Q2 EPS Estimates for Red Cat Lowered by Northland Securities

Posted by on May 12th, 2026

Red Cat Holdings, Inc. (NASDAQ:RCAT – Free Report) – Research analysts at Northland Securities cut their Q2 2026 earnings per share estimates for Red Cat in a research report issued to clients and investors on Friday, May 8th. Northland Securities analyst M. Latimore now expects that the company will earn ($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 announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative return on equity of 37.69% and a negative net margin of 138.36%.The company had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. The company’s quarterly revenue was up 849.1% compared to the same quarter last year.

A number of other brokerages also recently issued reports on RCAT. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. Needham & Company LLC upped their price objective on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Thursday, March 19th. Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. Clear Str upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $20.67.

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Red Cat Trading Up 8.5%

Shares of Red Cat stock opened at $11.25 on Tuesday. The stock has a fifty day simple moving average of $13.32 and a 200 day simple moving average of $11.43. Red Cat has a 12-month low of $5.71 and a 12-month high of $18.78. The company has a market capitalization of $1.37 billion, a P/E ratio of -16.07 and a beta of 1.21.

Institutional Trading of Red Cat

A number of institutional investors have recently added to or reduced their stakes in the stock. State Street Corp lifted its holdings in Red Cat by 136.4% during the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after purchasing an additional 3,815,310 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Red Cat by 9.0% during the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after purchasing an additional 493,660 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Red Cat by 13.4% in the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after acquiring an additional 297,967 shares in the last quarter. Brevan Howard Capital Management LP purchased a new stake in shares of Red Cat in the 3rd quarter valued at about $19,739,000. Finally, Davidson Kempner Capital Management LP purchased a new stake in shares of Red Cat in the 3rd quarter valued at about $17,286,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Key Red Cat News

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

About Red Cat

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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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Earnings History and Estimates for Red Cat (NASDAQ:RCAT)

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