Red Cat Holdings Plunges as Revenue Forecast Slashed

Red Cat US75644T1007

Despite posting record-breaking quarterly results, Red Cat Holdings saw its shares tumble after the company issued a dramatically reduced full-year revenue outlook. The drone manufacturer’s stock fell more than 20% in after-hours trading as investors reacted to the unexpected guidance cut, raising questions about whether this represents a temporary setback or more fundamental issues.

The third quarter of 2025 represented a period of exceptional growth for Red Cat, with revenue reaching $9.6 million—a staggering 646% increase compared to the same period last year. These results exceeded all expectations and marked the strongest quarterly performance in the company’s history.