Red Cat Holdings reported its first-quarter 2025 earnings with revenue of approximately $1.63 million to $1.7 million, reflecting a 75% year-over-year decline and falling short of analyst estimates. The company posted a GAAP and adjusted loss per share of $0.27. Despite the weak quarterly results, Red Cat provided full-year revenue guidance between $80 million and $120 million, supported by military contracts. The company has strengthened its maritime domain capabilities by entering the autonomous maritime market through a partnership with USV to deploy battle-tested Unmanned Surface Vessels (USVs). Additionally, Red Cat announced a collaboration with Palantir Technologies on the Warp Speed operating system. The company holds $9.3 million in cash and receivables and secured $30 million in funding after the quarter ended. Following the earnings release, Red Cat's stock experienced volatility, rising 6.6% in pre-market trading before declining 9.6% as investors digested the earnings miss and revenue shortfall.