Record $26.2M Quarter, Near Zero Gross Margin: The Red Cat Paradox

Record $26.2M Quarter, Near Zero Gross Margin: The Red Cat Paradox - 24/7 Wall St. S&P 5006,390.90 -1.67% Red Cat is trading at 42x price-to-sales despite negative profitability because investors are betting that scaling to $100M-$170M in revenue will dramatically improve unit economics and margins from production expansion already underway. Dow Jones45,279.20 -1.79% Nasdaq 10023,204.00 -1.92% Russell 20002,452.56 -2.11% FTSE 1009,953.00 -0.07% Nikkei 22551,717.00 -1.83% Stock Market Live March 27, 2026: ...