Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding production capacity and contract values during the specified class period [1][3]. Company Overview - Red Cat Holdings, Inc. operates in the drone industry, providing products and solutions, including the "Teal 2" drone designed for military operations [2]. Allegations of the Lawsuit - The lawsuit alleges that Red Cat overstated the production capacity of its Salt Lake City facility and the value of its Short Range Reconnaissance Program contract [3]. - On July 27, 2023, Red Cat disclosed that its Salt Lake City facility could only produce 100 drones per month, with potential future capacity of 1,000 drones per month contingent on additional investments [4]. - Following this announcement, Red Cat's stock price fell nearly 9% [4]. Financial Performance - On September 23, 2024, Red Cat reported a loss per share of $0.17 for Q1 fiscal year 2025, missing consensus estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [5]. - The company admitted that retooling its Salt Lake City facility impacted Teal 2 sales, leading to a stock price drop of over 25% [5]. Additional Allegations - On January 16, 2025, a report from Kerrisdale Capital claimed that the SRR contract was smaller and less favorable than previously indicated by Red Cat, resulting in a stock price decline of more than 21% over two trading sessions [6].

Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its production capacity and the value of its contracts, leading to significant stock price declines during the class period from March 18, 2022, to January 15, 2025 [1][3]. Group 1: Allegations and Misleading Statements - The lawsuit claims that Red Cat overstated the production capacity of its Salt Lake City facility and the potential of its Short Range Reconnaissance Program of Record Tranche 2 contract [3]. - On July 27, 2023, Red Cat revealed that its Salt Lake City facility could only produce 100 drones per month, which was a significant reduction from previously stated expectations [4]. - Following this disclosure, Red Cat's stock price fell nearly 9% [4]. Group 2: Financial Performance and Impact - On September 23, 2024, Red Cat reported a first-quarter fiscal year 2025 loss of $0.17 per share, missing expectations, and revenue of $2.8 million, which was $1.07 million below forecasts [5]. - The company admitted that retooling its Salt Lake City facility for high-volume production and pausing manufacturing of the Teal 2 directly impacted sales, resulting in a stock decline of over 25% [5]. Group 3: Further Developments and Stock Decline - On January 16, 2025, Kerrisdale Capital published a report questioning the validity of the SRR contract, stating it was smaller and less favorable than previously communicated [6]. - This report raised concerns about the feasibility of constructing a mass-production facility within two years with an investment of less than $1 million, leading to a stock decline of more than 21% over the following two trading sessions [6].

Core Viewpoint - A class action securities lawsuit has been filed against Red Cat Holdings, Inc. for alleged securities fraud affecting investors between March 18, 2022, and January 15, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that the defendants made false statements regarding the production capacity of the Salt Lake City Facility and the value of the U.S. Army's Short Range Reconnaissance Program of Record Tranche 2 contract, leading to materially false and misleading public statements [2]. - Investors who suffered losses during the specified timeframe have until July 22, 2025, to request to be appointed as lead plaintiff, although participation does not require serving in this role [3]. Group 2: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [4].

Core Viewpoint - A class action securities lawsuit has been filed against Red Cat Holdings, Inc. for alleged securities fraud affecting investors between March 18, 2022, and January 15, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that the defendants made false statements regarding the production capacity of the Salt Lake City Facility and the value of the U.S. Army's Short Range Reconnaissance Program of Record Tranche 2 contract, leading to materially false and misleading public statements [2]. - Investors who suffered losses during the specified timeframe have until July 22, 2025, to request to be appointed as lead plaintiff, although participation does not require serving in this role [3]. Group 2: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [4].

Core Insights - Red Cat Holdings has seen a 500% increase in stock price over the past year, driven by its focus on the drone defense sector and military contracts, despite ongoing losses [2][3][9] Financial Performance Analysis - Revenue growth has averaged 42.1% over the last three years, significantly outpacing the S&P 500's 5.5% growth rate, but recent revenues have declined by 2.8% from $13 million to $12 million [4] - The latest quarter saw a dramatic revenue drop of 72.1%, falling to $1.6 million from $5.8 million year-over-year [4] - Operating margin stands at -278.3% with losses of $34 million over the last four quarters, and net income margin is at -456.7% with net losses of $56 million [4][5] Balance Sheet Strength - Red Cat maintains a low debt load of $28 million against a market cap of $980 million, resulting in a debt-to-equity ratio of 2.8% [10] - Cash and equivalents amount to $7.7 million, yielding a cash-to-assets ratio of 12.9% [10] Forward-Looking Valuation - Revenue projections indicate a potential 350% growth to approximately $80 million in 2025, followed by an additional 90% growth to over $150 million in 2026 [11] - The stock is currently trading at 6x forward revenues based on 2025 expectations, which is considered reasonable for a high-growth defense contractor [11] - At a projected price of $25 per share, the stock would trade at 12x 2026 revenues, indicating appealing growth potential [11] Strategic Positioning - The U.S. Army's SRR program could lead to the delivery of up to 5,880 Black Widow drones over five years, alongside new orders for Edge 130 drones from various U.S. government entities [3] - The company's partnership with Palantir for AI navigation and manufacturing optimization is expected to enhance revenue growth [3]

NEW YORK, July 17, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Red Cat Holdings, Inc. (NASDAQ: RCAT) between March 18, 2022 and January 15, 2025, both dates inclusive (the “Class Period”), of the important July 22, 2025 lead plaintiff deadline. SO WHAT: If you purchased Red Cat securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement ...

Core Insights - The U.S. Department of Defense (DoD) memo titled "Unleashing U.S. Military Drone Dominance" indicates a significant shift towards increasing drone production and usage, particularly small drones, which is expected to benefit various drone manufacturers [1][2][3] Group 1: Red Cat (RCAT) - Red Cat's stock surged over 26% on July 11 and an additional 20% on July 14 following the memo's release, indicating strong market confidence in the company's future prospects [3] - The memo states that small drones will now be classified as consumable commodities, allowing soldiers to utilize them without concerns about their destruction, which could lead to increased sales for Red Cat [2] - Red Cat recorded approximately $16.5 million in sales over the last 12 months, presenting a significant growth opportunity as the U.S. Army adopts its Black Widow drone for reconnaissance [3] Group 2: Kratos Defense & Security Solutions (KTOS) - Kratos Defense's shares rose nearly 12% on July 11, benefiting from the memo's focus on low-cost drone technology, aligning with Kratos' strategy of affordability [5][6] - The XQ-58A drone, developed by Kratos, currently costs between $4 million and $6 million, significantly cheaper than manned jets, with plans to reduce costs to around $2 million through increased production [7] - Kratos is forecasting between $240 million and $250 million in target drone revenue in 2025, which could see a substantial increase in orders due to the memo's emphasis on military training with drones [8] Group 3: AeroVironment (AVAV) - AeroVironment's stock gained 11% on July 11, reflecting positive market sentiment towards the company's diverse drone offerings, even though only some products will shift to the consumable classification [10] - The overall push for expanded U.S. military drone adoption is expected to benefit AeroVironment, contributing to the growth of the drone industry [10] Group 4: Industry Outlook - The memo suggests a more favorable stance on drone warfare under the current administration, indicating that the overall market for drone technology will expand, benefiting multiple players in the industry [11]

Core Viewpoint - The Red Cat Holdings, Inc. is facing a class action lawsuit alleging securities fraud, with claims that the company and its executives made misleading statements regarding production capacity and contract values, leading to significant stock price declines during the class period from March 18, 2022, to January 15, 2025 [1][3][4][5][6]. Company Overview - Red Cat Holdings, Inc. operates in the drone industry, providing products and solutions, including the "Teal 2" drone designed for military operations [2]. Allegations of the Lawsuit - The lawsuit claims that Red Cat overstated the production capacity of its Salt Lake City facility and the value of its Short Range Reconnaissance Program contract [3]. - On July 27, 2023, Red Cat disclosed that its Salt Lake City facility could only produce 100 drones per month, with potential future capacity of 1,000 drones per month contingent on additional investments [4]. - Following this announcement, Red Cat's stock price fell nearly 9% [4]. - On September 23, 2024, Red Cat reported a loss per share of $0.17, missing estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million, leading to a stock price drop of over 25% [5]. - A report published on January 16, 2025, alleged that the SRR contract was smaller and less favorable than previously indicated, causing the stock price to fall more than 21% over two trading sessions [6]. Legal Process - Investors who purchased Red Cat securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, which allows them to act on behalf of other class members [7]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [8][9].

NEW YORK, July 16, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Red Cat Holdings, Inc. (NASDAQ: RCAT). Shareholders who purchased shares of RCAT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/red-cat-holdings-inc-loss-submission-form/?id=156712&from=3  CLASS PERIOD: ...

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