Red Cat (RCAT) - 2025 Q4 - Annual Report

Revenue and Profitability - Consolidated revenues totaled $40.7 million during the year ended December 31, 2025, representing an increase of $35.8 million, or 739%, compared to the eight-month period ended December 31, 2024[215] - Gross profit was $1.3 million during the 2025 Period, a 195% increase compared to the gross loss of $1.4 million during the Transition Period[216] Expenses - Research and development expenses increased to $17.9 million during the 2025 Period, reflecting an increase of $11.3 million, or 171%, compared to the Transition Period[218] - Sales and marketing costs rose to $13.1 million during the 2025 Period, an increase of $6.8 million, or 107%, compared to the Transition Period[219] - General and administrative expenses totaled $36.9 million during the 2025 Period, a 222% increase compared to the Transition Period[220] Net Loss and Cash Flow - Net loss from continuing operations was $72.1 million during the 2025 Period, a decrease of $28.5 million, or 65%, compared to the Transition Period[222] - Net cash used in operating activities was $89.1 million during the 2025 Period, an increase of $68.6 million compared to the Transition Period[223] - Net cash provided by financing activities was $254.5 million during the 2025 Period, an increase of $235.1 million compared to the Transition Period[226] Current Assets and Future Plans - Current assets totaled $226.9 million and cash was $167.9 million at December 31, 2025[227] - The company plans to continue scaling drone deliveries to the U.S. Army under the SRR program, which has significantly contributed to revenue growth[215]