Q2 EPS Estimates for Red Cat Cut by Northland Securities

Key Points

• Northland Securities cut Red Cat’s Q2 2026 EPS estimate to a loss of $0.21 per share from $0.13, and also lowered forecasts for several other quarters and full-year periods through FY2027.
• Red Cat’s latest earnings missed expectations, reporting a Q1 loss of $0.22 per share versus the $0.12 loss analysts expected, while revenue of $15.47 million also came in below estimates.
• The stock has mixed analyst sentiment: recent ratings range from sell to strong buy, but MarketBeat still shows a consensus “Buy” rating with a $20.67 target price, even as the company remains unprofitable.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) - Northland Securities dropped their Q2 2026 earnings per share (EPS) estimates for Red Cat in a note issued to investors on Friday, May 8th. Northland Securities analyst M. Latimore now forecasts that the company will post earnings of ($0.21) per share for the quarter, down from their prior forecast of ($0.13). The consensus estimate for Red Cat's current full-year earnings is ($0.34) per share. Northland Securities also issued estimates for Red Cat's Q3 2026 earnings at ($0.15) EPS, Q4 2026 earnings at ($0.15) EPS, FY2026 earnings at ($0.73) EPS, Q1 2027 earnings at ($0.18) EPS, Q2 2027 earnings at ($0.17) EPS, Q3 2027 earnings at ($0.10) EPS, Q4 2027 earnings at ($0.04) EPS and FY2027 earnings at ($0.49) EPS.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 37.69%. The business had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. The company's revenue was up 849.1% compared to the same quarter last year.

RCAT has been the topic of several other reports. Wall Street Zen cut Red Cat from a "hold" rating to a "sell" rating in a report on Saturday, May 2nd. LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. Needham & Company LLC boosted their price target on Red Cat from $16.00 to $20.00 and gave the stock a "buy" rating in a report on Thursday, March 19th. Clear Str upgraded Red Cat to a "strong-buy" rating in a report on Wednesday, April 29th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a report on Tuesday, April 21st. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, Red Cat has a consensus rating of "Buy" and a consensus target price of $20.67.

Red Cat Trading Up 8.5%

NASDAQ:RCAT opened at $11.25 on Tuesday. The stock has a market cap of $1.37 billion, a P/E ratio of -16.07 and a beta of 1.21. The stock's 50-day moving average is $13.32 and its 200-day moving average is $11.43. Red Cat has a 1-year low of $5.71 and a 1-year high of $18.78.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Brevan Howard Capital Management LP acquired a new position in shares of Red Cat in the third quarter worth approximately $19,739,000. Tudor Investment Corp ET AL lifted its stake in Red Cat by 214.0% in the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company's stock valued at $13,222,000 after buying an additional 870,612 shares during the period. Kornitzer Capital Management Inc. KS acquired a new position in Red Cat in the third quarter valued at approximately $880,000. SG Americas Securities LLC acquired a new position in Red Cat in the third quarter valued at approximately $418,000. Finally, Baader Bank Aktiengesellschaft acquired a new position in Red Cat in the third quarter valued at approximately $491,000. 37.97% of the stock is owned by institutional investors and hedge funds.

Red Cat News Roundup

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

• Positive Sentiment: Red Cat’s subsidiary, Teal Drones, won a $9.5 million U.S. Army drone order, a potentially meaningful validation of its defense business and a future revenue catalyst. Article Title
• Positive Sentiment: Despite a first-quarter earnings miss, Red Cat still posted 849% year-over-year revenue growth, suggesting the business is scaling quickly even though profitability remains weak. Article Title
• Neutral Sentiment: Analysts are now focusing on the company’s Q1 results and full-year outlook after the latest quarterly report missed both EPS and revenue expectations, reinforcing that execution still needs to improve. Article Title
• Negative Sentiment: Northland Securities cut earnings estimates across multiple future periods for Red Cat, including FY2026, FY2027, and several quarterly forecasts, signaling lower profit expectations and a more cautious outlook. Article Title
• Negative Sentiment: The company continues to be viewed as a loss-making growth story, with recent analyst revisions implying deeper losses than previously expected. Article Title

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.

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