Red Cat Holdings, Inc. (RCAT) delivered some eye-popping preliminary numbers on Tuesday, revealing that year-end sales jumped dramatically as the company scaled up production of unmanned aircraft and robotic systems for U.S. defense and national security customers.

The numbers tell quite a story. Red Cat expects fourth-quarter revenue to land between $24 million and $26.5 million for the period ended December 31, 2025. That compares to just $1.3 million in the same quarter a year earlier. For the full year, the company projects revenue of $38 million to $41 million, more than doubling the $15.6 million it recorded in 2024. The rapid expansion stems from program wins and significantly higher delivery volumes.

Execution and Demand

CEO Jeff Thompson attributed the results to strong operational execution. "These preliminary unaudited results for the fourth quarter and full year 2025 reflect strong execution across the business. This outperformance was driven by robust demand from defense and government customers, expanding program wins, and our ability to rapidly scale production to meet mission-critical requirements."

Looking forward, Thompson sees momentum continuing. "As we look ahead into 2026, we see continued growth, supported by an increased pipeline, improving operating leverage, and our expanding role as a trusted provider of next-generation unmanned systems."

Political Winds at Their Back

President Donald Trump's proposal to significantly boost U.S. military spending has amplified investor interest in domestic defense and drone manufacturers. The combination of expected higher defense budgets, regulatory scrutiny on Chinese drone makers, and escalating geopolitical tensions has elevated the strategic importance of U.S.-based unmanned systems providers. These factors are creating a powerful spending tailwind that keeps drone and robotics companies squarely in the spotlight.

RCAT Price Action: Red Cat Holdings shares were up 1.80% at $12.15 at the time of publication on Tuesday.