Red Cat Holdings stock falls as Pentagon drone contest bypasses Teal subsidiary

Published on 09/19/2026 at 16:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Red Cat Holdings stock slid about 3 percent to USD 6.88 on September 18, 2026 after its Teal Drones unit missed the top-five cut in the Pentagon’s Gauntlet II competition. The shares now trade more than 60 percent below the 52-week high despite triple-digit revenue growth.

RCAT, US75382E1091, Illustration mit AI erstellt.

Red Cat Holdings stock (ISIN US75382E1091) is trading under pressure, with shares around USD 6.88 as of September 18, 2026 on Nasdaq after its Teal Drones subsidiary failed to make the top-five list in the Pentagon’s Gauntlet II drone competition, while the stock remains more than 60 percent below its 52-week high.

Gauntlet II results put Teal Drones on the sidelines

According to TradingView on September 18, 2026, Teal Drones Inc., Red Cat Holdings’ defense-focused drone unit, competed in the Close Quarters Battle category of the Pentagon’s Gauntlet II competition but did not place among the top five finalists.

As TradingView reports, Red Cat shares were changing hands at USD 6.88 on September 18, 2026, down 3.10 percent intraday and 24.4 percent since August 25, 2026, with the stock standing 63.4 percent below its 52-week high.

Stock slide contrasts with surging quarterly revenue

The market reaction comes shortly after Red Cat reported very strong top-line growth. As Yahoo Finance summarized on September 18, 2026, Red Cat’s most recent quarterly report delivered on August 6, 2026 showed revenue of USD 20.19 million for the quarter, representing a 527 percent year-over-year increase.

In the same report, Red Cat’s USD 20.19 million in quarterly revenue came in below the consensus analyst expectation of USD 22.58 million, marking a shortfall of USD 2.39 million versus the forecast, which has sharpened investors’ focus on execution as volumes ramp.

According to Yahoo Finance, management reaffirmed full-year fiscal 2026 revenue guidance of USD 150 million to USD 180 million when it reported the August 6, 2026 quarter, implying a very steep ramp from the current quarterly run rate.

Valuation, market cap and earnings calendar

Per data cited by TradingView on September 18, 2026, Red Cat’s market value stood around USD 1.05 billion at a share price of roughly USD 6.88, underlining the disconnect between the company’s high growth ambitions and the recent share price drawdown.

A separate valuation overview from CompaniesMarketCap indicates that Red Cat Holdings’ market capitalization was about USD 1.03 billion as of September 2026, slightly below the USD 1.08 billion level reported on September 17, 2026, reflecting the recent price decline.

Looking ahead, an earnings calendar compiled by Bullfincher on September 19, 2026 lists RCAT among companies scheduled to report results on September 22, 2026, making that date a key checkpoint for investors following the stock.

Share price level and trading context

Red Cat Holdings is listed on Nasdaq under the ticker RCAT, with the stock closing at USD 6.75 on September 18, 2026 in regular trading, a 4.80 percent decline on the day, before edging up to USD 6.82 in extended hours trading that evening according to data presented by MarketBeat as of September 19, 2026.