Forensic Analysis · Technology / Software · as of Aug 10, 2026
Red Cat Holdings, Inc. (RCAT)
A forensic read on Red Cat Holdings, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Grey Zone
Financial health
13.7
Distress distance
Clean
Earnings quality
6
Forensic signals
-12.1
P / E (ttm)
-29.3%
ROE
$1.5B
Market cap
0.00%
Dividend yield
742.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Red Cat Holdings, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 13.7, placing it in the Grey zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+131.9%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +131.9% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +5249% on the year and PP&E up +315% on the year. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by 12% of net operating assets.
26% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 26% of revenue in FY2025 — about $0.11 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 26.3% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
-$136.1M
FY2022, FY2023, and FY2025
Cash burn vs. reported loss.Over FY2022, FY2023, and FY2025, the company reported a cumulative net loss of $124.2M against operating cash flow of -$136.1M. Cash burn ran heavier than the reported loss — something outside net income (working capital, a cash item not in the P&L) is consuming cash faster than the loss alone implies.
234d DSO
FY2023→FY2025
Receivables vs revenue.Days sales outstanding moved from 89 to 234 days FY2023→FY2025 (receivables +500% vs revenue +128%). Receivables grew, but deferred revenue grew +384% over the same period too — rising alongside rising unearned revenue reads as upfront billing on multi-period contracts, not slipping collections. FY2023 and FY2025 aren't consecutive filed years here, so FY2025's opening balance can't be taken from FY2023 — both figures are measured on period-end balances rather than the beginning-plus-ending average, which keeps the two endpoints comparable to each other.
Key fundamentals
Latest Revenue$40.7M
Revenue CAGR (3yr)+125.8%
Net Margin-177.0%
Free Cash Flow-$95.8M
Return on Equity-29.3%
Debt / Equity0.00x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Red Cat Holdings, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 10, 2026. Forensic signals flag probability, not certainty.
217d
FY2023→FY2025
Inventory days.Days inventory outstanding moved from 206 to 217 FY2023→FY2025 (against cost of goods sold; inventory +193% vs +179% in cost of sales). Inventory is building a little faster than sales — watch for markdowns. FY2023 and FY2025 aren't consecutive filed years here, so FY2025's opening balance can't be taken from FY2023 — both figures are measured on period-end balances rather than the beginning-plus-ending average, which keeps the two endpoints comparable to each other.
n/m (stock split)
FY2017–FY2025
Share count (stock split).Diluted share count changed +42% over the last 8 years to FY2025, but that includes a large one-time change around FY2018 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw +4.5%/yr figure isn't a real buyback/dilution read here.
Red Cat Holdings, Inc. (RCAT) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy