HC Wainwright Predicts Red Cat's Q3 Earnings (NASDAQ:RCAT)

Key Points

• HC Wainwright lowered its Q3 2026 EPS forecast for Red Cat to a loss of $0.22 per share from $0.19, while maintaining a Buy rating and $20 price target. Analysts expect Red Cat to remain unprofitable through 2029 before reaching projected positive EPS in 2030.
• Red Cat’s latest quarter missed expectations, reporting a $0.26 per-share loss versus the $0.21 consensus and revenue of $20.2 million versus $22.65 million expected. The company also posted a negative net margin of 136.26%.
• Despite the earnings shortfall, analyst sentiment remains broadly positive, with a consensus Buy rating and $20.40 target; however, insider selling and continued losses present risks to the stock’s rebound.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) - Investment analysts at HC Wainwright lowered their Q3 2026 earnings estimates for Red Cat in a research note issued on Friday, August 7th. HC Wainwright analyst A. Dayal now anticipates that the company will post earnings per share of ($0.22) for the quarter, down from their prior estimate of ($0.19). HC Wainwright has a "Buy" rating and a $20.00 price target on the stock. The consensus estimate for Red Cat's current full-year earnings is ($0.68) per share. HC Wainwright also issued estimates for Red Cat's Q4 2026 earnings at ($0.19) EPS, FY2026 earnings at ($0.89) EPS, FY2027 earnings at ($0.90) EPS, FY2028 earnings at ($0.84) EPS, FY2029 earnings at ($0.31) EPS and FY2030 earnings at $0.33 EPS.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 39.64%. The firm had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million.

A number of other research firms also recently issued reports on RCAT. UBS Group started coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a "buy" rating for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Wall Street Zen cut Red Cat from a "sell" rating to a "strong sell" rating in a research note on Saturday, July 18th. Roth Capital began coverage on Red Cat in a research report on Monday, June 1st. They set a "buy" rating and a $25.00 price target on the stock. Finally, Clear Str raised Red Cat to a "strong-buy" rating in a report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Red Cat has a consensus rating of "Buy" and a consensus price target of $20.40.

Red Cat Stock Up 8.6%

Shares of NASDAQ:RCAT opened at $10.00 on Tuesday. Red Cat has a 12-month low of $5.77 and a 12-month high of $18.78. The business has a 50 day moving average of $9.79 and a 200-day moving average of $11.79. The stock has a market cap of $1.23 billion, a PE ratio of -12.35 and a beta of 1.32.

Insider Activity

In other news, Director Paul Funk II sold 165,028 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 12.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Red Cat

Hedge funds have recently bought and sold shares of the company. Sei Investments Co. purchased a new position in Red Cat during the 1st quarter valued at about $2,328,000. EVR Research LP purchased a new stake in Red Cat in the 4th quarter worth approximately $1,705,000. Janus Henderson Group PLC lifted its holdings in Red Cat by 733.7% in the 1st quarter. Janus Henderson Group PLC now owns 392,808 shares of the company's stock worth $5,141,000 after buying an additional 345,693 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of Red Cat by 1,825.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company's stock worth $429,000 after buying an additional 51,339 shares during the last quarter. Finally, Empowered Funds LLC bought a new stake in shares of Red Cat in the 1st quarter worth approximately $2,232,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Red Cat

Here are the key news stories impacting Red Cat this week:

• Positive Sentiment: Red Cat announced a multiyear partnership with the Washington Commanders focused on military appreciation initiatives, community events and NFL-season marketing. The agreement could improve brand awareness and reinforce Red Cat’s defense-oriented identity, although it does not include disclosed financial terms. Red Cat Announces Multiyear Partnership with Washington Commanders
• Positive Sentiment: Analyst sentiment remains favorable: Red Cat received an average “Buy” rating, while HC Wainwright reiterated its “Buy” recommendation. Previously reported analyst price targets were materially above the stock’s recent trading level, supporting the rebound narrative. Red Cat Receives Average Rating of Buy Red Cat Buy Rating Reiterated at HC Wainwright
• Positive Sentiment: Unusually high options activity may be adding speculative buying pressure. Traders purchased 52,096 call options, roughly 92% above typical daily call volume, signaling increased bullish interest but not guaranteed future gains.
• Neutral Sentiment: Strength in peer Unusual Machines and broader drone-stock momentum suggests RCAT is benefiting from a sector-wide trade rather than company-specific fundamentals alone. Unusual Machines Stock Is Climbing
• Negative Sentiment: Recent earnings remain a fundamental risk. Red Cat missed quarterly EPS and revenue expectations, with a negative net margin and analysts forecasting a full-year loss, making the rally vulnerable if growth or defense bookings disappoint. Red Cat Stock May Stay Stretched Despite Strong Revenue Growth
• Negative Sentiment: The stock may remain stretched after its post-earnings rebound, while reported insider activity showed sales and no purchases during the past six months—signals that could temper investor confidence.

Red Cat Company Profile

Red Cat Holdings, Inc NASDAQ: RCAT is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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