Red Cat Holdings stock falls after revenue misses estimates

Published on 09/23/2026 at 04:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Red Cat Holdings stock closed at USD 14.50 on September 22, 2026, after a post earnings decline. Q2 revenue reached USD 20.19 million, up 520 percent year over year.

RCAT, US75382E1091, Illustration mit AI erstellt.

Red Cat Holdings stock (ISIN US75382E1091) closed at USD 14.50 on Nasdaq on September 22, 2026, after falling more than 16 percent from recent levels following the companys latest results. The decline came as quarterly revenue missed estimates despite rapid year over year growth.

Revenue rises but misses estimates

According to ScanX on September 22, 2026, Red Cat reported second quarter fiscal 2026 revenue of USD 20.19 million, up 520 percent from the prior year quarter. The figure was USD 2.60 million below the USD 22.79 million estimate.

The operating comparison was stronger than the headline miss suggests. Gross margin reached 16.1 percent in the second quarter, compared with 11.6 percent in the prior year quarter and 12.7 percent in the first quarter of fiscal 2026, according to ScanX.

Six month sales show scale

For the first six months of fiscal 2026, revenue totaled USD 35.7 million, compared with USD 4.8 million in the prior year period. That USD 30.9 million increase shows how quickly the drone maker is expanding, while the estimate miss highlights the execution risk attached to that growth.

The same September 22 report also cited an Evercore ISI initiation with an Outperform rating and a USD 15 price target. At the cited target, the analyst view was close to the recent trading range, making delivery against revenue expectations more important than a purely narrative growth case.

Stock remains near yearly range

RCAT traded as high as USD 18.78 during the past year and as low as USD 4.60, based on the September 22 market context. The September 22 closing level of USD 14.50 was USD 4.28 below the 52 week high and USD 9.90 above the 52 week low.

For investors, the key tension is visible in the numbers: quarterly sales grew 520 percent year over year, but revenue still missed the USD 22.79 million estimate by USD 2.60 million. Margin expansion supports the growth case, while the estimate miss explains why expectations remain a central share price risk.

Red Cat Holdings stock closes at USD 14.50

Red Cat Holdings stock closed at USD 14.50 on Nasdaq on September 22, 2026. The price stood between the reported 52 week low of USD 4.60 and high of USD 18.78.