Crimson Cat inventory plummets 12% on Q2 income miss, wider-than-feared loss

SAN JUAN, Puerto Rico – Crimson Cat Holdings, Inc. (NASDAQ:RCAT), a drone expertise firm, reported second-quarter fiscal 2025 outcomes that fell in need of analyst expectations, sending shares down 12.92% in after-hours buying and selling Monday.

The corporate posted income of $1.53 million for the quarter ended October 31, 2024, considerably under the consensus estimate of $4.13 million and down 61% YoY. Adjusted loss per share widened to $0.18, worse than the anticipated lack of $0.09 per share.

Crimson Cat attributed the income decline to its strategic choice to halt manufacturing of the Teal 2 drone and give attention to the Black Widow mannequin, which not too long ago received the U.S. Military’s Quick Vary Reconnaissance (SRR) Program of Document contract.

“We halted manufacturing of the Teal 2 to retool for the Black Widow, prioritizing long-term development over short-term income,” stated CEO Jeff Thompson. “This technique has confirmed profitable, enabling us to fulfill the calls for of the brand new Military contract and all different Black Widow gross sales and applications of document.”

Regardless of the weak quarter, Crimson Cat offered optimistic steering of $80-$120 million in income for calendar yr 2025, together with SRR-related gross sales. The corporate ended the quarter with $5.7 million in money and accounts receivable.

Crimson Cat additionally introduced a brand new partnership with Palantir Applied sciences (NASDAQ:PLTR) to combine visible navigation software program into its Black Widow drones, which it expects will enhance income per drone and improve gross margins.

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