Red Cat Stock Rises Despite Market Slump After CEO Dismisses NATO Concerns, Touts Trump’s Backing — Retail Remains Unconvinced

Red Cat (RCAT) shares climbed 4.5% in afternoon trading on Tuesday, bucking a broader market decline, after the company’s CEO highlighted international expansion goals and expressed confidence in government support for drone technology under the Trump administration.

The gains came as Red Cat reported its 2024 "transition period" financial results, covering the final eight months of the year.

The stock was one of the most discussed tickers on Stocktwits, with platform data showing a more than 1,000% surge in chatter in the 24 hours before Tuesday’s market open.

Red Cat posted a net loss of $0.57 per share on a total revenue of $4.9 million.

It ended the period with $9.6 million in cash and accounts receivable and has since secured an additional $6 million in financing.

Looking ahead, Red Cat expects 2025 revenue between $80 million to $120 million. 

This includes $25 million from non-SRR Black Widow sales, between $25 million and $65 million from SRR-related Black Widow sales, $25 million from Edge 130 sales, and $5 million from Fang FPV sales.

During its earnings call, the company emphasized progress at its Long Beach factory, which is now operational and shipping drones. 

Red Cat also highlighted enhancements to its Black Widow drone and a partnership with Palantir as part of its strategy to strengthen its position in the defense drone market. 

The company said interest from military clients and NATO allies remains high.

Addressing speculation that NATO countries might reduce reliance on U.S.-made drones due to tensions between President Trump and Ukrainian President Volodymyr Zelensky, CEO Jeffrey Thompson argued that there are few viable alternatives. 

He pointed out that Chinese drones, such as those made by DJI, are effectively off the table for NATO due to security concerns.

Thompson also expressed confidence in securing additional government funding, citing the administration’s belief that "drones are the future of warfare." Red Cat disclosed it had requested an additional $100 million for its 2025 budget during its Investor’s Day in February. 

“Whether it's Elon Musk, whether it's some of the most influential people in the administration, they're all moving away from exquisite, expensive systems into drones like ours,” Thompson said. “Having a program of record as this new administration moves in doesn’t hurt.”

Despite the stock’s gains on Tuesday, retail sentiment on Stocktwits dipped lower into ‘bearish’ territory.

One user expressed long-term optimism about Red Cat’s prospects.

Another user said they used the price jump to book profits.

Red Cat shares have soared 690% over the past 12 months, significantly outperforming the broader market. However, the stock declined by 53% in 2025.

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