Why Red Cat Stock Popped Today -- Then Gave It Back

• Red Cat pre-announced beardown Q4 income this morning.

• Red Cat's net astir apt won't beryllium truthful strong.

• 10 stocks we similar amended than Red Cat ›

Red Cat Holdings (NASDAQ: RCAT) banal jumped similar a proverbial feline connected a blistery tin extortion this morning, soaring much than 11% aft preannouncing income for its Q4 2025. That's the bully news.

The atrocious quality is that Red Cat past reversed people and gave backmost astir of those gains. As of 11:45 a.m. ET, Red Cat banal is up lone 2.6%.

Red Cat expects to publication betwixt $24 cardinal and $26.5 cardinal successful Q4 revenue, up of expert forecasts. The U.S.-based shaper of drones for the subject expects gross to summation by arsenic overmuch arsenic 1,842% twelvemonth implicit year.

Wow.

Full-year show isn't rather that awesome -- but much than bully capable to explicate the aboriginal greeting jump. Through the extremity of 2025, Red Cat says it booked betwixt $38 cardinal and $41 cardinal successful full revenue, "an approximate 153% increase."

But bash you privation to cognize what Red Cat didn't say?

It didn't accidental it was profitable -- and determination whitethorn beryllium a crushed for that.

Red Cat has ne'er reported a profit, but it definite tin heap up the losses, which totaled much than $52 cardinal done the year's archetypal 3 quarters -- astir treble the losses Red Cat incurred by this constituent a twelvemonth ago. Cash pain is beauteous miserable, excessively -- astir $54 cardinal truthful acold this year.

The bully quality is that Red Cat inactive has immoderate currency to tide it over. Cash reserves totaled $184 million, nett of debt, astatine the past report, giving the institution possibly 3 much years to go self-sufficient -- and Red Cat whitethorn request it.

Analysts don't forecast profits earlier 2028 astatine the earliest, and astir apt not adjacent then.

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