Red Cat Downgraded to Strong Sell by Zacks After Revenue Miss

Zacks Research downgraded Red Cat Holdings, Inc. from Hold to Strong Sell in a report issued Wednesday, October 14, 2026. The report signaled a bearish outlook on the drone technology company’s near-term prospects.

Red Cat reported quarterly revenue of $20.20 million. The consensus estimate was $22.65 million.

The company’s net margin was negative 136.26%. Its return on equity was negative 32.25%. These financial metrics likely contributed to the downgrade.

The report noted that corporate insiders own 12.50% of the company’s stock. It also cited recent insider sales.