Red Cat Holdings Reports Q2 Earnings, Partners with Palantir for AI-Powered Drones

Red Cat Holdings Q2 Earnings: Revenue, EPS Miss Estimates As Drone Company Prioritizes Long-Term Growth Over Short-Term Sales - Red Cat Hldgs (NASDAQ:RCAT)

The drone technology company anticipates revenue of $80 million to $120 million for calendar year 2025. Red Cat Holdings Inc RCAT reported second-quarter financial results for fiscal year 2025 after the bell on Monday. Here's a rundown of the report. What Happened: Red Cat reported second-quarter revenue of $1.53 million, missing analyst estimates of $4.13 million. The drone technology company reported a second-quarter loss of 18 cents per share, missing analyst estimates for a loss of eight cents per share, according to Benzinga Pro. "In the second half of 2024, our company decided to focus on the Black Widow, anticipating its success in the SRR final production contract," said Jeff Thompson, CEO of Red Cat. "We halted production of the Teal 2 to retool for the Black Widow, prioritizing long-term growth over short-term revenue. This strategy has proven successful, enabling us to meet the demands of the new Army contract and all other Black Widow sales and programs of record while managing critical technology integration through our Red Cat Futures Initiative partners. We are now well-positioned to fulfill these demands." Red Cat ended the quarter with $5.7 million in cash and accounts receivable. The company noted that it has closed on an additional $6 million in financing since the end of the quarter. Check This Out: Taiwan Semiconductor CEO Highlights AI-Powered Drones, Next-Gen Robots As Growth Drivers What's Next: Red Cat expects full-year revenue for calendar year 2025 of $80 to $120 million. "We are also pleased to announce our partnership with Palantir. With Palantir's Artificial Intelligence and visual navigation, we believe the Black Widow is one of the most capable drones ever fielded by the Department of Defense. This rucksack-portable drone, powered by Palantir's software, will boost revenue per drone and increase gross margins," Thompson said. Red Cat on Monday announced a partnership with Palantir Technologies Inc PLTR to integrate navigation software into its Black Widow drones. The collaboration is expected to help transform autonomous small unmanned aircraft systems operations for modern warfare. Red Cat's management team will further discuss highlights from the quarter on a call with analysts and investors at 4:30 p.m. ET. RCAT Price Action: Red Cat Holdings shares were down 13.88% in after-hours, trading at $9.04 at the time of publication Monday, according to Benzinga Pro. Photo: MAcroEcon via Shutterstock Market News and Data brought to you by Benzinga APIs

Red Cat Holdings Reports Financial Results for Fiscal Second Quarter 2025 and Provides Corporate Update - Red Cat Hldgs (NASDAQ:RCAT), Palantir Technologies (NASDAQ:PLTR)

SAN JUAN, Puerto Rico, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. 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 fiscal second quarter ended October 31, 2024 and provides a corporate update. Recent Operational Highlights: Announced selection as the winner of the U.S. Army's Short Range Reconnaissance (SRR) Program of Record. Announced a strategic partnership with Palantir Technologies Inc. PLTR to integrate Visual Navigation software (VNav) into Red Cat's Black Widow drones.Announced several executive leadership team updates, including Geoffrey Hitchcock's promotion from General Manager of Teal Drones to Chief Revenue Officer (CRO) for Red Cat and Chris Rill's transition from Director of Partner Integration to President of Teal Drones.Secured a $1 million contract for its Edge 130 Blue drones from the United States Army Communications-Electronics Command (CECOM).Introduced its ARACHNID™ family of unmanned intelligence, surveillance, and reconnaissance (ISR) and precision strike systems at AUSA 2024.Closed on acquisition of Flight Wave giving us a completely new revenue stream.Secured a Tactical Funding Increase (TACFI) contract from the U.S. Air Force, validating FlightWave's drone technology for mission-critical defense applications.Broke ground on a plan for new manufacturing facility, significantly enhancing production capacity to fulfill existing contracts and scale future operations. First Quarter 2025 Financial Highlights: Year-to-date revenue of $4.3 millionEnded the quarter with cash and accounts receivable of $5.7 millionClosed an additional $6 million financing since quarter endGuidance of $80-$120 million for calendar year 2025 including SRR-related sales "In the second half of 2024, our company decided to focus on the Black Widow, anticipating its success in the SRR final production contract," said Jeff Thompson, Red Cat CEO. "We halted production of the Teal 2 to retool for the Black Widow, prioritizing long-term growth over short-term revenue. This strategy has proven successful, enabling us to meet the demands of the new Army contract and all other Black Widow sales and programs of record while managing critical technology integration through our Red Cat Futures Initiative partners. We are now well-positioned to fulfill these demands." "We are also pleased to announce our partnership with Palantir," added Thompson. "With Palantir's Artificial Intelligence and visual navigation, we believe the Black Widow is one of the most capable drones ever fielded by the Department of Defense. This rucksack-portable drone, powered by Palantir's software, will boost revenue per drone and increase gross margins." "This quarter's accomplishments highlight Red Cat's growing momentum and strong positioning in the drone technology sector," said Leah Lunger, Red Cat CFO. "Having been selected as the winner of the U.S. Army's Short Range Reconnaissance Program of Record reflects the effectiveness of our strategic initiatives and we are now well-positioned to support our projected revenue guidance for calendar year 2025 while continuing to invest in scaling our operations and manufacturing capacity." Conference Call Today CEO Jeff Thompson, CFO Leah Lunger, and CRO Geoffrey Hitchcock will host an earnings conference call at 4:30 p.m. ET on Monday, December 16, 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 attend the conference call through a live webcast that can be accessed at: https://zoom.us/webinar/register/WN_t_SJfhxGSdyvpDz43XANqg About Red Cat Holdings, Inc. Red Cat 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 leading-edge Family of Systems. This includes the flagship Black Widow™, a small unmanned ISR system that was awarded the U.S. Army's Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed wing VTOL for extended endurance and range, and FANG™, the industry's first line of NDAA compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red. 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. INVESTORS: E-mail: [email protected] NEWS MEDIA: Phone: (347) 880-2895 Email: [email protected] RED CAT HOLDINGSCondensed Consolidated Balance Sheets October 31, April 30, 2024 2024 ASSETS Cash and marketable securities $4,611,092 $6,067,169 Accounts receivable, net 1,121,398 4,361,090 Inventory, including deposits 12,554,330 8,610,125 Intangible assets including goodwill, net 26,403,796 12,882,939 Other 6,401,772 7,473,789 Equity method investee -- 5,142,500 Note receivable -- 4,000,000 TOTAL ASSETS $51,092,388 $48,537,612 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $3,244,776 $2,703,922 Debt obligations 356,964 751,570 Operating lease liabilities 1,551,316 1,517,590 Convertible notes payable 11,911,307 -- Acquisition consideration payable 7,000,000 -- Total liabilities 24,064,363 4,973,082 Stockholders' capital 133,909,751 124,690,641 Accumulated deficit/comprehensive loss (106,881,726) (81,126,111) Total stockholders' equity 27,028,025 43,564,530 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $51,092,388 $48,537,612 Condensed Consolidated Statements of Operations Three months ended October 31, Six months ended October 31, 2024 2023 2024 2023Revenues $1,534,727 $3,930,868 $4,311,262 $5,678,997 Cost of goods sold 1,558,202 2,730,286 4,818,128 4,303,750 Gross (loss) profit (23,475) 1,200,582 (506,866) 1,375,247 Operating Expenses Research and development 2,231,470 2,222,137 3,857,910 3,575,688 Sales and marketing 2,343,779 1,032,645 4,385,290 2,321,405 General and administrative 4,517,695 2,838,080 8,000,790 5,701,838 Impairment loss -- -- 93,050 -- Total operating expenses 9,092,944 6,092,862 16,337,040 11,598,931 Operating loss (9,116,419) (4,892,280) (16,843,906) (10,223,684) Other (income) expense Convertible notes payable fair value adjustment 4,230,307 -- 4,230,307 -- Loss on sale of equity method investment -- -- 4,008,357 -- Equity method loss -- -- 734,143 -- Investment loss, net -- 333,867 -- 573,357 Interest (income) expense, net (14,634) 19,696 (39,188) 41,553 Other, net 2,526 (1,544) (26,531) -- Other expense 4,218,199 352,019 8,907,088 614,910 Net loss from continuing operations (13,334,618) (5,244,299) (25,750,994) (10,838,594) Loss from discontinued operations -- (599,511) -- (842,084)Net loss $(13,334,618) $(5,843,810) $(25,750,994) $(11,680,678) Loss per share - basic and diluted $(0.18) $(0.11) $(0.34) $(0.21) Weighted average shares outstanding - basic and diluted 76,184,777 55,606,336 75,342,629 55,270,838 Condensed Consolidated Statements of Cash Flows Six months ended October 31, 2024 2023 Cash Flows from Operating Activities Net loss from continuing operations $(25,750,994) $(10,838,594)Non-cash expenses 12,662,208 3,411,397 Changes in operating assets and liabilities 601,073 (3,813,162)Net cash used in operating activities (12,487,713) (11,240,359) Cash Flows from Investing Activities Proceeds from sale of equity method investment and note receivable 4,400,000 -- Proceeds from sale of marketable securities -- 10,205,501 Other (123,793) (139,860)Net cash provided by investing activities 4,276,207 10,065,641 Cash Flows from Financing Activities Proceeds from issuance of convertible notes payable, net 7,681,000 -- Payments of debt obligations, net (394,606) (279,126)Payments related to employee equity transactions (530,965) (16,292)Proceeds from issuance of common stock through ATM facility, net -- 9,212 Net cash used in financing activities 6,755,429 (286,206) Net cash used in discontinued operations -- (384,094) Net decrease in Cash (1,456,077) (1,845,018)Cash, beginning of period 6,067,169 3,260,305 Cash, end of period 4,611,092 1,415,287 Less: Cash of discontinued operations -- (6,310)Cash of continuing operations, end of period 4,611,092 1,408,977 Marketable securities -- 2,615,289 Cash of continuing operations and marketable securities $4,611,092 $4,030,576 Market News and Data brought to you by Benzinga APIs