How did RCAT's revenue and expenses shift in Q2 2025 compared to previous quarters?

**Red Cat Holdings, Inc. (RCAT) is poised for significant revenue growth in Q2 2025**, driven by strategic military funding and operational advancements: 1. **Projected Revenue Increase**: RCAT targets substantial military funding, seeking $100 million in Short Range Reconnaissance (SRR) funding. This targets a substantial year-over-year growth, underpinning potential revenue escalation from the previous quarter's forecast of $80 million to $120 million. 2. **Contract Milestones and Revenue Contributors**: Key contract milestones, including the Features contract and anticipated Full-Rate Production contract, are expected to substantiate revenue growth. Additionally, SRR-related Black Widow sales, Edge 130 sales, and Fang FPV contributions are anticipated to bolster revenue. 3. **International Expansion and Strategic Partnerships**: Ongoing international interest and potential partnerships, coupled with the company's presence at international defense events, suggest enhanced global revenue prospects. The partnership with Palantir for visual navigation software may improve drone capabilities and potentially increase margins. 4. **Operational Efficiency and Production Capacity**: The operational success at the Long Beach factory and the commencement of drone shipments indicate enhanced production capacity, likely contributing to revenue growth as the facility scales. In summary, RCAT's strategic positioning, contractual commitments, and operational advancements are well-poised to drive robust revenue growth in Q2 2025, potentially exceeding previous revenue forecasts.