Zacks downgrades Red Cat Holdings stock to strong sell

Published on 10/15/2026 at 22:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Second-quarter revenue reached USD 20.19 million in June 2026. Red Cat Holdings stock costs EUR 4.40 on October 15, 2026 at 10:18 p.m. CEST.

Analyst view and reporting date

Zacks Research changed its rating on October 14, 2026.
Second-quarter revenue reached USD 20.19 million in the period ended June 30, 2026.
Red Cat Holdings stock costs EUR 4.40 at Lang & Schwarz on October 15, 2026 at 10:18 p.m. CEST.
The next report is scheduled for November 12, 2026.

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Zacks Research downgraded Red Cat Holdings from hold to strong sell on October 14, 2026, according to MarketBeat. The rating change adds a sharper counterpoint to the company growth story. At Lang & Schwarz, Red Cat Holdings stock was trading at EUR 4.40 on October 15, 2026 at 10:18 p.m. CEST.

Revenue reached USD 20.19 million

Red Cat reported USD 20.19 million in revenue for the second quarter ended June 30, 2026, compared with USD 15.47 million in the first quarter. The standardized quarterly statements also show a net loss of USD 35.26 million and an operating loss of USD 38.65 million for the second quarter.

That combination matters for the stock discussion. Revenue increased sequentially, but operating losses remained substantially larger than quarterly revenue, leaving execution and cash use as central measurements for the next report. A Streetwise Reports review dated October 14, 2026 said second-quarter revenue rose 527.00 percent from the prior year to USD 20.20 million and that Red Cat retained its 2026 revenue target of USD 150 million to USD 180 million, citing the company report: Streetwise Reports.

Price position and valuation

The primary Nasdaq quote stood at USD 4.90 at 4:00 p.m. ET on October 15, 2026, while the 52-week range was USD 4.41 to USD 18.78. The euro quote therefore sits below the upper part of the company trading range when viewed alongside the home-market figures. Red Cat operates in aerospace and defense and develops unmanned aircraft systems for defense, government, public safety and commercial applications.

Valuation and November date

Red Cat had a market capitalization of USD 748.3 million and a negative P/E ratio of minus 5.70 as of October 15, 2026. The next reporting date is November 12, 2026, with the period identified as the third quarter of 2026 by TradingView.

Comparison with peers

Red Cat (Nasdaq, USD): P/E minus 5.70, market capitalization USD 748.3 million.

AeroVironment (Nasdaq, USD): plus 2.17 percent, P/E minus 21.17, market capitalization USD 6.3 billion.

Ondas Holdings (Nasdaq, USD): plus 3.42 percent, P/E 95.92, market capitalization USD 3.7 billion.

What comes next for the stock

The immediate market question is whether higher revenue can narrow the operating deficit. The second-quarter figures provide a clear contrast between scale and profitability, while the November reporting date offers the next scheduled checkpoint for delivery progress, revenue conversion and losses.

Red Cat Holdings stock was trading at EUR 4.40 at Lang & Schwarz on October 15, 2026 at 10:18 p.m. CEST.

The further course of trading is shown by the continuously updated real-time quote of Red Cat Holdings stock.