Red Cat Holdings (RCAT) Surges 13.68% on Q3 Revenue Milestone, Guidance Cut Amid Contract Delays

Red Cat Holdings, Inc. (RCAT) surged 13.6792% in pre-market trading on Nov. 25, 2025, signaling renewed investor confidence after a prolonged correction. The defense and drone manufacturer has faced significant volatility, with shares retreating from a 6-month high following revised revenue forecasts.

The company reported $9.65 million in Q3 revenue, a 646% year-over-year increase, marking a pivotal milestone in scaling operations. However, full-year guidance was slashed to $36 million from an initial $80-$120 million range, reflecting delays in government contract execution. CEO Jeff Thompson attributed the setbacks to protracted budget approvals, with the U.S. Army’s SRR program delayed by 6-7 weeks. Despite these hurdles, Red Cat secured a $35 million SRR contract and remains on track for long-term growth, though updates to its Edge 130 drone have pushed related revenue to 2026.

Backtesting suggests a potential entry point for long-term investors emerges if RCAT stabilizes above $6.50, with resistance levels at $8.20 and $9.50 aligning with prior breakouts. A closing above $7.10 could validate a bullish reversal pattern, while a retest of the $5.80 support level might trigger further consolidation. Position sizing should account for the stock’s 30% volatility range over the past 60 days.