Filing Flows › Red Cat Holdings (RCAT) › Q2 2025
Red Cat Holdings (RCAT) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 14, 2025
Red Cat Holdings (RCAT) reported revenue of $3.2M for the second quarter 2025 (Q2 2025), -50% from a year earlier and +97% from the quarter before. Operating margin was -392.9%, net loss $13.3M (412.6% of revenue).
Red Cat Holdings, Q2 2025: revenue $3.2M (-50% year over year), operating margin -392.9%, net loss $13.3M, operating cash flow −$12.9M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.2M | +97% | -50% |
| Operating profit | −$12.6M | — | — |
| Net earnings | −$13.3M | — | — |
| Operating cash flow | −$12.9M | — | — |
What changed
Revenue was $3.2M in Q2 2025, down 50% year over year and up 97% from the previous quarter.
Gross margin was 11.7%, up 7.5 points from a year earlier. Operating costs exceeded revenue by $12.6M, an operating margin of -392.9%. Operating expenses grew 131% against a revenue fall of 50%. The fastest-growing cost line was Research & development (+1145%). The quarter ended with a net loss of $13.3M, narrower than the previous quarter's $23.1M loss.
Operating cash flow was −$12.9M. Non-cash charges added back $522K of depreciation and amortization and $2.0M of share-based compensation. Working capital and other items used $2.2M. Capital expenditures of $307K exceeded it, leaving free cash flow of −$13.2M.
Questions
What was Red Cat Holdings' revenue in the second quarter 2025?
Red Cat Holdings (RCAT) reported revenue of $3.2M for the second quarter 2025 (Q2 2025), -50% from a year earlier and +97% from the quarter before.
Was Red Cat Holdings profitable in the second quarter 2025?
Operating loss was $12.6M (-392.9% of revenue) and net loss $13.3M.
Source: Red Cat Holdings 10-Q on SEC EDGAR.