Group 1 - A class action has been filed on behalf of investors who purchased Red Cat Holdings, Inc. (NASDAQ: RCAT) securities between March 18, 2022, and January 15, 2025 [1] - The allegations include that Red Cat Holdings misled investors regarding its production capacity at the Salt Lake City Facility and overstated the value of the SRR Contract [2] - Kerrisdale Capital reported that the SRR Contract was valued between $20 million and $25 million, significantly lower than previously stated, leading to a 21.54% drop in Red Cat's stock price [3] Group 2 - Shareholders interested in serving as lead plaintiff have until July 22, 2025, to seek this status in the class action [4] - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4] - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [5]

NEW YORK, May 27, 2025 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Red Cat Holdings, Inc. (“Red Cat” or “the Company”) (NASDAQ: RCAT) and certain of its officers. Class Definition This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Red Ca ...

Core Insights - Red Cat Holdings has partnered with ESAero to enhance manufacturing capacity for the Black Widow small unmanned aerial system (sUAS) [1][3] - The Black Widow drone is designed for short-range reconnaissance missions and has been selected for the U.S. Army's SRR Program of Record contract [2][5] - ESAero's AS9100 certified facilities will support Red Cat in scaling production to meet increasing demand from both U.S. and international customers [3][4] Company Overview - Red Cat Holdings, Inc. is a drone technology company focused on military, government, and commercial operations, with subsidiaries including Teal Drones and FlightWave Aerospace [5][6] - The Black Widow is part of a Family of Systems that includes other advanced drone technologies optimized for military applications [5] - ESAero specializes in unmanned aerial systems and advanced aerospace technologies, providing vertically integrated services in R&D, engineering, and production [6]

NEW YORK, May 27, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased the securities of Red Cat Holdings, Inc. (“Red Cat” or the “Company”) (NASDAQ: RCAT) between March 18, 2022 and January 15, 2025, both dates inclusive (the “Class Period”). The Complaint alleges that Defendants throughout the Class Period made false and/or misl ...

Core Points - A shareholder class action lawsuit has been filed against Red Cat Holdings, Inc. alleging that the company made materially false and misleading statements regarding its production capacity and the value of the SRR Contract [1] - The lawsuit claims that the defendants overstated the production capacity of the Salt Lake City Facility and the overall value of the SRR Contract, leading to misleading public statements [1] Legal Information - Shareholders who purchased Red Cat shares between March 18, 2022, and January 15, 2025, and suffered significant losses are encouraged to discuss their legal rights with the law firm Holzer & Holzer [2] - The deadline to request to be appointed as lead plaintiff in the case is July 22, 2025 [3]

BOSTON, May 27, 2025 (GLOBE NEWSWIRE) -- Block & Leviton announces that a securities fraud lawsuit has been filed against Red Cat Holdings, Inc. (Nasdaq: RCAT) and certain of its executives. Investors who have lost money in their Red Cat Holdings investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/rcat. What is this all about? The complaint alleges that, throughout the Class Period, Red Cat Holdings, Inc. made mat ...

Core Viewpoint - A class action lawsuit has been filed against Red Cat Holdings, Inc. for allegedly misleading investors about its production capacity and the value of its contracts, particularly the SRR Contract with the U.S. Army [1][2][3]. Group 1: Allegations and Complaints - The lawsuit claims that Red Cat Holdings overstated the production capacity of its Salt Lake City Facility and the overall value of the SRR Contract [2]. - Kerrisdale Capital's report indicated that the SRR Contract was valued between $20 million to $25 million, contrary to Red Cat's claims, leading to a significant drop in stock price [3]. Group 2: Stockholder Information - Shareholders interested in participating as lead plaintiffs have until July 22, 2025, to seek this status, while those who do not wish to participate can remain as absent class members [4]. - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses unless a recovery is achieved [5].

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end May, consider joining Out Fox The Street .Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RCAT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not r ...

Financial Data and Key Metrics Changes - The company has reiterated its 2025 annual revenue guidance of $80 million to $120 million, with the bulk of this revenue expected to be recognized in the latter half of 2025 [4] - The company ended the quarter with $9 million in cash and receivables, which was bolstered by a $30 million capital raise in April [4][26] - The company is currently expanding its manufacturing capacity to produce over 150 drones per month, which translates to an annual run rate of approximately $81 million [6] Business Line Data and Key Metrics Changes - The Black Widow manufacturing has started, with a non-SRR backlog of $10 million for Black Widow and H-130s expected to begin deliveries in June [4] - Flightwave is expected to reach a production capacity of 150 drones per month by the end of the year, with strong demand noted for the Edge 130 [5][6] - The company is also expanding its Black Widow production to a second facility in California to increase capacity and redundancy [7] Market Data and Key Metrics Changes - The company is preparing for a significant ramp in deliveries in the second half of 2025, driven by strong demand and potential large budget increases from the Army [8][11] - The company is entering the unmanned service vessel (USV) market, with expectations of a productive boatyard in Florida by the end of Q3 [20] Company Strategy and Development Direction - The company is focusing on expanding its manufacturing capabilities and diversifying its production locations to meet increasing demand [4][6] - The new Maritime division aims to build USVs in partnership with experienced boat builders, differentiating itself from competitors who lack manufacturing experience [12][19] - The company is also leveraging partnerships to enhance its technology stack, particularly with Palantir for manufacturing improvements [22][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting revenue guidance, citing strong demand for both Flightwave and Black Widow products [56] - The company anticipates that the Army will soon announce a significant contract related to LRIP, which is expected to drive future growth [61] - Management highlighted the importance of geographical diversity in production to mitigate risks and enhance delivery capabilities [24][31] Other Important Information - The company has a strong liquidity position following the recent capital raise, allowing it to focus on drone production without immediate cash flow concerns [26] - The company is actively engaging with government entities and responding to federal directives to support domestic shipbuilding initiatives [38][39] Q&A Session Summary Question: What are the key milestones or contracts needed to reach revenue guidance? - Management indicated that they are significantly above the lower goalposts for Russell 2000 inclusion and expect to be part of the reconstitution [18] Question: When will tangible cost reductions from the Palantir partnership be realized? - Management stated that they are aiming for approximately 150 drones per month for Flightwave by the end of the year, which will improve margins as production ramps up [22] Question: Can you discuss the inventory situation and revenue generation in Q2? - Management noted that they had to wait for final versions from partners before starting production, but they expect to see inventory levels decrease as production ramps up [30] Question: Are you partnering with a shipbuilder or owning a shipyard for the USV program? - Management confirmed that they will own a boatyard in Florida and are partnering with experienced builders for prototypes [38] Question: What is the expected CapEx for this year? - Management did not provide a specific figure but mentioned they are currently assessing the bill of materials for the new USV [41]

Financial Data and Key Metrics Changes - The company has reiterated its 2025 annual revenue guidance of $80 million to $120 million, with most revenue expected to be recognized in the latter half of 2025 [5] - The company ended the quarter with $9 million in cash and receivables, which was bolstered by a $30 million capital raise in April [5] - The company is currently expanding its manufacturing capacity to produce over 150 drones per month, which translates to an annual run rate of approximately $81 million [7] Business Line Data and Key Metrics Changes - The Black Widow manufacturing has started, with a non-SRR backlog of $10 million for Black Widow and H-130s expected to begin deliveries in June [5] - Flightwave is expected to reach a production capacity of 150 drones per month by the end of the year, which will significantly contribute to revenue [7][24] - The company is also expanding its Black Widow production to a second facility in California to increase capacity and redundancy [9] Market Data and Key Metrics Changes - The company is seeing strong demand for both Flightwave and Black Widow products, with expectations of significant revenue from the SRR program once contracts are finalized [10][11] - The company is preparing for a large budget increase for unmanned vessel production, with a recent announcement of $3.1 billion from the House Armed Services Committee [12] Company Strategy and Development Direction - The company is focusing on expanding its manufacturing capabilities and geographical diversity to meet increasing demand [5][9] - The new Maritime division is being developed in partnership with experienced boat builders, aiming to create a competitive edge in the USV market [13][20] - The company plans to have a boatyard in Florida to build USVs, leveraging proven technology and expertise [14][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting revenue guidance, citing strong demand and the ramp-up of production capabilities [24][58] - The company is optimistic about the upcoming contracts and the potential for significant revenue growth in the second half of 2025 [62] - Management highlighted the importance of geographical diversity in production to mitigate risks and enhance delivery capabilities [25] Other Important Information - The company is expecting to be included in the Russell 2000 index, which could enhance visibility and investor interest [19] - The company is actively pursuing partnerships and contracts in the USV market, with a focus on compliance and domestic production [49] Q&A Session Summary Question: What are the key milestones or contracts needed to reach revenue guidance? - Management indicated that the finalization of contracts, particularly in the SRR program, is crucial for achieving revenue targets [17][22] Question: What is the expected revenue contribution from the Maritime Autonomy and USV segment for 2025? - Management expects limited revenue from the USV segment in 2025 but sees significant potential for future growth [21] Question: How soon can tangible cost reductions and margin improvements be realized from the Palantir partnership? - Management noted that improvements in margins are expected as production ramps up and revenue begins to flow from both Flightwave and Black Widow [23][56] Question: Can you discuss the current and target monthly production capacity at Long Beach? - The target is to reach approximately 150 drones per month by the end of the year, with ongoing efforts to optimize production [24] Question: What is the current status of liquidity and cash burn? - Management confirmed that the company is well-financed after raising $30 million and is focused on building drones [27] Question: Can you clarify the inventory situation and backlog? - Management acknowledged that inventory has risen but expects to start shipping against the backlog as production ramps up [30][36] Question: Are you partnering with a shipbuilder or owning a shipyard for the USV program? - The company will own a boatyard in Florida while also partnering with experienced builders for prototype development [40] Question: What is the expected CapEx for this year? - Management did not provide a specific CapEx estimate but indicated that details will be available in future calls [43]