 )
Cash Flows from Investing Activities                
Proceeds from sale of marketable securities     12,826,217       24,282,117  
Other     (184,532 )     (1,985,882 )
Net cash provided by investing activities     12,641,685       22,296,235  
Cash Flows from Financing Activities                
Payments of debt obligations, net     (423,772 )     (498,576 )
Payments related to employee equity transactions     (20,949 )     (594,454 )
Proceeds from issuance of common stock, net     8,404,812        
Net cash provided by (used in) financing activities     7,960,091       (1,093,030 )
Net cash used in discontinued operations     (683,041 )     (4,588,708 )
Net increase (decrease) in Cash     4,563,801       (191,653 )
Cash, beginning of period     3,260,305       4,084,815  
Cash, end of period     7,824,106       3,893,162  
Less: Cash of discontinued operations     (126,771 )     (84,058 )
Cash of continuing operations, end of period     7,697,335       3,809,104  
Marketable securities           20,730,033  
Cash of continuing operations and marketable securities   $ 7,697,335     $ 24,539,137  

Source: Red Cat Holdings, Inc.




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Source: Red Cat Holdings, Inc.